\nPresidio Production Company (NYSE: FTW) (\u201cPresidio\u201d or the \u201cCompany\u201d), today announced recent highlights and results for the second quarter ended June 30, 2026.<\/p>\n
Recent Highlights<\/b><\/p>\n Management Commentary<\/b><\/p>\n \n\u201cOur second quarter results reflect continued execution across the business,\u201d said Will Ulrich, Chairman and Co-CEO. \u201cAdjusted EBITDA exceeded guidance, we completed an investment-grade ABS refinancing that lowered our cost of capital, and we closed our second acquisition as a public company. Together, these milestones strengthen our capital structure, support a higher dividend, and reinforce the acquisition model we are building to consolidate producing oil and gas assets.\u201d<\/p>\n \nChris Hammack, Co-CEO and Director, added: \u201cOur team had a strong quarter in the field. We continued advancing the EQVR asset integration and assumed responsibility for Canyon Creek operations on day one. At both assets, our focus is straightforward: deploy our optimization strategy and implement AI workflows to enhance cash flow.\u201d<\/p>\n Second Quarter 2026 Financial and Operating Results<\/b><\/p>\n \nAll financial metrics in this release reflect the successor period for the three months ended June 30, 2026 and exclude the Canyon Creek acquisition, which closed after the quarter-end.<\/p>\n \nSecond-quarter production averaged approximately 22.8 MBoe\/d, or 2,071 MBoe for the quarter, comprising approximately 16% oil, 57% natural gas and 27% NGLs.<\/p>\n \nTotal revenue was $54.0 million. The Company\u2019s average realized price was $25.93 per Boe excluding derivatives and $29.24 per Boe including derivatives, reflecting a realized derivative gain of $3.31 per Boe.<\/p>\n \nLease operating expense was $9.39 per Boe. Production taxes were $1.42 per Boe and Ad valorem taxes were $0.41 per Boe, resulting in total operating expense of $11.22 per Boe.<\/p>\n \nThe Company reported income from operations of $6.1 million, net income of $15.5 million, and net income attributable to Presidio Production Company of $14.4 million, or $0.34 per Class A share.<\/p>\n \nAdjusted EBITDA was $33.2 million. Results benefited from the first full quarter of the restructured hedge portfolio, together with continued operating efficiencies across the asset base.<\/p>\n \nCapital expenditures remained minimal during the quarter, consistent with the Company\u2019s low-reinvestment model.<\/p>\n Return of Capital<\/b><\/p>\n \nThe Board approved a quarterly cash dividend of $0.3375 per share ($1.35 per share per year).<\/p>\n \nThe Q2 2026 cash dividend will be payable on September 14, 2026 to stockholders of record as of August 31, 2026.<\/p>\n \nFuture dividends, including the amount and timing thereof, will be declared at the discretion of the Board of Directors and will depend on the Company\u2019s financial condition, results of operations, capital requirements, and other factors the Board deems relevant.<\/p>\n AI and Asset Intelligence<\/b><\/p>\n \nPresidio applies a disciplined, data-driven playbook to modernize acquired oilfield operations, transforming oil and gas assets into high-efficiency operations through repeatable systems and empowered field execution.<\/p>\n \nThe next phase of this strategy is the development and deployment of new AI workflows to enhance operations.<\/p>\n \nDuring the quarter, Presidio appointed Jason Hudak as Chief Technology Officer and established a dedicated engineering team under his leadership. Mr. Hudak is a technology executive whose career spans nearly three decades across several of Silicon Valley\u2019s leading platform and infrastructure companies, most recently as Vice President of Engineering at Aerospike, with prior senior roles at Twilio, RapidAPI, Foursquare, and Yahoo. Under his leadership, the team is developing Presidio\u2019s AI platform, which the Company is deploying first across its own operations, where Presidio already applies data and analytics to acquire and optimize producing oil and natural gas wells.