Subsequent Events

12 Months Ended

Dec. 31, 2025

Note 20 – Subsequent Events

Hedging Program

During the first quarter of 2026, the Company executed a portfolio of hedges securing the following weighted–average prices through the indicated periods:

	Settling January 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 June 30, 2029
Crude Oil Swaps:
Notional volume (Bbls)		695,518		960,750		861,300		210,000
Weighted average price ($/Bbl)	$	65.33	$	63.49	$	62.94	$	61.57
Natural Gas Swaps:
Notional volume (MMBtus)		600,000		1,600,000		1,200,000		400,000
Weighted average price ($/MMBtu)	$	4.05	$	4.07	$	4.11	$	4.11
Ethane Swaps:
Notional volume (Bbls)		98,985		168,300		168,300		—
Weighted average price ($/Bbl)	$	10.63	$	10.21	$	9.55	$	—
Propane Swaps:
Notional volume (Bbls)		64,175		104,940		104,940		—
Weighted average price ($/Bbl)	$	30.07	$	28.22	$	25.87	$	—
Iso Butane Swaps:
Notional volume (Bbls)		14,070		23,760		23,760		—
Weighted average price ($/Bbl)	$	39.36	$	35.10	$	31.32	$	—
Normal Butane Swaps:
Notional volume (Bbls)		25,795		43,560		43,560		—
Weighted average price ($/Bbl)	$	37.99	$	33.81	$	30.35	$	—
Pentane Plus Swaps:
Notional volume (Bbls)		31,475		55,440		55,440		—
Weighted average price ($/Bbl)	$	60.06	$	55.05	$	52.94	$	—

Leadership Changes

On March 3, 2026, the Company announced several leadership changes, including the voluntary resignation of its Chief Executive Officer and Chairman, Edward Kovalik, and the retirement of its President and Director, Gary C. Hanna. The Company’s Board of Directors has appointed Richard N. Frommer, a member of the Board of Directors, to serve as Interim President and Chief Executive Officer of the Company, while it conducts a search for a permanent President and Chief Executive Officer. Additionally, the Board of Directors has also appointed Erik Thoresen to serve as Chairman of the Board. The Company’s wholly owned subsidiary, Prairie Operating Employee Co., LLC, has entered into separation agreements with Mr. Kovalik and Mr. Hanna with respect to the terms of their separation from the Company, which were negotiated on behalf of the Company by a special committee of the Board composed entirely of independent directors.

Pursuant to the Company’s separation agreement with Mr. Kovalik (the “Kovalik Separation Agreement”), Mr. Kovalik will receive a lump sum severance payment of approximately $2.5 million, his 2025 annual incentive bonus of approximately $0.8 million, and a payout of his unused, accrued vacation and paid–time–off benefits. In addition, the Kovalik Separation Agreement provides that all of Mr. Kovalik’s unvested time–based RSUs will immediately vest and all of Mr. Kovalik’s unvested PSUs will be immediately forfeited. The Company’s separation agreement with Mr. Hanna (the “Hanna Separation Agreement” and, together with the Kovalik Separation Agreement, the “Separation Agreements”) provides that Mr. Hanna will receive his 2025 annual incentive bonus of approximately $0.7 million and a payout of his unused, accrued vacation and paid–time–off benefits. Pursuant to the Hanna Separation Agreement, all of Mr. Hanna’s unvested RSUs will immediately vest, and Mr. Hanna will retain all of his unvested PSUs through the end of the applicable performance period, which is consistent with the treatment of such performance awards in the event of retirement under Mr. Hanna’s applicable award agreements.

The Separation Agreements also provide that Mr. Kovalik and Mr. Hanna will retain their respective fully vested non–compensatory stock options but will assign their respective overriding royalty interests in certain of the Company’s Genesis/Exok assets. Mr. Kovalik and Mr. Hanna have also each agreed to vote the shares of the Company’s Common Stock they beneficially own in favor of the Board’s recommendation at any annual or special meeting of the Company’s stockholders over the next three years, and that any lockup agreements entered into by Mr. Kovalik and Mr. Hanna, including with the Series F Preferred Stockholder, will remain in full force and effect in accordance with the terms thereof.

Series F Preferred Stock Warrants

On March 25, 2026, the Company and the Series F Preferred Stockholder entered into the Series F Preferred Stock Warrant Amendment, which, among other things, changes the issuance date of the Series F Preferred Stock Warrants from the first anniversary of the issuance date of the Series F Preferred Stock to April 7, 2026. Additionally, the Series F Preferred Stock Warrant Amendment provides that the Company will pay the Series F Preferred Stockholder an aggregate amount equal to $3.0 million on April 6, 2026, unless the obligation to pay such fee has been waived by the Series F Preferred Stockholder in their sole discretion.