Prairie Operating at Water Tower Research Virtual Insights Conference: value gap widens

On Tuesday, 22 September 2026, Prairie Operating Co. (PROP) utilized the Water Tower Research Virtual Insights Conference to unveil its growth strategy centered around the DJ Basin. The company has rapidly expanded through acquisitions and organic leasing in this region. Management reported that the asset base is performing well, but shares continue to trade at a significant discount due to a complex capital structure, declining oil prices, and hedge losses from the company's financing.

Prairie projected production of 23,000 to 25,000 barrels of oil equivalent per day for 2026, supported by one rig and one frack crew. Proved reserves as of June 30, 2026, had a PV-10 of approximately $1.5 billion, compared to an enterprise value of around $550 million, including preferred stock at liquidation preference. The company's primary focus is on streamlining its capital structure by reducing preferred equity and warrants, with a long-term goal of transitioning to a more conventional mix of common stock, revolver debt, and ultimately, unsecured debt.

Since its inception in December 2024, Prairie has completed nine acquisitions and now employs about 70 individuals, up from 14 at the beginning of its asset acquisition phase. While Colorado's regulatory process has become more defined since Proposition 112 in 2018, permitting still takes considerable time and demands close coordination with state agencies and midstream partners.

The company did not provide a full earnings report on the call but shared key financial and valuation metrics that inform its investment case.