<\/p>\n \nThe Asset Intelligence Group carries a target of three to five percent production growth in 2026 across Presidio\u2019s existing asset base, without any capital expenditure, and has achieved approximately one percent of production uplift to date.<\/p>\n Acquisitions and Growth<\/b><\/p>\n \nIn July 2026, the Company closed its acquisition of the Canyon Creek assets from companies controlled by Vortus Investments and additional sellers. Canyon Creek is the Company\u2019s second acquisition as a public company and marks Presidio\u2019s entry into the Arkoma Basin, following the EQVR acquisition completed in connection with the March 2026 business combination. The closing marked the first use of the Company\u2019s ABS Warehouse Facility, which is led by Goldman Sachs and provides for borrowings of up to $1.0 billion. The Company funded the transaction with its initial $55 million draw under the facility. Citizens Bank, N.A., the Company\u2019s RBL lender, joined the facility with a 40% participation, broadening the lender base and enhancing capacity to scale for future acquisitions.<\/p>\n \nIn connection with the transaction, the Company issued 1,962,240 shares of Class A common stock to the sellers.<\/p>\n \nThe acquired position generates approximately 21 MMcfe\/d (3.5 MBoe\/d) of net PDP production as of May 2026, weighted approximately 70% to natural gas and 30% to natural gas liquids, with an estimated base decline of approximately 11% per year, and expected levered returns in excess of 20%.<\/p>\n \nThe acquisition market remains active. The Company\u2019s broader acquisition pipeline totals approximately $17 billion. The Company remains focused on opportunities that meet its strategic and return criteria.<\/p>\n Capital Structure<\/b><\/p>\n \nAs of June 30, 2026, the Company had total debt principal outstanding of $343.1 million and Net Debtof $296.5 million. Giving pro forma effect to the $55 million draw under the ABS Warehouse Facility used to fund the Canyon Creek acquisition subsequent to quarter-end, pro-forma Net Debt was $351.5 million.<\/p>\n \nBased on $351.5 million of Net Debt and annualized second-quarter Adjusted EBITDA of approximately $132.7 million, Leverage was approximately 2.7x.<\/p>\n Liquidity<\/b><\/p>\n \nAs of June 30, 2026, the Company had $42.3 million of unrestricted cash and no borrowings outstanding under its RBL.<\/p>\n \nSubsequent to quarter-end, the Company\u2019s borrowing base was redetermined in the ordinary course from $65 million to $60 million. The reduction reflects the realization of production and hedges since the prior borrowing base redetermination.<\/p>\n \nTherefore, liquidity pro forma for the borrowing base adjustment is currently approximately $102.3 million, consisting of $42.3 million of unrestricted cash and $60.0 million of available capacity under the RBL.<\/p>\n Refinancing<\/b><\/p>\n \nOn June 9, 2026, the Company closed a $350 million investment-grade refinancing of its prior asset-backed securitization at a weighted average coupon of 6.38%, issued in two investment grade tranches consisting of $175 million of 5.902% Class A-1 notes and $175 million of 6.717% Class A-2 notes, each due in 2041.<\/p>\n \nThe coupon was 184 basis points below the weighted average coupon of the prior ABS (a reduction from 8.22% to 6.38%). The refinancing implemented an Anticipated Repayment Date structure that lowers scheduled amortization over the first five years, reducing the Company\u2019s cost of capital and increasing cash flow available for dividends.<\/p>\n \nThe refinancing also includes a flexible call structure and make-whole provisions designed to support asset acquisitions and efficient refinancing as the Company grows. The notes are redeemable at the Company\u2019s option at 102% of par prior to the first anniversary, 101% prior to the second anniversary, and par thereafter.<\/p>\n Equity Capitalization<\/b><\/p>\n \nAs of June 30, 2026, the Company had 27,686,745 shares of Class A common stock and 1,676,830 shares of Class B common stock outstanding, together with 125,375 shares of Series A preferred stock (with a $125 million aggregate stated value) and 27,173 shares of Series B convertible preferred stock (convertible into 2,717,300 shares of Class A common stock).