Exhibit 99.1

Prairie Operating Co. Announces Second Quarter 2026 Results
 
Houston, Texas, August 17, 2026 (GLOBE NEWSWIRE) — Prairie Operating Co. (Nasdaq: PROP) (the “Company,” “Prairie,” “we,” “our,” or “us”) – an independent energy company engaged in the development and acquisition of oil, natural gas, and natural gas liquids (“NGL”) resources in the Denver-Julesburg (DJ) Basin – today announced its financial and operational results for the quarter ended June 30, 2026.
 
Second Quarter 2026 Results Summary

  •
Produced 2.0 MMBoe, or approximately 21,866 Boe/d, with 72% liquids (50% oil).
  •
Revenue of $98.9 million, an increase of approximately 45% year-over-year.
  •
Reported net income attributable to Prairie Operating Co. common stockholders of $193.8 million, or $1.75 basic earnings per share and $0.23 diluted earnings per share.
  •
Generated Adjusted EBITDA(1) of $34.0 million.
  •
Capital expenditures of $98.5 million.
  •
Net cash provided by operating activities of $52.0 million.

Key Highlights for Year-to-Date 2026

  •
Total production of 4.1 MMBoe, or approximately 22,500 Boe/d, with 72% liquids (49% oil).
  •
Daily production of approximately 27,000 Boe/d throughout the month of August.
  •
Total revenue of $182.3 million, an increase of 125% year-over-year.
  •
Adjusted EBITDA(1) of $71.1 million, an increase of 65% year-over-year.
  •
Continued execution with recently drilled wells coming in below AFE.
  •
Active hedging program, securing commodity price protection through the second quarter of 2029.
  •
Executed partial refinancing of the Series F Preferred Stock in April, reducing outstanding balance and significantly lowering warrant-related dilution, while extending the Anniversary warrant date to August 31, 2026.

(1) Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.
 
Greg Patton, Chief Executive Officer, commented:
 
“Prairie delivered strong operational progress during the second quarter and throughout the first half of 2026. Our team continued to improve drilling performance, execute within budget and advance our development program across multiple pads in the DJ Basin, despite a planned pause in activity related to seasonal operating restrictions. We also achieved several important technical milestones, including successfully drilling our first three-mile lateral and testing a new wellbore design that demonstrated meaningful cost savings without changing the completion or production configuration.”

“These achievements reflect the continued improvement of our operating capabilities. As we move into the second half of the year, we remain focused on safe and consistent execution, applying proven efficiencies across our development program and allocating capital to the opportunities that generate the strongest returns. We believe this disciplined approach will support sustainable production growth, improved capital efficiency and long-term value creation for our shareholders.”
 
Michael Shelly, Executive Vice President and Chief Financial Officer, added:
 
“Prairie continued to strengthen its financial position and generated meaningful operating cash flow while continuing to fund an active capital program, expanded our commodity hedge portfolio to provide greater visibility and coverage of our future cash flows and made important progress simplifying our capital structure and reducing potential shareholder dilution.”
 
“As we move through the remainder of the year, our financial priorities remain centered on disciplined capital allocation, building liquidity and strengthening the balance sheet. We will continue to align capital spending with operating performance, pursue opportunities to enhance financial flexibility and support the Company’s development program in a manner designed to generate sustainable free cash flow through a range of commodity-price environments.”

Erik Thoresen, Chairman of the Board, concluded:

“During the second quarter, Prairie took several important steps to strengthen its leadership, governance and financial position. We added key members to the management team and reinvigorated the Board by welcoming a new director whose experience and perspectives will enhance our oversight and strategic decision-making.”

“These actions reflect the Board’s commitment to a strong alignment with management and shareholders. Together, we remain focused on disciplined execution, prudent capital allocation and continued cost improvement, all with the objective of creating sustainable, long-term shareholder value.”

