In This Story
Prairie Operating Co. (PROP+2.41%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing details the company's financial position, highlighting a net loss of $29.0 million for the nine months ended September 30, 2024. Prairie Operating Co. reported cash and cash equivalents of $40.1 million and working capital of $12.1 million as of September 30, 2024.
The company's operating costs and expenses for the quarter amounted to $8.8 million, with general and administrative expenses contributing $8.8 million to this total. The increase in expenses was attributed to higher stock-based compensation, legal and accounting costs, and financing commitment fees.
Prairie Operating Co. closed its acquisition of the Central Weld Assets from Nickel Road Development LLC on October 1, 2024, for $49.6 million, funded through cash on hand, proceeds from the issuance of common stock, and a portion of proceeds from a senior convertible note.
The company entered into a Standby Equity Purchase Agreement with YA II PN, LTD., allowing it to sell up to $40.0 million in shares of common stock over a two-year period, subject to certain conditions.
Prairie Operating Co. issued a $15.0 million senior convertible note and a $5.0 million subordinated promissory note on September 30, 2024, with proceeds received on October 1, 2024. The company plans to use these funds to support its drilling program and other working capital needs.
The company's liquidity assessment indicates that current cash and expected revenues from existing wells will not suffice for obligations over the next twelve months. Management plans to secure additional financing through public or private markets.
The filing also includes a discussion on the company's discontinued operations related to its former cryptocurrency mining business, which was sold in January 2024, resulting in a $1.1 million loss.
Prairie Operating Co. continues to focus on its oil and gas exploration and production activities, primarily in the Denver-Julesburg Basin in Colorado, with plans to expand through additional acquisitions and development projects.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Prairie Operating Co. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.