Grid Anxiety Fuels a Quiet Boom in U.S. Oil Production—Here’s What Investors Need to Know July 15, 2025 - Baystreet.ca Issued on behalf of Prairie Operating Co. VANCOUVER – Baystreet.ca News Commentary – AI-driven data-centre build-outs are straining the U.S. grid, and a new DOE study warns that blackout risk could jump 100-fold by 2030 if retiring plants aren’t replaced. Nuclear may help later, but in the near term policymakers are leaning on hydrocarbons; OPEC cites “very strong” Q3 demand and plans to lift output, while the EIA still sees robust U.S. oil-and-gas growth through 2030. As a result, investors are zeroing in on domestic drillers scaling up production—among them Prairie Operating Co. (NASDAQ: PROP), Civitas Resources, Inc. (NYSE: CIVI), BKV Corporation (NYSE: BKV), Comstock Resources, Inc. (NYSE: CRK), and EQT Corporation (NYSE: EQT). Energy Secretary Chris Wright says refilling the Strategic Petroleum Reserve to its peak level will cost about $20 billion and take years, underscoring why, as AI-driven load pushes utilities to seek higher rates, the call for more home-grown energy keeps getting louder. In its most recent move, Prairie paid $12.5 million for a bolt-on slice of Edge Energy acreage. The deal added roughly 11,000 net acres, 190 Boe/d of existing output, and forty drill-ready locations. “This strategic and highly accretive bolt-on acquisition enhances our existing footprint in the DJ Basin,” said Edward Kovalik, Chairman and CEO of Prairie. “With a high working interest, established cash flow, and development-ready drilling locations, this transaction aligns with our capital allocation strategy and adds near-term value and long-term inventory.” Management financed the purchase with its credit facility, so no new shares were issued. That flexibility exists because back in June, Prairie reaffirmed it had secured a $1 billion reserve-based lending facility led by Citibank. On 9 June the bank group, which now includes Bank of America and West Texas National, reaffirmed the $475 million borrowing base after reviewing the company’s enlarged reserves. Operations are moving just as quickly. In late April, Prairie began completing nine drilled-but-uncompleted Opal Coalbank wells that are expected to reach first oil this summer. Those wells line up behind the 11-well Rusch Pad, spud on 1 April, which alternates two-mile laterals in the Niobrara and Codell zones. Initial production from Rusch is scheduled for early August, giving investors two near-term volume catalysts. To protect cash flow while new pads ramp, the company hedged about 85% of 2025 production at $68.27 WTI and $4.28 Henry Hub and extended smaller strips through the first quarter of 2028. When Prairie last updated the market, that hedge book was roughly $70 million in the money, creating a visible floor under future earnings. “Our hedging strategy is a powerful example of how we’re executing our broader growth plan with discipline and foresight,” said Kovalik. “We’ve protected cash flows, reduced risk, and positioned the Company to accelerate growth while delivering long-term shareholder value.” The current build-out rests on a $602.8 million acquisition from Bayswater Exploration that closed in late March. That transaction lifted Prairie’s daily output by roughly 25 700 Boe, added 77.9 MMBoe of proved reserves, and delivered more than six-hundred future drilling locations across twenty-four-thousand acres. The price equaled less than 0.7 times proved PV-10, leaving tangible asset support under the stock. “The addition of the Bayswater Assets further establishes Prairie as a leading operator in the DJ Basin,” said Gary Hanna, President of Prairie. “These assets are a strong complement to our existing portfolio, and we remain focused on maximizing operational efficiencies, optimizing production, and delivering sustainable growth for shareholders.” Today Prairie controls about 60,000 net DJ acres, more than 550 economic locations, and a leverage ratio near one-times EBITDA. Liquids should represent roughly seventy percent of production, a favorable mix at a time when AI-driven electricity demand is pushing both crude and associated-gas requirements higher. With the first Opal Coalbank and Rusch barrels expected in the near term, investors will soon see whether the model delivers on schedule. CONTINUED… Read this and more news for Prairie Operating Co. at: In other recent industry developments and happenings in the market include: Civitas Resources, Inc. (NYSE: CIVI) has moved quickly to fortify its balance sheet, pricing an upsized $750 million senior-notes deal and earmarking the proceeds to pay down its revolver, extending maturity runway to 2033. Earlier