By Josh Beckerman
Prairie Operating Co. shares declined after the oil and gas company announced a $602.75 million acquisition and a stock offering which would provide proceeds toward the deal.
The stock was down 25%, to $6.49, midday Friday and is down about 6% this year.
The Houston company's cash-and-stock deal with Bayswater Exploration and Production includes about 24,000 net acres in Weld County, Colo., in the Denver-Julesburg Basin. Prairie said the deal would significantly increase the scope of its operations.
The company plans to use cash on hand, credit facility borrowings and proceeds from the $200 million stock offering announced Friday. It received commitments to expand its borrowing base to $475 million as of the acquisition closing.
Bayswater said the sale includes about 300 producing horizontal wells on 30 pads and 25,000 barrels of oil equivalent per day.
On Jan. 15, Prairie said it expected 2025 average daily production of 7,000 to 8,000 barrels of oil equivalent per day. Currently, it expects 29,000 to 31,000.
"This acquisition delivers compelling strategic and financial advantages and reflects our disciplined, but opportunistic approach to rapidly expand our footprint in the DJ Basin," the company said.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
February 07, 2025 13:18 ET (18:18 GMT)
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