Prairie Operating's Output Soars Fivefold With Drilling Push

Prairie Operating Co. (PROP), an oil and gas operator in the DJ Basin, has taken a big leap forward in production. In the second quarter of 2025, the company pumped out an average of 21,052 barrels of oil equivalent per day (Boe/d). That’s more than five times its first-quarter production, marking a huge step-up in activity for the Houston-based firm.

This surge came from Prairie’s busy drilling schedule, where it drilled 18 wells and finished nine during the quarter. At its Rusch pad, the company managed to drill eight wells in one continuous run, showing both speed and efficiency. Prairie also pushed innovation with advanced designs like U-shaped laterals, which boost production while using less surface land. Looking ahead, the company expects its 2025 average output to stay strong, guiding between 24,000 Boe/d and 26,000 Boe/d.

Alongside growth, Prairie is keeping a close eye on costs and efficiency. It cut drilling times down to just over five days from start to finish while keeping spending nearly on budget. The use of an electric frac fleet also helped reduce emissions and speed up completions. These steps highlight how Prairie is not only expanding rapidly but also doing so with discipline, efficiency and a focus on long-term returns.

PROP’s DJ Basin Play Gains Ground

Oil production in Colorado’s DJ Basin has been around since the 1970s, but the real boom came when big names like Chevron (CVX) and Civitas Resources (CIVI) poured in money and technology to unlock its potential. Both Chevron and Civitas Resources shaped DJ’s growth, but with their sights set on other plays, the door is open for Prairie and others to advance.

Chevron is doubling down on global assets and the Permian Basin, while Civitas Resources has redirected much of its drilling toward the Permian as well, where it holds a huge inventory.

That’s where Prairie Operating Co. comes in. The company has secured 157 permits and identified around 700 drilling locations with 10+ years of inventory, giving it a strong foothold in a basin where scale has historically commanded a premium. By staying focused on the DJ while others diversify, Prairie is positioning itself to capture value in a less crowded field.

The Zacks Rundown on Prairie Operating Co.

Shares of Prairie Operating Co. have lost more than 60% so far this year, while the Oil/Energy sector is up 5.4%.

From a valuation perspective — in terms of forward price-to-sales ratio — Prairie Operating Co. is trading at a discount compared to the industry average.

See how the Zacks Consensus Estimate for Prairie Operating Co.’s earnings has been revised over the past 60 days.

The stock currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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