in May, the company reported Q1-25 free cash flow of $171 million on 311 Mboe/d production, then launched a $100-million cost-optimization program expected to lift annualized free cash flow by over $100 million. "Our high-quality, low-breakeven assets continue to position us well in the current environment, following our disciplined start to the year with a plan that prioritizes free cash flow generation and strengthens the balance sheet,” said Chris Doyle, CEO of Civitas. “We are reiterating our full year 2025 outlook; however, we are positioned to adjust activity levels lower should market conditions deteriorate further." With nearly 50% of remaining 2025 oil volumes hedged at a $68 floor and $1.5 billion of liquidity, management says it can continue deleveraging toward a year-end net-debt target of $4.5 billion even if prices soften. Earlier this year, BKV Corporation (NYSE: BKV) and Comstock Resources, Inc. (NYSE: CRK) signed an exclusive, non-binding agreement for BKV to develop carbon-capture, utilization and sequestration (CCUS) projects at Comstock’s Bethel and Marquez gas-processing facilities in the western Haynesville. "Industrial customers desire scalable, low-carbon energy solutions, and enhancing Comstock’s infrastructure with innovative CCUS partnerships will deliver exactly that," said M. Jay Allison, CEO of Comstock Resources. "We are excited about the opportunity to collaborate on carbon capture projects that align with Comstock’s commitment to innovation and sustainability. BKV’s leadership in carbon capture and storage innovation makes them the ideal partner for executing our vision." The plan calls for dedicated CO₂-injection wells that would permanently sequester the plants’ waste gas, positioning both companies to offer low-carbon natural-gas supply to Gulf-Coast LNG buyers. Executives from both firms cited industrial demand for scalable low-carbon energy as the driver, with BKV bringing proven CCUS expertise and Comstock contributing large-volume gas streams and pipeline access. "Collaborating with a premier partner like Comstock is a compelling opportunity to showcase how our CCUS portfolio can enable other natural gas producers to utilize low-carbon infrastructure and operate more sustainably," said Chris Kalnin, CEO of BKV. "We view carbon capture as essential to the future of responsible energy, and this collaboration reflects a shared commitment to innovation, sustainability, and the long-term viability of natural gas. We’re excited about what we can achieve together." Definitive terms, including capital split and sequestration capacity, are still being negotiated, but the partners describe the venture as a template for additional projects across Comstock’s Haynesville footprint. EQT Corporation (NYSE: EQT) recently published its 2024 ESG Report, announcing it is the world’s first large-scale traditional energy producer to reach net-zero Scope 1 and 2 emissions, five years ahead of plan. The report details a 67% cut in operational greenhouse gases since 2018, methane-intensity of just 0.007%, and recycling of 96% of produced water, while still averaging more than 311 Mboe/d in 2024. “We've grown and evolved, creating America's first large-scale vertically integrated natural gas company and the world's first traditional energy company of scale to reach net zero greenhouse gas emissions on a Scope 1 and Scope 2 basis,” said Toby Z. Rice, President and CEO of EQT. “We remain committed to demonstrating the critical role of natural gas in delivering affordable, reliable and cleaner energy to the world." EQT also highlights $4 billion in regional GDP contribution, $665 million paid to landowners, and ESG metrics embedded in 20 % of executive short-term bonus targets. Source: CONTACT: Baystreet.ca [email protected] (250) 999-4849 DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Baystreet.ca is a wholly-owned subsidiary of Baystreet.ca Media Corp. (“BAY”) BAY has been not been paid a fee for Prairie Operating Co. advertising and/or digital media, but the owner(s) of BAY also own Market IQ Media Group, Inc., which has been paid a fee from the company directly. There may be 3rd parties who may have shares Prairie Operating Co., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of BAY own shares of Prairie Operating Co. which were purchased in the open market. BAY and all of it’s respective employees, owners and affiliates reserve the right to buy and sell, and will buy and sell shares of Prairie Operating Co. at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by BAY has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through other investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
