Latest news with #PROP
Yahoo
6 days ago
- Business
- Yahoo
PROP vs. CIVI: Which DJ Basin Player Has the Upper Hand?
Prairie Operating Co. PROP and Civitas Resources CIVI are two key independent energy firms with operations deeply rooted in Colorado's Denver-Julesburg (DJ) Basin. PROP, a newer entrant with a bold consolidation strategy, has expanded rapidly through high-profile acquisitions. In contrast, CIVI is a more established player, sharpening its focus on cost discipline while also expanding into the high-return Permian shared presence in the DJ Basin makes them natural competitors. With oil prices hovering in uncertain territory and investor appetite leaning toward disciplined capital deployment and free cash flow visibility, it's crucial to evaluate which name better balances risk, growth and return dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now. Strategic Growth via Acquisitions: PROP has undergone a dramatic transformation since 2023, executing over $800 million in deals that tripled its scale. Acquisitions of Genesis, Nickel Road, and Bayswater have added 54,000 net acres and more than 28 thousand barrels of oil-equivalent per day (BOE/d) in output. With an estimated 10-year inventory runway and over 580 gross locations, Prairie Operating Co.'s strategy positions it for long-term growth in a basin where large-cap competitors are pulling back. Its rural Colorado location also reduces permitting risk and accelerates development Firepower and Production Growth: Prairie Operating Co.'s financial metrics are quickly scaling after the $602 million acquisition of Bayswater assets. Adjusted EBITDA for 2025 is forecasted between $350 million and $370 million, a massive leap from the $140 million previously projected. Net income guidance stands between $69 million and $102 million, while the company maintains a low leverage ratio of 1.0x. With $475 million in liquidity, PROP has the balance sheet strength to fund growth without diluting shareholders. On the production side, Prairie Operating Co. expects to average 29,000 to 31,000 BOE/d in 2025, representing a more than 300% increase year over Hedging Locks in Upside: One of the more underappreciated aspects of Prairie Operating Co.'s story is its proactive hedging strategy. It has locked in about 85% of its remaining 2025 daily production at $68.27/bbl WTI and $4.28/MMBtu Henry Hub. For 2026 through Q1 2028, the hedges average $64.29/bbl and $4.09/MMBtu. This not only secures visibility on future cash flows but also shields the company from downside risk in a volatile energy market. In fact, the hedge book is giving it about $70 million in built-in value at today's prices. Prairie Operating Co.'s program also stands out for its scope and timing, implemented just before a pullback in commodity prices. Cost Optimization and Cash Flow Strength: Civitas Resources focuses heavily on driving efficiencies. A company-wide cost optimization plan is targeting $100 million in additional annual free cash flow, with 40% of those savings expected to be hit by the second half of 2025. Deals like a new oil gathering agreement are helping cut costs and boost margins. In 2024, CIVI generated $1.3 billion in free cash flow and expects another $1.1 billion in Permian Expansion: One favorable investment case for Civitas Resources centers on its sharpened focus and early success in the Permian Basin, particularly in the Delaware sub-region. In Q1 2025, Civitas strategically shifted 40% of its capital activity to the Delaware Basin, which has consistently offered the highest returns within its portfolio. This move is already yielding tangible operational gains. According to management, the Delaware team is drilling approximately 10% faster than expected, reflecting meaningful efficiency improvements. Additionally, longer lateral developments enabled by prior ground acquisitions are enhancing capital efficiency Balance Sheet and Hedging Strategy: Civitas remains laser-focused on achieving its $4.5 billion net debt target by year-end 2025. The company has nearly $200 million in hedge value secured, with about 50% of crude volumes hedged, insulating free cash flow against further oil price volatility. Management noted they have structured their base dividend and spending to remain cash flow neutral even if WTI dips to $40. Both stocks have been hammered over the past year. PROP is down 71%, while CIVI has fallen 61%. The declines reflect weak oil prices, EPS misses, and macro concerns. However, Prairie Operating Co.'s sharper decline may also reflect uncertainty around its recent acquisitions. Image Source: Zacks Investment Research PROP trades at just 0.27X forward sales, a significant discount to Civitas Resources' 0.56X. Image Source: Zacks Investment Research According to Zacks' estimates, PROP's earnings are set to surge 382.9% in 2025 and another 13.5% in 2026. Image Source: Zacks Investment Research Civitas Resources, in contrast, is expected to see EPS fall by 29.3% in 2025 and another 9.5% in 2026. Image Source: Zacks Investment Research These trends underscore Prairie Operating Co.'s near-term growth trajectory versus CIVI's short-term reset. Both PROP and CIVI currently carry a Zacks Rank #3 (Hold), reflecting mixed near-term prospects. CIVI offers strong free cash flow, disciplined cost control, and targeted Permian focus. Prairie Operating Co., meanwhile, brings exciting growth potential, low valuation and accelerating volumes. While both stocks have merits, PROP appears slightly better positioned at this moment given its explosive earnings growth outlook and improving cash flow can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Civitas Resources, Inc. (CIVI) : Free Stock Analysis Report Prairie Operating Co. (PROP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
