Declares 2Q 2026 dividend of $0.3375 per share ($1.35 per share per year)
FORT WORTH, Texas--(BUSINESS WIRE)--August 11, 2026--
Presidio Production Company (NYSE: FTW) ("Presidio" or the "Company"), today announced recent highlights and results for the second quarter ended June 30, 2026.
Recent Highlights
-- Averaged approximately 22.8 MBoe/d of production for the second quarter,
comprising approximately 16% oil, 57% natural gas, and 27% NGLs
-- Reported net income attributable to Presidio Production Company of
$14.4 million, or $0.34 per Class A share, for the second quarter of
2026
-- Generated approximately $33.2 million of Adjusted EBITDA for the second
quarter of 2026
-- Closed $350 million investment grade ABS refinancing at a weighted
average coupon of 6.38%
-- Appointed Jason Hudak as Chief Technology Officer and established a
dedicated engineering team focused on developing and deploying Presidio's
AI platform
-- Closed Canyon Creek acquisition in July 2026, after the quarter-end,
marking the Company's second acquisition as a public company and its
first in the Arkoma Basin
-- Declared 2Q 2026 dividend of $0.3375 per share ($1.35 per share per
year)
Management Commentary
"Our second quarter results reflect continued execution across the business," said Will Ulrich, Chairman and Co-CEO. "Adjusted EBITDA exceeded guidance, we completed an investment-grade ABS refinancing that lowered our cost of capital, and we closed our second acquisition as a public company. Together, these milestones strengthen our capital structure, support a higher dividend, and reinforce the acquisition model we are building to consolidate producing oil and gas assets."
Chris Hammack, Co-CEO and Director, added: "Our team had a strong quarter in the field. We continued advancing the EQVR asset integration and assumed responsibility for Canyon Creek operations on day one. At both assets, our focus is straightforward: deploy our optimization strategy and implement AI workflows to enhance cash flow."
Second Quarter 2026 Financial and Operating Results
All financial metrics in this release reflect the successor period for the three months ended June 30, 2026 and exclude the Canyon Creek acquisition, which closed after the quarter-end.
Second-quarter production averaged approximately 22.8 MBoe/d, or 2,071 MBoe for the quarter, comprising approximately 16% oil, 57% natural gas and 27% NGLs.
Total revenue was $54.0 million. The Company's average realized price was $25.93 per Boe excluding derivatives and $29.24 per Boe including derivatives, reflecting a realized derivative gain of $3.31 per Boe.
Lease operating expense was $9.39 per Boe. Production taxes were $1.42 per Boe and Ad valorem taxes were $0.41 per Boe, resulting in total operating expense of $11.22 per Boe.
The Company reported income from operations of $6.1 million, net income of $15.5 million, and net income attributable to Presidio Production Company of $14.4 million, or $0.34 per Class A share.
Adjusted EBITDA was $33.2 million. Results benefited from the first full quarter of the restructured hedge portfolio, together with continued operating efficiencies across the asset base.
Capital expenditures remained minimal during the quarter, consistent with the Company's low-reinvestment model.
Return of Capital
The Board approved a quarterly cash dividend of $0.3375 per share ($1.35 per share per year).
The Q2 2026 cash dividend will be payable on September 14, 2026 to stockholders of record as of August 31, 2026.
Future dividends, including the amount and timing thereof, will be declared at the discretion of the Board of Directors and will depend on the Company's financial condition, results of operations, capital requirements, and other factors the Board deems relevant.
AI and Asset Intelligence
Presidio applies a disciplined, data-driven playbook to modernize acquired oilfield operations, transforming oil and gas assets into high-efficiency operations through repeatable systems and empowered field execution.
The next phase of this strategy is the development and deployment of new AI workflows to enhance operations.