Grid Anxiety Fuels a Quiet Boom in U.S. Oil Production—Here’s What Investors Need to Know July 15, 2025 - Baystreet.ca Issued on behalf of Prairie Operating Co. VANCOUVER – Baystreet.ca News Commentary – AI-driven data-centre build-outs are straining the U.S. grid, and a new DOE study warns that blackout risk could jump 100-fold by 2030 if retiring plants aren’t replaced. Nuclear may help later, but in the near term policymakers are leaning on hydrocarbons; OPEC cites “very strong” Q3 demand and plans to lift output, while the EIA still sees robust U.S. oil-and-gas growth through 2030. As a result, investors are zeroing in on domestic drillers scaling up production—among them Prairie Operating Co. (NASDAQ: PROP), Civitas Resources, Inc. (NYSE: CIVI), BKV Corporation (NYSE: BKV), Comstock Resources, Inc. (NYSE: CRK), and EQT Corporation (NYSE: EQT). Energy Secretary Chris Wright says refilling the Strategic Petroleum Reserve to its peak level will cost about $20 billion and take years, underscoring why, as AI-driven load pushes utilities to seek higher rates, the call for more home-grown energy keeps getting louder. In its most recent move, Prairie paid $12.5 million for a bolt-on slice of Edge Energy acreage. The deal added roughly 11,000 net acres, 190 Boe/d of existing output, and forty drill-ready locations. “This strategic and highly accretive bolt-on acquisition enhances our existing footprint in the DJ Basin,” said Edward Kovalik, Chairman and CEO of Prairie. “With a high working interest, established cash flow, and development-ready drilling locations, this transaction aligns with our capital allocation strategy and adds near-term value and long-term inventory.” Management financed the purchase with its credit facility, so no new shares were issued. That flexibility exists because back in June, Prairie reaffirmed it had secured a $1 billion reserve-based lending facility led by Citibank. On 9 June the bank group, which now includes Bank of America and West Texas National, reaffirmed the $475 million borrowing base after reviewing the company’s enlarged reserves. Operations are moving just as quickly. In late April, Prairie began completing nine drilled-but-uncompleted Opal Coalbank wells that are expected to reach first oil this summer. Those wells line up behind the 11-well Rusch Pad, spud on 1 April, which alternates two-mile laterals in the Niobrara and Codell zones. Initial production from Rusch is scheduled for early August, giving investors two near-term volume catalysts. To protect cash flow while new pads ramp, the company hedged about 85% of 2025 production at $68.27 WTI and $4.28 Henry Hub and extended smaller strips through the first quarter of 2028. When Prairie last updated the market, that hedge book was roughly $70 million in the money, creating a visible floor under future earnings. “Our hedging strategy is a powerful example of how we’re executing our broader growth plan with discipline and foresight,” said Kovalik. “We’ve protected cash flows, reduced risk, and positioned the Company to accelerate growth while delivering long-term shareholder value.” The current build-out rests on a $602.8 million acquisition from Bayswater Exploration that closed in late March. That transaction lifted Prairie’s daily output by roughly 25 700 Boe, added 77.9 MMBoe of proved reserves, and delivered more than six-hundred future drilling locations across twenty-four-thousand acres. The price equaled less than 0.7 times proved PV-10, leaving tangible asset support under the stock. “The addition of the Bayswater Assets further establishes Prairie as a leading operator in the DJ Basin,” said Gary Hanna, President of Prairie. “These assets are a strong complement to our existing portfolio, and we remain focused on maximizing operational efficiencies, optimizing production, and delivering sustainable growth for shareholders.” Today Prairie controls about 60,000 net DJ acres, more than 550 economic locations, and a leverage ratio near one-times EBITDA. Liquids should represent roughly seventy percent of production, a favorable mix at a time when AI-driven electricity demand is pushing both crude and associated-gas requirements higher. With the first Opal Coalbank and Rusch barrels expected in the near term, investors will soon see whether the model delivers on schedule. CONTINUED… Read this and more news for Prairie Operating Co. at: In other recent industry developments and happenings in the market include: Civitas Resources, Inc. (NYSE: CIVI) has moved quickly to fortify its balance sheet, pricing an upsized $750 million senior-notes deal and earmarking the proceeds to pay down its revolver, extending maturity runway to 2033. Earlier