Prairie Operating Co. · NASDAQ:PROP
Prairie Operating — Merger or Acquisition (January 2024)
10 slides from Prairie Operating's merger presentation, Jan 12, 2024
Slide 1: Prairie Operating Acquisition of Producing E&P Assets
Prairie Operating Acquisition of Producing E&P Assets JANUARY 2024 NASDAQ: PROP
Slide 2: Disclaimer
DISCLAIMER ‘The information provided throughout this presentation is based on Cascley, Gillespie & Associates ("CG&A") reserve report using SEC pricing ar of December 31, 2023, Nickel Road Operating LLC NRO") provided lease ‘operating statements and cerporate financial statements, ‘The Company obtai
Slide 3: Accelerating Company's Vision
ACCELERATING COMPANY’S VISION Building an Unlevered, High Growth E&P Company Acquisition of Producing E&P Assets Accelerates Prairie’s Vision a Ce] Fully Engineered Proven Reserves + >$250mm in PV10 value * > 22,000 Mboe ~45,000 Acres in Weld County, CO in the DJ Basin * De-risked location offset by
Slide 4: Acquisition Overview
ACQUISTION OVERVIEW Transaction Summary “) Immediate Accretion in Value Prairie Operating Co. has signed asset purchase agreement (APA) to acquire assets of Nickel Road Operating (“NRO”) for $94.5mm. * Effective date of February 1, 2024, with expected closing in first half of 2024; ~The transaction
Slide 5: Asset Overview
ASSET OVERVIEW Concentrated Portfolio Across High Return Play With Deep Undeveloped Drilling Inventory = 5,526 net leasehold & mineral acres with ~3,370 Boepd ) — (84% liquids / 66% oil — 91% PDP) flowing from 26 operated horizontal wells — 90% HBP with significant operational control - 94% WI in 7
Slide 6: Inventory Across Multiple Benches
INVENTORY ACROSS MULTIPLE BENCHES Provides Immediate Running Room Across Multiple Benches Company PUDs DJ Basin Targets (gj \ io achak | Dae 23’ PIERRE SHALE Typical Depth 4300° 4800’ Nio B Chalk NIOBRARA “A” oe | eae: NIOBRARA “B” aay 19 i 7100" 20 a ie. =] GREENHORN LS 16 7600" Z NioA WioB WioC Co
Slide 7: Drill Ready Permitted PUD Inventory
DRILL READY PERMITTED PUD INVENTORY Compelling Well Level Returns Offer Additional Upside Through Field Level Improvements & Optimization i Enhanced Economies of Scale, Operational Improvements and Field Level Optimization, have Potential to | Increase Well Economics and Rates of Return Conservative
Slide 8: Attractive Implied Valuation Metrics
ATTRACTIVE IMPLIED VALUATION METRICS Anchored By PDP, Permit Inventory, & Significant Free Cash Flow Transaction compares favorably to recent DJ Basin transa e £ e ° ° $35,000 $25,000 e $30,000 ° ° $20,000 re ° $25,000 a e & $15,000 $2000 $15,000 $10,000 $10,000 $5,000 $5,000 $0 so (1) Per multiple
Slide 9: Significant Asset Accretion
SIGNIFICANT ASSET ACCRETION Immediate Value Created Through Transaction 8.0x 5.0K 40x 3.0x Multiple of EBITDA 20% Valuation Uplift Range H 1.0% 0.0x Purchase Price Multiple Avg. Public Trading Multiple 1) Company estimates based on comparable publtc trading comps (Capttal IQ}
Slide 10: Company Highlights
COMPANY HIGHLIGHTS Opportunity To Rapidly Scale Development of a Liquids Rich Commercially Proven Asset Sd Se A A A A A Fully engineered proven reserves with over $250mm in PV10 value 45,000 acres de-risked by Chevron, Civitas, EOG, and Occidental Deep inventory across multiple benches supports long
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