Operations Update
 
Prairie maintained strong drilling execution during the second quarter of 2026, drilling 12 wells, including two Codell and ten Niobrara wells. Eight of the 12 wells were drilled in a single run, and all wells were completed below AFE. The wells consisted of two-and three-mile laterals and averaged approximately 19,100 feet in measured depth, with an average rate of penetration of 390 feet per hour and an average spud-to-rig-release time of 6.65 days.

During the quarter, Prairie successfully drilled its first three-mile lateral, a Niobrara B well, in a single run and completed drilling operations at the Burnett Pad. Drilling operations at the Castor pad were subsequently completed during the first month of the third quarter. Second-quarter drilling activity included a planned pause between the Opal Coalbank and Burnett pads to accommodate seasonal restrictions associated with Colorado Parks and Wildlife.

On the Castor pad, Prairie completed two successful trials utilizing a 7-7/8-inch hole design, compared with the Company’s standard 8-1/2-inch design. The trials generated realized savings and utilized the same 5-1/2-inch production casing. As such, it does not alter the delivered well configuration for completion or production purposes. Based on these results, Prairie plans to deploy the smaller hole design across a significant portion of its upcoming Niobrara development program.

Year to date, Prairie has drilled 27 wells, including six Codell and 21 Niobrara wells, with 19 wells drilled in a single run. On average, the wells were delivered below AFE. Year-to-date wells averaged approximately 18,700 feet in measured depth, an average rate of penetration of 377 feet per hour and an average spud-to-rig-release time of 6.2 days. Prairie has completed drilling operations at the Elder, Opal Coalbank, Burnett and Castor pads during 2026.

Second Quarter 2026 Results

Key Financial Highlights

(In thousands, except per share amounts)
  
Three Months Ended June 30, 2026
  
Total revenues
  
$
98,859
  
Net income attributable to Prairie Operating Co. common stockholders
  
$
193,794
  
Earnings per share – basic
  
$
1.75
  
Earnings per share – diluted
  
$
0.23
  
Adjusted EBITDA
  
$
34,010
  
Capital expenditures (1)
  
$
98,489
  
 
 (1)
Excludes $12.4 million of capital costs included in accounts payable and accrued expenses as of June 30, 2026.

Revenue and Production
 
Revenue for the second quarter of 2026 was $98.9 million, including $93.5 million related to oil. Production for the second quarter of 2026 totaled 1,990 MBoe, or 21,866 Boe/d, and was comprised of approximately 50% oil and 72% liquids.

 
  
Three Months Ended June 30, 2026
  
Revenues (in thousands)
      
Oil revenue
  
$
93,458
  
Natural gas revenue (1)
    
(4,292
)
NGL revenue
    
9,693
  
Total revenues
  
$
98,859
  
 
        
Production:
        
Oil (MBbls)
     992  
Natural gas (MMcf)
    
3,299
  
NGL (MBbls)
    
448
  
Total production (MBoe) (2)
    
1,990
  
 
        
Average sales volumes per day (Boe/d)
    
21,866
  
 
        
Average realized price (excluding effects of derivatives):
        
Oil (per Bbl)
  
$
94.21
  
Natural gas (per Mcf) (1)
  
$
(1.30
)
NGL (per Bbl)
  
$
21.64
  
Average realized price (per Boe)
  
$
49.68
  
 
        
Average sales price (including effects of derivatives):
        
Oil (per Bbl)
  
$
59.79
  
Natural gas (per Mcf) (1)
  
$
(0.20
)
NGL (per Bbl)
  
$
16.72
  
Average price (per Boe)
  
$
33.25
  
 
        
Average NYMEX prices:
        
WTI (per Bbl)
  
$
84.29
  
Henry Hub (per MBtu)
  
$
3.81
  

(1)
For the three months ended June 30, 2026, we realized negative natural gas revenue and average realized prices (excluding and including the effects of derivatives) due to lower gross sales, driven by decreased pricing during the quarter, compared to gathering and processing fees.
(2)
MBoe is calculated using six MMcf of natural gas equivalent to one MBbl of oil.
 
