Presidio Production Company — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for the quarter ended June 30, 2026, was $54.0 million.
• Net income attributable to Presidio Production Company was $14.4 million, or $0.34 per Class A share.
• Adjusted EBITDA was $33.2 million, exceeding guidance.
• Adjusted Unhedged EBITDA was $26.3 million.
• Average realized price per Boe was $25.93 excluding derivatives and $29.24 including derivatives, reflecting a realized derivative gain of $3.31 per Boe.
• Total operating expense was $11.22 per Boe, comprising lease operating expense of $9.39 per Boe, production taxes of $1.42 per Boe, and Ad valorem taxes of $0.41 per Boe.
• General and administrative expenses were $3.46 per Boe (GAAP), with adjusted G&A at $2.28 per Boe.
• Income from operations was $6.1 million.

Guidance and Future Outlook

• The Asset Intelligence Group targets 3% to 5% production growth in 2026 across the existing asset base without capital expenditure, having achieved approximately 1% production uplift to date.
• The acquisition pipeline totals approximately $17 billion.
• Future dividends are declared at the discretion of the Board of Directors and depend on financial condition, results of operations, and capital requirements.

Business Segments and Product Lines

• Second-quarter production averaged 22.8 MBoe/d (2,071 MBoe for the quarter), with a mix of 16% oil, 57% natural gas, and 27% NGLs.
• Presidio appointed Jason Hudak as Chief Technology Officer to lead a dedicated engineering team developing and deploying an AI platform.
• The Company closed the Canyon Creek acquisition in July 2026, its second acquisition as a public company and first in the Arkoma Basin.
• Canyon Creek assets generate approximately 21 MMcfe/d (3.5 MBoe/d) of net PDP production as of May 2026, weighted 70% natural gas and 30% NGLs, with an estimated base decline of 11% per year.
• Capital expenditures remained minimal during the quarter, consistent with a low-reinvestment model.

Market and Competitive Landscape

• The acquisition market remains active, with the Company focused on opportunities meeting strategic and return criteria.
• Canyon Creek is expected to yield levered returns in excess of 20%.
• The Company is building an acquisition model to consolidate producing oil and gas assets.

Risks and Challenges

• Risks include commodity price volatility impacting cash flows and dividend sustainability.
• Potential challenges involve the ability to reduce operating costs, manage growth profitably, and successfully integrate acquired assets.
• Risks related to indebtedness, the ABS refinancing, and borrowings under the ABS Warehouse Facility are noted.
• Production declines, operational challenges, and regulatory changes pose risks to operations.

Management Commentary and Tone

• Will Ulrich, Chairman and Co-CEO, stated that results reflect continued execution, noting Adjusted EBITDA exceeded guidance and the refinancing lowered the cost of capital.
• Chris Hammack, Co-CEO and Director, highlighted a strong quarter in the field, the advancement of EQVR asset integration, and the immediate assumption of Canyon Creek operations.
• Management emphasized a focus on deploying optimization strategies and implementing AI workflows to enhance cash flow at both EQVR and Canyon Creek assets.

Other Key Points

• The Board declared a quarterly cash dividend of $0.3375 per share ($1.35 per share annualized), payable September 14, 2026, to stockholders of record as of August 31, 2026.
• The Company closed a $350 million investment-grade ABS refinancing at a weighted average coupon of 6.38%, down from 8.22%, with notes due in 2041.
• The Canyon Creek acquisition was funded using a $55 million draw from the ABS Warehouse Facility, led by Goldman Sachs, which provides borrowings up to $1.0 billion.
• In connection with the Canyon Creek closing, the Company issued 1,962,240 shares of Class A common stock to sellers.
• As of June 30, 2026, total debt principal outstanding was $343.1 million, with Net Debt of $296.5 million.
• Pro forma Net Debt, including the Canyon Creek acquisition funding, was $351.5 million, resulting in a leverage ratio of approximately 2.7x based on annualized second-quarter Adjusted EBITDA.
• Liquidity as of June 30, 2026, consisted of $42.3 million in unrestricted cash and no RBL borrowings; pro forma liquidity after a borrowing base reduction to $60 million is approximately $102.3 million.
• The Company's borrowing base was redetermined from $65 million to $60 million subsequent to quarter-end.