Core Viewpoint - Presidio Investment Holdings LLC is set to acquire producing assets in the Arkoma Basin for $80 million, which is expected to enhance its annual dividend to $1.50 per share and generate levered returns exceeding 20% [1][2][3] Acquisition Details - The acquisition will be funded through cash on hand, a Goldman Sachs ABS Warehouse Facility, and approximately $20 million of Presidio equity provided to the seller [2] - The anticipated completion of the acquisition is expected in the second quarter of 2026, pending due diligence and board approval [2][10] Business Strategy - This acquisition is part of Presidio's strategy to grow as a public company by acquiring and optimizing mature oil and gas assets, aiming for ambitious returns [3][6] - The company focuses on low operating costs, minimal capital expenditures, and returning cash to shareholders, contrasting with traditional operators [6] Production and Financial Metrics - The acquisition includes 56 producing wells with a net production of approximately 22.6 million cubic feet equivalent per day (Mmcfe/d), consisting of 70% gas and 30% natural gas liquids (NGLs) [8] - The expected decline rate is 12%, with a projected year one free cash flow yield of 23% and net proved developed producing (PDP) reserves of approximately 100 billion cubic feet equivalent (Bcfe) [8] Management Insights - Management emphasizes the acquisition as a key step in their growth strategy, focusing on entering new basins for consolidation and optimization [7][9] - Vortus Investments, the seller, expresses confidence in Presidio's strategy and management team, indicating a long-term belief in the value of mature, producing assets [9]
Presidio Enters into Letter of Intent to Acquire Producing Assets for $80 Million