FORT WORTH, Texas, July 3 –Presidio Production Company (NYSE: FTW) (“Presidio” or the “Company”) today announced the closing of its acquisition of the Canyon Creek assets (the “Transaction”) from companies controlled by Vortus Investments and additional sellers (the “Sellers”). The closing marks the first use of the Company’s ABS Warehouse Facility of up to $1.0 billion, led by Goldman Sachs.
The Transaction is Presidio’s second acquisition as a public company and its first in the Arkoma Basin. It establishes a platform for future consolidation under the Company’s land-and-expand strategy. The Company believes the Transaction will support an increase to its anticipated annualized dividend rate from $1.35 to $1.50 per share, subject to approval by the Board of Directors.
“This is the second of many expected acquisitions, a low-decline, cash-flowing asset that fits the Company’s criteria perfectly. We look forward to increasing the dividend while realizing strong returns as we take over the asset. We are also pleased to welcome Citizens, our RBL lender, into our ABS Warehouse Facility in conjunction with our first funding,” said Will Ulrich, Chairman and Co-CEO of Presidio.
Chris Hammack, Co-CEO and Director of Presidio, continued, “This transaction establishes our entry into the Arkoma Basin, where we see a compelling opportunity to build scale through consolidation using the same land-and-expand strategy we’ve successfully executed in the Western Anadarko. We believe these assets are an excellent fit for Presidio’s operating model, and we intend to deploy our proven playbook of disciplined execution, AI-enabled analytics, and operational excellence to drive lower costs, optimize production, improve well-level margins, and maximize long-term value for our shareholders.”
Acquisition Highlights
- Purchase price of approximately $83 million
- Strategic entry into the Arkoma Basin
- Net PDP production of approximately 21 MMcfe/d as of May 2026, from 55 producing wells (70% natural gas, 30% NGLs), with an 11% annual decline
- Estimated Proved Developed Producing PV-10 of approximately $100 million
- 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%
ABS Financing
The Transaction was funded through the Company’s first draw of $55 million under its ABS Warehouse Facility, led by Goldman Sachs. Citizens Bank, N.A., the Company’s RBL lender, joined the facility with a 40% participation, broadening the lender base and enhancing the facility’s capacity to scale for future acquisitions.
Issuance of Shares
In connection with the Transaction, the Company issued 1,962,240 new shares of Class A common stock to the Sellers.