Earnings release
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Exhibit 99.1 Prairie Operating Co. Announces Second Quarter 2026 Results Houston, Texas, August 17, 2026 (GLOBE NEWSWIRE) — Prairie Operating Co. (Nasdaq: PROP) (the “Company,” “Prairie,” “we,” “our,” or “us”) – an independent energy company engaged in the development and acquisition of oil, natural gas, and natural gas liquids (“NGL”) resources in the Denver-Julesburg (DJ) Basin – today announced its financial and operational results for the quarter ended June 30, 2026. Second Quarter 2026 Results Summary • Produced 2.0 MMBoe, or approximately 21,866 Boe/d, with 72% liquids (50% oil). • Revenue of $98.9 million, an increase of approximately 45% year-over-year. • Reported net income attributable to Prairie Operating Co. common stockholders of $193.8 million, or $1.75 basic earnings per share and $0.23 diluted earnings per share. • Generated Adjusted EBITDA(1) of $34.0 million. • Capital expenditures of $98.5 million. • Net cash provided by operating activities of $52.0 million. Key Highlights for Year-to-Date 2026 • Total production of 4.1 MMBoe, or approximately 22,500 Boe/d, with 72% liquids (49% oil). • Daily production of approximately 27,000 Boe/d throughout the month of August. • Total revenue of $182.3 million, an increase of 125% year-over-year. • Adjusted EBITDA(1) of $71.1 million, an increase of 65% year-over-year. • Continued execution with recently drilled wells coming in below AFE. • Active hedging program, securing commodity price protection through the second quarter of 2029. • Executed partial refinancing of the Series F Preferred Stock in April, reducing outstanding balance and significantly lowering warrant-related dilution, while extending the Anniversary warrant date to August 31, 2026. (1) Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release. Greg Patton, Chief Executive Officer, commented: “Prairie delivered strong operational progress during the second quarter and throughout the first half of 2026. Our team continued to improve drilling performance, execute within budget and advance our development program across multiple pads in the DJ Basin, despite a planned pause in activity related to seasonal operating restrictions. We also achieved several important technical milestones, including successfully drilling our first three-mile lateral and testing a new wellbore design that demonstrated meaningful cost savings without changing the completion or production configuration.” “These achievements reflect the continued improvement of our operating capabilities. As we move into the second half of the year, we remain focused on safe and consistent execution, applying proven efficiencies across our development program and allocating capital to the opportunities that generate the strongest returns. We believe this disciplined approach will support sustainable production growth, improved capital efficiency and long-term value creation for our shareholders.” Michael Shelly, Executive Vice President and Chief Financial Officer, added: “Prairie continued to strengthen its financial position and generated meaningful operating cash flow while continuing to fund an active capital program, expanded our commodity hedge portfolio to provide greater visibility and coverage of our future cash flows and made important progress simplifying our capital structure and reducing potential shareholder dilution.” “As we move through the remainder of the year, our financial priorities remain centered on disciplined capital allocation, building liquidity and strengthening the balance sheet. We will continue to align capital spending with operating performance, pursue opportunities to enhance financial flexibility and support the Company’s development program in a manner designed to generate sustainable free cash flow through a range of commodity-price environments.” Erik Thoresen, Chairman of the Board, concluded: “During the second quarter, Prairie took several important steps to strengthen its leadership, governance and financial position. We added key members to the management team and reinvigorated the Board by welcoming a new director whose experience and perspectives will enhance our oversight and strategic decision-making.” “These actions reflect the Board’s commitment to a strong alignment with management and shareholders. Together, we remain focused on disciplined execution, prudent capital allocation and continued cost improvement, all with the objective of creating sustainable, long-term shareholder value.”