Operating Costs

For the second quarter of 2026, lease operating expenses were $13.6 million, or $6.85 per Boe; transportation and processing expenses were $2.4 million, or $1.22 per Boe; ad valorem and production taxes were $8.0 million, or $4.01 per Boe; and general and administrative expenses were $12.0 million, or $6.01 per Boe.

(In thousands, except per Boe amounts)
  
Three Months Ended June 30, 2026
  
Lease operating expenses
  
$
13,628
  
Lease operating expenses per Boe
  
$
6.85
  
 
        
Gathering, transportation, and processing
  
$
2,426
  
Gathering, transportation, and processing per Boe
  
$
1.22
  
 
        
Ad valorem and production taxes
  
$
7,983
  
Ad valorem and production taxes per Boe
  
$
4.01
  
 
        
General and administrative expenses(1)
  
$
11,952
  
General and administrative expenses per Boe
  
$
6.01
  

(1)
General and administrative expenses for the three months ended June 30, 2026, includes non-cash stock-based compensation of $3.3 million, or $1.66 per Boe, and non-recurring litigation and severance settlement expenses of $0.8 million, or $0.41 per Boe.

Liquidity and Capital Resources
 
As of June 30, 2026, we had a working capital deficit of approximately $125.5 million and availability of $39.0 million under the reserve-based credit agreement with Citibank, N.A. (the “Credit Facility”). As of June 30, 2026, the Credit Facility had a borrowing base of $475.0 million and aggregate elected commitments of $475.0 million.
 
During the six months ended June 30, 2026, our cash expenditures for the development of oil and natural gas properties totaled $132.6 million, with an additional $12.4 million incurred in accounts payable and accrued expenses.

On August 14, 2026, we entered into an amendment to our Credit Facility agreement which, among other things, modifies the Current Ratio covenant requirements for the quarters ended June 30, 2026 through December 31, 2026. Additionally, the amendment includes a new covenant which requires our net monthly production to not fall below an average number specified in the agreement, which will be measured on a rolling three-month average, beginning September 30, 2026. After giving effect to the amendment, we are in compliance with all covenants under the Credit Facility as of June 30, 2026.

Adjusting 2026 Guidance
 
Prairie adjusts full-year guidance for 2026 as follows:

•
Average Daily Production: 23,000 – 25,000 Boe/d.
•
Capital Expenditures: $185.0 million – $195.0 million.
•
Adjusted EBITDA(1): $180.0 million – $190.0 million.
 
(1) Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.
 
Commodity Hedges
 
As of June 30, 2026, we had the following outstanding crude oil and natural gas derivative contracts in place, which settle monthly and are indexed to NYMEX West Texas Intermediate, NYMEX Henry Hub, and Mont Belvieu OPIS, respectively:
 
 
  
Settling
July 1, 2026
through
December 31,
2026
    
Settling
January 1,
2027
through
December 31,
2027
    
Settling
January 1,
2028
through
December 31,
2028
    
Settling
January 1,
2029
through
December 31,
2029
  
Crude Oil Swaps:
                        
Notional volume (Bbls)
    
2,651,848
      
4,662,503
      
2,862,307
      
210,000
  
Weighted average price ($/Bbl)
  
$
63.09
    
$
62.51
    
$
62.17
    
$
61.57
  
Natural Gas Swaps:
                                
Notional volume (MMBtus)
    
7,584,322
      
14,082,126
      
5,606,357
      
400,000
  
Weighted average price ($/MMBtu)
  
$
4.08
    
$
4.08
    
$
4.02
    
$
4.11
  
Ethane Swaps:
                                
Notional volume (Bbls)
    
215,747
      
400,675
      
220,109
      
—
  
Weighted average price ($/Bbl)
  
$
11.22
    
$
10.70
    
$
9.96
    
$
—
  
Propane Swaps:
                                
