PROP (Prairie Operating Co.) stock analysis

Hello everyone! Today we will do a bit of an analysis for PROP stock for Prairie Operating Co.

I was running screener analysis and stumbled upon PROP stock. I added it to my portfolio.

You can see my live portfolio performance here: WinInStocks Portfolio

As usual, I look for stocks that have a potential to multiply its price. I think PROP has a chance to multiply.

Before I start the analysis, I quite liked this analysis for the stock by Zacks as it quite aligns to my thinking about the company and the PROP stock: Zacks Analysis

In short, Prairie Operating Co. is an independent oil and natural gas company, which focuses on the acquisition and development of crude oil, natural gas, and NGLs. It focuses on unconventional oil and natural gas reservoirs located in Colorado focused on the Niobrara and Codell formations.

Why I think it will grow is because it has been buying up land in DJ Basin. With three significant acquisitions — Genesis, Nickel Road and Bayswater — the company has stitched together 54,000 net acres and a decade-long inventory runway. Its recent $602 million Bayswater deal alone brought in 600 drilling locations and 26,000 barrels of oil-equivalent per day (BOE/d) of production. Below is the map of acquisition highlighted in yellow.

Source: Investor Presentation

Oil price is obviously quite volatile. Currently, the price stands at $65. This means, using the current prices, the company has potential to drill $1.69 million worth of oil every day. This amounts to ~$600 million per year.

Below are the revenue and earnings projections:

Source: SimplyWall

With the projected growth in sales and earnings, the company is expected to deliver good levels of profit and EPS.

There are 6 analyst ratings for PROP company with an average target price of $11.63 (Source: MarketWatch)

Using the 2026 EPS predictions ($4.5) and Price-to-Earnings ratio of 15 we can target a stock price of $67 which represents an upside of 22 times vs. the current price of $3.05.

Now, there is a big risk here. To acquire all the land lots, Prairie Operating Co. accumulated a lot of debt (569.39M) with only 14.97M in cash. This represents a risk of the further dilution of shares. In fact, the company shares have been heavily diluted over the past year. Dilution of shares will result in lower EPS per share in future, meaning lower stock price upside.

However, I believe there is enough upside with even some dilution.

Lastly, the owners of the company have been actively buying the company shares with owners buying over 6 million shares over the past 12 months:

Source: Nasdaq

Institution have been also accumulating PROP shares with 43 increased positions in the first quarter of 2025:

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Disclaimer: As usual, trade at your own risk. I own PROP stock. I do not suggest you should buy any of the stocks I write about. As usual, please do your own due diligence before investing your own money in any of the stocks I write about. The above analysis is quite basic and just gives ideas for further research. A much deeper analysis is required for each stock, including the analysis of operations, debt, etc. I may sell any of the stocks I say I currently own at any moment before it reaches the targets that I set or keep them for even when they reach the target.