Prairie Operating Co (PROP) AI Stock Analysis

• Market Cap: $108.60M
• Dividend Yield: N/A
• Average Volume (3M): 2.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 6459.14%
• EPS Growth: 60.55%
• Country: US
• Employees: 19
• Sector: Energy
• Sector Strength: 46
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 50,277,744
• 10 Day Avg. Volume: 3,250,557
• 30 Day Avg. Volume: 2,234,298
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 10.49
• Enterprise Value/Revenue: 12.71
• Enterprise Value/Gross Profit: 23.59
• Enterprise Value/Ebitda: 31.55
• 1Y Price Target: $6.30
• Price Target Upside: 187.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 38 Underperform
• Price Target: $2.50 ▲(14.16% Upside)

Prairie Operating Co's overall stock score is primarily impacted by its financial performance, which is hindered by significant profitability and cash flow challenges despite strong revenue growth. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold conditions. The valuation is unattractive due to a negative P/E ratio and absence of a dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Cost Efficiency

The company's cost structure is generally below its peers, providing a competitive edge in the market.

Financial Performance

Prairie Operating Co. benefits from high production growth and a strong financial position, which are key reasons for the Buy recommendation.

Negative Factors

Earnings

The downgrade to Neutral is due to surprisingly poor 2Q25 results and high dilution associated with the Series F preferred offering.

Operational Performance

The company's production in 2Q25 fell short of expected levels despite ongoing operations.

Project Returns

Well costs were above previously assumed levels, leading to lower project returns in the current commodity price environment.

Prairie Operating Co Business Overview & Revenue Model

Company Description

Prairie Operating Co (PROP) is an energy company focused on the exploration, development, and production of oil and natural gas resources in North America. The company operates primarily within the upstream sector of the energy industry, leveraging advanced technologies and strategic partnerships to optimize resource extraction and enhance operational efficiency. PROP's core services include drilling, production management, and resource evaluation, catering to both conventional and unconventional energy markets.

How the Company Makes Money

Prairie Operating Co generates revenue primarily through the sale of crude oil and natural gas. The company engages in exploration and production activities to locate and extract hydrocarbon resources, which are then sold to refineries, distributors, and other industrial customers. Key revenue streams include direct sales of oil and gas, as well as royalties from leased land. Additionally, PROP may enter into joint ventures or partnerships with other energy companies to share resources and reduce operational costs, further contributing to its earnings. Fluctuations in global energy prices, regulatory changes, and production levels significantly impact the company's profitability.

Prairie Operating Co Financial Statement Overview

Summary

Prairie Operating Co exhibits strong revenue growth but faces significant challenges in profitability and cash flow management. The balance sheet shows moderate leverage, but the negative return on equity highlights inefficiencies in generating returns. Overall, the company needs to focus on improving profitability and cash flow generation to enhance its financial health.

Income Statement

Prairie Operating Co has shown a significant revenue growth rate of 773.84% in the latest year, indicating a strong top-line expansion. However, the company is struggling with profitability, as evidenced by negative net profit, EBIT, and EBITDA margins. The gross profit margin is positive at 60.36%, but the overall profitability remains a concern due to substantial net losses.

Balance Sheet

The company has a moderate debt-to-equity ratio of 0.88, suggesting a balanced approach to leveraging. However, the return on equity is negative, indicating that the company is not generating profit from its equity base. The equity ratio stands at 33.71%, reflecting a reasonable proportion of equity in the asset structure, but the negative ROE is a significant drawback.

Cash Flow

Prairie Operating Co's cash flow situation is challenging, with negative operating and free cash flows. The free cash flow growth rate is positive at 102.22%, but the operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is high at 4.13, suggesting reliance on non-operational cash inflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.63M	7.94M	1.55M	517.60K	369.80K	412.32K
Gross Profit	48.29M	4.79M	733.42K	-1.21M	88.01K	181.83K
EBITDA	36.10M	-38.29M	-77.97M	-12.14M	-17.91M	-2.24M
Net Income	9.71M	-40.91M	-79.08M	-13.40M	-17.27M	-1.94M
Balance Sheet
Total Assets	858.54M	156.55M	45.68M	6.79M	13.20M	2.67M
Cash, Cash Equivalents and Short-Term Investments	10.65M	5.19M	13.04M	79.84K	2.79M	1.90M
Total Debt	1.95M	46.53M	135.71K	6.54M	5.50M	5.06M
Total Liabilities	438.14M	103.79M	5.51M	13.32M	9.00M	9.52M
Stockholders Equity	94.17M	52.77M	40.17M	-6.53M	4.20M	-6.83M
Cash Flow
Free Cash Flow	-71.41M	-38.59M	-33.34M	-7.49M	-9.29M	-1.23M
Operating Cash Flow	8.82M	-9.35M	-11.94M	-2.19M	-6.97M	-1.07M
Investing Cash Flow	-593.86M	-83.41M	-23.68M	-1.82M	-9.93M	-156.73K
Financing Cash Flow	593.46M	84.91M	48.58M	1.47M	17.79M	347.50K

Prairie Operating Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PROP, the sentiment is Negative. The current price of 2.19 is below the 20-day moving average (MA) of 3.12, below the 50-day MA of 3.46, and below the 200-day MA of 5.73, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 31.75 is Neutral, neither overbought nor oversold. The STOCH value of 11.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PROP.

Prairie Operating Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$14.81B	7.14	3.52%	5.53%	4.29%	-62.49%
MARA	56 Neutral	$5.96B	13.59	18.26%	―	41.32%	-12.83%
GRYP	51 Neutral	$106.82M	―	173.25%	―	―	―
GREE	40 Underperform	$21.46M	―	22.29%	―	-18.74%	39.95%
MIGI	39 Underperform	$9.32M	―	-461.16%	―	-11.36%	64.27%
PROP	38 Underperform	$108.60M	―	10.92%	―	6459.14%	60.55%
ARBK	37 Underperform	$20.75M	―	242.25%	―	-13.86%	-32.19%

Prairie Operating Co Corporate Events

Prairie Operating Co Amends Executive Compensation Agreements

On August 13, 2025, Prairie Operating Co‘s Compensation Committee approved amended employment agreements for its top executives, including CEO Ed Kovalik, President Gary C. Hanna, and CFO Gregory S. Patton. These agreements, effective retroactively from January 1, 2025, adjust salaries and bonuses to align with market practices. Kovalik’s and Hanna’s base salaries increased to $750,000 and $675,000 respectively, while their bonus opportunities were reduced to 125% of their salaries. Patton’s salary was increased to $550,000, with added severance benefits in case of a change of control. These changes aim to align executive compensation with competitive market standards.

Prairie Operating Co Enters Equity Distribution Agreement

On June 20, 2025, Prairie Operating Co. entered into an Equity Distribution Agreement with Citigroup Global Markets Inc. and Truist Securities, Inc., allowing the company to sell up to $75 million worth of its common stock. This agreement provides flexibility in raising capital for general corporate purposes, including development programs, debt repayment, or acquisitions. However, there is no obligation to sell shares, and the offering will terminate upon the sale of all shares or termination of the agreement. The managers are entitled to a commission and the company has indemnified them against certain liabilities.

Prairie Operating Co Approves Incentive Plan Amendment

On June 4, 2025, Prairie Operating Co. held its Annual Meeting where stockholders approved an amendment to the 2024 Amended & Restated Long-Term Incentive Plan. The meeting also saw the election of directors and the ratification of Ham, Langston & Brezina, L.L.P. as the independent registered public accounting firm for the fiscal year ending December 31, 2025.