<\/p>\n \nIn connection with the closing of the Canyon Creek acquisition in July 2026, the Company issued an additional 1,962,240 shares of Class A common stock. Share counts by class are also presented in the condensed consolidated balance sheet below.<\/p>\n Hedging Program<\/b><\/p>\n \nThe Company maintains a multi-year commodity hedging program to provide cash flow visibility across oil, natural gas, and NGL production. The hedge position reflects the hedge restructuring executed concurrent with the closing of the business combination, the additional hedge protection added in connection with the ABS refinancing, and the hedges entered into in connection with the closing of the Canyon Creek acquisition. The following table summarizes Presidio\u2019s current commodity hedge position as of August 11, 2026.<\/p>\n \n\u00a0<\/p>\n<\/td>\n 3Q26<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 4Q26<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 1Q27<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2Q27<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 3Q27<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 4Q27<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n FY28<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n FY29<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Beyond<\/b><\/p>\n<\/td>\n<\/tr>\n Oil Swaps<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nVolume (MBbl)<\/p>\n<\/td>\n \n273<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n266<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n255<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n248<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n242<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n237<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n887<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n756<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n937<\/p>\n<\/td>\n<\/tr>\n \nAvg. Strike ($\/Bbl)<\/p>\n<\/td>\n \n$60.01<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$60.59<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$87.90<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$108.14<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$100.59<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$88.02<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$63.17<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$67.55<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$64.38<\/p>\n<\/td>\n<\/tr>\n Natural Gas Swaps<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nVolume (BBtu)<\/p>\n<\/td>\n \n7,429<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7,183<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,865<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,624<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,520<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,388<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n24,143<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n20,400<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n56,926<\/p>\n<\/td>\n<\/tr>\n \nAvg. Strike ($\/MMBtu)<\/p>\n<\/td>\n \n$5.29<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$5.30<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$4.94<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$4.30<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$3.43<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$3.76<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$3.56<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$3.58<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$3.48<\/p>\n<\/td>\n<\/tr>\n Natural Gas Basis Swaps<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nVolume (BBtu)<\/p>\n<\/td>\n \n7,090<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,961<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,869<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,624<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,523<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6,390<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n22,762<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8,663<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n<\/tr>\n \nAvg. Strike ($\/MMBtu)<\/p>\n<\/td>\n \n($0.57)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n($0.41)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$0.11<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n($0.55)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n($0.49)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n($0.40)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n($0.41)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n($0.52)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n<\/tr>\n NGL Swaps<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nVolume (MBbl)<\/p>\n<\/td>\n \n627<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n613<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n593<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n580<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n528<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n517<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,806<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,322<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n1,316<\/p>\n<\/td>\n<\/tr>\n \nAvg. Strike ($\/Bbl)<\/p>\n<\/td>\n \n$23.05<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$23.14<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$24.86<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$23.02<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$26.76<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$25.64<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$25.48<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$23.41<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$21.49<\/p>\n<\/td>\n<\/tr>\n NGL hedges include a combination of individual component hedges and WTI hedges allocated to NGL volumes.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Summary Financial and Operational Data<\/b><\/p>\n \nThe following table presents Presidio\u2019s key financial and operational metrics for the second quarter of 2026 on a successor basis (three months ended June 30, 2026). The Company\u2019s business combination closed on March 4, 2026, resulting in separate predecessor and successor periods for the first quarter that are not directly comparable to the full three-month successor period presented for the second quarter. Accordingly, no comparative prior-period information is presented below. Per-unit metrics are presented on a $\/Boe basis.<\/p>\n \n\u00a0<\/p>\n<\/td>\n Three Months Ended June 30, 2026<\/b><\/p>\n (Successor)<\/b><\/p>\n<\/td>\n<\/tr>\n Production<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNet production (MBoe)<\/p>\n<\/td>\n \n2,071<\/p>\n<\/td>\n<\/tr>\n \nAverage daily production (MBoe\/d)<\/p>\n<\/td>\n \n22.8<\/p>\n<\/td>\n<\/tr>\n \nProduction mix \u2013 oil \/ gas \/ NGLs<\/p>\n<\/td>\n \n16% \/ 57% \/ 27%<\/p>\n<\/td>\n<\/tr>\n Revenue and Realizations ($\/Boe)<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nAverage realized price, excluding derivatives<\/p>\n<\/td>\n \n$25.93<\/p>\n<\/td>\n<\/tr>\n \nRealized derivative gain (loss)<\/p>\n<\/td>\n \n$3.31<\/p>\n<\/td>\n<\/tr>\n \nAverage realized price, including derivatives<\/p>\n<\/td>\n \n$29.24<\/p>\n<\/td>\n<\/tr>\n Operating Costs ($\/Boe)<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nLease operating expense<\/p>\n<\/td>\n \n$9.39<\/p>\n<\/td>\n<\/tr>\n \nProduction taxes<\/p>\n<\/td>\n \n$1.42<\/p>\n<\/td>\n<\/tr>\n \nAd valorem taxes<\/p>\n<\/td>\n \n$0.41<\/p>\n<\/td>\n<\/tr>\n \nTotal operating expense<\/p>\n<\/td>\n \n$11.22<\/p>\n<\/td>\n<\/tr>\n \nGeneral and administrative<\/p>\n<\/td>\n \n$3.46<\/p>\n<\/td>\n<\/tr>\n \nAdjusted General and administrative<\/p>\n<\/td>\n \n$2.28<\/p>\n<\/td>\n<\/tr>\n Depletion, Depreciation & Amortization ($\/Boe)<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nDepletion, oil and gas properties<\/p>\n<\/td>\n \n$7.31<\/p>\n<\/td>\n<\/tr>\n \nDepreciation and amortization, other<\/p>\n<\/td>\n \n$0.41<\/p>\n<\/td>\n<\/tr>\n Aggregate Financials ($ thousands, except per share)<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTotal revenue<\/p>\n<\/td>\n \n54,000<\/p>\n<\/td>\n<\/tr>\n \nIncome (loss) from operations<\/p>\n<\/td>\n \n6,062<\/p>\n<\/td>\n<\/tr>\n \nNet income (loss)<\/p>\n<\/td>\n \n15,479<\/p>\n<\/td>\n<\/tr>\n \nNet income (loss) attributable to Presidio Production Company<\/p>\n<\/td>\n \n14,425<\/p>\n<\/td>\n<\/tr>\n \nNet income per Class A share, basic and diluted<\/p>\n<\/td>\n \n$0.34<\/p>\n<\/td>\n<\/tr>\n Adjusted EBITDA<\/b><\/p>\n<\/td>\n 33,176<\/b><\/p>\n<\/td>\n<\/tr>\n Adjusted Unhedged EBITDA<\/b><\/p>\n<\/td>\n 26,315<\/b><\/p>\n<\/td>\n<\/tr>\n Certain amounts are presented in thousands, except per-share data. Adjusted General and Administrative, Adjusted EBITDA and Adjusted Unhedged EBITDA are non-GAAP measures; see \u201cNon-GAAP Financial Measures and Reconciliations.\u201d<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nAverage realized prices by product for the three months ended June 30, 2026 (Successor), before and after the impact of derivatives settled in cash, were as follows:<\/p>\n Three Months Ended June 30, 2026 (Successor)<\/b><\/p>\n<\/td>\n Excluding Derivatives<\/b><\/p>\n (Pre-Hedge)<\/b><\/p>\n<\/td>\n Including Derivatives<\/b><\/p>\n (Post-Hedge)<\/b><\/p>\n<\/td>\n<\/tr>\n \nOil ($\/Bbl)<\/p>\n<\/td>\n \n$94.38<\/p>\n<\/td>\n \n$63.69<\/p>\n<\/td>\n<\/tr>\n \nNatural gas ($\/Mcf)<\/p>\n<\/td>\n \n$1.08<\/p>\n<\/td>\n \n$4.23<\/p>\n<\/td>\n<\/tr>\n \nNGLs ($\/Bbl)<\/p>\n<\/td>\n \n$26.94<\/p>\n<\/td>\n \n$17.64<\/p>\n<\/td>\n<\/tr>\n Total ($\/Boe)<\/b><\/p>\n<\/td>\n $25.93<\/b><\/p>\n<\/td>\n $29.24<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Conference Call Information<\/b><\/p>\n \nPresidio reported its second quarter 2026 results on Tuesday, August 11, 2026, and will host a conference call to discuss the results the following morning, Wednesday, August 12, 2026 at 11:00 AM Eastern Time (10:00 AM Central Time). A live webcast and replay will be available on the Investor Relations section of the Company\u2019s website at https:\/\/ir.bypresidio.com\/<\/a>. The call may be accessed by dialing (877) 407-0784. A replay of the call will be available shortly after the call by dialing (844) 512-2921 (U.S.) or (412) 317-6671 (international); passcode 13761597. The replay will be available through Wednesday, August 26, 2026.<\/p>\n About Presidio Production Company<\/b><\/p>\n \n$ in thousands<\/p>\n<\/td>\n Three Months Ended June 30, 2026<\/b><\/p>\n (Successor)<\/b><\/p>\n<\/td>\n<\/tr>\n Net Income (Loss) (GAAP)<\/b> (1)<\/p>\n<\/td>\n $15,479<\/b><\/p>\n<\/td>\n<\/tr>\n \nDepletion, oil and gas properties<\/p>\n<\/td>\n \n15,130<\/p>\n<\/td>\n<\/tr>\n \nDepreciation of other property and equipment<\/p>\n<\/td>\n \n859<\/p>\n<\/td>\n<\/tr>\n \nAccretion of asset retirement obligation<\/p>\n<\/td>\n \n1,150<\/p>\n<\/td>\n<\/tr>\n \nGain from sale of assets<\/p>\n<\/td>\n \n(158)<\/p>\n<\/td>\n<\/tr>\n \nLoss on ARO liabilities<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n<\/tr>\n \nUnrealized (gain) loss from derivative transactions<\/p>\n<\/td>\n \n(17,962)<\/p>\n<\/td>\n<\/tr>\n \nChange in fair value of earnout liability<\/p>\n<\/td>\n \n2,972<\/p>\n<\/td>\n<\/tr>\n \nLoss on early extinguishment of debt<\/p>\n<\/td>\n \n4,475<\/p>\n<\/td>\n<\/tr>\n \nShare-based compensation (2)<\/p>\n<\/td>\n \n2,219<\/p>\n<\/td>\n<\/tr>\n \nAcquisition and transaction costs<\/p>\n<\/td>\n \n544<\/p>\n<\/td>\n<\/tr>\n \nInterest expense<\/p>\n<\/td>\n \n4,286<\/p>\n<\/td>\n<\/tr>\n \nNon-recurring cost (3)<\/p>\n<\/td>\n \n221<\/p>\n<\/td>\n<\/tr>\n \nIncome tax expense (benefit)<\/p>\n<\/td>\n \n3,961<\/p>\n<\/td>\n<\/tr>\n Adjusted EBITDA<\/b><\/p>\n<\/td>\n $33,176<\/b><\/p>\n<\/td>\n<\/tr>\n \nRealized (gain) loss from derivative transactions<\/p>\n<\/td>\n \n(6,861)<\/p>\n<\/td>\n<\/tr>\n Adjusted Unhedged EBITDA<\/b><\/p>\n<\/td>\n $26,315<\/b><\/p>\n<\/td>\n<\/tr>\n (1) Reflects total GAAP net income (loss), which includes $1.1 million of net income attributable to non-controlling interests; net income attributable to Presidio Production Company was $14.4 million.<\/i><\/p>\n<\/td>\n<\/tr>\n (2) Includes share-based compensation expense related to restricted stock units.