Presidio Advances Growth Strategy With Canyon Creek Acquisition Agreements
Presidio Production Company has taken another major step in expanding its presence in the U.S. energy sector by executing definitive purchase and sale agreements to acquire the Canyon Creek assets in a transaction valued at approximately $83 million. The acquisition, announced by the company this week, marks a significant milestone for Presidio as it continues to pursue a yield-focused growth strategy centered on acquiring and optimizing producing oil and natural gas assets without engaging in drilling activities.
The Canyon Creek acquisition represents Presidio’s first announced transaction since becoming a publicly traded company and reflects the company’s broader strategy of building scale through disciplined acquisitions of mature producing properties. The assets are being acquired from companies controlled by Vortus Investments along with additional sellers. Presidio had previously disclosed that it signed a letter of intent related to the transaction on February 24, 2026, and the execution of definitive agreements now moves the deal closer toward completion.
According to the company, the transaction will be funded through a combination of cash and equity. Approximately $60 million of the purchase price will be paid in cash, while 2,173,913 shares of Presidio equity will be issued to the sellers, subject to customary closing and post-closing adjustments. The company stated that the cash component will be financed using its previously announced $1 billion Goldman Sachs ABS Warehouse Facility together with available cash on hand.
The financing structure is particularly notable because it represents the first use of Presidio’s asset-backed securities warehouse facility arranged with Goldman Sachs. The company has described the financing platform as a first-of-its-kind structure within the energy industry, designed to support future acquisitions while maintaining flexibility and capital efficiency. By leveraging this facility, Presidio believes it can accelerate consolidation opportunities across producing oil and gas basins in the United States while continuing to prioritize shareholder returns and dividend growth.
The Canyon Creek assets provide Presidio with an entry point into the Arkoma Basin, a historically productive natural gas region located primarily across parts of Oklahoma and Arkansas. Management views the basin as strategically attractive because of its stable production profile, established infrastructure, and opportunities for operational optimization. The acquisition also expands Presidio’s footprint into a basin adjacent to its existing areas of focus, supporting what the company describes as its “land-and-expand” strategy.
Under this strategy, Presidio acquires producing properties in targeted regions and then seeks additional consolidation opportunities nearby, allowing it to improve operational efficiencies, reduce costs, and enhance production performance over time. The company believes the Canyon Creek assets can serve as a platform for future growth in the Arkoma Basin while delivering attractive immediate returns.
As of April 2026, the Canyon Creek assets included approximately 55 producing wells with current net proved developed producing output of roughly 21.4 million cubic feet equivalent per day (MMcfe/d). The production mix is weighted heavily toward natural gas, with approximately 70% of output consisting of natural gas and the remaining 30% made up of natural gas liquids.
Presidio emphasized that the assets feature a relatively modest annual decline rate of approximately 11%, an important characteristic for a company focused on generating stable production and long-term cash flow. Lower decline assets generally require less ongoing capital investment to maintain production levels, making them especially attractive for operators pursuing income-oriented strategies.
The company also noted that the acquisition includes estimated proved developed producing reserves of around 100 billion cubic feet equivalent (Bcfe). In addition, the estimated PV-10 value of the proved developed producing reserves is approximately $100 million. PV-10 is a commonly used industry metric that estimates the present value of future net revenues from oil and gas reserves, discounted at 10%.
Management believes the acquisition will generate substantial economic returns for shareholders. Presidio estimates the assets will deliver a first-year free cash flow yield exceeding 20% and expects overall levered equity returns to surpass 20% as well. These projected returns align with the company’s broader strategy of acquiring mature producing assets that can generate immediate cash flow and support consistent shareholder distributions.
The acquisition is also expected to enhance Presidio’s dividend profile. The company reiterated its expectation that completing the transaction would support an increase in its anticipated annual dividend from $1.35 per share to $1.50 per share. This potential increase reflects Presidio’s focus on delivering income-oriented returns to shareholders while continuing to expand through acquisitions.
Will Ulrich, Co-Founder and Co-Chief Executive Officer of Presidio, described the Canyon Creek acquisition as an important milestone in the company’s growth trajectory. He said the transaction gives Presidio a high-quality foothold in a strategically attractive adjacent basin while reinforcing the effectiveness of its acquisition-driven business model.
Ulrich emphasized that the company expects the assets to generate strong returns and demonstrate Presidio’s ability to grow shareholder value through disciplined acquisitions. He also highlighted the company’s active acquisition pipeline, noting that Presidio continues to evaluate additional opportunities that align with its operational and financial objectives.
Chris Hammack, Co-Founder and Co-Chief Executive Officer of Presidio, also underscored the strategic importance of the transaction. According to Hammack, the acquisition reflects the company’s intended growth model of purchasing producing assets that can serve as platforms for consolidation and optimization. He stated that Presidio plans to implement operational efficiency improvements and production enhancement initiatives immediately after closing.
The company believes its operational expertise and optimization capabilities can unlock additional value from the acquired properties over time. Presidio’s business model focuses on improving production efficiency, reducing operating costs, and enhancing asset performance rather than pursuing expensive and higher-risk drilling programs.
The transaction is expected to close early in the third quarter of 2026, subject to customary closing conditions and adjustments. Once finalized, the deal will represent an important milestone for Presidio as it transitions into the next stage of its public-company growth strategy.
Industry observers note that the acquisition comes at a time when consolidation activity across the U.S. oil and gas sector continues to accelerate, particularly among companies focused on mature producing assets and cash flow generation. Rising investor demand for capital discipline, stable dividends, and lower-risk production profiles has encouraged operators like Presidio to pursue acquisition-driven growth strategies instead of aggressive exploration programs.
The Canyon Creek acquisition may also position Presidio to capitalize on longer-term natural gas demand trends. Natural gas continues to play a central role in U.S. electricity generation, industrial activity, and liquefied natural gas exports, supporting continued interest in gas-weighted producing assets with stable production characteristics.
Several advisory firms supported the completion of the transaction agreements. Opportune Partners LLC acted as financial advisor to Presidio, while Latham & Watkins LLP served as legal counsel to the company. Additional legal advisors representing various sellers included Conner & Winters LLP, Akin Gump Strauss Hauer & Feld LLP, and Holland & Knight LLP.
With the Canyon Creek agreements now signed, Presidio appears positioned to continue executing its acquisition-focused expansion strategy while seeking to deliver strong cash flow generation and increased shareholder returns in the evolving U.S. energy landscape.
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