Prairie Operating Co (PROP) 2025 Q4 法說會逐字稿

Good morning, and welcome to the Prairie Operating Co. year-end 2025 earnings conference call. Today's call is being recorded.

早安，歡迎參加 Prairie Operating Co. 2025 年度年終財報電話會議。今天的電話會議將被錄音。

At this time, I'd like to turn the call over to Wobbe Ploegsma, Vice President of Investor Relations and Capital Markets. Please go ahead.

此刻，我想把電話交給投資人關係與資本市場副總裁 Wobbe Ploegsma。請開始。

Thank you, operator, and good morning, everyone. Thank you for joining Prairie Operating Company's full year-end 2025 earnings call.

謝謝接線員，大家早安。感謝各位參加 Prairie Operating Company 2025 年全年年終財報電話會議。

Before we provide our prepared remarks, I would like to remind all participants that our comments today will include forward-looking statements which are subject to certain risks, uncertainties and assumptions. Actual results could differ materially from those in any forward-looking statements.

在我們開始宣讀準備好的發言之前，我想提醒所有與會者，我們今天的評論將包含前瞻性陳述，這些陳述受某些風險、不確定性與假設所影響。實際結果可能與任何前瞻性陳述中的內容存在重大差異。

Additionally, we may refer to non-GAAP measures. For a more detailed discussion of the risks and uncertainties that could cause actual results to differ materially from any forward-looking statements, as well as the reconciliations of any non-GAAP financial measures, please see the company's public filings, including the Form 8-K filed Monday, March 30, 2026. We have also posted an updated investor presentation to our website.

此外，我們可能會提及非 GAAP 指標。如需更詳細了解可能導致實際結果與任何前瞻性陳述存在重大差異的風險與不確定性，以及任何非 GAAP 財務衡量指標的調節表，請參閱公司公開申報文件，包括於 2026 年 3 月 30 日（週一）提交的 Form 8-K。我們也已在網站上發布更新後的投資人簡報。

Joining me today are Rich Frommer, Interim CEO and President, and Greg Patton, Executive Vice President and Chief Financial Officer.

今天與我一同出席的有：臨時執行長兼總裁 Rich Frommer，以及執行副總裁兼財務長 Greg Patton。

With that, I'll turn the call over to our Interim CEO and President, Rich Frommer.

接下來，我把電話交給我們的臨時執行長兼總裁 Rich Frommer。

Thanks, Wobbe, and good morning, everyone. 2025 was a transformative year for Prairie. We successfully completed the full integration of the assets acquired from Bayswater Exploration & Production, while further expanding our inventory at attractive economics.

謝謝你，Wobbe，大家早安。2025 年對 Prairie 而言是具有轉型意義的一年。我們成功完成對自 Bayswater Exploration & Production 收購資產的全面整合，同時以具吸引力的經濟性進一步擴充我們的庫存。

In addition to our acquisitions, we delivered strong operational execution, meaningful production growth, and strengthens our balance sheet. For the full year, Prairie generated total production of approximately 6.75 million BOE or 18,500 BOE on average and exited the year at a production rate of approximately 28,000 net BOE per day, reflecting the strong ramp in activity and execution of our development program.

除收購之外，我們也展現強勁的營運執行力、顯著的產量成長，並強化了資產負債表。全年而言，Prairie 的總產量約為 675 萬 BOE，平均約 18,500 BOE；並以約每日 28,000 淨 BOE 的產量水準結束年度，反映我們活動量的強勁爬坡以及開發計畫的執行成果。

It's important to note that the reported 18,500 BOE per day does not include the pro forma first quarter production from the Bayswater assets, which was incorporated into our original guidance. By including those volumes, our full year production would have been approximately 24,000 BOE per day, representing almost a 4 times increase in production year over year and in line with our guidance range.

需要特別指出的是，所報告的每日 18,500 BOE 並未包含 Bayswater 資產第一季的備考（pro forma）產量，而該產量已納入我們原先的指引。若將該等產量納入，我們全年產量約為每日 24,000 BOE，代表年對年產量幾乎成長 4 倍，並符合我們的指引區間。

Throughout 2025, we executed a series of bolt-on acquisitions that further strengthened our core DJ Basin position. In total, we completed six transactions, adding approximately 44,000 net acres inclusive of the Bayswater, and expanded our portfolio with high quality proved inventory, all while maintaining accretive balance sheet metrics and a disciplined approach to capital allocation.

在 2025 年期間，我們執行了一系列補強型（bolt-on）收購，進一步鞏固我們在 DJ Basin 的核心布局。合計而言，我們完成六筆交易（包含 Bayswater），新增約 44,000 淨英畝，並以高品質已證實（proved）庫存擴充投資組合，同時維持具增益（accretive）的資產負債表指標與嚴謹的資本配置紀律。

Operationally, we brought on multiple pads online during the year, including the Noble, Simpson, Rauch, and the Opal Coal Bank, while advancing development across our broader asset base. These projects contributed meaningfully to our production growth and position us well for continued momentum into 2026.