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Operations Update Prairie maintained strong drilling execution during the second quarter of 2026, drilling 12 wells, including two Codell and ten Niobrara wells. Eight of the 12 wells were drilled in a single run, and all wells were completed below AFE. The wells consisted of two-and three- mile laterals and averaged approximately 19,100 feet in measured depth, with an average rate of penetration of 390 feet per hour and an average spud-to-rig-release time of 6.65 days. During the quarter, Prairie successfully drilled its first three-mile lateral, a Niobrara B well, in a single run and completed drilling operations at the Burnett Pad. Drilling operations at the Castor pad were subsequently completed during the first month of the third quarter. Second-quarter drilling activity included a planned pause between the Opal Coalbank and Burnett pads to accommodate seasonal restrictions associated with Colorado Parks and Wildlife. On the Castor pad, Prairie completed two successful trials utilizing a 7-7/8-inch hole design, compared with the Company’s standard 8- 1/2-inch design. The trials generated realized savings and utilized the same 5-1/2-inch production casing. As such, it does not alter the delivered well configuration for completion or production purposes. Based on these results, Prairie plans to deploy the smaller hole design across a significant portion of its upcoming Niobrara development program. Year to date, Prairie has drilled 27 wells, including six Codell and 21 Niobrara wells, with 19 wells drilled in a single run. On average, the wells were delivered below AFE. Year-to-date wells averaged approximately 18,700 feet in measured depth, an average rate of penetration of 377 feet per hour and an average spud-to-rig-release time of 6.2 days. Prairie has completed drilling operations at the Elder, Opal Coalbank, Burnett and Castor pads during 2026. Second Quarter 2026 Results Key Financial Highlights (In thousands, except per share amounts) Three Months Ended June 30, 2026 Total revenues $ 98,859 Net income attributable to Prairie Operating Co. common stockholders $ 193,794 Earnings per share – basic $ 1.75 Earnings per share – diluted $ 0.23 Adjusted EBITDA $ 34,010 Capital expenditures (1) $ 98,489 (1) Excludes $12.4 million of capital costs included in accounts payable and accrued expenses as of June 30, 2026. Revenue and Production Revenue for the second quarter of 2026 was $98.9 million, including $93.5 million related to oil. Production for the second quarter of 2026 totaled 1,990 MBoe, or 21,866 Boe/d, and was comprised of approximately 50% oil and 72% liquids. Three Months Ended June 30, 2026 Revenues (in thousands) Oil revenue $ 93,458 Natural gas revenue (1) (4,292) NGL revenue 9,693 Total revenues $ 98,859 Production: Oil (MBbls) 992 Natural gas (MMcf) 3,299 NGL (MBbls) 448 Total production (MBoe) (2) 1,990 Average sales volumes per day (Boe/d) 21,866 Average realized price (excluding effects of derivatives): Oil (per Bbl) $ 94.21 Natural gas (per Mcf) (1) $ (1.30) NGL (per Bbl) $ 21.64 Average realized price (per Boe) $ 49.68 Average sales price (including effects of derivatives): Oil (per Bbl) $ 59.79 Natural gas (per Mcf) (1) $ (0.20) NGL (per Bbl) $ 16.72
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Average price (per Boe) $ 33.25 Average NYMEX prices: WTI (per Bbl) $ 84.29 Henry Hub (per MBtu) $ 3.81 (1) For the three months ended June 30, 2026, we realized negative natural gas revenue and average realized prices (excluding and including the effects of derivatives) due to lower gross sales, driven by decreased pricing during the quarter, compared to gathering and processing fees. (2) MBoe is calculated using six MMcf of natural gas equivalent to one MBbl of oil.
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Operating Costs For the second quarter of 2026, lease operating expenses were $13.6 million, or $6.85 per Boe; transportation and processing expenses were $2.4 million, or $1.22 per Boe; ad valorem and production taxes were $8.0 million, or $4.01 per Boe; and general and administrative expenses were $12.0 million, or $6.01 per Boe. (In thousands, except per Boe amounts) Three Months Ended June 30, 2026 Lease operating expenses $ 13,628 Lease operating expenses per Boe $ 6.85 Gathering, transportation, and processing $ 2,426 Gathering, transportation, and processing per Boe $ 1.22 Ad valorem and production taxes $ 7,983 Ad valorem and production taxes per Boe $ 4.01 General and administrative expenses(1) $ 11,952 General and administrative expenses per Boe $ 6.01 (1) General and administrative expenses for the three months ended June 30, 2026, includes non-cash stock-based compensation of $3.3 million, or $1.66 per Boe, and non-recurring litigation and severance settlement expenses of $0.8 million, or $0.41 per Boe. Liquidity and