05-04-2025
- Business
- Yahoo
Why Prairie Operating Co. (PROP) Crashed This Week
We recently published a list of Energy Stocks that are Losing This Week. In this article, we are going to take a look at where Prairie Operating Co. (NASDAQ:PROP) stands against other energy stocks that are losing this week. The global energy industry has faced a major setback this week after there were serious concerns of an escalating global trade war and a looming economic slowdown. After China hit back at President Trump's tariffs with 34% duties on all US goods, global oil prices plunged over 8%, heading for their lowest close since the height of the Covid-19 pandemic in 2021. Moreover, the US natural gas price at Henry Hub has also fallen by around 7.5% amid broad market selling. While the Trump administration has given exemptions to oil, gas, and refined products in its swapping tariffs, the threat of inflation and slowing economic growth have weighed down energy prices. JP Morgan has stated that it now sees a 60% chance of a global economic recession by year end, up from 40% previously. To put further pressure on oil prices, OPEC+ has decided to accelerate plans for output increases, with the group now aiming to supply 411,000 barrels per day (bpd) to the market in May, up from the previously planned 135,000 bpd. As a result, Goldman Sachs analysts have sharply reduced their December 2025 forecasts, cutting Brent and WTI targets by $5 each to $66 and $62 per barrel, respectively. A rig pumping oil in the midst of a sun-baked desert. To collect data for this article, we have referred to several stock screeners to find energy stocks that have fallen the most between March 27 to April 3, 2025. Following are the Energy Stocks that Lost the Most This Week. The stocks are ranked according to their share price decline during this period. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Share Price Decline Between Mar. 27 and Apr. 3: 22.54% Prairie Operating Co. (NASDAQ:PROP) is an independent energy company engaged in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The stock of PROP continued to fall after the company moved ahead with the public offering of $200 million of shares of its common stock and announced the pricing of an underwritten public offering of $38.5 million of shares of its common stock at $4.50 per share. Prairie Operating Co. (NASDAQ:PROP) plans to use proceeds from the offering to fund the acquisition of DJ Basin Assets from Bayswater Exploration and bolster its presence in the Denver-Julesburg Basin. Overall, PROP ranks 4th on our list of the energy stocks that lost the most this week. While we acknowledge the potential of energy companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PROP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
South China Morning Post
23-02-2025
- Health
- South China Morning Post
How your genes can affect your taste buds
Have you ever wondered why some people dislike bitter foods, like broccoli, while others enjoy them? The answer lies primarily in a gene known as TAS2R38. The TAS2R38 gene is an integral part of our DNA that helps us taste bitterness. It creates a protein that allows the tongue to taste things. This gene makes people sensitive to some bitter chemicals, such as phenylthiocarbamide (PTC) and propylthiouracil (PROP). These chemicals are not naturally found in foods, but how we taste them is similar to how we taste other bitter things – and some of these can be toxic. The TAS2R38 gene comes in different forms known as alleles. There are two main types: the 'taster' allele (T) and the 'non-taster' allele (t). Those with at least one T allele are called 'tasters' and are more sensitive to bitter tastes. On the other hand, individuals with the tt genotype (two non-taster alleles) are known as 'non-tasters' (see graphic). These individuals would not be able to notice the bitterness from PTC and PROP. But if PTC and PROP are not naturally found in foods, why do vegetables such as kale and broccoli taste bitter to some people? These foods have chemicals called glucosinolates, which are similar in structure to PTC and PROP. Because of this, tasters may find that these vegetables have a strong, unpleasant taste. Questions What does the TAS2R38 gene do? What is the term for people with at least one 'T' allele?
