Presidio Enters into Letter of Intent to Acquire Producing Assets for $80 Million

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 timeline for negotiation, signing, and closing of the acquisition is within the second quarter of 2026 [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 plans to hedge commodity prices and maintain low operating costs while focusing on returning cash to shareholders [6]. Production and Financial Metrics - The acquisition includes 56 producing wells with a net PDP 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 year-one expected free cash flow yield of 23% and net PDP reserves of approximately 100 billion cubic feet equivalent (Bcfe) [8]. Management Insights - Management emphasizes the acquisition as a reflection of their growth strategy, focusing on entering new basins to acquire producing assets suitable 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]. Business Combination Status - The business combination with EQV Ventures Acquisition Corp. is progressing, with a shareholder vote scheduled for February 27, 2026, and the combined entity expected to trade under the ticker symbol "FTW" [11]. Financing and Investor Support - Institutional investors have committed over $236 million in financing to Presidio and EQV, with approximately $372 million in cash held in EQV's trust account as of February 24, 2026 [12][13].