Prairie Operating Co. Shares Surge 53% Following 2025 Guidance Announcement

GuruFocus.com
17 Jan

Rising 53.02% to end at $7.72 on Wednesday after the company's operational and financial forecast for 2025, Prairie Operating Co. (PROP, Financials) highlights a projected 300% year-over-year output growth.

  • Warning! GuruFocus has detected 3 Warning Signs with PROP.

With daily output in 2025 expected to range between 7,000 and 8,000 barrels of oil equivalent per day (BOEPD), the Houston-based energy business The business ascribed this increase to its emphasis on high-return drilling prospects in the Denver-Julesburg Basin, where capital expenditures are expected to run between $120 and 130 million.

Supported by improved operating efficiency and higher output, Prairie projected net profits for the year between $69 million and $102 million. Projected to be between $100 million and $140 million is Adjusted EBITDA. Under leadership stressing these efforts as fundamental to producing shareholder value, the business intends to drill and finish 2528 wells throughout 2025.

Executives pointed out that the company's valuationwhich they believe to be one times expected 2025 EBITDAshowcases its growth potential. They also said Prairie is aggressively looking for acquisition prospects to increase its size and would change direction as needed after the closing of such agreements.

One important indicator of operational effectiveness and cash flow creation in the corporation was its modified EBITDA, a non-GAAP financial assessment.

This article first appeared on GuruFocus.

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