Presidio Production Company (NYSE: FTW) has completed its acquisition of the Canyon Creek assets from entities controlled by Vortus Investments and other sellers. The transaction represents the company’s second acquisition since becoming a public entity and its first entry into the Arkoma Basin, marking a strategic expansion of its production footprint.
The acquisition was funded through an initial $55 million draw under Presidio’s Asset-Backed Securities (ABS) warehouse facility of up to $1.0 billion, arranged with Goldman Sachs. Citizens Bank, NA, the company’s reserve-based lending (RBL) partner, participated with a 40% stake in the facility, expanding the lender group and increasing flexibility for future transactions.
The company said the acquisition supports its “land-and-expand” strategy, designed to build scale through targeted consolidation in producing basins. Presidio also indicated that the transaction is expected to support an increase in its anticipated annualized dividend rate from $1.35 to $1.50 per share, subject to approval by its board of directors.
“This is the second of many expected acquisitions, a low-decline, cash-flowing asset that fits the company’s criteria,” said Will Ulrich, Chairman and Co-Chief Executive Officer of Presidio Production Company. “We look forward to increasing the dividend while realizing strong returns as we take over the asset. We are also pleased to welcome Citizens, our RBL lender, into our ABS warehouse facility in conjunction with this initial funding.”
Chris Hammack, Co-Chief Executive Officer and Director, said the acquisition establishes a new growth platform for the company in the Arkoma Basin. “This transaction establishes our entry into the Arkoma Basin, where we see a compelling opportunity to build scale through consolidation using the same land-and-expand strategy we have executed in the Western Anadarko,” Hammack said. “We believe these assets align well with our operating model, and we will apply our disciplined execution, data-driven analytics, and operational approach to improve efficiency, reduce costs, optimize production, and enhance long-term value creation.”
The Canyon Creek acquisition was completed for approximately $83 million and includes producing assets with net daily production of about 21 million cubic feet equivalent per day as of May 2026. The portfolio consists of 55 producing wells, with production weighted approximately 70% natural gas and 30% natural gas liquids, and carries an average annual decline rate of 11%.
Presidio estimates the assets include approximately $100 million in Proved Developed Producing PV-10 value and around 100 billion cubic feet equivalent of net proved developed producing reserves. The company expects the assets to generate a first-year free cash flow yield exceeding 20%, with levered returns also projected above 20%.
The transaction was financed through Presidio’s ABS warehouse facility led by Goldman Sachs, with Citizens Bank participating as a significant lender. The structure is designed to support scalable future acquisitions as part of the company’s consolidation strategy across multiple producing basins.
