Prairie Operating Co. (PROP) reported a net loss of $40.9 million for the year ended December 31, 2024, compared to a net loss of $79.08 million in 2023. Revenue for 2024 totaled $7.94 million, all stemming from oil, natural gas, and NGL sales following the October 1, 2024 acquisition of assets from Nickel Road Development LLC and Nickel Road Operating LLC (NRO) for a final purchase price of $55.5 million. Prior to this acquisition, the company's primary business was cryptocurrency mining, which it exited in January 2024 after selling its mining equipment for $2 million.
Significant changes in 2024 included the NRO acquisition, adding 26 producing oil and gas wells and approximately 5,640 net leasehold acres. Operating expenses increased to $34.45 million, primarily due to the inclusion of the newly acquired assets and increased general and administrative expenses ($30.57 million) related to stock-based compensation, employee expenses, and legal and accounting costs. The company also entered into a $1 billion reserve-based credit agreement with Citibank, drawing $28 million by year-end.
Further strategic developments involved the February 6, 2025 signing of a purchase agreement to acquire Bayswater Assets for $602.8 million, with a closing date of March 15, 2025. This acquisition is expected to significantly increase the company's size and operations. Additionally, the company initiated a drilling program on its Genesis Bolt-on Assets in the third quarter of 2024, with eight wells commencing production in February 2025. As of December 31, 2024, the company employed 19 full-time employees.
Key operational indicators as of December 31, 2024, included 170,000 barrels of oil equivalent (Boe) produced, comprised of 96.1 MBbls of oil, 245.1 MMcf of natural gas, and 33 MBbls of NGLs. Estimated proved reserves totaled 26.1 MMBoe, with 6.4 MMBoe classified as proved developed and 19.7 MMBoe as proved undeveloped. The company anticipates needing an additional $290 million in investment to bring its proved undeveloped reserves into production. The company's two largest customers accounted for approximately 95% of its oil, natural gas, and NGL revenues during the fourth quarter of 2024.
The company's outlook is contingent upon the successful completion of the Bayswater acquisition and the continued development of its existing assets. The company acknowledges significant risks associated with commodity price volatility, the need for additional capital, and the integration of acquired assets. The company also notes the inherent uncertainties in reserve estimations and the potential impact of evolving environmental regulations and climate change initiatives on its operations and future profitability.
About Prairie Operating Co.
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