Capital Resources As of June 30, 2026, we had a working capital deficit of approximately $125.5 million and availability of $39.0 million under the reserve- based credit agreement with Citibank, N.A. (the “Credit Facility”). As of June 30, 2026, the Credit Facility had a borrowing base of $475.0 million and aggregate elected commitments of $475.0 million. During the six months ended June 30, 2026, our cash expenditures for the development of oil and natural gas properties totaled $132.6 million, with an additional $12.4 million incurred in accounts payable and accrued expenses. On August 14, 2026, we entered into an amendment to our Credit Facility agreement which, among other things, modifies the Current Ratio covenant requirements for the quarters ended June 30, 2026 through December 31, 2026. Additionally, the amendment includes a new covenant which requires our net monthly production to not fall below an average number specified in the agreement, which will be measured on a rolling three-month average, beginning September 30, 2026. After giving effect to the amendment, we are in compliance with all covenants under the Credit Facility as of June 30, 2026. Adjusting 2026 Guidance Prairie adjusts full-year guidance for 2026 as follows: • Average Daily Production: 23,000 – 25,000 Boe/d. • Capital Expenditures: $185.0 million – $195.0 million. • Adjusted EBITDA(1): $180.0 million – $190.0 million. (1) Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release. Commodity Hedges As of June 30, 2026, we had the following outstanding crude oil and natural gas derivative contracts in place, which settle monthly and are indexed to NYMEX West Texas Intermediate, NYMEX Henry Hub, and Mont Belvieu OPIS, respectively: Settling July 1, 2026 through December 31, 2026 Settling January 1, 2027 through December 31, 2027 Settling January 1, 2028 through December 31, 2028 Settling January 1, 2029 through December 31, 2029 Crude Oil Swaps: Notional volume (Bbls) 2,651,848 4,662,503 2,862,307 210,000 Weighted average price ($/Bbl) $ 63.09 $ 62.51 $ 62.17 $ 61.57 Natural Gas Swaps: Notional volume (MMBtus) 7,584,322 14,082,126 5,606,357 400,000 Weighted average price ($/MMBtu) $ 4.08 $ 4.08 $ 4.02 $ 4.11 Ethane Swaps: Notional volume (Bbls) 215,747 400,675 220,109 —
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Weighted average price ($/Bbl) $ 11.22 $ 10.70 $ 9.96 $ — Propane Swaps: Notional volume (Bbls) 293,113 522,684 199,160 — Weighted average price ($/Bbl) $ 28.69 $ 26.85 $ 25.93 $ — Iso Butane Swaps: Notional volume (Bbls) 41,114 74,572 35,088 — Weighted average price ($/Bbl) $ 35.41 $ 31.77 $ 30.77 $ — Normal Butane Swaps: Notional volume (Bbls) 103,276 184,140 74,903 — Weighted average price ($/Bbl) $ 35.81 $ 31.95 $ 30.36 $ — Pentane Plus Swaps: Notional volume (Bbls) 86,958 160,242 78,806 — Weighted average price ($/Bbl) $ 55.12 $ 53.31 $ 52.81 $ — Non-GAAP Financial Measures This press release contains Adjusted EBITDA which is a financial measure not presented in accordance with U.S. GAAP. Adjusted EBITDA is used by management to evaluate the performance of our business, make operational decisions, and assess our ability to generate cashflows. Management believes Adjusted EBITDA provides investors with helpful information to better understand the underlying performance trends of our business, facilitate period-to-period comparisons, and assess the company’s operating results. Adjusted EBITDA is derived from net income (loss) attributable to Prairie Operating Co. and is adjusted for depreciation, depletion, and amortization, abandonment and impairment of unproved properties, non-cash stock-based compensation, interest expense, net, unrealized (gain) loss on derivatives, non-cash (gain) loss on adjustment to fair value – financial instrument liabilities, litigation and severance settlement expense, and income tax expense (benefit), all as applicable. We adjust net income (loss) attributable to Prairie Operating Co. for the items listed above to arrive at Adjusted EBITDA because these amounts can vary substantially between periods and companies within our industry depending upon accounting methods, book values of assets, capital structures, and the method by which assets were acquired. Adjusted EBITDA has limitations as an analytical tool, including that it excludes certain items that affect our reported financial results. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income calculated in accordance with GAAP or as an indicator of our operating performance or liquidity. Additionally, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. The following table presents the reconciliation of Net income (loss) attributable to Prairie Operating Co. to Adjusted EBITDA for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025(1) (In thousands) Net income (loss) attributable to Prairie Operating Co. $ 109,017 $ 35,683 $ (43,656) $ 33,066 Adjustments: Depreciation, depletion, and amortization 17,075 12,265 32,919 14,386 Abandonment and impairment of unproved properties (2) 196 — 608 — Non-cash stock-based compensation 3,307 2,419 9,040 3,786 Interest expense, net 9,805 9,030 17,935 10,336 Unrealized (gain) loss on derivatives (77,779) (23,206) 85,104 (23,090) Non-cash (gain) loss on adjustment to fair value – financial instrument liabilities (3) (48,233) 2,373 (16,382) 4,537 Litigation and severance settlement expense 808 — 4,154 — Income tax expense (benefit) (4) 19,814 — (18,580) — Adjusted EBITDA $ 34,010 $ 38,564 $ 71,142 $ 43,021 (1) Net income attributable to Prairie Operating Co. for the six months ended June 30, 2025 includes revenue and related expenses attributable to the assets acquired from Bayswater beginning on March 26, 2025, the closing date of the Bayswater Acquisition, through June 30, 2025. (2) Reflects the abandonment of unproved locations which we have deemed non–core and allowed to expire. (3) Reflects the changes in the fair values of the financial instruments measured at fair value on a recurring basis. (4) Reflects the deferred income tax expense and benefit recognized for the three and six months ended June 30, 2026, respectively. The following table presents the reconciliation of expected full-year 2026 Net income attributable to Prairie Operating Co. to expected full-year 2026 Adjusted EBITDA: Full-year 2026 Guidance Range (In thousands) Net income attributable to Prairie Operating Co. $ 18,000 $ 28,000 Adjustments: Depreciation, depletion, and amortization 52,000 52,000
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Non-cash stock-based compensation 18,000 18,000 Interest expense, net 36,000 33,000 Unrealized loss on derivatives (60,000) (60,000) Non-cash loss on adjustment to fair value – financial instrument liabilities(1) 96,000 96,000 Income tax expense (2) 20,000 23,000 Adjusted EBITDA $ 180,000 $ 190,000 (1) Reflects the changes in the fair values of the financial instruments measured at fair value on a recurring basis. (2) Reflects deferred income tax expense.
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Cautionary Statement about Forward-Looking Statements The information included in this press release and in any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, without limitation, statements regarding future financial performance, business strategies, expansion plans, future results of operations, estimated revenues, losses, projected costs, prospects, plans and objectives of management. These forward-looking statements are based on our management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “continue,” “project” or the negative of such terms or other similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained herein are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks are not exhaustive. Other sections of this press release could include additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for our management to predict all risk factors nor can we assess the effects of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in, or implied by, any forward-looking statements. Our Securities and Exchange Commission (the “SEC”), filings are available publicly on the SEC website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Accordingly, forward- looking statements in this press release should not be relied upon as representing our views as of any subsequent date, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. All forward-looking statements expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. Regulation FD Disclosure The Company announces material information to the public through a variety of means, including filings with the SEC, press releases, public conference calls, and the investor relations section of its website at www.prairieopco.com. In addition to these traditional channels, the Company also uses its official social media accounts as a means of disclosing information about Prairie and its business, and to comply with its disclosure obligations under Regulation FD. The Company’s official social media accounts currently include @PrairieOpCo on X (formerly Twitter) and linkedin.com/company/prairie-operating-co on LinkedIn. Information the Company posts through these social media channels may be deemed material. Accordingly, investors, the media, and others interested in the Company should monitor these accounts in addition to following the Company’s press releases, SEC filings, and public conference calls and webcasts. The Company may update the list of official social media accounts from time to time, and any such updates will be posted on the investor relations section of its website. About Prairie Operating Co. Prairie Operating Co. is a Houston-based publicly traded independent energy company engaged in the development and acquisition of oil, natural gas, and natural gas liquid 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 primary focus on the Niobrara and Codell formations. The Company is committed to the responsible development of its oil natural gas, and natural gas liquid resources and is focused on maximizing returns through consistent growth, capital discipline, and sustainable cash flow generation. More information about the Company can be found at www.prairieopco.com. Investor Relations Contact: Wobbe Ploegsma info@prairieopco.com 720-716-5415
