Presidio Expands Arkoma Footprint with $83M Canyon Creek Deal — Presidio Production Company

Event summary

Presidio closed its $83M acquisition of Canyon Creek assets from Vortus Investments, marking its first entry into the Arkoma Basin.
The deal was funded via a $55M draw from Presidio's new $1B ABS Warehouse Facility led by Goldman Sachs.
Canyon Creek adds 21 MMcfe/d net PDP production (70% gas) with an estimated PV-10 of $100M and levered returns exceeding 20%.
Presidio issued 1.96M new shares to sellers as part of the transaction.
The acquisition supports a potential dividend increase from $1.35 to $1.50 per share, subject to board approval.

The big picture

This acquisition represents Presidio's strategic pivot into the Arkoma Basin, complementing its existing Mid-Continent footprint. The deal underscores a broader industry trend of consolidation among yield-focused producers seeking to optimize cash flow from mature assets. With $55M deployed from its new ABS facility, Presidio demonstrates capacity for additional acquisitions while maintaining financial discipline through hedging programs.

What we're watching

Consolidation Strategy: Whether Presidio can replicate its Western Anadarko land-and-expand playbook in the Arkoma Basin.
Dividend Sustainability: How the higher dividend rate will impact free cash flow and leverage metrics.
ABS Facility Utilization: The pace at which Presidio draws down its $1B ABS Warehouse Facility for future acquisitions.