HOUSTON, TX – Prairie Operating Co. (NASDAQ:PROP), a company specializing in crude petroleum and natural gas, announced the resignation of board member Paul L. Kessler, effective immediately on October 30, 2024. According to the company's filing with the Securities and Exchange Commission (SEC), Kessler's departure does not stem from any disagreements with the company's operations, policies, or practices.
Kessler notified the Board of Directors of his decision to step down on the same day. The company, headquartered at 55 Waugh Drive, Suite 400, Houston, TX, has not disclosed any further details regarding the resignation or plans for a replacement.
The resignation comes at a time when the energy sector faces dynamic changes, though there is no indication that Kessler's decision is related to industry-wide issues. Prairie Operating Co., previously known as Creek Road Miners, Inc., Wizard Brands, Inc., and Wizard Entertainment, Inc., has undergone several name changes, with the latest occurring on July 15, 2021.
As required by SEC regulations, Prairie Operating Co. has fulfilled its obligation to report the change in its board composition. The company, which is registered in Delaware and operates with the fiscal year ending December 31, remains compliant with corporate governance requirements following Kessler's resignation.
Investors and stakeholders of Prairie Operating Co. will be watching closely for the company's next steps in filling the vacancy left by Kessler. The company's stock, trading under the symbol PROP on The Nasdaq Stock Market LLC, may be influenced by such corporate changes.
This news is based on a press release statement filed by the company with the SEC. Further details and updates may be provided by the company in due course as they continue to manage their executive team and board member composition.
In other recent news, Prairie Operating Co. has made several strategic moves to strengthen its position in the energy sector. The company has renegotiated the terms of its asset purchase agreement with Nickel Road Development LLC and Nickel Road Operating LLC, resulting in a $14.5 million reduction from the original cash consideration. Furthermore, Prairie Operating Co. has reached an agreement with a significant shareholder, Narrogal Nominees Pty Ltd, which includes consents for the funding of the acquisition and ongoing operations.
The company has also filed amendments to its certificates of designation for its Series D and Series E Convertible Preferred Stock, reflecting the new beneficial ownership limitation ceiling. In a recent development, Prairie Operating Co. secured $24 million from the full exercise of Series E B Warrants by Watermill Capital Partners. These moves align with the company's efforts to maintain a balanced governance structure and bolster its potential for long-term growth.
Prairie Operating Co. is advancing its growth plans with the new Shelduck South project, an eight-well pad targeting the Niobrara B and C formations across 1,260 mineral acres. Production is expected to commence in the fourth quarter of 2024. Furthermore, the company is set to join the Russell 3000 Index, a move indicative of the company's growth strategies and progress. These are among the latest developments for Prairie Operating Co. in its commitment to responsible development and growth.
InvestingPro Insights
Prairie Operating Co.'s recent board member resignation comes amid challenging financial circumstances for the company. According to InvestingPro data, the company's market capitalization stands at $191.37 million, but it's facing significant operational hurdles. The company's revenue for the last twelve months as of Q2 2024 was just $1.55 million, with an alarming operating income margin of -1954.4%.
InvestingPro Tips highlight that Prairie Operating Co. is "quickly burning through cash" and that "short term obligations exceed liquid assets." These factors may be contributing to the company's volatility and poor stock performance, with the stock price down 44.59% over the past six months.
Despite these challenges, the company has shown impressive revenue growth of 501.39% in the last twelve months. However, this growth hasn't translated into profitability, as another InvestingPro Tip notes that the company is "not profitable over the last twelve months."
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Prairie Operating Co., providing a deeper understanding of the company's financial health and market position.
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