Prairie Operating Co. Leases Disclosure
|
December 31, 2025
|
December 31, 2024
|
|||||||
|
(In thousands)
|
||||||||
|
Office space
|
$
|
1,737 |
$
|
1,083 |
||||
|
Vehicles
|
281 |
240 |
||||||
|
Equipment (1)
|
948 |
— |
||||||
|
Total right–of–use asset
|
$
|
2,966 |
$
|
1,323 |
||||
|
Office space
|
$
|
1,870 |
$
|
1,141 |
||||
|
Vehicles
|
274 |
225 |
||||||
|
Equipment (1)
|
948 |
— |
||||||
|
Total lease liability
|
$
|
3,092 |
$
|
1,366 |
||||
| (1) | For the year ended December 31, 2025, operating leases for equipment primarily includes compressor rentals used in the Company’s daily operations. |
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Weighted–average lease term (years) | 2.5 | 4.0 | ||||||
| Weighted–average discount rate | 10.1 | % | 10.2 | % | ||||
|
Year Ended December 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
(In thousands)
|
||||||||
|
Operating lease cost
|
$
|
1,085 |
$
|
231 |
||||
|
Short–term lease cost (1)
|
— |
25 |
||||||
|
Variable lease cost (2)
|
285 |
14 |
||||||
|
Total lease cost
|
$
|
1,370 |
$
|
270 |
||||
| (1) | One of the Company’s office space operating leases, which expired in September 2024, had an initial lease term of less than 12 months and was considered a short–term lease. The Company does not capitalize short–term leases, instead the costs are expensed as they are incurred. |
| (2) | Variable lease costs include operating costs, such as parking and property taxes, associated with the Company’s office leases. The Company expenses variable lease costs as they are incurred. |
|
(In thousands)
|
||||
|
January 1, 2026 through December 31, 2026
|
$
|
1,549 |
||
|
January 1, 2027 through December 31, 2027
|
1,090 |
|||
|
January 1, 2028 through December 31, 2028
|
623 |
|||
|
January 1, 2029 through December 31, 2029
|
227 |
|||
|
January 1, 2030 through December 31, 2030
|
57 |
|||
|
Total lease payments
|
3,546 |
|||
|
Less: imputed interest
|
(454 |
)
|
||
|
Total lease liability
|
$
|
3,092 |
||
|
Year Ended December 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
(In thousands)
|
||||||||
|
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases
|
$
|
992 |
$
|
220 |
||||
|
Right–of–use assets obtained in exchange for operating liabilities
|
$
|
2,863 |
$
|
1,378 |
||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Mar 19, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 29, 2021 | |
| 2019 | Mar 30, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.