Fort Price, Texas-based Presidio Funding Holdings LLC is about to change into a public firm after getting into right into a definitive enterprise mixture settlement with EQV Ventures Acquisition Corp, a particular goal acquisition firm sponsored by EQV Group.
The proposed enterprise mixture will lead to Presidio being listed on the New York Inventory Change beneath the ticker “FTW,” the corporate mentioned in a information launch.
The mixed firm is predicted to have an estimated post-transaction enterprise worth of roughly $660 million, together with property acquired beneath the transaction, in keeping with the discharge.
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The mixed firm will probably be named Presidio Manufacturing Firm and will probably be led by Presidio’s current administration staff, together with Will Ulrich and Chris Hammack as co-CEOs. As a part of the transaction, Presidio can even purchase a complementary Texas Panhandle asset from EQV Sources LLC, an affiliate of EQV. EQV’s sponsor will preserve a major possession stake in Presidio post-closing, the discharge mentioned.
Presidio mentioned it expects to have over 2,000 operated producing wells throughout Texas, Oklahoma, and Kansas with anticipated web manufacturing of 26,000 barrels of oil equal (boepd) in 2025.
To finance the transaction, EQV has entered into agreements for about $85 million in frequent inventory Personal Funding in Public Fairness (PIPE) investments. The frequent inventory PIPE is anchored by strategic and institutional traders, together with an undisclosed main oil and gasoline firm, in keeping with the discharge.
Additional, administration and funds managed by Morgan Stanley Vitality Companions will present roughly $65 million of rollover fairness, the discharge mentioned.
Presidio mentioned it intends to accumulate and optimize extra producing oil and gasoline wells after which optimize the acquisitions by the appliance of expertise, which incorporates automation, real-time knowledge analytics and the introduction of synthetic intelligence processes.
The corporate mentioned it additionally expects to provoke an annual frequent dividend of $1.35 per share after closing.
“Presidio was purpose-built to be the final, greatest steward of America’s oil and gasoline wells,” Will Ulrich, co-founder and co-CEO of Presidio, mentioned. “This transaction supplies a everlasting platform to scale our yield-focused mannequin, pursue extremely accretive acquisitions, and generate worth for shareholders”.
“America’s oilfield wants capital-disciplined operators centered on deploying new expertise to create long-term worth,” Ulrich added. “Now we have the experience, monitor document and capital self-discipline to squeeze effectivity from each molecule and barrel, delivering superior returns”.
“Presidio represents the following evolution of the general public oil and gasoline firm — environment friendly, predictable, and yield-driven inside a easy and clear enterprise mannequin,” Chris Hammack, co-founder and co-CEO of Presidio mentioned. “We consider our track-record of acquisitions and significant price optimization make us the strongest near-term consolidator of mature property.”
Jerry Silvey, founder and CEO of EQV, mentioned, “This transaction with Presidio aligns with our imaginative and prescient to deliver a world-class dividend yield centered producing vitality firm to the general public markets. The construction of the transaction and significant commitments from traders will probably be vital to help the examined and skilled administration staff at Presidio. With our complementary experience and shared imaginative and prescient, we’re assured that Presidio will probably be a sustainable yield chief, well-positioned to be a most popular consolidator of manufacturing oil and gasoline property”.
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