Notional volume (Bbls)
    
293,113
      
522,684
      
199,160
      
—
  
Weighted average price ($/Bbl)
  
$
28.69
    
$
26.85
    
$
25.93
    
$
—
  
Iso Butane Swaps:
                                
Notional volume (Bbls)
    
41,114
      
74,572
      
35,088
      
—
  
Weighted average price ($/Bbl)
  
$
35.41
    
$
31.77
    
$
30.77
    
$
—
  
Normal Butane Swaps:
                                
Notional volume (Bbls)
    
103,276
      
184,140
      
74,903
      
—
  
Weighted average price ($/Bbl)
  
$
35.81
    
$
31.95
    
$
30.36
    
$
—
  
Pentane Plus Swaps:
                                
Notional volume (Bbls)
    
86,958
      
160,242
      
78,806
      
—
  
Weighted average price ($/Bbl)
  
$
55.12
    
$
53.31
    
$
52.81
    
$
—
  
 
Non-GAAP Financial Measures
 
This press release contains Adjusted EBITDA which is a financial measure not presented in accordance with U.S. GAAP. Adjusted EBITDA is used by management to evaluate the performance of our business, make operational decisions, and assess our ability to generate cashflows. Management believes Adjusted EBITDA provides investors with helpful information to better understand the underlying performance trends of our business, facilitate period-to-period comparisons, and assess the company’s operating results.
 
Adjusted EBITDA is derived from net income (loss) attributable to Prairie Operating Co. and is adjusted for depreciation, depletion, and amortization, abandonment and impairment of unproved properties, non-cash stock-based compensation, interest expense, net, unrealized (gain) loss on derivatives, non-cash (gain) loss on adjustment to fair value – financial instrument liabilities, litigation and severance settlement expense, and income tax expense (benefit), all as applicable. We adjust net income (loss) attributable to Prairie Operating Co. for the items listed above to arrive at Adjusted EBITDA because these amounts can vary substantially between periods and companies within our industry depending upon accounting methods, book values of assets, capital structures, and the method by which assets were acquired. Adjusted EBITDA has limitations as an analytical tool, including that it excludes certain items that affect our reported financial results. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income calculated in accordance with GAAP or as an indicator of our operating performance or liquidity. Additionally, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies.

The following table presents the reconciliation of Net income (loss) attributable to Prairie Operating Co. to Adjusted EBITDA for the periods indicated:
 
 
  
Three Months Ended June 30,
    
Six Months Ended June 30,
  
 
  
2026
    
2025
    
2026
    
2025(1)
  
 
  
(In thousands)
  
Net income (loss) attributable to Prairie Operating Co.
  
$
109,017
    
$
35,683
    
$
(43,656
)
  
$
33,066
  
Adjustments:
                                
Depreciation, depletion, and amortization
    
17,075
      
12,265
      
32,919
      
14,386
  
Abandonment and impairment of unproved properties (2)
    
196
      
—
      
608
      
—
  
Non-cash stock-based compensation
    
3,307
      
2,419
      
9,040
      
3,786
  
Interest expense, net
    
9,805
      
9,030
      
17,935
      
10,336
  
Unrealized (gain) loss on derivatives
    
(77,779
)
    
(23,206
)
    
85,104
      
(23,090
)
Non-cash (gain) loss on adjustment to fair value – financial instrument liabilities (3)
    
(48,233
)
    
2,373
      
(16,382
)
    
4,537
  
Litigation and severance settlement expense
    
808
      
—
      
4,154
      
—
  
Income tax expense (benefit) (4)
    
19,814
      
—
      
(18,580
)
    
—
  
Adjusted EBITDA
  
$
34,010
    
$
38,564
    
$
71,142
    
$
43,021
  

(1)
Net income attributable to Prairie Operating Co. for the six months ended June 30, 2025 includes revenue and related expenses attributable to the assets acquired from Bayswater beginning on March 26, 2025, the closing date of the Bayswater Acquisition, through June 30, 2025.
(2)
Reflects the abandonment of unproved locations which we have deemed non–core and allowed to expire.
(3)
Reflects the changes in the fair values of the financial instruments measured at fair value on a recurring basis.
(4)
Reflects the deferred income tax expense and benefit recognized for the three and six months ended June 30, 2026, respectively.
 