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Prairie Operating Co. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share amounts) June 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 21 $ 20 Oil, natural gas, and NGL accrued revenue 28,737 22,728 Joint interest and other receivables 7,234 23,106 Derivative assets, net — 28,812 Inventory 4,220 3,604 Prepaid expenses and other current assets 1,689 1,452 Total current assets 41,901 79,722 Property and equipment: Oil and natural gas properties, successful efforts method of accounting including $101,499 and $57,897 excluded from depletable base as of June 30, 2026 and December 31, 2025, respectively 1,007,985 852,732 Other property and equipment 21,604 21,067 Less: Accumulated depreciation, depletion, and amortization (82,098) (49,343) Total property and equipment, net 947,491 824,456 Derivative assets, net — 24,627 Debt issuance costs, net 12,688 12,642 Operating lease assets 2,966 2,966 Other non–current assets 167 133 Total assets $ 1,005,213 $ 944,546 Liabilities, Mezzanine Equity, and Stockholders’ Equity Current liabilities: Accounts payable and accrued expenses $ 92,729 $ 62,792 Oil, natural gas, and NGL revenue payable 21,115 30,300 Ad valorem and production taxes payable 35,074 31,385 Derivative liabilities, net 16,954 — Operating lease liabilities 1,543 1,300 Total current liabilities 167,415 125,777 Long–term liabilities: Credit facility 436,000 366,000 Subordinated note – related party 1,458 1,458 Series F convertible preferred stock embedded derivatives, at fair value 12,262 15,853 Series F convertible preferred stock warrants, at fair value 9,492 90,134 Incremental share right liability, at fair value 15,264 — Derivative liabilities, net 14,711 — Oil, natural gas, and NGL revenue payable 39,582 27,402 Ad valorem and production taxes payable 33,411 22,751 Deferred tax liability 3,072 21,652 Asset retirement obligation 3,781 4,019 Operating lease liabilities 1,544 1,792 Other long-term liabilities 1,026 1,398 Total long–term liabilities 571,603 552,459 Total liabilities 739,018 678,236 Commitments and contingencies Mezzanine equity: Series F convertible preferred stock; $0.01 par value; 50,000,000 shares authorized, and 78,000 and 121,050 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 43,224 136,146 Stockholders’ equity: Series D convertible preferred stock; $0.01 par value; 50,000 shares authorized, and 44 and 5,982 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively — — Common stock; $0.01 par value; 500,000,000 shares authorized, and 105,828,010 and 62,499,375 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 1,060 625
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Treasury stock, at cost; 715,955 and 111,357 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively (1,778) (531) Additional paid–in capital 355,060 217,785 Accumulated deficit (131,371) (87,715) Total stockholders’ equity 222,971 130,164 Total liabilities, mezzanine equity, and stockholders’ equity $ 1,005,213 $ 944,546
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Prairie Operating Co. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues: Crude oil, natural gas, and NGL revenues $ 98,859 $ 68,100 $ 182,276 $ 80,915 Operating expenses: Lease operating expenses 13,628 11,348 28,469 13,361 Transportation and processing expenses 2,426 2,234 4,922 2,367 Ad valorem and production taxes 7,983 6,416 14,775 7,374 Depreciation, depletion, and amortization 17,075 12,265 32,919 14,386 Exploration expenses 243 458 541 745 Abandonment and impairment of unproved properties 196 — 608 — General and administrative expenses 11,952 16,443 28,838 21,995 Total operating expenses 53,503 49,164 111,072 60,228 Other income (expenses): Interest expense (10,033) (9,124) (18,230) (10,502) Gain (loss) on derivatives, net 45,079 28,150 (131,981) 27,252 Gain (loss) on adjustment to fair value – financial instrument liabilities 48,233 (2,373) 16,382 (4,537) Interest income and other 196 94 389 166 Total other income (expenses) 83,475 16,747 (133,440) 12,379 Income (loss) from operations before income taxes 128,831 35,683 (62,236) 33,066 Income tax (expense) benefit (19,814) — 18,580 — Net income (loss) attributable to Prairie Operating Co. 109,017 35,683 (43,656) 33,066 Series F preferred stock declared dividends (2,598) (3,289) (6,268) (3,289) Series F preferred stock undeclared dividends 186 (1,402) (780) (1,647) Remeasurement of Series F preferred stock 87,189 17,511 70,101 (73,101) Net income (loss) attributable to Prairie Operating Co. common stockholders $ 193,794 $ 48,503 $ 19,397 $ (44,971) Earnings (loss) per common share Basic earnings (loss) per share $ 1.75 $ 1.04 $ 0.21 $ (1.27) Diluted earnings (loss) per share $ 0.23 $ 0.18 $ (0.41) $ (1.27) Weighted average common shares outstanding Basic 107,141,123 44,063,281 87,711,102 35,477,691 Diluted 185,590,890 198,365,207 183,000,521 35,477,691
