U.S. exploration and production company Presidio Production Co. outlined a strategy focused on acquiring producing assets rather than drilling new wells, with no capital allocated for drilling in 2026. Speaking at the EnerCom Denver Energy Investment Conference on August 18, 2026, Co-CEO Will Ulrich said the company’s drilling budget for the year remains at zero, emphasizing a shift toward purchasing existing production.
The company finalized an $83 million acquisition of the Canyon Creek asset, following an exit from the Cherokee region that generated proceeds of $85 million to $90 million. Presidio’s current production stands at approximately 23,000 barrels of oil equivalent per day, with a mix of 57% gas, 27% natural gas liquids, and 16% oil. The company reported an annual production decline rate of 8%, significantly lower than the 35% to 45% decline rates typical among peers.
Presidio has secured financing for its acquisition-driven growth model, including a $350 million asset-backed securities (ABS) deal and a $1 billion ABS warehouse facility arranged with Goldman Sachs and Citizens Bank. The company’s total debt stands at $347 million against trailing twelve-month EBITDA of $35 million, resulting in an enterprise value to EBITDA multiple of 22.5. Historically, Morgan Stanley Energy Partners has provided over $500 million in funding to the company.
The company’s operational efficiency has improved through artificial intelligence deployment, which has contributed to production gains without additional capital spending. Presidio reported a 1.3% production increase in Q1 and a 2.4% increase in Q2, driven by AI-driven optimization across 2,300 wells. The AI system’s accuracy improved from roughly 50% to 90%, generating an incremental revenue run-rate impact of about $5 million. The company aims for 3% to 5% production growth without capital expenditures, reinvesting just 7% of free cash flow compared to 53% for peers engaged in development drilling.
Presidio’s stock was trading at $11.39 on August 19, 2026, with a current dividend of $1.35 per share, yielding about 12%. Following the Canyon Creek acquisition, the company expects to raise its dividend to $1.50 per share. Analysts maintain a strong buy consensus with price targets ranging from $15 to $18, implying a potential upside of 46%. The company was founded in 2017 and went public via a de-SPAC transaction in March 2026.
