From Crypto To Crude: Prairie Operating's Pivot To Oil-Rich Fortunes

Summary

• Prairie Operating Co. has pivoted from cryptocurrency mining to oil and gas, focusing on acquiring and developing assets in the Niobrara and Codell formations.
• Despite impressive stock performance with a 140.37% annualized return, Prairie faces high operating costs and negative cash flow, making its valuation challenging.
• Recent acquisitions, like Nickel Road and Genesis assets, are expected to boost cash flow and production by 2025, positioning Prairie for growth.
• Prairie's low debt and strategic financing moves, including a $40 million stock sale agreement, provide flexibility for future expansion and operational stability.

Funtay

Thesis

Prairie Operating Co. (NASDAQ:PROP) was originally founded in 2001 and later ventured into cryptocurrency (using natural gas to power its mining facilities), but now they've pivoted, aiming at Colorado's Denver-Julesburg Basin, going after oil-rich spots, natural gas, and liquids. I'd

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in PROP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.