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Prairie Operating Co. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Six Months Ended June 30, 2026 2025 Cash flows from operating activities: Net (loss) income attributable to Prairie Operating Co. $ (43,656) $ 33,066 Adjustments to reconcile net (loss) income attributable to Prairie Operating Co. to net cash provided by operating activities Depreciation, depletion, and amortization 32,919 14,386 Abandonment and impairment of unproved properties 608 — Stock–based compensation 9,040 3,722 Unrealized loss (gain) on derivatives 85,104 (23,090) (Gain) loss on adjustment to fair value – financial instrument liabilities (16,382) 4,537 Deferred income taxes (18,580) — Amortization of deferred financing costs 1,899 2,940 Changes in operating assets and liabilities: Oil, natural gas, and NGL accrued revenue (6,010) (43,699) Joint interest and other receivables 15,872 1,152 Inventory, prepaid expenses, and other current assets (531) (3,461) Accounts payable, accrued expenses, and other current liabilities 16,630 16,175 Revenue, ad valorem, and production taxes payable 17,343 3,994 Net cash provided by operating activities 94,256 9,722 Cash flows from investing activities: Development of oil and natural gas properties (132,563) (53,973) Other asset and leasehold purchases (11,336) (950) Cash paid for Bayswater asset purchase, net of cash received — (467,461) Cash received from payment on note receivable — 95 Net cash used in investing activities (143,899) (522,289) Cash flows from financing activities: Borrowings on the Credit Facility 134,000 359,000 Repayments on the Credit Facility (64,000) — Debt issuance costs associated with the Credit Facility (1,945) (15,670) Proceeds from the issuance of Common Stock 1,841 43,817 Financing costs associated with the issuance of Common Stock (46) (3,311) Proceeds from the issuance of Series F Preferred Stock — 148,250 Financing costs associated with the issuance of Series F Preferred Stock — (11,059) Redemption of Series F Preferred Stock (18,999) — Payments of the Subordinated Note – related party — (3,214) Proceeds from option exercises 40 633 Treasury stock repurchased (1,247) (418) Net cash provided by financing activities 49,644 518,028 Net increase in cash and cash equivalents 1 5,461 Cash and cash equivalents, beginning of the period 20 5,192 Cash and cash equivalents, end of the period $ 21 $ 10,653
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Supplemental Disclosures of Cash Flow Information The following table presents non–cash investing and financing activities for the periods presented: Six Months Ended June 30, 2026 2025 (In thousands) Non–cash investing activities: Increase in capital expenditure accrued liabilities and accounts payable $ 12,441 $ 15,692 Non–cash financing activities: Common Stock issued upon conversion of Series F Preferred Stock $ 45,858 $ 4,772 Common Stock issued for Series F Preferred Stock dividends (1) $ 6,014 $ 3,289 Common Stock issued to Bayswater as part of Bayswater Acquisition purchase price (2) $ — $ 16,000 Common Stock issuance costs included in accrued liabilities $ — $ 292 Bayswater transaction costs included in accrued liabilities $ — $ 6,035 Series F Preferred Stock agreement amendment fees and issuance costs included in accrued liabilities and accounts payable $ 381 $ 1,113 Common Stock issued upon conversion of Series D Preferred Stock $ 33 $ 8,475 Common Stock issued upon option exercise $ 42 $ — Common Stock issued upon conversion of Senior Convertible Note (3) $ — $ 18,164 (1) The Company elected to issue shares of the Company’s common stock, par value $0.01 per share (“Common Stock”) for the Series F Preferred Stock dividends payable on June 1, 2025, March 1, 2026, and June 1, 2026. (2) The Company issued approximately 3.7 million shares of Common Stock to Bayswater Resources, LLC, Bayswater Fund III–A, LLC, Bayswater Fund III–B, LLC, Bayswater Fund IV–A, LP, Bayswater Fund IV–B, LP, Bayswater Fund IV–Annex, LP, and Bayswater Exploration & Production, LLC (collectively, “Bayswater”) as part of the Bayswater acquisition. (3) During the six months ended June 30, 2025, YA II PN, LTD. converted the remaining $11.3 million of the initial $15.0 million convertible promissory note in exchange for 2.1 million shares of Common Stock.