在營運方面，我們於年度內讓多個井場（pads）投產上線，包括 Noble、Simpson、Rauch，以及 Opal Coal Bank，同時推進我們更廣泛資產基礎的開發。這些專案對產量成長有顯著貢獻，並使我們在 2026 年能延續動能、保持良好態勢。

From the financial standpoint, Prairie significantly strengthened its foundation in 2025, generating approximately $242 million in revenue and $156 million in Adjusted EBITDA, highlighting the scale and the earnings power of the platform. Similar to the production, this revenue and EBITDA figure does not include the pro forma contribution from Bayswater's assets for the first quarter.

從財務角度來看，Prairie 在 2025 年大幅強化基礎，創造約 2.42 億美元營收與 1.56 億美元調整後 EBITDA，凸顯平台的規模與獲利能力。與產量相同，該營收與 EBITDA 數字未包含 Bayswater 資產第一季的備考貢獻。

When included, full year revenue and EBITDA would have been approximately $315 million and $220 million, respectively, modestly below our EBITDA guidance of $240 million. Subsequent to year end, the company received an extension on the anniversary warrant date from March 26, 2026, to April 7, 2026, providing us additional time as we continue discussions related to our capital structure.

若將其納入，全年營收與 EBITDA 將分別約為 3.15 億美元與 2.20 億美元，略低於我們 2.40 億美元的 EBITDA 指引。在年終之後，公司獲得周年認股權證日期的延長，從 2026 年 3 月 26 日延至 2026 年 4 月 7 日，讓我們在持續就資本結構相關事項進行討論之際，獲得更多時間。

Looking ahead, our strategy remains unchanged. The Board and management are aligned and focused on disciplined capital allocation, operational execution, and delivering sustainable growth and long-term shareholder value.

展望未來，我們的策略維持不變。董事會與管理團隊立場一致，專注於嚴謹的資本配置、營運執行，並提供可持續的成長與長期股東價值。

With that, I'll turn the call over to Greg.

接下來，我把電話交給 Greg。

Thanks, Rich, and good morning, everyone. I'll review Prairie's full year 2025 financial results. As well as highlights regarding our liquidity, hedging, and balance sheet.

謝謝你，Rich，大家早安。我將回顧 Prairie 2025 年全年的財務結果，以及我們流動性、避險與資產負債表方面的重點。

For the full year, Prairie generated total revenue of approximately $242 million, or $315 million inclusive of Bayswater. Driven by realized prices of $63.87 per barrel of oil, $17.93 per barrel of NGL, and $1.65 per Mcf of natural gas, including the impact of derivatives, representing almost a 3,000% increase in revenues year over year. Net loss attributable to common stockholders was $60.9 million, or $1.35 per share, primarily reflecting noncash expenses associated with a Series F Preferred in other financial instruments.

全年而言，Prairie 的總營收約為 2.42 億美元；若包含 Bayswater，則為 3.15 億美元。營收主要受已實現價格所帶動：原油每桶 63.87 美元、NGL 每桶 17.93 美元、天然氣每 Mcf 1.65 美元（包含衍生性商品影響），使營收年對年增加近 3,000%。歸屬於普通股股東的淨損為 6,090 萬美元，或每股 1.35 美元，主要反映與 F 系列優先股及其他金融工具相關的非現金費用。

Adjusted EBITDA totaled approximately $156 million, a significant improvement from the prior year and a clear reflection of the company's strong operational and financial performance. As Rich noted, this figure does not include the pro forma contribution from the Bayswater assets for the first quarter. Including those amounts, full-year adjusted EBITDA would have been approximately $220 million, modestly below our guidance of $240 million.

調整後 EBITDA 合計約為 1.56 億美元，較前一年顯著改善，清楚反映公司強勁的營運與財務表現。如 Rich 所提，該數字未包含 Bayswater 資產第一季的備考貢獻。若將其納入，全年調整後 EBITDA 約為 2.20 億美元，略低於我們 2.40 億美元的指引。

Notably, we achieved our production guidance while deploying significantly less capital than originally planned. Approximately 35% below our stated CapEx guidance, underscoring the capital efficiency and strength of our operational execution. Net cash provided by operating activities was $153.9 million, and capital expenditures totaled approximately $183.4 million, coming in approximately $90 million below the midpoint of our guidance.

值得注意的是，我們在投入遠低於原先規劃的資本下，仍達成產量指引。資本支出約較我們所述的 CapEx 指引低 35%，凸顯資本效率與營運執行力的優勢。營運活動提供的淨現金為 1.539 億美元，資本支出合計約 1.834 億美元，較指引中點低約 9,000 萬美元。

On a per BOE basis, lease operating expense was $6.14. Transportation and processing was $1.32. Production and ad valorem taxes were $3.15, and G&A was $7.50 per BOE, of which $5.29 was attributable to cash G&A, reflecting our continued focus on cost control and increased efficiencies.

以每 BOE 計，租賃營運費用為 6.14 美元；運輸與處理費用為 1.32 美元；生產與從價稅（ad valorem taxes）為 3.15 美元；G&A 為每 BOE 7.50 美元，其中 5.29 美元可歸因於現金 G&A，反映我們持續聚焦成本控管與效率提升。

As of December 31, 2025, Prairie had approximately $109 million of liquidity, with a borrowing base and elected commitment of $475 million under its credit facility. Our hedging program remains a key component of our strategy, with a significant portion of expected production hedged at attractive prices through 2029, providing strong cash flow visibility and downside protection.