<\/i><\/p>\n<\/td>\n<\/tr>\n (3) Includes one-time severance fees.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Reconciliation of GAAP Financial Measures to Adjusted General and Administrative Expense<\/b><\/p>\n \nThe following table reconciles General and Administrative Expense, the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted General and Administrative Expense for the three months ended June 30, 2026 (Successor). The Company\u2019s business combination closed on March 4, 2026, resulting in separate predecessor and successor periods for the first quarter that are not directly comparable to the full three-month successor period presented for the second quarter. Accordingly, no comparative prior-period information is presented below.<\/p>\n \n$ in thousands (except per Boe)<\/p>\n<\/td>\n Three Months Ended June 30, 2026<\/b><\/p>\n (Successor)<\/b><\/p>\n<\/td>\n<\/tr>\n General and Administrative (GAAP)<\/b><\/p>\n<\/td>\n $7,164<\/b><\/p>\n<\/td>\n<\/tr>\n \nShare-based compensation (1)<\/p>\n<\/td>\n \n(2,219)<\/p>\n<\/td>\n<\/tr>\n \nNon-recurring cost (2)<\/p>\n<\/td>\n \n(221)<\/p>\n<\/td>\n<\/tr>\n Adjusted General and Administrative<\/b><\/p>\n<\/td>\n $4,724<\/b><\/p>\n<\/td>\n<\/tr>\n Adjusted General and Administrative per Boe<\/b><\/p>\n<\/td>\n $2.28<\/b><\/p>\n<\/td>\n<\/tr>\n (1) Includes share-based compensation expense related to restricted stock units.<\/i><\/p>\n<\/td>\n<\/tr>\n (2)<\/i>Includes one-time severance fees.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Reconciliation of Net Debt to Total Debt<\/b><\/p>\n \nThe following table sets forth the Company\u2019s outstanding debt and reconciles total debt, the most directly comparable GAAP measure, to Net Debt as of June 30, 2026 ($ in thousands).<\/p>\n ($ in thousands)<\/i><\/p>\n<\/td>\n June 30, 2026<\/b><\/p>\n<\/td>\n<\/tr>\n \nABS III Securitization notes<\/p>\n<\/td>\n \n$348,117<\/p>\n<\/td>\n<\/tr>\n \nCitizens RBL (undrawn)<\/p>\n<\/td>\n \n–<\/p>\n<\/td>\n<\/tr>\n \nTrail Dust term loan<\/p>\n<\/td>\n \n2,013<\/p>\n<\/td>\n<\/tr>\n \nEquipment financing obligations<\/p>\n<\/td>\n \n1,462<\/p>\n<\/td>\n<\/tr>\n \nABS III debt issuance costs, net<\/p>\n<\/td>\n \n(8,520)<\/p>\n<\/td>\n<\/tr>\n Total Debt (GAAP)<\/b><\/p>\n<\/td>\n $343,072<\/b><\/p>\n<\/td>\n<\/tr>\n \nLess: Equipment financing obligations<\/p>\n<\/td>\n \n(1,462)<\/p>\n<\/td>\n<\/tr>\n \nPlus: ABS III debt issuance costs, net<\/p>\n<\/td>\n \n8,520<\/p>\n<\/td>\n<\/tr>\n Principal outstanding (ABS Notes, RBL, Trail Dust)<\/b><\/p>\n<\/td>\n $350,130<\/b><\/p>\n<\/td>\n<\/tr>\n \nLess: Cash and cash equivalents<\/p>\n<\/td>\n \n(42,317)<\/p>\n<\/td>\n<\/tr>\n \nLess: Restricted cash<\/p>\n<\/td>\n \n(11,278)<\/p>\n<\/td>\n<\/tr>\n Net Debt<\/b><\/p>\n<\/td>\n $296,535<\/b><\/p>\n<\/td>\n<\/tr>\n Plus: ABS Warehouse Facility draw funded at Canyon Creek closing (July 1, 2026) (1)<\/i><\/p>\n<\/td>\n 55,000<\/i><\/p>\n<\/td>\n<\/tr>\n Net Debt, as adjusted for the Canyon Creek acquisition (1)<\/b><\/p>\n<\/td>\n $351,535<\/b><\/p>\n<\/td>\n<\/tr>\n (1) Reflects the $55 million draw under the ABS Warehouse Facility, led by Goldman Sachs, funded in connection with the closing of the Canyon Creek acquisition on July 1, 2026, a subsequent event. Shown as a memo item and does not adjust the Company\u2019s June 30, 2026 GAAP debt balances. Does not give effect to Canyon Creek\u2019s contribution to Adjusted EBITDA or cash flow.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Condensed Consolidated Statement of Operations (Unaudited)<\/b><\/p>\n \nThe following table presents the Company\u2019s condensed consolidated statement of operations for the three months ended June 30, 2026 (Successor) ($ in thousands, except per share amounts). The Company\u2019s business combination closed on March 4, 2026, resulting in separate predecessor and successor periods for the first quarter that are not directly comparable to the full three-month successor period presented for the second quarter. Accordingly, no comparative prior-period information is presented below.<\/p>\n\n
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