The following table presents the reconciliation of expected full-year 2026 Net income attributable to Prairie Operating Co. to expected full-year 2026 Adjusted EBITDA:
 
 
  
Full-year 2026 Guidance Range
  
 
  
(In thousands)
  
Net income attributable to Prairie Operating Co.
  
$
18,000
    
$
28,000
  
Adjustments:
                
Depreciation, depletion, and amortization
    
52,000
      
52,000
  
Non-cash stock-based compensation
    
18,000
      
18,000
  
Interest expense, net
    
36,000
      
33,000
  
Unrealized loss on derivatives
    
(60,000
)
    
(60,000
)
Non-cash loss on adjustment to fair value – financial instrument liabilities(1)
    
96,000
      
96,000
  
Income tax expense (2)
    
20,000
      
23,000
  
Adjusted EBITDA
  
$
180,000
    
$
190,000
  
 
(1)
Reflects the changes in the fair values of the financial instruments measured at fair value on a recurring basis.
(2)
Reflects deferred income tax expense.

Cautionary Statement about Forward-Looking Statements
 
The information included in this press release and in any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, without limitation, statements regarding future financial performance, business strategies, expansion plans, future results of operations, estimated revenues, losses, projected costs, prospects, plans and objectives of management. These forward-looking statements are based on our management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “continue,” “project” or the negative of such terms or other similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained herein are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.
 
These risks are not exhaustive. Other sections of this press release could include additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for our management to predict all risk factors nor can we assess the effects of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in, or implied by, any forward-looking statements. Our Securities and Exchange Commission (the “SEC”), filings are available publicly on the SEC website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Accordingly, forward-looking statements in this press release should not be relied upon as representing our views as of any subsequent date, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
 
All forward-looking statements expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement.
 
Regulation FD Disclosure
 
The Company announces material information to the public through a variety of means, including filings with the SEC, press releases, public conference calls, and the investor relations section of its website at www.prairieopco.com.
 
In addition to these traditional channels, the Company also uses its official social media accounts as a means of disclosing information about Prairie and its business, and to comply with its disclosure obligations under Regulation FD. The Company’s official social media accounts currently include @PrairieOpCo on X (formerly Twitter) and linkedin.com/company/prairie-operating-co on LinkedIn. Information the Company posts through these social media channels may be deemed material. Accordingly, investors, the media, and others interested in the Company should monitor these accounts in addition to following the Company’s press releases, SEC filings, and public conference calls and webcasts. The Company may update the list of official social media accounts from time to time, and any such updates will be posted on the investor relations section of its website.
 
About Prairie Operating Co.
 
Prairie Operating Co. is a Houston-based publicly traded independent energy company engaged in the development and acquisition of oil, natural gas, and natural gas liquid resources in the United States. The Company’s assets and operations are concentrated in the oil and liquids-rich regions of the Denver-Julesburg (DJ) Basin, with a primary focus on the Niobrara and Codell formations. The Company is committed to the responsible development of its oil natural gas, and natural gas liquid resources and is focused on maximizing returns through consistent growth, capital discipline, and sustainable cash flow generation.
 
More information about the Company can be found at www.prairieopco.com.
 
