Prairie Operating Co.

Good afternoon and welcome to the Prairie Operating Company's second quarter 2025 earnings conference call. Today's call is being recorded. At this time, I'd like to turn the call over to Wabi Plozma, Vice President, Investor Relations and Capital Markets. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining us for Prairie Operating Company's second quarter 2025 earnings call. Before we provide our remarks, I would like to remind all participants that our comments today will include forward-looking statements, which are subject to certain risks, uncertainties, and assumptions. Actual results could differ materially from those in any forward-looking statements. Additionally, we may refer to non-GAAP measures for a more detailed discussion of the risks and uncertainties that could cause actual results to differ materially from any forward-looking statements as well as the reconciliations from any non-GAAP financial measures, please see the company's public filings, including the Form 8K filed today. We have also posted an updated investor presentation on our website. Joining me today are Ed Koblik, Chairman, CEO, and Co-Founder, Gary Hanna, President and Co-Founder, and Greg Patton, Executive Vice President and Chief Financial Officer. With that, I'll turn the call over to our chairman, CEO, and co-founder, Ed Kovalec.

Thanks, Wavi, and good morning, everyone. I appreciate you guys joining us today. The second quarter of 2025 marks a major step forward for Prairie as we continue to execute across all facets of our business, operationally, financially, and strategically. I'm incredibly proud of the progress our team has made. Moving forward, our focus remains on delivering long-term sustainable value through disciplined growth, strong capital efficiency, and opportunistic portfolio expansion. We generated $38.6 million in adjusted EBITDA in the second quarter, a new company record that reflects the strength of our asset base, disciplined capital allocation, and continued focus on cost controls. Capital expenditures totaled $56.6 million for the quarter, fully aligned with our one rig development program that targets approximately 60 wells per year on an annualized basis. This measured high return approach allows us to grow efficiently while maintaining operational control and balance sheet flexibility. Since inception, Prairie has prioritized cost leadership as a core pillar of our strategies. Through disciplined execution and the implementation of rigorous cost management systems, we've driven our most recent AFEs down to $5.6 million, as compared to offset tiers AFEs of $6.5 million to $7.2 million. These savings translate directly into higher IRRs, and we believe we still have room for improvement. Our operations and procurement teams are continuously refining our cost structures to unlock further reductions across all drilling and completions activities. During the quarter, Prairie achieved several key milestones that underscore the strength of our company and the momentum behind our strategy. We delivered record production, 21,052 barrels of oil equivalent per day, approximately 50% of which was oil, representing over a 540% increase quarter over quarter. This growth was driven by continued strong performance from our core assets and the integration of our recently acquired properties. Importantly, our strategy is built not just on organic growth, but on continued consolidations. In addition to our development program, we have a robust pipeline of accretive acquisition targets being evaluated on an ongoing basis. Our goal is to complement our operated inventory with high-quality bolt-ons and scale-enhancing transactions that support capital efficiency and cash flow generation. This dual-track strategy, disciplined organic growth and selective high-quality acquisitions, positions Prairie to accelerate value creation in any macro environment. We are in the process of closing two additional acquisitions, adding approximately 18,000 net acres that are expected to close in the third quarter. By implementing and executing this strategy, we have closed two significant acquisitions since October 2024, all in off-market transactions at attractive multiples. Each transaction closed has added meaningful scale, efficiency, and depth to our portfolio, significantly enhancing Prairie's standing as a returns-focused, oil-weighted operator in the DJ Basin. Getting into the specifics of each deal, the Nickel Road acquisition, completed late last year, added more than 5,500 net acres and 26 operated wells in Wells County, along with 89 approved permits and a robust drilling runway. The Bayswater acquisition, which closed on March 26, was a defining moment for Prairie. The transaction added approximately 29,000 net acres and over 350 operated locations in Wells County, Colorado, along with 77.9 million barrels of oil equivalent improved reserves, and $1.7 billion improved PV10 value. This deal was a pivotal milestone for our company. Successfully executing a transaction valued at over $600 million with a market cap under $200 million is a powerful validation of our team's ability to outperform expectations, command market confidence, and deliver results with precision and credibility. These deals, together with our organic development, form the foundation of our company and highlight our ability to accretively grow, create value, and scale quickly with discipline. I want to thank our entire team for their tireless work in sourcing, structuring, and closing these transactions. We also enhanced our financial position by amending our $1 billion credit facility agreement with Citibank, expanding our lender syndicate to include Bank of America and West Texas National Bank, reaffirming our borrowing base at $475 million with no other material changes. This significantly improves our liquidity and provides us with the flexibility needed to execute our strategy. Importantly, following the close of the Bayswater acquisition, we executed a comprehensive portfolio of hedges covering approximately 85% of our approved developed production, inclusive of volumes from Bayswater through 2025. These hedges secured pricing, helping to de-risk our cash flows and support capital planning through future cycles, regardless of broad market volatility in oil prices. As part of the integration process, we front-loaded significant investments in systems and infrastructure across departments, compatible with our mission of scaling the company towards 100,000 barrels of oil of production. These new systems position us to minimize ongoing dependence and costs associated with outsourcing, putting us in a position to enhance shareholder value. We are firmly positioned as a growth company through the drill bit and as a consolidator, maintaining our commitment to capital efficiency and operational excellence. We are also on a clear path to achieving corporate cash flow break-even. Our mission is to deliver sustainable free cash flow and return capital to shareholders, ultimately through dividends. And every aspect of our strategy is aligned with that goal. With that, I'll now turn the call over to our CFO, Greg Patton, to walk through the financial and liquidity position in more detail.