Prairie’s Newest D-J Wells to Take 2025 Average to 24,000 Boe/d

By Nissa Darbonne

December 02, 2025 04:41 PM CST

Denver-Julesburg Basin producer Prairie Operating grew production 10% to 23,000 boe/d in the third quarter.

And newer wells should tip the full-year average to the minimum 2025 target of 24,000 boe/d, according to reports.

Ed Kovalik, chairman and CEO, said the newest wells have increased production to 27,000 boe/d.

Leo Mariani, a securities analyst for Roth Capital, reported the 24,000 boe/d may be reached after all—following an August combustion of bewilderment over a downwardly revised forecast resulting in a KeyBanc Capital Markets analyst dropping coverage of the stock.

A Prairie earnings call at the time revealed the E&P’s output averaged 21,052 boe/d in the second quarter. Analysts had expected it to be 29,100 boe/d.

Mariani wrote Nov. 17 that Prairie “changed the definition of 2025 production guidance” in August “to indicate that it is pro forma for the Bayswater [Exploration & Production] acquisition as if the company owned the asset all year instead of including the volumes from the closing date of March 26 onwards.”

He added that “this is a non-standard practice for guidance” and confusion likely lingers in the stock market.

Bayswater exit

Bayswater sold its 2,958,965 Prairie shares, which were 6.9% of outstanding, between Aug. 13 and Sept. 11, according to U.S. Securities and Exchange Commission (SEC) filings.

The price during that time was between $2.28 and $2.74/share.

The stock was $1.79 on Nov. 25, down from $15 when Prairie was formed from publicly traded crypto-miner Creek Road Miners in October 2023.

Denver-based Bayswater, which continues to operate in the Permian Basin, sold its D-J property to Prairie in March. The deal at closing was for $483 million in cash, $15 million in escrow and 3.7 million shares, which were worth about $4.21 each at the time.

The deal when announced in February had been for $603 million, consisting of an undisclosed sum of cash and 5.2 million shares, which were worth $8.64 each at the time.

Roth’s Mariani held his ‘Buy’ rating on the stock Nov. 17 with a $5 price target.

Piper Sandler analyst Mark Lear has a ‘Neutral’ rating on the stock and a $2 target.

Diluted shares

Lear reported, “The potential dilution from the Series F preferred issued to fund the Bayswater acquisition has been a big overhang on the stock and we await color from management on potential resolution.”

In addition to reduced fourth-quarter production guidance from 31,000 boe/d to 27,000 boe/d, Lear expected a negative reaction due to “the lack of clarity on fully diluted shares.”

Kovalik said in Prairie’s third-quarter earnings report that the company’s strategy remains disciplined moving forward.

“We’re focused on building long-term shareholder value through a combination of high-return organic development, continued operational optimization and selective, accretive acquisitions,” Kovalik said.

“I want to personally thank the entire Prairie team for their dedication, hard work and professionalism. The progress we’ve made this year has set the stage for continued momentum into 2026 and beyond.” 

Mariani wrote that Prairie’s $475 million bank line of credit may be revised upward this fall. The E&P has $417 million drawn on the facility.

Source: 

https://www.hartenergy.com/upstream/exploration-production/he-prairie-operating-3q2025-production/