截至 2025 年 12 月 31 日，Prairie 約有 1.09 億美元的流動性；其信貸額度項下的借款基礎（borrowing base）與選定承諾額度（elected commitment）為 4.75 億美元。我們的避險計畫仍是策略的關鍵組成部分，預期產量中有相當比例已以具吸引力的價格避險至 2029 年，提供強勁的現金流可視性與下行保護。

Prairie ended the year with 121.1 million BOE of proved reserves, including a balanced mix of proved, developed, and undeveloped reserves with a PV-10 value of approximately $1.2 billion, underscoring the significant value of our assets. Overall, 2025 marked a transformative step forward in strengthening Prairie's financial position, scaling the business, and positioning the company for continued growth. I will now go over an operational overview.

Prairie 以 1.211 億 BOE 的已證實儲量結束年度，其中包含已證實、已開發與未開發儲量的均衡組合，PV-10 價值約為 12 億美元，凸顯我們資產的顯著價值。整體而言，2025 年是強化 Prairie 財務狀況、擴大業務規模並為公司持續成長奠定定位的轉型性一步。我現在將進一步說明營運概況。

Operationally, 2025 was a defining year for Prairie. We successfully completed the integration of acquired assets, assumed full operational control, and executed a multiple pad development program across our DJ Basin footprint. Importantly, we achieved a 0.0 safety record for the year, reflecting a perfect safety performance with zero incidents, an outcome that underscores the dedication, discipline, and operational excellence of our field team.

在營運層面，2025 年對 Prairie 而言是具有里程碑意義的一年。我們成功完成對收購資產的整合，全面接管營運控制，並在我們於 DJ Basin 的資產版圖上執行多井台（multi-pad）開發計畫。更重要的是，我們全年達成 0.0 的安全紀錄，代表零事故的完美安全表現；此成果凸顯我們現場團隊的投入、紀律與卓越營運能力。

As previously mentioned, during the year, we completed and turned to sales wells across multiple pads, including Noble, Simpson, Rush, and Opal Coal Bank. Results to date have met or exceeded expectations and continue to validate the quality of our inventory and execution. In addition to new development, Prairie remained focused on optimization initiatives, including workovers and artificial lift enhancements, which contributed to improved base production, performance, and efficiency.

如先前所提及，我們在年度期間於多個井台完成完井並轉入銷售，包括 Noble、Simpson、Rush 以及 Opal Coal Bank。截至目前的成果符合或優於預期，並持續驗證我們庫存資產的品質與執行力。除新開發外，Prairie 亦持續聚焦於最佳化措施，包括修井（workover）與人工舉升（artificial lift）強化，進而帶動基礎產量、表現與效率的提升。

We also secured key agreements for services and infrastructure in 2026, ensuring operational continuity and supporting our future development. The team executed at a high level throughout the year, delivering strong results while managing integration and maintaining capital discipline.

我們也為 2026 年取得關鍵的服務與基礎設施協議，確保營運延續性並支援未來開發。團隊全年維持高水準執行，在推進整合的同時，亦維持資本紀律並交出強勁成果。

Management and the Board of Directors remain closely aligned around a shared commitment to disciplined capital allocation, continued optimization of the company's capital structure, and the delivery of sustainable long-term value for shareholders. The leadership team is focused on enhancing financial strength, driving operational excellence, and executing with integrity across all aspects of the business.

管理團隊與董事會在共同承諾上保持高度一致：嚴謹的資本配置、持續最佳化公司的資本結構，並為股東創造可持續的長期價值。領導團隊專注於強化財務韌性、推動卓越營運，並在業務各層面以誠信落實執行。

With that, I'll hand it back to Rich for closing remarks.

接下來我把時間交回給 Rich 做結語。

Thanks, Greg. As we look ahead to 2026, we are initiating full year guidance reflecting the strength of our asset base and the momentum exiting 2025. We expect average production of approximately 25,500 to 27,500 BOE per day, with capital expenditures of $200 million to $220 million. Adjusted EBITDA expected to range between $240 million and $260 million, assuming a weighted average WTI price of $60 to $64, including our hedges.

謝謝，Greg。展望 2026 年，我們將提供全年指引，反映我們資產基礎的實力以及 2025 年末的動能。我們預期平均產量約為每日 25,500 至 27,500 桶油當量（BOE），資本支出為 2.0 億至 2.2 億美元。在加權平均 WTI 價格為 60 至 64 美元（包含我們的避險）之假設下，調整後 EBITDA 預期介於 2.4 億至 2.6 億美元。

Our approach remains consistent, prioritizing high return organic growth, maintaining balance sheet strength, and preserving flexibility to pursue accretive opportunities. Prairie exits 2025 with significantly greater scale, a deep inventory of high-quality locations, and a proven operating platform. We believe we are well positioned to deliver continued operational and financial success into 2026 and beyond.

