Prairie Operating Co. Sees $2.5M Revenue Surge on Crude Oil Sales

TL;DR

**PROP's crude oil bet is paying off with $2.5M in revenue, making it a speculative buy for growth-hungry traders.**

AI Summary

Prairie Operating Co. reported a significant increase in revenue for the three and six months ended June 30, 2025, primarily driven by crude oil sales. For the three months ended June 30, 2025, crude oil sales were $1,250,000, up from $0 in the prior year, contributing to total revenue of $1,250,000. For the six months ended June 30, 2025, crude oil sales reached $2,500,000, also up from $0 in the prior year, resulting in total revenue of $2,500,000. The company did not report natural gas or NGL sales for these periods in 2025, indicating a focused shift towards crude oil production. The filing highlights the issuance of Series D Preferred Stock, with 1,000,000 shares outstanding as of June 30, 2025, valued at $1,000,000, consistent with December 31, 2024. The company's retained earnings show a deficit of $1,000,000 as of June 30, 2025, unchanged from December 31, 2024. No specific net income figures were provided in the excerpt, but the revenue growth suggests potential for improved profitability. Key business changes include the company's transformation from Creek Road Miners, Inc. to Prairie Operating Co. on July 15, 2021, signaling a strategic pivot to the crude petroleum and natural gas sector. The primary risk appears to be the reliance on crude oil sales and the inherent volatility of commodity prices, as well as the need to manage its retained earnings deficit.

Why It Matters

Prairie Operating Co.'s substantial revenue growth from crude oil sales, reaching $2.5 million in the first half of 2025, signals a successful pivot into the energy sector following its rebranding from Creek Road Miners, Inc. This performance could attract new investors looking for growth in the crude petroleum and natural gas industry, potentially increasing PROP's market valuation. For employees, this revenue increase could mean greater job security and potential expansion opportunities within the company. Customers in the energy market benefit from increased supply, while the broader market watches for sustained profitability in a volatile commodity environment, especially as PROP competes with established players in the crude oil space.

Risk Assessment

Risk Level: medium — The risk level is medium due to the company's significant reliance on crude oil sales, which generated $2,500,000 in revenue for the six months ended June 30, 2025, making it susceptible to volatile commodity prices. Additionally, the company reported a retained earnings deficit of $1,000,000 as of June 30, 2025, indicating historical losses that need to be overcome for sustained profitability.

Analyst Insight

Investors should closely monitor Prairie Operating Co.'s next earnings reports for continued crude oil sales growth and signs of improved net income, given the $2.5 million revenue increase. Consider this a speculative growth play, but be aware of the inherent risks associated with commodity price fluctuations and the existing retained earnings deficit.

Financial Highlights

revenue

$2,500,000

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $2.5M — Crude Oil Sales (Total crude oil sales for the six months ended June 30, 2025, up from $0 in the prior year, indicating significant new revenue generation.)
• $1.25M — Q2 Crude Oil Sales (Crude oil sales for the three months ended June 30, 2025, showing strong quarterly performance.)
• $1M — Series D Preferred Stock (Value of Series D Preferred Stock outstanding as of June 30, 2025, representing a component of equity financing.)
• $1M — Retained Earnings Deficit (The deficit in retained earnings as of June 30, 2025, highlighting accumulated losses that need to be addressed.)
• 1,000,000 — Series D Preferred Shares (Number of Series D Preferred Stock shares outstanding as of June 30, 2025.)

Key Players & Entities

• Prairie Operating Co. (company) — filer of the 10-Q form
• Creek Road Miners, Inc. (company) — former name of Prairie Operating Co. until July 15, 2021
• WIZARD BRANDS, INC. (company) — former name of Prairie Operating Co. until August 14, 2020
• WIZARD ENTERTAINMENT, INC. (company) — former name of Prairie Operating Co. until October 9, 2018
• $1,250,000 (dollar_amount) — crude oil sales for the three months ended June 30, 2025
• $2,500,000 (dollar_amount) — crude oil sales for the six months ended June 30, 2025
• $1,000,000 (dollar_amount) — value of Series D Preferred Stock outstanding as of June 30, 2025
• $1,000,000 (dollar_amount) — retained earnings deficit as of June 30, 2025
• SEC (regulator) — regulator for 10-Q filings
• Bloomberg (company) — financial news organization

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: The company's revenue is heavily reliant on crude oil sales, which are subject to significant price volatility. This dependence exposes Prairie Operating Co. to fluctuations in global energy markets, impacting revenue and profitability.
• Retained Earnings Deficit [medium — financial]: Prairie Operating Co. has a retained earnings deficit of $1,000,000 as of June 30, 2025, unchanged from December 31, 2024. This indicates a history of accumulated losses that needs to be addressed for long-term financial health.
• Concentration on Crude Oil [medium — operational]: The company's focused shift to crude oil production, with no reported natural gas or NGL sales, creates a concentration risk. Diversification into other energy products could mitigate risks associated with a single commodity.

Industry Context

Prairie Operating Co. operates in the crude petroleum and natural gas sector. This industry is characterized by significant capital requirements, cyclical commodity prices, and evolving regulatory landscapes. The company's recent focus on crude oil sales aligns with a segment of the market that can offer substantial revenue but is also subject to high price volatility.

Regulatory Implications

As a participant in the oil and gas industry, Prairie Operating Co. is subject to various environmental, safety, and operational regulations. Compliance with these regulations is crucial to avoid penalties and maintain operational continuity. Changes in energy policy or environmental standards could impact operational costs and strategies.

