Prairie Operating Co. Common Stock EnerCom Denver – The Energy Investment Conference

Thanks, James. Appreciate it. Yeah.

Good morning, everyone. Thank you for joining us today. My name is Greg Patton, as James mentioned, CEO of Prairie Operating. I look forward to spending the next 15, 20 minutes with you all, going over a little bit about Prairie, a little bit about our background, where we stand currently today, and our plans and directives for the future. Just because we are public, here is a disclaimer with a forward-looking statement in it. I will not read it all for you to save you. Ultimately, just to cover our bases from a legal standpoint, we have included it for review and for purposes of the presentation. A little background on Prairie, and then we will go over some key highlights from Q2. We did just complete our earnings yesterday morning, with filing last Friday.

Ultimately, Prairie has been in inception since 2023, when it was incorporated as a public entity that was originally formed as a cryptocurrency company. The assets were sold out of that company. All the assets of the crypto basis are now gone at this point in time. Assets were put into the entity by the original founders. Those founders found unencumbered lands and leases that they added into that public company. They went through the SEC process to move it out of a crypto company and into a public oil and gas company. That all happened throughout 2023 and into 2024. I joined the company in 2024 when we started identifying producing assets that we intended to drill and complete and move forward from what was originally put together as all possible and probable reserves.

Those assets, which we will go over a little later in the presentation, there have been nine to date that constitute and form what Prairie Operating is today. Ultimately, throughout that process, we have continued to clean up resounding items and capital formation aspects that were put into place to start the company. We will talk a little bit about that more later. Some key highlights from Q2 that we just went over for the quarter. Ultimately, we successfully completed multiple acquisitions, as I mentioned, all here in rural Weld County, in the DJ Basin. This year, we have drilled and completed 27 wells to date, totaling approximately 40 targeted for the year, and we have over 550 wells producing under our operations today based off of those acquisitions that we have accumulated together.

Our inventory on a go-forward basis holds roughly 600 locations in our reserve report, which gives us approximately a 10-year drilling inventory if we were using a rate of 60 wells per rig per year on a one rig basis. Based off of the inception of the company and some of our key acquisitions, the Bayswater acquisition, the Edge acquisition, and the Nickel Road acquisition, which came with production, we did hedge the position that Prairie Operating for rolling 24 months, which put a very supportive hedge portfolio in place when oil prices were lower. Today, it is a deficit to the company. However, it provides us that foundational support on our PDP basis with hedges in the range of $60-$64. Our real target from now when rolling forward is on that development plan.

It's focusing on AFEs, it's focusing on enhancing our capital efficiencies and creating a clear path for the future in a concurrent rolling basis. All of that combined with the inception of Prairie, the new management team, which we'll talk through a little bit, the refreshment of the board that we talked through on our earnings call, all of that is really put together to provide value to our shareholders and continuing progressing forward, de-levering the company, and creating cash flow. A little bit high level in terms of where our assets are located, and ultimately, the footprint that we've put together. Again, a couple of key highlights we'll cover.

The map on your right, provided by Enverus, ultimately outlines very clearly where we are focused in the oil rim of the Wattenberg Basin, as well as a small position in the Northeast Extension and some additional locations in the Hereford. You can see that we are surrounded by other best-in-class operators in the basin, Bison, Chevron, SM, Oxy, and Verdad, which is now JAPEX. Ultimately, as we look at where we looked for assets, where we have contiguously put asset blocks together, we've done that in mind of keeping concentration of where our assets are producing, ultimately where our growth profile we intend to develop, and where we have runway to be able to deliver those producing assets on infrastructure and midstream downstream. Ultimately, we talked about Weld County, we talked about the footprint.

We've talked about how we plan to run one rig in a conservative nature until such time we have the progress moving forward to have a runway to be able to have the permits ahead of us, more than a two-year permit inventory, to be able to move to a second rig. At this point in time, we're a one rig, one frac crew company. Ultimately, again, focusing on those contiguous blocky acreage positions where we have those pathways for takeaway. Just a couple of key highlights. Again, 22,500 on average. Today, we are at 27,000 approximate barrels a day net. We have approximately 70,000 net acres, and our proved reserves include 118 MMBOE, which consists of 73% liquids, 50% of that is oil.

We have talked about the locations, and we have talked about the map, so we will move into a little bit of where we think the balance is for Prairie Operating moving forward, how we believe we are executing today, and some of the key aspects that we really focus on as a management team. Ultimately, it is a balance through growth through the drill bit, continuing to keep that inventory ahead of the drill bit, the permitting place in plan, and ultimately being able to execute within AFE.

As we think about our organic growth, top right-hand side of the presentation in front of you, ultimately, we think about the value that we are able to accrete by doing our own organic leasing, building onto that contiguous acreage block that is in place today, and utilizing some of our best practices in order to really focus on the cost basis return that we are getting for the deployment of capital, the DSUs we are able to form, and the returns we are able to bring back to shareholders after drilling and completing. Obviously, it is the DJ, bottom right-hand side of your screen. Proactively managing our regulatory and environmental concerns is first and foremost for us as well.

As we think about how the community is incorporated into our daily activities, as we think about those operations that involve our ranchers, and ultimately community members that live and work within that community, it is highly effective for us to be able to continue our practices, keeping those environmental practices first and foremost. While they are regulated and required by the state, we also take the extra measures to ensure that we are proactively working with those landholders, with those community members, the CMC, governing bodies, et cetera, to ensure that we have that operational leeway to continue to move forward and be a best-in-class operator in those aspects. Bottom left-hand side of your screen, obviously, all those factors incorporated require us to be able to put the money to work.

Being able to put the money to work in accretive assets that provide a return back to our shareholders, back to the company, maintain that free cash flow effect where we are spending less than we are bringing in, and it allows us to retain that balance sheet strength. Ultimately, that is a key aspect for the company as we continue to move forward. There will be periods where we outspend cash flow and then periods where cash flow return. As we think about applying this to this year, as we think about our recent guidance, as we think about our recent results, ultimately Q2 and Q3 are high in capital deployment. Q4 is a slower period for us that will allow us to return that free cash flow back to the balance sheet for year-end results.

Top left-hand side, obviously, that's the continued accretive execution on future acquisitions to be able to continue to build that foundational basis for us to continue to grow. Our goal as a public entity is consolidation within the Rockies. As we think about that growth pattern, as we think about expanding into the future, ultimately, we want to balance that with our capital deployment in the drill bit, couple it with the capital deployment for acquisitions, whether that be through just direct land acquisitions, additional leasehold, mergers, et cetera, and so forth. The fundamental basis the company's put together gives us a platform to be able to do all of that. Again, we covered some year-end highlights. The key piece that I'll point to here is ultimately moving into the back half of the year. We have re-guided guidance. We have slowed down a little bit on the year as we've implemented and put in place that new management team, the new board of directors, and that refresh.

As we think about the total daily production, our guide is going to be 23,000-25,000 net barrels a day. Our EBITDA $180 million-$190 million, and our capital expenditures are $185 million-$195 million on the year. When we think about the logistics of the basin and we think about how we develop, we do develop in the Niobrara and the Codell formations. Our wine rack in the top right-hand side of your screen ultimately presents 12 wells in the Niobrara, four wells in the Codell for a total of 16 wells.