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• Strategic Positioning and Business Model

  • Management frames the current energy market as a "new great game" won by data-driven decision making, positioning Presidio to leverage its long-life, low-decline U.S. producing asset base amid global supply disruption and growing energy demand from AI data centers and industrial automation.
  • Core business model: acquire already producing (PDP) oil and gas assets, avoid development and drilling risk, optimize operations to improve cash flow, pay a steadily growing dividend, and generate long-term returns above cost of capital.
  • Full management equity rollover and 100% employee equity ownership align internal interests with public shareholders; the shareholder base is anchored by long-term institutional investors rather than short-term traders.
  • Capital structure is purpose-built for the PDP acquisition model: investment-grade long-duration ABS, a $1 billion first-of-its-kind ABS warehouse facility with Goldman Sachs to fund future acquisitions, and structured preferred equity that supports dividend growth.

• Operational Optimization Playbook

  • Repeatable 4-step optimization process delivered consistent cost reductions across all acquired assets: (1) Flatten field organization, empower on-site staff, and align incentives directly with asset performance; (2) Right-size compression and artificial lift systems to match actual production, cutting compression expenses by 28% in the first month of acquisition integration in one case study; (3) Bring chemical management in-house to correct vendor incentive misalignment, reducing portfolio-wide chemical costs by 39% from 2023 to 2024; (4) AI-driven "pump by exception" that only dispatches field staff to wells needing attention, cutting total well visits by 50% while maintaining or improving production.
  • Newly acquired assets are typically fully integrated within 21 days of closing, a standard the company will meet for the upcoming Arcoma Basin acquisition.

• AI and Asset Intelligence Initiative

  • Dedicated subsidiary FTW Technologies has built a proprietary oil and gas domain-specific AI model trained on millions of operational data points, creating what management calls the most sophisticated upstream asset intelligence system in the industry.
  • Operations are reorganized into three integrated groups: asset intelligence (engineers using AI for efficiencies), field operations (on-site asset management), and FTW Technologies (AI tool development). The company runs a "Presidio AI astronauts" program to drive adoption across the organization, with the goal of augmenting (not replacing) field staff to multiply productivity by an order of magnitude.
  • The primary goal of the AI initiative is to drive 3% to 5% production growth in 2026 with zero capital expenditure, by identifying well performance improvements and proactive interventions before problems occur; ~1% production improvement has already been achieved through the first four months of 2026.
  • The FTW AI platform has broader commercial potential for external operators, and the company is expanding its AI team to pursue this asymmetric upside opportunity.

• Recent Milestones

  • Closed its business combination and went public in March 2026; declared its first annualized dividend of $1.35 per share (12% current yield), with payment scheduled for May 2026.
  • Signed a definitive purchase agreement to acquire the Canyon Creek producing assets in the Arcoma Basin for $83 million, the company's first entry into a new basin, expected to close in early Q3 2026. Upon closing, the annualized dividend will be increased to $1.50 per share, subject to board approval.

• The company expects Q2 2026 adjusted EBITDA of ~$30 million (based on current commodity strip rates), and management views this as a reasonable run-rate level for all remaining quarters of 2026.
• The company targets 3% to 5% production growth in 2026 driven entirely by AI-enabled operational optimization, with no incremental capital expenditure required.
• Management confirms the first dividend will be paid as scheduled, with a planned increase to $1.50 annualized per share upon closing of the Arcoma Basin acquisition in early Q3 2026.
• The $1 billion Goldman Sachs ABS warehouse facility has ~$1 billion of remaining capacity after funding the Arcoma acquisition, available to support the company's $1 billion+ active acquisition pipeline of PDP assets, with the company targeting 20%+ minimum equity returns on all transactions.

Presidio Production Company operates as a single business focused on acquiring and optimizing producing oil and gas assets, with a separate technology subsidiary (FTW Technologies) that supports internal operations and holds potential for external commercialization. For Q1 2026, the company reported current net production of 22,000 barrels of oil equivalent per day (BOE/d), broken down as 16% oil, 57% natural gas, and 27% NGL. Lease operating expense in the post-combination successor period was $9.47 per BOE. Total capital expenditures for Q1 2026 were less than $1 million, consistent with the company's no-drill, low-reinvestment business model. Adjusted EBITDA for Q2 2026 is guided to approximately $30 million, which management expects to be a representative run rate for the remaining quarters of 2026.

• Forward-looking statements related to production growth, acquisition closing, dividend increases, and commercialization of AI technology are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially, many of which are outside of the company's control. A full list of risk factors is available in the company's SEC filings.
• Commodity price volatility presents a risk to cash flow and dividend sustainability, which the company mitigates through a structured multi-year hedging program tied to its investment-grade ABS requirements.
• Acquisition targets may not close on schedule, or may not deliver the expected operational and financial improvements after acquisition.
• AI technology deployment may not achieve the targeted 3% to 5% production uplift in 2026, or may not deliver the expected productivity gains and commercial upside over the longer term.

Q: Can you provide additional details on the $1 billion+ acquisition pipeline, including deal size, commodity mix, and geographic regions? / A: The pipeline includes multiple small to medium and large deals across multiple regions. There are several opportunities in the Anadarko Basin in Oklahoma that match the commodity profile of Presidio's existing assets, plus a smaller number of opportunities in Texas that are likely to have a higher liquids content than the current portfolio. Management intentionally kept details vague to preserve competitive positioning for active bilateral processes.

Q: How does Presidio's gas marketing strategy position it to benefit from growing demand from power generation and LNG export? / A: Presidio's core strategy is to sell gas as close to the end user as possible to capture better pricing. Currently 30% of the company's gas is sold directly to power plants, and management expects this share to grow as new data center buildouts increase power demand in the Panhandle region. Gas from the new Arcoma Basin acquisition will likely flow to LNG export, and as Presidio scales its production in other regions, it will gain the scale needed to build out the necessary firm transportation to access LNG export markets for additional volumes, capturing upside from reshaped global gas trade flows.

Q: How is the AI asset intelligence program delivering the targeted 3% to 5% 2026 production uplift, and how will it perform in future years? / A: The AI model already identified a recurring weekly production cycle driven by limited weekend field work that created consistent peak-trough production volatility; a simple proactive adjustment before weekends flattened this cycle and delivered ~1% uplift already. All field operators now have an AI well intelligence agent (named Doug) that provides real-time, daily recommendations on where to focus interventions. The model's accuracy increased from 50% to 70% within weeks of rollout, and continues to improve as it learns from aggregated data across all of Presidio's wells (including cross-basin learnings that individual field staff would not capture). Management expects continued accuracy gains and additional production uplift from proactive interventions for pump failures, pressure issues, and artificial lift optimization, hitting the full 3% to 5% target by year end.

Q: How does Presidio's AI platform create incremental value in acquisition due diligence, and can it work in new geographic areas? / A: The same AI tool used for internal operations is used in due diligence to calculate the gap between a well's theoretical maximum production and its actual operating production, which typically runs 10% to 15% lower due to unaddressed operational issues. This lets Presidio identify incremental production upside that other bidders miss in due diligence, allowing the company to capture that upside without paying for it in the purchase price. The model can be adapted quickly to new basins: it only requires basic well-level data (primarily artificial lift type), which Presidio can secure from sellers during due diligence, and can make reasonable valid assumptions for data gaps in most cases.