The significant guidance reduction for production and EBITDA, combined with a working capital deficit and amended credit facility with new production covenants, signals operational and financial strain. Traders should monitor monthly production data and any further credit facility amendments for signs of liquidity pressure.
Price Chart
Executive Summary
Prairie Operating Co. reported Q2 2026 revenue of $98.9 million (+45% YoY) and GAAP net income attributable to common stockholders of $193.8 million ($1.75 basic EPS), but significantly lowered full-year 2026 guidance: average daily production cut to 23,000–25,000 Boe/d from 25,500–27,500 Boe/d, and Adjusted EBITDA guidance slashed to $180M–$190M from $240M–$260M. The guidance reduction signals deteriorating operational outlook despite a net income boost driven by non-cash items (fair-value remeasurements), making this a bearish filing.
Key Financial Metrics
Key Facts
- Q2 2026 revenue of $98.9 million, up ~45% YoY
- Net income attributable to common stockholders of $193.8 million ($1.75 basic EPS)
- Full-year 2026 guidance lowered: average daily production to 23,000–25,000 Boe/d (from 25,500–27,500), Adjusted EBITDA to $180M–$190M (from $240M–$260M)
- Capital expenditures guidance reduced to $185M–$195M
- Working capital deficit of $125.5 million; $39.0M available under $475M credit facility
- Credit facility amended to modify current ratio covenant and add minimum production covenant
- Series F preferred stock partially refinanced in April, reducing outstanding balance and dilution
Financial Impact
Full-year Adjusted EBITDA guidance cut by ~27% from $240M-$260M to $180M-$190M; production guidance cut by ~10% from 25,500-27,500 Boe/d to 23,000-25,000 Boe/d
Risk Factors
- Lowered production guidance may indicate operational challenges or reserve degradation
- Working capital deficit and amended credit facility with minimum production covenant increase financial risk
- Net income boost from non-cash fair-value adjustments is not sustainable; core cash flow generation is weak
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3345964 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 22, 2026 4w ago | Institutional Cluster | $0.4002 $0.4210 | ▲ +5.20% | ▲ +6.38% | $0.3380 (−15.54%) |
Aug 31, 2026 8w ago | 8-K | $0.5090 $0.4679 | ▼ −8.07% | ▼ −7.93% | $0.3380 (−33.60%) |
Aug 17, 2026 10w ago | 8-K | $0.7100 $0.5111 | ▲ +28.01% | ▲ +26.82% | $0.3380 (+52.39%) |
Aug 17, 2026 10w ago | Press Release | $0.7100 $0.5111 | ▲ +28.01% | ▲ +26.82% | $0.3380 (+52.39%) |
Aug 17, 2026 10w ago | 8-K | $0.7100 $0.5111 | ▲ +28.01% | ▲ +26.82% | $0.3380 (+52.39%) |
Aug 10, 2026 11w ago | 8-K | $0.8150 $0.7100 | ▼ −12.88% | ▼ −12.84% | $0.3380 (−58.53%) |
Jul 22, 2026 13w ago | 8-K | $0.8153 $0.7002 | ▼ −14.12% | ▼ −11.72% | $0.3380 (−58.54%) |
Jul 9, 2026 15w ago | 8-K | $0.7290 $0.7175 | ▲ +1.58% | ▲ +1.02% | $0.3380 (+53.64%) |
Jun 11, 2026 19w ago | Institutional Cluster | $0.8092 $0.6582 | ▼ −18.66% | ▼ −19.09% | $0.3380 (−58.23%) |
Jun 11, 2026 19w ago | Press Release | $0.8092 $0.6582 | ▼ −18.66% | ▼ −19.09% | $0.3380 (−58.23%) |
US Market Status
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