Investor Relations Contact:
 
Wobbe Ploegsma
 
info@prairieopco.com
 
720-716-5415
 
Prairie Operating Co. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share amounts)
 
 
  
June 30,
2026
    
December 31,
2025
  
Assets
            
Current assets:
            
Cash and cash equivalents
  
$
21
    
$
20
  
Oil, natural gas, and NGL accrued revenue
    
28,737
      
22,728
  
Joint interest and other receivables
    
7,234
      
23,106
  
Derivative assets, net
    
—
      
28,812
  
Inventory
    
4,220
      
3,604
  
Prepaid expenses and other current assets
    
1,689
      
1,452
  
Total current assets
    
41,901
      
79,722
  
 
                
Property and equipment:
                
Oil and natural gas properties, successful efforts method of accounting including $101,499 and $57,897 excluded from depletable base as of June 30, 2026 and December 31, 2025, respectively
    
1,007,985
      
852,732
  
Other property and equipment
    
21,604
      
21,067
  
Less: Accumulated depreciation, depletion, and amortization
    
(82,098
)
    
(49,343
)
Total property and equipment, net
    
947,491
      
824,456
  
Derivative assets, net
    
—
      
24,627
  
Debt issuance costs, net
    
12,688
      
12,642
  
Operating lease assets
    
2,966
      
2,966
  
Other non–current assets
    
167
      
133
  
Total assets
  
$
1,005,213
    
$
944,546
  
 
                
Liabilities, Mezzanine Equity, and Stockholders’ Equity
                
Current liabilities:
                
Accounts payable and accrued expenses
  
$
92,729
    
$
62,792
  
Oil, natural gas, and NGL revenue payable
    
21,115
      
30,300
  
Ad valorem and production taxes payable
    
35,074
      
31,385
  
Derivative liabilities, net
    
16,954
      
—
  
Operating lease liabilities
    
1,543
      
1,300
  
Total current liabilities
    
167,415
      
125,777
  
 
                
Long–term liabilities:
                
Credit facility
    
436,000
      
366,000
  
Subordinated note – related party
    
1,458
      
1,458
  
Series F convertible preferred stock embedded derivatives, at fair value
    
12,262
      
15,853
  
Series F convertible preferred stock warrants, at fair value
    
9,492
      
90,134
  
Incremental share right liability, at fair value
    
15,264
      
—
  
Derivative liabilities, net
    
14,711
      
—
  
Oil, natural gas, and NGL revenue payable
    
39,582
      
27,402
  
Ad valorem and production taxes payable
    
33,411
      
22,751
  
Deferred tax liability
    
3,072
      
21,652
  
Asset retirement obligation
    
3,781
      
4,019
  
Operating lease liabilities
    
1,544
      
1,792
  
Other long-term liabilities
    
1,026
      
1,398
  
Total long–term liabilities
    
571,603
      
552,459
  
Total liabilities
    
739,018
      
678,236
  
 
                
Commitments and contingencies
                
 
                
Mezzanine equity:
                
Series F convertible preferred stock; $0.01 par value; 50,000,000 shares authorized, and 78,000 and 121,050 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
    
43,224
      
136,146
  
 
                
Stockholders’ equity:
                
Series D convertible preferred stock; $0.01 par value; 50,000 shares authorized, and 44 and 5,982 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
    
—
      
—
  
Common stock; $0.01 par value; 500,000,000 shares authorized, and 105,828,010 and 62,499,375 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
    
1,060
      
625
  
Treasury stock, at cost; 715,955 and 111,357 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
    
(1,778
)
    
(531
)
Additional paid–in capital
    
355,060
      
217,785
  
Accumulated deficit
    
(131,371
)
    
(87,715
)
Total stockholders’ equity
    
222,971
      
130,164
  
Total liabilities, mezzanine equity, and stockholders’ equity
  
$
1,005,213
    
$
944,546
  

Prairie Operating Co. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share amounts)

 
  
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
 
  
2026
    
2025
    
2026
    
2025
  
Revenues:
                        
Crude oil, natural gas, and NGL revenues
  
$
98,859
    
$
68,100
    
$
182,276
    
$
80,915
  
 
                                
Operating expenses:
                                
