Prairie Operating initiated with a Sector Weight at KeyBanc

KeyBanc analyst Tim Rezvan initiated coverage of Prairie Operating (PROP) with a Sector Weight rating and no price target The company, created through several acquisitions of producing assets and undeveloped acreage, used the acquisition of a micro cap crypto company’s public shell in 2023 to become public, noted the analyst. The founders, who run the company, expect to organically grow with a one-rig drilling program in 2025-2026, which underpins the production growth in the firm’s model, the analyst added. The firm sees “a chicken-or-egg conundrum” for Prairie on whether to enter into M&A now with a low trading multiple to re-rate the equity, or wait for the equity to re-rate before entering into more deals.