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PROP (Prairie Operating Co) Financial Strength : 3 (As of Mar. 2025)


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What is Prairie Operating Co Financial Strength?

Prairie Operating Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Prairie Operating Co displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Prairie Operating Co's Interest Coverage for the quarter that ended in Mar. 2025 was 1.27. Prairie Operating Co's debt to revenue ratio for the quarter that ended in Mar. 2025 was 6.99. As of today, Prairie Operating Co's Altman Z-Score is -0.25.


Competitive Comparison of Prairie Operating Co's Financial Strength

For the Oil & Gas E&P subindustry, Prairie Operating Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Prairie Operating Co's Financial Strength Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Prairie Operating Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Prairie Operating Co's Financial Strength falls into.


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Prairie Operating Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Prairie Operating Co's Interest Expense for the months ended in Mar. 2025 was $-1.38 Mil. Its Operating Income for the months ended in Mar. 2025 was $1.75 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $379.43 Mil.

Prairie Operating Co's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*1.753/-1.378
=1.27

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Prairie Operating Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.384 + 379.427) / 54.36
=6.99

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Prairie Operating Co has a Z-score of -0.25, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.25 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Prairie Operating Co  (NAS:PROP) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Prairie Operating Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Prairie Operating Co Financial Strength Related Terms

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Prairie Operating Co Business Description

Traded in Other Exchanges
N/A
Address
55 Waugh Drive, Suite 400, Houston, TX, USA, 77007
Prairie Operating Co is a Houston-based independent energy company engaged in the development and acquisition of oil and natural gas resources in the United States. The Company's assets and operations are concentrated in the oil and liquids-rich regions of the Denver-Julesburg (DJ) Basin, with a focus on the Niobrara and Codell formations. The Company is committed to the responsible development of its oil and natural gas resources and is focused on maximizing returns through consistent growth, capital discipline, and sustainable cash flow generation.
Executives
Gary C Hanna director, officer: President
Edward Kovalik director, officer: Chief Executive Officer 1 GRAND ARMY PLAZA, 11 GG, BROOKLYN NY 11238
Erik Thoresen director C/O FUSION ACQUISITION CORP. II, 667 MADISON AVENUE, NEW YORK NY 10065
Jonathan H. Gray director 657 PERUGIA WAY, LOS ANGELES CA 90077
Robert Craig Owen officer: Chief Financial Officer 2350 N. SAM HOUSTON PARKWAY EAST, SUITE 125, HOUSTON TX 77032
Bryan Freeman officer: Exec VP of Operations 16200 PARK ROW, SUITE 300, HOUSTON TX 77084
Gizman I Abbas director 415 WASHINGTON STREET, APT 1B, NEW YORK NY 10013
Daniel T. Sweeney officer: General Counsel & Corp. Sec'y 8636 N. CLASSEN BOULEVARD, OKLAHOMA CITY OK 73114
Paul Kessler director, 10 percent owner 555 MARIN STREET, SUITE 140, THOUSAND OAKS CA 91360
Stephen Lee director 3326 MID LANE, HOUSTON TX 77027
James W. Wallis 10 percent owner 6410 NORTH SANTA FE AVE., STE B, OKLAHOMA CITY OK 73116
Michael Martin Breen director LOWSLEY HOUSE 133 HEADLEY ROAD, LIPHOOK X0 GU30 7PU
Jeremy Landon Ham officer: Chief Commercial Officer 12115 DOUBLE TREE DRIVE, HOUSTON TX 77070
Scott D Kaufman director, 10 percent owner, officer: Chairman, CEO and President MIDUSMMER INVESTMENT LTD, 485 MADISON AVENUE 23RD FLOOR, NEW YORK NY 10022
Alan Louis Urban officer: Chief Financial Officer 1524 CLOVERFIELD BOULEVARD, SUITE E, SANTA MONICA CA 90404