During the quarter, Presidio appointed Jason Hudak as Chief Technology Officer and established a dedicated engineering team under his leadership. Mr. Hudak is a technology executive whose career spans nearly three decades across several of Silicon Valley's leading platform and infrastructure companies, most recently as Vice President of Engineering at Aerospike, with prior senior roles at Twilio, RapidAPI, Foursquare, and Yahoo. Under his leadership, the team is developing Presidio's AI platform, which the Company is deploying first across its own operations, where Presidio already applies data and analytics to acquire and optimize producing oil and natural gas wells.
The Asset Intelligence Group carries a target of three to five percent production growth in 2026 across Presidio's existing asset base, without any capital expenditure, and has achieved approximately one percent of production uplift to date.
Acquisitions and Growth
In July 2026, the Company closed its acquisition of the Canyon Creek assets from companies controlled by Vortus Investments and additional sellers. Canyon Creek is the Company's second acquisition as a public company and marks Presidio's entry into the Arkoma Basin, following the EQVR acquisition completed in connection with the March 2026 business combination. The closing marked the first use of the Company's ABS Warehouse Facility, which is led by Goldman Sachs and provides for borrowings of up to $1.0 billion. The Company funded the transaction with its initial $55 million draw under the facility. Citizens Bank, N.A., the Company's RBL lender, joined the facility with a 40% participation, broadening the lender base and enhancing capacity to scale for future acquisitions.
In connection with the transaction, the Company issued 1,962,240 shares of Class A common stock to the sellers.
The acquired position generates approximately 21 MMcfe/d (3.5 MBoe/d) of net PDP production as of May 2026, weighted approximately 70% to natural gas and 30% to natural gas liquids, with an estimated base decline of approximately 11% per year, and expected levered returns in excess of 20%.
The acquisition market remains active. The Company's broader acquisition pipeline totals approximately $17 billion. The Company remains focused on opportunities that meet its strategic and return criteria.
Capital Structure
As of June 30, 2026, the Company had total debt principal outstanding of $343.1 million and Net Debt of $296.5 million. Giving pro forma effect to the $55 million draw under the ABS Warehouse Facility used to fund the Canyon Creek acquisition subsequent to quarter-end, pro-forma Net Debt was $351.5 million.
Based on $351.5 million of Net Debt and annualized second-quarter Adjusted EBITDA of approximately $132.7 million, Leverage was approximately 2.7x.
As of June 30, 2026, the Company had $42.3 million of unrestricted cash and no borrowings outstanding under its RBL.
Subsequent to quarter-end, the Company's borrowing base was redetermined in the ordinary course from $65 million to $60 million. The reduction reflects the realization of production and hedges since the prior borrowing base redetermination.
Therefore, liquidity pro forma for the borrowing base adjustment is currently approximately $102.3 million, consisting of $42.3 million of unrestricted cash and $60.0 million of available capacity under the RBL.
Refinancing
On June 9, 2026, the Company closed a $350 million investment-grade refinancing of its prior asset-backed securitization at a weighted average coupon of 6.38%, issued in two investment grade tranches consisting of $175 million of 5.902% Class A-1 notes and $175 million of 6.717% Class A-2 notes, each due in 2041.
The coupon was 184 basis points below the weighted average coupon of the prior ABS (a reduction from 8.22% to 6.38%). The refinancing implemented an Anticipated Repayment Date structure that lowers scheduled amortization over the first five years, reducing the Company's cost of capital and increasing cash flow available for dividends.
The refinancing also includes a flexible call structure and make-whole provisions designed to support asset acquisitions and efficient refinancing as the Company grows. The notes are redeemable at the Company's option at 102% of par prior to the first anniversary, 101% prior to the second anniversary, and par thereafter.
Equity Capitalization
As of June 30, 2026, the Company had 27,686,745 shares of Class A common stock and 1,676,830 shares of Class B common stock outstanding, together with 125,375 shares of Series A preferred stock (with a $125 million aggregate stated value) and 27,173 shares of Series B convertible preferred stock (convertible into 2,717,300 shares of Class A common stock).
In connection with the closing of the Canyon Creek acquisition in July 2026, the Company issued an additional 1,962,240 shares of Class A common stock. Share counts by class are also presented in the condensed consolidated balance sheet below.
Hedging Program
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