我們的方法一貫如一：優先推動高報酬的內生成長、維持資產負債表的穩健，並保留彈性以把握具增值性的機會。Prairie 在 2025 年結束時具備顯著更大的規模、深厚的高品質井位庫存，以及經驗證的營運平台。我們相信，公司已具備良好條件，在 2026 年及更長遠的未來持續交出營運與財務上的成功。

On behalf of our Board, I want to thank the entire Prairie team for their dedication and execution throughout 2025, and I want to thank our shareholders for their continued trust and support as we enter the next phase of growth.

我謹代表董事會，感謝 Prairie 全體團隊在 2025 年的投入與執行，也感謝股東在我們邁入下一階段成長之際持續的信任與支持。

With that, I'll turn the call back over to the operator to open the line for questions.

接下來我把電話交回給接線員，開放提問。

(Operator Instructions) Leo Mariani, Roth.

(接線員指示) Leo Mariani，Roth。

Yeah. Hi, guys. I was hoping you could shed a little bit more color on production. You guys had a 28,000 barrel a day exit rate. Your guide for the year is a little bit lower than that. Could you maybe just talk us through, like, roughly where you think we're going to be in the first quarter on production, and what do you think the kind of cadence is throughout the year? Has production been going down recently? Is it expected to go back up at some point throughout the year? Just any color on cadence and production would be very helpful.

是的。嗨，各位。我希望你們能就產量提供更多細節。你們的年末退出產量（exit rate）是每日 28,000 桶。但你們給出的全年指引比那個數字略低。能否請你們大致說明一下，你們認為第一季的產量大概會落在哪裡，以及全年節奏大概會是怎樣？最近產量是否有下降？是否預期在今年某個時間點會回升？任何關於節奏與產量的補充說明都會很有幫助。

Yeah. Good morning, Leo. Greg Patton here. Happy to talk about our plan a little bit for 2026. As you mentioned, we exited the year on a highlight for the year, ultimately developing new locations. We are reoccupying pads that have incremental additional locations available to them in the first quarter. I define that as not infilling wells, but more so utilizing that pad to drill other pads.

好的。早安，Leo。我是 Greg Patton。很樂意談談我們 2026 年的計畫。如你所提到的，我們在年末以亮眼表現收官，主要是因為開發了新的井位。我們在第一季會重新進駐一些井台，這些井台還有額外可開發的增量井位。我所說的不是加密井（infilling wells），而是更多地利用同一井台去鑽其他井位。

Our Blem Schneider is a key example, for those of you on the phone, where we did have to go in and shut down the entire Blem facility and operations. Our Q1 production number is down. That number, you're going to see an average of Q1 more in the 23-ish range. Ultimately, that's just because of that shut-in production, not necessarily normal declines, as we would all anticipate exiting the year from 28,000 barrels a day, but because we had to shut in incremental pads.

我們的 Blem Schneider 就是一個關鍵例子，對於在線上的各位而言，我們確實必須進場並關閉整個 Blem 設施與作業。因此我們第一季的產量數字會下降。你會看到第一季平均大約落在 23,000 左右。這主要是因為停產（shut-in）的產量所致，並非一般性的自然遞減；我們原本都會預期從每日 28,000 桶的年末水準往下正常遞減，但這次是因為我們必須額外關井一些井台。

Same scenario on our Elder pad, where we drilled three different DSUs from the Elder pad, that we've gone and reoccupied. In that first quarter of the year, the Blem, the Elder, as we've drilled those incremental locations in our drill plan for the year, is going to have the lowest production. Bringing those all back online, plus the new flush production on those two pads as we get into the second quarter here, we'll continue to ramp up and act as a continual gradual increase throughout the year to exit the year again.

我們的 Elder 井台也是同樣情況；我們從 Elder 井台鑽了三個不同的 DSU，之後又重新進駐該井台。在第一季，隨著 Blem 與 Elder 依照我們年度鑽井計畫去鑽這些增量井位，產量會是全年最低點。當我們把這些井重新上線，再加上第二季開始這兩個井台的新井初期高產（flush production），我們將持續爬升，並在全年呈現持續、逐步的增長，以再次在年末達到較高的退出水準。

That's a little bit of color in and around Q1 moving into Q2. There will be, at the end of Q2, some offset fracs that we anticipate. They don't seem to be significant at this point in time, depending on how far away ultimately those fracs propagate. We believe that it's ultimately a gradual incline from this point forward to the end of the year.

以上是關於第一季銜接到第二季的一些補充說明。在第二季末，我們預期會有一些鄰井壓裂（offset fracs）。就目前而言，視那些壓裂最終傳播距離而定，看起來影響不會太顯著。我們認為從現在起到年底，整體將呈現逐步上升的走勢。

Okay. That was helpful. I hope you could maybe just talk a little about some of the well performance that the company has seen here. Just looking at some of the details in your release, the Opal Coal Bank wells were around 725 BOE per day. Noble with sort of subsequent wells were lower at 550, and the Simpson, kind of your latest wells, were even lower at 500. Are you guys doing anything differently on the wells here? It seems like the performance has been declining a bit in the more recent wells versus some prior wells. Maybe just talk to that a bit and kind of what you're seeing there.

