Presidio Production Company (NYSE:FTW) ("Presidio" or the "Company"), a yield-focused, differentiated oil and gas operator in the United States focused on the acquisition and optimization of producing oil and natural gas wells, without drilling, today announced the execution of definitive purchase and sale agreements to acquire the Canyon Creek assets for approximately $83 million (the "Transaction") from companies controlled by Vortus Investments and additional sellers (the "Sellers"). The Company previously announced a letter of intent for the Transaction on February 24, 2026.

The Transaction is expected to be funded with $60 million 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, $1.0 billion 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 $1.0 billion 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 $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%

"We are pleased to sign the Purchase and Sale Agreements for the Canyon Creek assets, and we look forward to closing the Transaction. This deal is a key step in our growth trajectory, as it provides Presidio with a high-quality foothold in an adjacent basin that aligns perfectly with our land-and-expand strategy," said Will Ulrich, Co-Founder and Co-CEO of Presidio. "We expect these assets to generate strong returns, demonstrating the strength of our business model as well as our ability to increase dividends through acquisitions. Our backlog is stronger than ever, and we are actively pursuing our next acquisition opportunity."

Chris Hammack, Co-Founder and Co-CEO of Presidio continued, "This Transaction reflects exactly how we intend to grow Presidio, by acquiring producing assets as a footprint for consolidation and optimization. We will be ready on day one to implement our operational efficiency improvements and production enhancements."