Presidio Acquires Canyon Creek Assets for Approximately $83M
Presidio Production Company announced the execution of definitive purchase and sale agreements to acquire the Canyon Creek assets for approximately $83M from companies controlled by Vortus Investments and additional sellers. The Company previously announced a letter of intent for the Transaction on February 24, 2026. The Transaction is expected to be funded with $60M of cash and 2,173,913 shares of Presidio equity to be issued to the Sellers, subject to customary closing and post-closing adjustments. The cash will be funded using Presidio's previously announced, first of its kind, $1B Goldman Sachs ABS Warehouse Facility, and cash on hand. Presidio expects the Canyon Creek assets to generate levered equity returns exceeding 20%, while expanding the Company's operating footprint into an adjacent basin and establishing a platform for future consolidation consistent with its proven land-and-expand strategy. The Transaction is expected to close early in the third quarter of 2026, subject to customary closing conditions, and would represent Presidio's first completed acquisition as a public company. Consistent with prior disclosures, the Company believes the Transaction will support an increase to its anticipated annual dividend from $1.35 to $1.50 per share. Acquisition Highlights: Strategic entry into the Arkoma Basin; First use of $1B Goldman Sachs ABS Warehouse Facility; Current net PDP production of approximately 21.4 MMcfe/d, from 55 producing wells, as of April 2026; 70% natural gas, 30% NGLs; 11% annual decline; Estimated Proved Developed Producing PV-10 of approximately $100M; Estimated Net Proved Developed Producing Reserves of approximately 100 Bcfe; Expected year-one free cash flow yield in excess of 20%; Expected levered returns in excess of 20%
