Presidio Production Company Announces Third Quarter 2026 Results

Declares increased 3Q 2026 dividend of $0.375 per share ($1.50 per share per year)

FORT WORTH, Texas--(BUSINESS WIRE)--Presidio Production Company (NYSE: FTW) (“Presidio” or the “Company”), today announced recent highlights and results for the third quarter ended September 30, 2026.

Recent Highlights

• Declared increased 3Q 2026 dividend of $0.375 per share ($1.50 per share per year)
• Sold $17.0 million of non-producing leasehold in Oklahoma year-to-date
• 26.1 MBoe/d third quarter net production, an increase of 15% from the second quarter, 13% oil, 58% natural gas, and 29% NGLs
• $29.1 million of Adjusted EBITDA and reported a net loss attributable to Presidio Production Company of $46.4 million (reflecting a $66.5 million non-cash, unrealized loss on commodity derivatives)
• Established dedicated AI product engineering team under Chief Technology Officer Jason Hudak and launched The Gauntlet, the Company’s agentic software development platform
• Asset Intelligence programs added 3.2% to production in the third quarter

Management Commentary

“Our third quarter results reflect continued execution of our acquisition and optimization strategy,” said Will Ulrich, Chairman and Co-CEO. “Canyon Creek contributed its first full quarter, and our continued focus on improving the performance of our existing assets has allowed us to increase our annualized dividend to $1.50 per share. Each of these steps reinforces the acquisition model we are building to consolidate producing oil and gas assets.”

Chris Hammack, Co-CEO and Director, added: “When we closed Canyon Creek, we said the Arkoma Basin was a place to build scale through consolidation. In our first full quarter operating the assets, we moved the wells onto our production systems, right-sized compression and changed chemical vendors, and Canyon Creek helped lower our lease operating expense per Boe. In October, we added working interest in Arkoma properties where we already operate, our first step in building around that position. Land-and-expand remains the strategy.”

Third Quarter 2026 Financial and Operating Results

All financial metrics in this release reflect the successor period for the three months ended September 30, 2026 and include the Canyon Creek acquisition, which closed in July 2026. Comparisons are to the three months ended June 30, 2026 (Successor), which did not include Canyon Creek.

Third-quarter production averaged approximately 26.1 MBoe/d, or 2,404 MBoe for the quarter, up 15% from 22.8 MBoe/d in the second quarter, comprising approximately 13% oil, 58% natural gas and 29% NGLs. Canyon Creek drove most of the increase.

Total revenue was $57.3 million, up 6% from $54.0 million in the second quarter. The Company’s average realized price was $23.72 per Boe excluding derivatives and $25.49 per Boe including derivatives, reflecting a realized derivative gain of $1.77 per Boe.

Lease operating expense was $9.10 per Boe, down from $9.39 per Boe in the second quarter, primarily reflecting the addition of Canyon Creek production. Production taxes were $1.46 per Boe and ad valorem taxes were $0.53 per Boe, resulting in total operating expense of $11.09 per Boe.

Adjusted EBITDA was $29.1 million, in line with the outlook provided in August.

The Company reported a net loss of $50.7 million, and a net loss attributable to Presidio Production Company of $46.4 million. The net loss primarily reflects a $66.5 million non-cash, unrealized loss from marking the Company’s commodity derivatives to fair value at quarter-end, which did not represent a cash outflow during the quarter and is excluded from Adjusted EBITDA. The net loss was partially offset by a $13.8 million income tax benefit.

Capital expenditures remained minimal at approximately $0.4 million during the quarter, consistent with the Company’s low-reinvestment model.

Quarterly Dividend

The Board approved a quarterly cash dividend of $0.375 per share ($1.50 per share per year), an 11% increase from the second quarter.

The Q3 2026 cash dividend will be payable on December 16, 2026 to stockholders of record as of December 2, 2026.

Future dividends, including the amount and timing thereof, will be declared at the discretion of the Board of Directors and will depend on the Company’s financial condition, results of operations, capital requirements, and other factors the Board deems relevant.

Acquisitions and Growth

The acquisition market remains active. The Company remains focused on opportunities that meet its strategic and return criteria. Presidio’s $1.0 billion ABS Warehouse Facility, led by Goldman Sachs with Citizens Bank, N.A. participating, funded Canyon Creek with an initial $55.0 million draw.

Presidio continues to sell undeveloped acreage. During the third quarter, the Company sold leasehold and mineral interests in Oklahoma for $2.1 million, bringing year-to-date proceeds to $9.9 million. Since quarter-end, the Company has sold an additional $7.1 million of leasehold and mineral interests in Oklahoma, bringing year-to-date proceeds to $17.0 million.

The third quarter was the first full quarter of production from the Canyon Creek assets in the Arkoma Basin, acquired in July 2026 from companies controlled by Vortus Investments and additional sellers.

