Prairie Operating Co. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter ended September 30, 2026, was $129.5 million, a 31% increase from the prior quarter and a 67% increase from the same period in 2025.
• Year-to-date revenue through September 30, 2026, was $311.8 million, representing a 97% increase compared to the same period in 2025.
• Net loss attributable to common stockholders was $34.0 million ($0.26 basic, $0.28 diluted per share) for the quarter, compared to a net loss of $22.5 million ($0.44 per share) in Q3 2025.
• Year-to-date net loss attributable to common stockholders was $14.6 million ($0.14 basic, $0.70 diluted per share), compared to a loss of $67.5 million ($1.66 per share) in 2025.
• Adjusted EBITDA was $65.3 million for the quarter, a 92% increase from the prior quarter and a 16% increase from Q3 2025.
• Year-to-date Adjusted EBITDA was $136.4 million, a 37% increase from the same period in 2025.
• Lease operating expenses per Boe were $5.71, a 17% decrease from the prior quarter and a 21% decrease from Q3 2025.
• General and administrative expenses were $4.56 per Boe, a 24% decrease from the prior quarter and a 21% decrease from Q3 2025.
• Average realized price per Boe (excluding derivatives) was $53.90, an 8% increase from the prior quarter and a 47% increase from Q3 2025.
• Average realized price per Boe (including derivatives) was $42.04, a 26% increase from the prior quarter and a 4% increase from Q3 2025.
• Cash and cash equivalents were $7.8 million as of September 30, 2026.
• The Credit Facility had a borrowing base of $475.0 million with $472.0 million outstanding as of September 30, 2026.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $123.4 million, compared to $67.4 million in 2025.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $200.6 million, compared to $608.5 million in 2025.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $84.9 million, compared to $546.6 million in 2025.

Guidance and Future Outlook:

• Management stated a focus on realizing cash returns from capital invested in 2026 and carefully managing spending to sustain production.
• The Company is evaluating opportunities to refinance the remaining Series F preferred stock to strengthen the balance sheet and improve financial flexibility.
• The objective is to support operating momentum through disciplined financial management and capital allocation to create sustainable, long-term shareholder value.
• Production reached approximately 32,287 Boe/d by early October 2026, following the quarter-end.

Business Segments and Product Lines:

• Sales volumes for the quarter were 2.4 MMBoe (26,117 Boe/d), a 21% increase from the prior quarter, with 77% liquids (56% oil).
• Year-to-date sales volumes were 6.5 MMBoe (23,730 Boe/d), with 74% liquids (52% oil).
• The Burnett development pad came online at the end of August, delivering 37 wells across five pads by quarter-end.
• The Castor pad completion activities were finalized in September, with wells coming online at the end of September.
• Year-to-date, 27 wells were drilled across four pads, with 19 wells drilled in a single run.
• The Company converted 30 gross possible locations to proved undeveloped locations within the 5,700-acre Genesis OGDP I.
• Oil revenue was $114.0 million for the quarter, a 22% increase from the prior quarter.
• NGL revenue was $12.0 million for the quarter, a 24% increase from the prior quarter.
• Natural gas revenue was $3.5 million for the quarter, compared to a negative $4.3 million in the prior quarter.

Market and Competitive Landscape:

• The Company operates in the Denver-Julesburg (DJ) Basin, focusing on the Niobrara and Codell formations.
• The Burnett development results validated the quality and future development potential of the Company's acreage.
• The conversion of locations to proved undeveloped status de-risks near-term development inventory and provides confidence in future development.

Risks and Challenges:

• The press release includes a standard cautionary statement regarding forward-looking statements, noting that actual results may differ due to risks and uncertainties.
• Financial instrument liabilities, including Series F convertible preferred stock embedded derivatives and warrants, are measured at fair value and subject to significant volatility.
• The Company faces risks related to commodity price fluctuations, which are partially mitigated by derivative contracts.
• The Bayswater acquisition, completed in March 2025, included assets that contributed to 2025 comparables but no new acquisition costs were incurred in the current period.

Management Commentary and Tone:

• CEO Greg Patton highlighted the strength of assets and the team's delivery, noting growth achieved while reducing lease operating expenses by 17%.
• Patton described the Burnett development as a significant step forward in demonstrating acreage value and expanding the proved inventory.
• CFO Michael Shelly emphasized the focus on realizing cash returns from 2026 capital investments and managing spending to sustain production.
• Management expressed confidence in the commercial viability of nearby undeveloped locations and the Company's ability to generate sustainable cash flow.

Other Key Points:

• The issuance date of the Series F Preferred Stock anniversary warrants was extended to December 1, 2026.
• The Company redeemed $19.1 million of Series F Preferred Stock during the nine months ended September 30, 2026.
• Common stock was issued for Series F Preferred Stock dividends totaling $8.3 million during the nine months ended September 30, 2026.
• The Company issued approximately 3.7 million shares of Common Stock to Bayswater as part of the Bayswater acquisition purchase price in 2025.
• The Company maintains derivative contracts for crude oil, natural gas, and NGLs settling through December 31, 2029.
• As of September 30, 2026, the Company had 118.7 million shares of common stock issued and outstanding.
• The Company has elected to issue shares of Common Stock for quarterly Series F Preferred Stock dividends beginning June 1, 2025.