Lease operating expenses
    
13,628
      
11,348
      
28,469
      
13,361
  
Transportation and processing expenses
    
2,426
      
2,234
      
4,922
      
2,367
  
Ad valorem and production taxes
    
7,983
      
6,416
      
14,775
      
7,374
  
Depreciation, depletion, and amortization
    
17,075
      
12,265
      
32,919
      
14,386
  
Exploration expenses
    
243
      
458
      
541
      
745
  
Abandonment and impairment of unproved properties
    
196
      
—
      
608
      
—
  
General and administrative expenses
    
11,952
      
16,443
      
28,838
      
21,995
  
Total operating expenses
    
53,503
      
49,164
      
111,072
      
60,228
  
 
                                
Other income (expenses):
                                
Interest expense
    
(10,033
)
    
(9,124
)
    
(18,230
)
    
(10,502
)
Gain (loss) on derivatives, net
    
45,079
      
28,150
      
(131,981
)
    
27,252
  
Gain (loss) on adjustment to fair value – financial instrument liabilities
    
48,233
      
(2,373
)
    
16,382
      
(4,537
)
Interest income and other
    
196
      
94
      
389
      
166
  
Total other income (expenses)
    
83,475
      
16,747
      
(133,440
)
    
12,379
  
 
                                
Income (loss) from operations before income taxes
    
128,831
      
35,683
      
(62,236
)
    
33,066
  
Income tax (expense) benefit
    
(19,814
)
    
—
      
18,580
      
—
  
Net income (loss) attributable to Prairie Operating Co.
    
109,017
      
35,683
      
(43,656
)
    
33,066
  
Series F preferred stock declared dividends
    
(2,598
)
    
(3,289
)
    
(6,268
)
    
(3,289
)
Series F preferred stock undeclared dividends
    
186
      
(1,402
)
    
(780
)
    
(1,647
)
Remeasurement of Series F preferred stock
    
87,189
      
17,511
      
70,101
      
(73,101
)
Net income (loss) attributable to Prairie Operating Co. common stockholders
  
$
193,794
    
$
48,503
    
$
19,397
    
$
(44,971
)
 
                                
Earnings (loss) per common share
                                
Basic earnings (loss) per share
  
$
1.75
    
$
1.04
    
$
0.21
    
$
(1.27
)
Diluted earnings (loss) per share
  
$
0.23
    
$
0.18
    
$
(0.41
)
  
$
(1.27
)
Weighted average common shares outstanding
                                
Basic
    
107,141,123
      
44,063,281
      
87,711,102
      
35,477,691
  
Diluted
    
185,590,890
      
198,365,207
      
183,000,521
      
35,477,691
  

Prairie Operating Co. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
 
 
  
Six Months Ended June 30,
  
 
  
2026
    
2025
  
Cash flows from operating activities:
            
Net (loss) income attributable to Prairie Operating Co.
  
$
(43,656
)
  
$
33,066
  
Adjustments to reconcile net (loss) income attributable to Prairie Operating Co. to net cash provided by operating activities
                
Depreciation, depletion, and amortization
    
32,919
      
14,386
  
Abandonment and impairment of unproved properties
    
608
      
—
  
Stock–based compensation
    
9,040
      
3,722
  
Unrealized loss (gain) on derivatives
    
85,104
      
(23,090
)
(Gain) loss on adjustment to fair value – financial instrument liabilities
    
(16,382
)
    
4,537
  
Deferred income taxes
    
(18,580
)
    
—
  
Amortization of deferred financing costs
    
1,899
      
2,940
  
Changes in operating assets and liabilities:
                
Oil, natural gas, and NGL accrued revenue
    
(6,010
)
    
(43,699
)
Joint interest and other receivables
    
15,872
      
1,152
  
Inventory, prepaid expenses, and other current assets
    
(531
)
    
(3,461
)
Accounts payable, accrued expenses, and other current liabilities
    
16,630
      
16,175
  
Revenue, ad valorem, and production taxes payable
    
17,343
      
3,994
  
Net cash provided by operating activities
    
94,256
      
9,722
  
 
                