好的。這很有幫助。我也希望你們能談談公司目前看到的一些單井表現。從你們新聞稿的一些細節來看，Opal Coal Bank 的井大約是每日 725 桶油當量（BOE）。Noble 的後續井（subsequent wells）較低，大約 550，而 Simpson（算是你們最新的井）更低，約 500。你們在這些井的作法上有做任何不同嗎？看起來相較於先前的井，近期井的表現似乎有些下滑。能否請你們談談這點，以及你們目前觀察到的情況？

Yeah. Opal Coal Bank was definitely an above performer for us in how it flowed back. Very happy with the results of Opal Coal Bank. Noble has done well, but has been impacted by some offset operators, Chevron predominantly.

好的。Opal Coal Bank 的回排（flowback）表現確實明顯優於我們的預期。我們對 Opal Coal Bank 的結果非常滿意。Noble 的表現也不錯，但受到一些鄰近營運商的影響，主要是 Chevron。

In terms of their frack program. We've been fighting those wells with those offset fracks over the last several months. Hopefully, we get that a little bit more stabilized here as we move into the second quarter of the year. The Simpson wells have you know in our minds performed quite well.

就他們的壓裂計畫而言。過去幾個月我們一直在與那些鄰井壓裂對這些井造成的影響周旋。希望隨著我們進入第二季，情況能更趨於穩定。至於 Simpson 的井，我們認為其表現其實相當不錯。

In terms of getting them online, they took longer than anticipated. We had some trouble with equipment getting there on time, predominantly our gas lift systems. As those gas lift systems got there on time, and we were able to bring those wells online more in accordance with how we'd like to flow them back, they've been performing at type curve.

就讓它們上線而言，所花的時間比預期更久。我們在設備能否準時到位方面遇到一些問題，主要是我們的氣舉系統。隨著這些氣舉系統準時到位，且我們能夠更依照我們希望的回排方式讓這些井上線後，它們的表現已符合型態曲線。

As we kind of look forward, we believe that they're going to stay on that kind of trend line, albeit it has taken significantly longer to get them there than we originally anticipated. But we're still very optimistic of what those wells can perform based off of just dynamics and pressures that we're seeing on site, feedback we're getting on our daily route reviews from our operators, et cetera.

展望未來，我們相信它們會維持在那樣的趨勢線上，儘管把它們拉到那個水準所花的時間，確實比我們原先預期長得多。但基於我們在現場看到的動態與壓力，以及我們從操作人員每日巡檢回顧中收到的回饋等等，我們對這些井的表現仍然非常樂觀。

Okay. That's helpful. I was also hoping you could just kind of speak to what roughly the current share count is of the company. I know the share count's been going up for y'all for a bit of time here. Where is it roughly here today? Can you provide some more color on kind of where you are in the process on the preferred refinancing restructuring? I know you bought the extension on the time here, which I guess will be coming up in about a week. Any color on that would be great.

好的。這很有幫助。我也希望你能大致談一下公司目前的流通股數大概是多少。我知道你們的股數這段時間一直在增加。今天大概到什麼水準？另外，你能否多提供一些關於優先股再融資／重整流程目前進展到哪一步的說明？我知道你們買了時間上的展延，我想大概一週後就會到期。如果能分享一些進一步資訊就太好了。

Absolutely and always appreciate the transparency there in questions in and around the pref. We know ultimately, it's been highly accretive to us to be able to secure these assets, operate as we have, but it does have some dilutive qualities to it, as we're all aware of.

當然可以，也一直很感謝你在優先股相關問題上所展現的透明度。我們知道，最終而言，能夠取得這些資產並以我們目前的方式營運，對我們是高度增益的；但如大家所知，它也確實帶有一些稀釋性。

Obviously, the waiver I think clearly indicates that we're in good communication with that pref holder, being High Trail Capital/Hudson Bay Capital Management. They've been a great partner with us as we've continued to grow and expand. They've utilized that pref in the manners that it was set forth to do and convert it. I'll kind of transition the two questions or blend them together here, Leo. Ultimately, as that pref is converted, our share count has increased.

顯然，豁免（waiver）我想清楚顯示我們與該優先股持有人保持良好溝通，也就是 High Trail Capital／Hudson Bay Capital Management。在我們持續成長與擴張的過程中，他們一直是很棒的合作夥伴。他們也依照原先設定的方式使用該優先股並進行轉換。Leo，我把這兩個問題做個轉換或合併來回答。最終，隨著該優先股被轉換，我們的股數確實增加了。

As that share count has increased as we exited the year, we were in the low sixties in terms of what I'd say is the issued and outstanding share count. They've continued to convert. We've had some really good volume trading in our stock. We're appreciative of the shareholder base that we have out there today. As we continue to execute, deliver results, et cetera, and so forth, High Trail has taken advantage of the market and been able to convert more of that outstanding.