After quarter-end, the Company acquired additional working interest in Arkoma Basin properties it already operates for approximately $4.3 million, funded with cash on hand. The acquisition builds on the position established through Canyon Creek, consistent with the Company’s land-and-expand strategy.

AI and Asset Intelligence

Presidio uses AI to get more production out of the wells it already owns and to help its employees work more efficiently. The Company plans to run all of its approximately 2,300 operated wells on the same technology platform and to add future acquisitions to this platform.

The Asset Intelligence Group is targeting three to five percent production growth in 2026 across Presidio’s existing asset base. Its programs added approximately 3.2% to production from the Company’s assets in the third quarter. These programs include:

• Mainspring, the Company’s AI-powered oil and gas operating system, which monitors well-level data, flags production that falls outside expected patterns and sends recommendations to the responsible field engineer
• AI-controlled plunger lift on 25 wells, which adjusts each well’s plunger cycles based on its own production data rather than a fixed timer
• A weekend coverage program that uses AI to tell smaller weekend crews which wells to visit first

The Company also used AI to find shut-in wells that would be profitable to restart at lower water disposal rates and then negotiated those rates. The first of these wells came back online in October, and the Company expects to bring back ten more by year-end. In October, Presidio also began using AI to review each day’s workover jobs and flag the ones that need attention.

During the third quarter, Presidio built out its product engineering team under Chief Technology Officer Jason Hudak, adding four software engineers, a head of product, a product manager and an IT lead. The team built The Gauntlet, the Company’s agentic software development platform, where AI agents do much of the coding and testing so a small team can deliver software far faster than it otherwise could.

Capital Structure

As of September 30, 2026, the Company had total debt of $393.2 million, total debt principal outstanding of $400.6 million and Net Debt of $349.4 million. Principal outstanding includes $54.3 million under the ABS Warehouse Facility, which funded the Canyon Creek acquisition.

Based on $349.4 million of Net Debt and last-six-months annualized (L6A) Adjusted EBITDA of approximately $124.5 million, Leverage was approximately 2.8x.

Liquidity

As of September 30, 2026, the Company had $37.4 million of unrestricted cash and no borrowings outstanding under its RBL, which had a borrowing base of $60 million, for total liquidity of approximately $97.4 million.

Equity Capitalization

As of September 30, 2026, the Company had 29,825,480 shares of Class A common stock and 1,673,757 shares of Class B common stock outstanding, together with 126,628 shares of Series A preferred stock (with an aggregate subscription amount of $126.6 million, including paid-in-kind dividends) and 27,173 shares of Series B convertible preferred stock (convertible into 2,717,300 shares of Class A common stock).

In connection with the closing of the Canyon Creek acquisition in July 2026, the Company issued 1,962,240 shares of Class A common stock to the sellers. Share counts by class are also presented in the condensed consolidated balance sheet below.

Hedging Program

The 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, the hedges entered into in connection with the closing of the Canyon Creek acquisition, and incremental hedges added after quarter-end. The following table summarizes Presidio’s current commodity hedge position as of November 12, 2026.

Summary Financial and Operational Data

The following table presents Presidio’s key financial and operational metrics for the third quarter of 2026 on a successor basis (three months ended September 30, 2026). The Company’s business combination closed on March 4, 2026, resulting in separate predecessor and successor periods that are not directly comparable to the full three-month successor period presented for the third quarter. Accordingly, no comparative prior-period information is presented below. Per-unit metrics are presented on a $/Boe basis.

Average realized prices by product for the three months ended September 30, 2026 (Successor), before and after the impact of derivatives settled in cash, were as follows:

Conference Call Information

Presidio reported its third quarter 2026 results on Thursday, November 12, 2026, and will host a conference call to discuss the results the following morning, Friday, November 13, 2026 at 10:00 AM Eastern Time (9:00 AM Central Time). A live webcast and replay will be available on the Investor Relations section of the Company’s website at https://ir.bypresidio.com/. The call may be accessed by dialing (877) 407-0779 (U.S.) or (201) 389-0914 (international); conference code 13763581. 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 13763581. The replay will be available through Friday, November 27, 2026.

About Presidio Production Company

Headquartered in Fort Worth, TX, Presidio Production Company (NYSE: FTW) is 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. Presidio applies engineering expertise and AI-driven analytics to enhance performance and extend asset life. The Company’s Class A common stock is listed on the New York Stock Exchange under the ticker symbol “FTW”. To learn more, visit https://bypresidio.com/.

Non-GAAP Financial Measures and Reconciliations

This press release includes Adjusted EBITDA, Adjusted Unhedged EBITDA, Adjusted General and Administrative Expense, Leverage and Net Debt, which are financial measures not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”).

