Prairie Operating Co. Expands DJ Basin Presence with $602.75 Million Bayswater Acquisition

Deal News | Feb 07, 2025 | Globenewswire

Prairie Operating Co. Expands DJ Basin Presence with $602.75 Million Bayswater Acquisition

Prairie Operating Co., a Houston-based independent energy company, announced its acquisition of assets in the Denver-Julesburg Basin from Bayswater Exploration and Production for approximately $602.75 million. The purchase will substantially increase Prairie's operational scale, adding around 24,000 net acres and boosting oil-weighted net production to approximately 26 mboepd. The deal, set to close in February 2025, combines cash and stock, and is backed by an expanded credit facility provided by Citibank. With an effective date of December 1, 2024, the acquisition is expected to accelerate Prairie's development plans and bring immediate accretive benefits. Advisors to the deal include Citi and Norton Rose Fulbright, with financial structuring advised by Latham & Watkins. The acquisition enhances Prairie's asset portfolio and is aligned with its objective of maximizing sustainable, long-term shareholder value.

Sectors

  • Energy
  • Finance
  • Legal Advisory

Geography

  • United States – Prairie Operating Co. is based in the U.S. and the assets acquired are located in the DJ Basin, primarily within Colorado.
  • Colorado – The assets acquired are located in Weld County, Colorado, a key area within the DJ Basin.

Industry

  • Energy – The acquisition involves the oil and gas sector, specifically focusing on assets in the energy-rich Denver-Julesburg Basin.
  • Finance – The deal involves significant financial transactions, including cash, stock, and an expanded credit facility.
  • Legal Advisory – Legal advisors played crucial roles in structuring and advising the transaction.

Financials

  • 602.75 million – The purchase price of the Bayswater assets acquisition.
  • 475 million – The expanded credit facility commitment by Citibank.
  • 300 million - 320 million – Estimated capital expenditures for 2025 post-acquisition.
  • 350 million - 370 million – Expected Adjusted EBITDA for 2025 post-acquisition.
  • 1.1 Billion – Proved PV-10 value of the acquired assets.

Participants

NameRoleTypeDescription
Prairie Operating Co.AcquirerCompanyA Houston-based energy company focused on oil and gas resources in the DJ Basin.
Bayswater Exploration and ProductionSellerCompanyAn operator in the DJ Basin, selling its assets to Prairie Operating Co.
CitiFinancial AdvisorCompanyServed as exclusive financial advisor to Prairie Operating Co. for the acquisition.
Norton Rose Fulbright US LLPLegal Advisor to PrairieCompanyProvided legal advice to Prairie Operating Co. on the transaction.
Citibank N.A.Lead on credit facilityCompanyProvided financial structuring, leading the expanded credit facility for Prairie Operating Co.
Latham & Watkins LLPLegal Advisor to CitibankCompanyOffered legal guidance to Citibank in establishing the credit facility.
Edward KovalikChairman and CEOPeopleChairman and CEO of Prairie Operating Co.
Gary HannaPresidentPeoplePresident of Prairie Operating Co.