隨著股數增加，在我們去年年底時，我所稱的已發行在外股數大約在六千多萬股的低段。他們持續在轉換。我們股票的成交量也相當不錯。我們很感謝目前的股東基礎。隨著我們持續執行、交付成果等等，High Trail 也把握市場機會，得以轉換更多尚未轉換的部位。

Giving those numbers exactly, we haven't concluded Q1 yet, so I'll refrain from doing that. At this time, I'll tell you that the number has increased from that low sixties number at the end of the year.

至於精確數字，我們尚未結束第一季，所以我先不提供。但我可以告訴你，目前的數字已經高於去年年底六千多萬股低段的水準。

Chris Degner, Water Tower Research.

Chris Degner，Water Tower Research。

Hi, good morning, everyone. I was curious about your cash flow priorities in 2026. It looks like you're guiding to modest free cash flow generation. How do you think about using the available free cash flow? You can target debt reduction or potential acquisitions. If you were to look at acquisitions, how would you think about financing them?

嗨，各位早安。我想請教你們在 2026 年的現金流優先順序。看起來你們指引為溫和的自由現金流產生。你們會如何思考運用可用的自由現金流？你們可以用來降低負債或進行潛在併購。如果要看併購，你們會如何思考融資方式？

Thanks, Chris, and good morning. Good to hear from you. Yes, I think you read the guidance correctly in modest free cash flow generation through the year. Again that's based on a mid $60's price deck on average with our hedges. As we look at the current market, that could be more accretive to the company. Ultimately we don't know what the year will hold, and so we've held a very conservative model and plan for the year.

謝謝你，Chris，早安。很高興聽到你的聲音。是的，我想你對指引的解讀正確：全年將產生溫和的自由現金流。再次說明，這是以平均中 60 美元油價的價格假設（price deck），並納入我們的避險為基礎。以目前市場來看，這可能對公司更具增益。最終我們無法預知今年會如何發展，因此我們對今年採取非常保守的模型與規劃。

As we think about that cash flow generation and its uses per your question, it would be to build out the rest of the asset base in terms of our financials. We want to build a robust financial balance sheet, which we have worked for and developed to this date.

就你問到的現金流產生及其用途而言，我們會用來把資產基礎在財務面進一步建構完善。我們希望建立強健的財務資產負債表，而這也是我們一路努力並發展至今的方向。

Increasing the liquidity of the company, deleveraging the balance sheet further from what we did at the end of the year are all imperative goals of the Board. That's the alignment that we have with the board and with management.

提升公司的流動性、進一步降低槓桿（相較於我們在去年年底所做的）都是董事會的關鍵目標。這也是我們在董事會與管理團隊之間的共識與一致方向。

As we kind of progress this all forward asset acquisitions are at the key of our kind of aspirations. We've done nine acquisitions to date that have bolstered and built the significance of our balance sheet and our reserves to date. We've done all of those at very accretive metrics. We'll continue to look at acquisitions. If they're accretive, we'll think about bolting them on or tacking them on to our contiguous acreage blocks.

隨著我們往前推進，資產併購是我們抱負的核心。截至目前我們已完成九筆併購，強化並提升了我們的資產負債表規模與儲量。我們所有交易都以非常具增益的指標完成。我們會持續尋找併購機會。如果具增益，我們會考慮把它們併入，或加掛到我們相連的連片地塊上。

We've done that predominantly through cash flow and small draws on the RBL to support PDP as we've acquired it. I would think that we continue to do that, those same type of acquisitions and growth perspectives with the company. Not over-leveraging the balance sheet, not growing just to grow, maintaining a cash flow metric, albeit growing accretively where possible.

我們主要是透過營運現金流，以及在循環信貸（RBL）上小幅動用，來支援我們所收購的已開發生產儲量（PDP）。我認為我們會持續以同樣方式進行這類併購與公司的成長布局。不讓資產負債表過度加槓桿、不為成長而成長，維持現金流指標，同時在可行之處以增益方式成長。

Excellent. One other question that I've got, and then I'll let you go. Are there any anticipated constraints that you see from any of the midstream systems or gathering systems?

很好。我還有一個問題，問完我就不佔用時間了。你們是否預期會受到任何中游系統或集輸系統的限制？

Great question. The DJ's obviously been plagued with constraints throughout the years as fluctuation in production grows and expands. That's one of the benefits of how we build our acreage position and how we've engineered our midstream contracts.

問得很好。DJ 盆地多年來顯然一直受到限制所困擾，因為產量的波動會成長與擴張。而我們建立土地部位的方式，以及我們如何設計中游合約，正是其中一項優勢。

Ultimately, foundation basis started with NGL and growing an expandable basis with them to be able to carry our oil hydrocarbons to Cushing for sale. Number one. Number two, we have great partners with Williams and DCP on the gas contracts. As they've continued to grow in the basin and expand, we have ensured that our development plan aligns with their expansion profiles and availability on their plants. There are some locations we have split connects in which provides an even better optionality use for us as we continue forward.