in May, the company reported Q1-25 free cash flow of $171 million on 311 Mboe/d production, then launched a $100-million cost-optimization program expected to lift annualized free cash flow by over $100 million. "Our high-quality, low-breakeven assets continue to position us well in the current environment, following our disciplined start to the year with a plan that prioritizes free cash flow generation and strengthens the balance sheet,” said Chris Doyle, CEO of Civitas. “We are reiterating our full year 2025 outlook; however, we are positioned to adjust activity levels lower should market conditions deteriorate further." With nearly 50% of remaining 2025 oil volumes hedged at a $68 floor and $1.5 billion of liquidity, management says it can continue deleveraging toward a year-end net-debt target of $4.5 billion even if prices soften. Earlier this year, BKV Corporation (NYSE: BKV) and Comstock Resources, Inc. (NYSE: CRK) signed an exclusive, non-binding agreement for BKV to develop carbon-capture, utilization and sequestration (CCUS) projects at Comstock’s Bethel and Marquez gas-processing facilities in the western Haynesville. "Industrial customers desire scalable, low-carbon energy solutions, and enhancing Comstock’s infrastructure with innovative CCUS partnerships will deliver exactly that," said M. Jay Allison, CEO of Comstock Resources. "We are excited about the opportunity to collaborate on carbon capture projects that align with Comstock’s commitment to innovation and sustainability. BKV’s leadership in carbon capture and storage innovation makes them the ideal partner for executing our vision." The plan calls for dedicated CO₂-injection wells that would permanently sequester the plants’ waste gas, positioning both companies to offer low-carbon natural-gas supply to Gulf-Coast LNG buyers. Executives from both firms cited industrial demand for scalable low-carbon energy as the driver, with BKV bringing proven CCUS expertise and Comstock contributing large-volume gas streams and pipeline access. "Collaborating with a premier partner like Comstock is a compelling opportunity to showcase how our CCUS portfolio can enable other natural gas producers to utilize low-carbon infrastructure and operate more sustainably," said Chris Kalnin, CEO of BKV. "We view carbon capture as essential to the future of responsible energy, and this collaboration reflects a shared commitment to innovation, sustainability, and the long-term viability of natural gas. We’re excited about what we can achieve together." Definitive terms, including capital split and sequestration capacity, are still being negotiated, but the partners describe the venture as a template for additional projects across Comstock’s Haynesville footprint. EQT Corporation (NYSE: EQT) recently published its 2024 ESG Report, announcing it is the world’s first large-scale traditional energy producer to reach net-zero Scope 1 and 2 emissions, five years ahead of plan. The report details a 67% cut in operational greenhouse gases since 2018, methane-intensity of just 0.007%, and recycling of 96% of produced water, while still averaging more than 311 Mboe/d in 2024. “We've grown and evolved, creating America's first large-scale vertically integrated natural gas company and the world's first traditional energy company of scale to reach net zero greenhouse gas emissions on a Scope 1 and Scope 2 basis,” said Toby Z. Rice, President and CEO of EQT. “We remain committed to demonstrating the critical role of natural gas in delivering affordable, reliable and cleaner energy to the world." EQT also highlights $4 billion in regional GDP contribution, $665 million paid to landowners, and ESG metrics embedded in 20 % of executive short-term bonus targets. Source: CONTACT: Baystreet.ca [email protected] (250) 999-4849 DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Baystreet.ca is a wholly-owned subsidiary of Baystreet.ca Media Corp. (“BAY”) BAY has been not been paid a fee for Prairie Operating Co. advertising and/or digital media, but the owner(s) of BAY also own Market IQ Media Group, Inc., which has been paid a fee from the company directly. There may be 3rd parties who may have shares Prairie Operating Co., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of BAY own shares of Prairie Operating Co. which were purchased in the open market. BAY and all of it’s respective employees, owners and affiliates reserve the right to buy and sell, and will buy and sell shares of Prairie Operating Co. at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by BAY has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through other investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.