Prairie Operating Co. (CRK) recently unveiled a strategic hedging program that locks in favorable pricing for approximately 85% of their current daily production. This proactive measure was implemented just before the recent decline in oil and gas market prices, showcasing the company's foresight and commitment to stability.
The hedges were established in the wake of Prairie's significant acquisition of DJ Basin assets from Bayswater Exploration and Production. This acquisition has been described as transformative, and the subsequent hedging strategy enhances financial transparency and stability, underscoring Prairie's dedication to disciplined capital management and sustainable long-term value creation.
Key terms of Prairie's hedging arrangement include a fixed price of $68.27 per barrel for WTI crude and $4.28 per MMBtu for Henry Hub natural gas for the remainder of 2025. For the period spanning from 2026 to the first quarter of 2028, the hedging prices are set at $64.29 per barrel for WTI and $4.09 per MMBtu for Henry Hub.