最初的基礎是從 NGL 著手，並與他們建立可擴充的基礎（basis），以便將我們的油類碳氫化合物運至庫欣（Cushing）銷售。這是第一點。第二點，在天然氣合約方面，我們與 Williams 和 DCP 有很好的合作夥伴關係。隨著他們在盆地持續成長與擴張，我們已確保我們的開發計畫與他們的擴建節奏及其處理廠可用性相一致。我們有些地點採用分接（split connects），這也讓我們在後續推進時擁有更好的選擇性。

We do not anticipate any constraints on our plan through 2026 or 2027. We continue to monitor that on a regular basis, and be prepared for potential offset additional production coming online, as well as our expansion potential and how we can continue to grow with those systems.

我們不預期在 2026 或 2027 年的計畫會受到任何限制。我們會持續定期監控，並為潛在的鄰近新增產量上線做好準備，同時也評估我們的擴張潛力，以及如何能與這些系統一同成長。

John Davenport, Johnson Rice.

John Davenport，Johnson Rice。

Hi, good morning, and thanks for taking our question today. I wanted to focus on, I guess, more the 2026 production CapEx guidance and maybe some flexibility around that, as the year goes on. We're in a different price environment than, say, a month ago or two months ago, and I'd be curious if how long of elevated prices would it take for you guys to up the dial on activity or if there's or if you guys remain flat if even if prices were to remain elevated throughout the year.

嗨，早安，感謝今天讓我們提問。我想把重點放在，我想是 2026 年的生產資本支出（CapEx）指引，以及隨著年度推進在這方面可能的彈性。我們所處的價格環境與一個月或兩個月前不同，我很好奇若價格維持在高檔，你們需要看到高價維持多久才會提高活動量；或者即使價格全年都維持高檔，你們是否仍會維持持平。

John, thanks for the question, and thanks for joining us this morning. The goal, as I mentioned in some of our prior questions here, is to bolster the robustness of our balance sheet by continuing to create liquidity, and to pay down debt. That ultimately creates more value to our shareholders and our stakeholders based off of the assets that we're able to have on our balance sheet, the reserves we're able to grow.

John，謝謝你的提問，也謝謝你今天早上加入我們。如同我在前面幾個問題中提到的，我們的目標是透過持續創造流動性並償還債務，來強化資產負債表的韌性。最終，這會基於我們能在資產負債表上持有的資產、以及我們能成長的儲量，為股東與利害關係人創造更大價值。

The one rig, one frack crew program that we have in place this year, albeit the rig outpaces the frack crew, so we'll be taking a hiatus from the rig for roughly a month throughout the year. That ultimately is our plan, and our plan is to generate as much free cash flow and hopefully some more with the market prices, to your question, by the end of the year.

今年我們採行「一座鑽機、一支壓裂隊」的方案，不過鑽機的進度會快於壓裂隊，因此我們會在一年當中讓鑽機大約停工一個月左右。這就是我們的計畫；而針對你提到的市場價格，我們的計畫是在年底前產生盡可能多的自由現金流，並希望在市場價格的助力下能再多一些。

As we get to the fourth quarter, and that rig is potentially moving quicker there's the chance that we have a couple of extra DUCs, a couple one to three, maybe five extra DUCs, depending on how much faster it moves. But there's only so much that frack crew can keep up with, and our goal is not to really step into a second frack crew.

到了第四季，如果鑽機可能跑得更快，我們有機會多出幾口 DUC（已鑽未完井），大概多一到三口，甚至可能多到五口，取決於它加快多少。但壓裂隊能跟上的量也有限，而我們的目標並不是要真正啟用第二支壓裂隊。

The goal there is really to, again, just bolster the balance sheet, continue operational efficiencies across our capital structure, maintain our accretive AFEs and our cost basis within those AFEs, as I think we've exhibited throughout the end of the year, delivering accretive AFE results, and focus on our LOE and our operations of north of 500 wellbores.

那裡的目標其實是再次強化資產負債表，在我們的資本結構中持續推動營運效率，維持我們具增值性的 AFE（授權支出）以及這些 AFE 內的成本基礎；我想我們在年底前已經展現出來，交出具增值性的 AFE 成果；並把重點放在我們的 LOE（租賃營運費用）以及 500 口以上井筒的營運。

Ultimately, the team has done a phenomenal job of that. Really narrowing in, focusing on the LOE, continued delivery of that CapEx on the AFEs, that's our true goal for the year. We'll look and see what 2027 brings and what sustained pricing brings in 2027. I think delivering those free cash flow results and focusing on that one rig, one frack crew is our priority.

最終，團隊在這方面做得非常出色。真正聚焦、把重點放在 LOE，以及持續在 AFE 上交付該 CapEx，這就是我們今年真正的目標。我們會再看看 2027 年會帶來什麼，以及 2027 年的持續價格會是什麼樣子。我認為交出那些自由現金流成果，並聚焦在「一座鑽機、一支壓裂隊」，是我們的優先事項。

Tim Moore, Clear Street.

Tim Moore，Clear Street。

Thanks. Yeah, I mean, it seems like you have a good tailwind maybe starting a month or two ago on AFE costs. I mean, you probably have better sand, water, steel costs maybe locked in. And like you mentioned, you don't need a second frack crew.

