Oil and gas producer Prairie tumbles on stock sales for acquisition

Prairie Operating

25/03/2025 11:35

** Shares of Prairie Operating Co PROP.O tumble 19% premarket to $4.75, lowest level hit since Oct 2023, after acquisition-related follow-on priced

** Houston-based oil and gas producer late Mon announced stock offering of $38.5 mln (~8.6 mln shares) at $4.50, 23.2% discount to last sale

** Co plans to use expected net proceeds of ~$35.4 mln, along with estimated net proceeds of ~$140.8 mln from concurrent registered direct convertible preferred stock offering, to finance ~$600 mln purchase of certain Denver-Julesburg (DJ) Basin assets from Bayswater Exploration

** Any remaining proceeds to be used for general purposes, including advancing its development and drilling program, debt repayment or potential acquisitions, co said

** Citigroup is lead bookrunner for the common stock offering

** On Feb 7, co had announced planned $200 mln stock offering to fund the acquisition

** With ~26.9 mln shares outstanding, according to most recent 10-k filing, co has ~$158 mln market cap

** Through Mon close, PROP shares down 15% YTD. Stock closed at $10.71 a year ago

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))