Presidio defines Adjusted EBITDA as net income (loss) before (1) interest expense, net, (2) depreciation, depletion, amortization and accretion, (3) unrealized loss (gain) on derivative instruments, (4) non-cash share-based compensation, (5) non-recurring compensation expense related to our Class B Units, (6) (gain) loss on sale of assets, net, (7) loss on ARO liabilities, (8) change in fair value of earnout liability, (9) loss on early extinguishment of debt, (10) income tax expense (benefit), (11) acquisition and transaction costs, and (12) certain non-recurring costs that management does not consider indicative of ongoing performance.

Adjusted EBITDA is used as a supplemental financial performance measure by Presidio management and by external users of our financial statements, such as industry analysts, investors, lenders, rating agencies and others, to evaluate our operating performance and Presidio’s results of operations from period to period and against our peers without regard to financing methods, capital structure or historical cost basis. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these items and related amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to, or more meaningful than, net income (loss) as determined in accordance with GAAP or as an indicator of our operating performance. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax burden, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDA. Our presentation of Adjusted EBITDA should not be construed as an inference that our results will be unaffected by unusual items. Our computations of Adjusted EBITDA may not be identical to other similarly titled measures of other companies.

Presidio defines Adjusted Unhedged EBITDA as Adjusted EBITDA further adjusted to remove realized gains and losses on derivative instruments. This measure is intended to show our operating results without the impact of our hedging program. Management believes Adjusted Unhedged EBITDA is an important metric that provides valuable insight into the Company’s underlying operational performance by removing the effects of financing decisions, non-cash charges, and hedging activities. Adjusted Unhedged EBITDA is a supplemental non-GAAP measure and may not be comparable to similarly titled measures of other companies.

Adjusted EBITDA and Adjusted Unhedged EBITDA are not substitutes for, and should be considered in addition to, net income (loss), cash flows from operating activities, or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA and Adjusted Unhedged EBITDA as presented may not be comparable to similarly titled measures of other companies. A reconciliation of Adjusted EBITDA and Adjusted Unhedged EBITDA to net income (loss), the most directly comparable GAAP measure, is provided below.

Presidio defines Adjusted General and Administrative Expense as General and Administrative Expense adjusted to remove non-cash share-based compensation, non-recurring compensation expense related to our Class B Units, and certain non-recurring costs that management does not consider indicative of ongoing performance. This measure is intended to show our General and Administrative Expenses without the impact of non-cash and non-recurring items. Management believes Adjusted General and Administrative Expense is an important metric that provides valuable insight into the Company’s underlying operational performance. Adjusted General and Administrative Expense is a supplemental non-GAAP measure and may not be comparable to similarly titled measures of other companies. A reconciliation of Adjusted General and Administrative Expense to General and Administrative Expense, the most directly comparable GAAP measure, is provided below.

Presidio defines Net Debt as the aggregate principal amount outstanding of the Company’s ABS notes, ABS Warehouse Facility borrowings, RBL borrowings and Trail Dust term loan, excluding lease obligations, less total cash (including restricted cash). Presidio defines Leverage as Net Debt divided by last-six-months annualized (L6A) Adjusted EBITDA, calculated by multiplying Adjusted EBITDA for the most recent six months by two. The Leverage ratio presented in this press release is calculated using Adjusted EBITDA for the six months ended September 30, 2026.

Management believes Net Debt and Leverage are useful to investors, analysts and rating agencies in evaluating the Company’s capital structure and ability to service its indebtedness. Net Debt and Leverage are supplemental non-GAAP measures, should not be considered alternatives to total debt or net income (loss) determined in accordance with GAAP, and may not be comparable to similarly titled measures of other companies. A reconciliation of Net Debt to total debt, the most directly comparable GAAP measure, is set forth below.

Reconciliation of GAAP Financial Measures to Adjusted EBITDA and Adjusted Unhedged EBITDA

The following table reconciles net income (loss), the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBITDA and Adjusted Unhedged EBITDA for the three months ended September 30, 2026 (Successor), for the three months ended June 30, 2026 (Successor) and for the six months ended September 30, 2026 (Successor), which is used to calculate L6A Adjusted EBITDA. The Company’s business combination closed on March 4, 2026, resulting in separate predecessor and successor periods that are not directly comparable to the successor periods presented. Accordingly, no comparative prior-period information is presented below.

Reconciliation of GAAP Financial Measures to Adjusted General and Administrative Expense

The 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 September 30, 2026 (Successor). The Company’s business combination closed on March 4, 2026, resulting in separate predecessor and successor periods that are not directly comparable to the full three-month successor period presented for the third quarter. Accordingly, no comparative prior-period information is presented below.

Reconciliation of Net Debt to Total Debt

The following table sets forth the Company’s outstanding debt and reconciles total debt, the most directly comparable GAAP measure, to Net Debt as of September 30, 2026 ($ in thousands).

Presidio Media and Investor Contact:
Connor Fair, Director of Investor Relations
investors@bypresidio.com