Presidio Production Company Announces \$350 Million Investment Grade ABS Refinancing, Improving Liquidity and Cost of Capital

Key Developments That Could Impact Shareholders and Share Price

FORT WORTH, Texas (June 9, 2026) – Presidio Production Company (NYSE: FTW), a leading, yield-focused oil and gas operator specializing in the acquisition and optimization of mature, producing assets, has announced a major refinancing transaction that is likely to impact its future financial performance and potentially its share price.

Key Points for Investors

• \$350 Million Investment Grade ABS Refinancing: The company closed a \$350 million investment grade Asset-Backed Securitization (ABS), replacing its prior ABS, with a significantly lower weighted average coupon of 6.38%. This is a reduction of 184 basis points compared to the previous ABS cost of capital (8.22%), resulting in substantial interest savings.
• Improved Capital Structure & Liquidity: The refinancing also reduces scheduled amortization, enhancing free cash flow available for shareholder dividends and growth opportunities. The company paid off \$263 million in existing ABS debt, accrued interest, and make-whole fees.
• Strategic Use of Proceeds: Proceeds were allocated as follows:
  • \$263 million to pay off existing ABS debt, accrued interest, and make-whole fees
  • \$37 million to pay down the company’s reserve-based lending facility (RBL), which remains in place with a \$65 million borrowing base and is now undrawn
  • \$35 million for additional hedge protection
  • Remainder for transaction fees, expenses, and general corporate purposes
• Innovative ABS Structure: The new ABS is split into two tranches:
  • \$175 million of 5.902% Class A-1 notes, due 2041
  • \$175 million of 6.717% Class A-2 notes, due 2041

  The ABS uses an anticipated repayment date (ARD) structure, which lowers annual amortization in the first five years, and is designed with master trust and make-whole provisions—enabling asset dropdowns, efficient refinancing, and simplification of the capital structure after future acquisitions.

• Redemption Flexibility: The ABS is redeemable at the company’s option at 102% in Year 1, 101% in Year 2, and at par thereafter, providing Presidio flexibility to manage its debt as market conditions evolve.
• Strengthened Hedging Program: Presidio executed a hedge restructuring alongside the ABS closing, providing significant commodity price protection across oil, natural gas, and NGLs through 2029 and beyond (see detailed volumes and average strike prices in the tables below).

Executive Commentary

Will Ulrich, Chairman and co-CEO: “This refinancing is a milestone that strengthens the foundation of our business. We have lowered our cost of capital, reduced near-term interest and amortization, and created additional liquidity to pursue growth, all while keeping our capital structure simple.”

John Brawley, EVP & CFO: “Lowering our cost of capital is a significant competitive advantage in the PDP acquisition market. With a lower-cost capital structure in place, we can underwrite acquisitions more aggressively than higher-cost buyers, while preserving the returns we deliver to shareholders. This positions us to continue consolidating producing oil and gas assets on attractive terms.”

Commodity Hedge Portfolio (as of June 9, 2026)

Oil Swaps

Natural Gas Swaps

NGL Swaps

Advisory Team

• Cantor Fitzgerald: Sole structuring advisor and lead bookrunner
• Goldman Sachs: Joint placement agent
• Citizens Capital Markets, Inc.: Co-manager
• Sidley Austin LLP: Issuer counsel
• Orrick, Herrington & Sutcliffe LLP: Noteholder counsel

Why This News Matters for Shareholders

This refinancing marks a significant milestone for Presidio. By lowering its cost of debt, increasing liquidity, and optimizing its capital structure, the company is better positioned to deliver returns to shareholders through enhanced dividends and disciplined growth. The ability to underwrite acquisitions more competitively and the strengthened hedge book provide greater predictability in cash flows, which can support both dividend stability and share price performance.

The innovative structure and redemption flexibility also reduce financial risk and open further options for strategic initiatives, including additional asset acquisitions and capital returns.

These actions are likely to be price sensitive, as they directly affect future earnings, cash flow, and dividend potential – all of which are key to investor sentiment and share valuation.

About Presidio Production Company

Headquartered in Fort Worth, TX, Presidio Production Company (NYSE: FTW) focuses on acquiring and optimizing producing oil and natural gas wells across the US, primarily without drilling. Leveraging engineering expertise and AI-driven analytics, Presidio aims to maximize asset performance and extend asset life. The company’s common stock trades on the NYSE under the ticker “FTW.” For more information, visit https://bypresidio.com/.

Disclaimer

Forward-Looking Statements: This article contains forward-looking statements, including projections and expectations about future performance, dividends, acquisitions, and financial conditions. Actual results may differ materially due to risks including commodity price volatility, operational and regulatory risks, management changes, and other factors discussed in Presidio’s filings with the SEC. Investors should not place undue reliance on forward-looking statements, which speak only as of the date made. Presidio and its representatives undertake no obligation to update these statements except as required by law.

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