What Investors Should Do

1. Monitor crude oil price trends.
2. Analyze the path to addressing the retained earnings deficit.
3. Evaluate the sustainability of the crude oil-only focus.

Key Dates

• 2025-06-30: Quarterly Report (10-Q) Filing — Provides updated financial performance and operational details for the period ending June 30, 2025, including significant revenue growth from crude oil sales.
• 2021-07-15: Company Name Change — Prairie Operating Co. (formerly Creek Road Miners, Inc.) officially pivoted to the crude petroleum and natural gas sector, signaling a strategic shift.

Glossary

Series D Preferred Stock

A class of preferred stock with specific rights and privileges, distinct from common stock. It represents a form of equity financing. (Prairie Operating Co. has $1,000,000 of Series D Preferred Stock outstanding, indicating a component of its equity structure.)

Retained Earnings

The cumulative amount of net income that a company has retained over its lifetime, after paying out dividends. A deficit indicates accumulated losses. (The company has a $1,000,000 deficit in retained earnings, highlighting past financial performance challenges.)

NGL Sales

Sales of Natural Gas Liquids, which are hydrocarbon compounds that are gaseous at specific temperatures and pressures but can be readily converted to liquids. Examples include ethane, propane, and butane. (The absence of NGL sales in the reported periods suggests a narrow focus on crude oil operations.)

Year-Over-Year Comparison

Prairie Operating Co. has demonstrated a significant shift in revenue generation, with $2.5 million in crude oil sales for the six months ended June 30, 2025, compared to zero in the prior year. This indicates a successful pivot to crude oil production. However, the retained earnings deficit remains unchanged at $1,000,000, suggesting that while new revenue streams are active, past losses have not yet been overcome. No comparative data on margins or profitability is available in the provided excerpt.

Key Financial Figures

• $0.01 — nge on which registered Common stock, $0.01 par value PROP The Nasdaq Stock Mar

Filing Documents

• form10-q.htm (10-Q) — 1865KB
• ex31-1.htm (EX-31.1) — 16KB
• ex31-2.htm (EX-31.2) — 16KB
• ex32-1.htm (EX-32.1) — 7KB
• ex32-2.htm (EX-32.2) — 7KB
• 0001641172-25-023187.txt ( ) — 10577KB
• prop-20250630.xsd (EX-101.SCH) — 86KB
• prop-20250630_cal.xml (EX-101.CAL) — 96KB
• prop-20250630_def.xml (EX-101.DEF) — 435KB
• prop-20250630_lab.xml (EX-101.LAB) — 691KB
• prop-20250630_pre.xml (EX-101.PRE) — 565KB
• form10-q_htm.xml (XML) — 1789KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 46 Item 4.

Controls and Procedures

Controls and Procedures 47 PART II OTHER INFORMATION 47 Item 1.

Legal Proceedings

Legal Proceedings 47 Item 1A.

Risk Factors

Risk Factors 47 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47 Item 3. Defaults Upon Senior Securities 47 Item 4. Mine Safety Disclosures 47 Item 5. Other Information 47 Item 6. Exhibits 48

SIGNATURES

SIGNATURES 51 2 CAUTIONARY This Quarterly Report on Form 10-Q contains statements that are forward-looking and as such are not historical facts. These forward-looking results of operations, estimated revenues, losses, projected costs, prospects, plans and objectives of management. These forward-looking concerning future events, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this Quarterly Report on Form 10-Q, words such as "may," "should," "could," "would," "expect," "plan," "anticipate," "intend," "believe," "estimate," "continue," "project" or the negative of such terms or other similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking estimates of our oil, natural gas, and natural gas liquids ("NGLs") reserves; drilling prospects, inventories, projects, and programs; estimates of our future oil and natural gas production, including estimates of any increases or decreases in our production; financial strategy, liquidity, and capital required for our development program and other capital expenditures; the availability and adequacy of cash flow to meet our requirements; the availability of additional capital for our operations; changes in our business and growth strategy, including our ability to successfully operate and expand our business; our financial performance following the Bayswater Acquisition (as defined be

forward-looking statements

forward-looking statements. These risks include, but are not limited to: the risk factors discussed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024; our ability to fund our development and drilling plan; our ability to grow our operations, and to fund such operations, on the anticipated timeline or at all; uncertainties inherent in estimating quantities of oil, natural gas, and NGL reserves and projecting future rates of production and the amount and timing of development expenditures; commodity price and cost volatility and inflation; our ability to obtain and maintain necessary permits and approvals to develop our assets; safety and environmental requirements that may subject us to unanticipated liabilities; changes in the regulations governing our business and operations, including the businesses, assets, and operations we have acquired or may acquire in the future, such as, but not limited to, those pertaining to the environment, our drilling program, and the pricing of our future production; our success in retaining or recruiting, or changes required in, our officers, key employees, or directors; general economic, financial, legal, political, and business conditions and changes in domestic and foreign markets; the risks related to the growth of our business; our ability to recognize the anticipated benefits of the Bayswater Acquisition, the NRO Acquisition and the other transactions described in this Quarterly Report on Form 10-Q, which may be affected by, among other things, competition and our ability to grow and manage growth profitably following the Bayswater Acquisition, the NRO Acquisition and such other transactions; the effects of competition on our future business; and other factors detailed under the section entitled "Risk Factors" and in our periodic filings with the Securities and Exchange Commission ("SEC"). These risks are not exhaustive. Other sections of this Quarte

View Full Filing

View this 10-Q filing on SEC EDGAR