Presidio (FTW) EnerCom Denver – The Energy Investment Conference summary

Strategic approach and business model

• Maintains a zero-dollar drilling budget for 2026, focusing on acquiring and optimizing existing producing assets rather than drilling new wells.

• Generates steady income from American energy, with a disciplined, simple approach and a 10-year track record of optimizing producing assets.

• Current production is around 23,000 BOE/day, mainly from the Western Anadarko Basin, with recent expansion into the Arkoma.

• Differentiates from peers by focusing on low-decline, cash-flowing assets and continuous operational optimization.

• Monetizes undeveloped land through partnerships, overrides, and acreage sales without capital expenditures.

Financial performance and dividend policy

• Dividend set at $1.35 per share, representing a 12% yield, with plans to increase to $1.50 following recent acquisitions.

• Two acquisitions post-IPO are expected to support dividend growth in Q3 and Q4.

• Integration of new assets includes significant cost reductions (30%-50%) and production enhancements.

• Uses ABS financing and equity issuance to fund acquisitions, with flexible deal structures for sellers.

• Achieved a 53% compounded IRR over eight years as a private company.

Technology and operational efficiency

• Employs AI to increase production by 3%-5% without capital expenditures, achieving a 2.4% gain through Q2 and $5 million in incremental revenue.

• AI-driven asset intelligence system is live across 2,300 wells, democratizing operational knowledge and improving workforce efficiency.

• Hired a Silicon Valley team to accelerate AI initiatives, aiming for continuous improvement and real-time anomaly detection.

• AI tools enable pumpers to access well intelligence daily, optimizing routes and decision-making.

• Focus on enhancing human efficiency rather than reducing headcount, aiming to 10x productivity.