Cash flows from investing activities:
                
Development of oil and natural gas properties
    
(132,563
)
    
(53,973
)
Other asset and leasehold purchases
    
(11,336
)
    
(950
)
Cash paid for Bayswater asset purchase, net of cash received

—


(467,461
 )
Cash received from payment on note receivable
    
—
      
95
  
Net cash used in investing activities
    
(143,899
)
    
(522,289
)
 
                
Cash flows from financing activities:
                
Borrowings on the Credit Facility
    
134,000
      
359,000
  
Repayments on the Credit Facility
    
(64,000
)
    
—
  
Debt issuance costs associated with the Credit Facility
    
(1,945
)
    
(15,670
)
Proceeds from the issuance of Common Stock
    
1,841
      
43,817
  
Financing costs associated with the issuance of Common Stock
    
(46
)
    
(3,311
)
Proceeds from the issuance of Series F Preferred Stock
    
—
      
148,250
  
Financing costs associated with the issuance of Series F Preferred Stock
    
—
      
(11,059
)
Redemption of Series F Preferred Stock
    
(18,999
)
    
—
  
Payments of the Subordinated Note – related party
    
—
      
(3,214
)
Proceeds from option exercises
    
40
      
633
  
Treasury stock repurchased
    
(1,247
)
    
(418
)
Net cash provided by financing activities
    
49,644
      
518,028
  
 
                
Net increase in cash and cash equivalents
    
1
      
5,461
  
Cash and cash equivalents, beginning of the period
    
20
      
5,192
  
Cash and cash equivalents, end of the period
  
$
21
    
$
10,653
  

Supplemental Disclosures of Cash Flow Information
 
The following table presents non–cash investing and financing activities for the periods presented:

 
  
Six Months Ended June 30,
  
 
  
2026
    
2025
  
 
  
(In thousands)
  
Non–cash investing activities:
            
Increase in capital expenditure accrued liabilities and accounts payable
  
$
12,441
    
$
15,692
  
 
                
Non–cash financing activities:
                
Common Stock issued upon conversion of Series F Preferred Stock
  
$
45,858
    
$
 4,772  
Common Stock issued for Series F Preferred Stock dividends (1)
  
$
6,014
    
$
 3,289  
Common Stock issued to Bayswater as part of Bayswater Acquisition purchase price (2)
  
$
—
    
$
16,000
  
Common Stock issuance costs included in accrued liabilities
  
$
—
    
$
292
  
Bayswater transaction costs included in accrued liabilities
  
$
—
    
$
6,035
  
Series F Preferred Stock agreement amendment fees and issuance costs included in accrued liabilities and accounts payable
  
$
381
    
$
1,113
  
Common Stock issued upon conversion of Series D Preferred Stock
  
$
33
    
$
8,475
  
Common Stock issued upon option exercise
  
$
42
    
$
—
  
Common Stock issued upon conversion of Senior Convertible Note (3)
  
$
—
    
$
18,164
  

(1)
The Company elected to issue shares of the Company’s common stock, par value $0.01 per share (“Common Stock”) for the Series F Preferred Stock dividends payable on June 1, 2025, March 1, 2026, and June 1, 2026.
(2)
The Company issued approximately 3.7 million shares of Common Stock to Bayswater Resources, LLC, Bayswater Fund III–A, LLC, Bayswater Fund III–B, LLC, Bayswater Fund IV–A, LP, Bayswater Fund IV–B, LP, Bayswater Fund IV–Annex, LP, and Bayswater Exploration & Production, LLC (collectively, “Bayswater”) as part of the Bayswater acquisition.
(3)
During the six months ended June 30, 2025, YA II PN, LTD. converted the remaining $11.3 million of the initial $15.0 million convertible promissory note in exchange for 2.1 million shares of Common Stock.