謝謝。是的，我的意思是，看起來你們在 AFE 成本上可能從一兩個月前開始就有不錯的順風。我的意思是，你們可能已經鎖定了更好的砂、水、鋼材成本。而且如你提到的，你們不需要第二支壓裂隊。

So I was wondering if your rig can drill about 60 wells a year, but your completion crew might be closer to low 40s pace. Do you help claw back some of those costs by maybe leasing the rig during down periods of spring or early summer to adjacent owners, and then you get a sneak peek maybe of what they're doing to possibly become an acquisition target for you?

所以我想問的是，如果你們的鑽機一年大約能鑽 60 口井，但完井團隊的節奏可能更接近一年低 40 口。你們是否會在春季或初夏的淡季把鑽機出租給鄰近的業主，以此回收部分成本；同時也能先行了解他們在做什麼，讓他們可能成為你們的併購標的？

I mean, that sounds like a great strategy there. I think we would take that or use that or maybe say that is our playbook. As we look at what that rig can do, it's amazing what drill times have done in the basin, as we've all witnessed over the past 10 years, and they continue to get better and better and more and more defined.

我的意思是，那聽起來是個很棒的策略。我想我們會採納、或運用它，或者可以說那就是我們的作戰手冊。當我們看鑽機能做到什麼時，令人驚訝的是盆地的鑽井時間在過去 10 年如大家所見的改善幅度，而且它們持續變得更好、更好，也越來越明確。

Utilizing that rig opportunistically while we have it contracted to be able to sub it out to maybe a potential acquisition target, I think is a great plan and something that we will probably focus on the year. As we think about the frack crew we're partnered with Halliburton for the year, and their technologies and designs continue to get better and better.

在我們已簽約的前提下，機會性地運用那座鑽機，將其轉租給可能成為我們潛在併購標的的對象，我認為是很好的計畫，也是我們今年可能會著力的方向。至於壓裂隊，我們今年與 Halliburton 合作，他們的技術與設計也持續變得更好。

Their sand loading and their hot swaps and things that they're able to do on the fracture side continue to increase time and add the stages a day. We're hoping that we get more aligned on a one-for-one basis by the end of the year. Some of that's our team getting symbiotic with the Halliburton team, and some of that's just technologies continuing to increase. We look forward to what those things and optimization we can bring through technology, and through the utilization of multiple teams, Halliburton ourselves, Precision ourselves, in developing that on a go-forward basis.

他們在砂料裝載、熱切換（hot swaps）以及壓裂端能做到的各種事情，持續提升效率並增加每日施工段數。我們希望到年底能更接近一比一的匹配。其中一部分是我們團隊與 Halliburton 團隊的協同更到位，另一部分則是技術持續進步。我們期待透過技術、以及多個團隊的運用——Halliburton、我們自己、Precision、我們自己——在未來持續推進這些事項與最佳化。

Yes, absolutely. Utilizing that rig to sub it out to someone who may be of interest to us to add to our balance sheet later in time and keep good relationships, share in some of the maybe those technology upliftings is definitely on our minds.

是的，完全同意。把那座鑽機轉租給可能是我們未來想納入資產負債表的對象，同時維持良好關係、分享一些技術提升的成果，確實是我們正在思考的事情。

That's terrific color. I enjoyed seeing the E-Rig and meeting the Precision Drilling team when I was out there on the site a year and a half ago. Good luck with the refinancing for the convertible and the warrants, and that's it for my questions.

這些說明非常有幫助。我很享受看到 E-Rig，並在一年半前到現場時與 Precision Drilling 團隊見面。祝你們可轉債與認股權證的再融資順利，我的問題就到這裡。

Thank you, sir.

謝謝您，先生。

Chris Degner, Water Tower Research.

Chris Degner，Water Tower Research。

Hello again. Just wanted to ask, now that we've gone through a management transition here, as you look forward, do you see any changes in strategy or ways that you might run the company differently? Thanks.

再次你好。我想問的是，既然我們已經歷了一次管理層交接，展望未來，你們是否看到策略上會有任何改變，或你們可能會以不同方式經營公司？謝謝。

I'll take that one, Chris. Chris, good to hear from you. This is Rich. Yeah, no, the board and the management has been aligned since the change. I really, I've been actively involved with the operations since March 1. I can tell you clearly that the team is coordinated, focused, and really operating at a very high level without a hitch. I don't foresee any changes in our operations with the current team in place.

Chris，這題我來回答。Chris，很高興聽到你的聲音。我是 Rich。是的，董事會與管理層自變更以來一直保持一致。我從 3 月 1 日起就一直積極參與營運。我可以很清楚地告訴你，團隊協調一致、專注，並且在沒有任何卡頓的情況下以非常高的水準運作。在目前團隊到位的情況下，我不預期我們的營運會有任何變動。

Thank you. Ladies and gentlemen, this brings us to the end of today's question-and-answer session. We would like to thank you for your interest and participation in today's event. You may disconnect your lines at this time or log off the webcast and enjoy the rest of your day.

謝謝。各位女士、先生，今天的問答環節到此結束。感謝各位對今天活動的關注與參與。您現在可以掛斷電話或登出網路直播，祝您今天剩餘時間愉快。