Presidio Production Company Class A

Good day, ladies and gentlemen, and thank you for joining us. Welcome to Presidio Production Company's second quarter 2026 earnings conference call. After today's prepared remarks, we'll host a question and answer session. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note that this conference is being recorded. I'll now hand the call over to Mr. Connor Fair, Director of Investor Relations. Please go ahead, sir.

Good morning and welcome to Presidio Production Company's second quarter 2026 earnings conference call. I'm Connor Fair, Director of Investor Relations, and joining me today are our Chairman and Co-CEO, Will Ulrich, Co-CEO and Director, Chris Hammack, EVP and CFO, John Brawley, EVP and General Counsel, Brett Barnes, and Chief Technology Officer, Jason Hudak. As a reminder, today's call includes forward-looking statements. These statements are based on management's current expectations and assumptions and are subject to risks, uncertainties, and other factors, many of which are beyond the company's control that could cause actual results to differ materially from those expressed or implied on this call. For a discussion of these risks, please refer to the cautionary language in yesterday's earnings release and the risk factors in our filings with the SEC, which are available on the investor relations section of our website. We will also refer to certain non-GAAP financial measures. The most directly comparable GAAP measures, together with definitions and reconciliations, are included in yesterday's earnings release, which is available on the investor relations section of our website. With that, I will turn the call over to Will.

Thank you, Connor. Good morning, everyone. We all have mountains to climb, the ones set before us and the ones we choose to set for ourselves. Chris and I started this business with nothing more than a friendship and an idea. that we could create massive value from investing in oil and gas without ever drilling a well. A direct challenge to 150 year old industry philosophy. I thought often these past two weeks about the passing of Nims Purja who died in an avalanche in Pakistan on July 30th. If you don't know his story, I encourage you to watch the Netflix documentary, 14 Peaks. Nims set out to do the impossible. all 14 of the world's 8,000-meter peaks in six months, and he did it. He called it Project Possible. At Presidio, we also believe in the possible. We seek out challenges, and when we can't find them, we will create them. We choose our routes. We take risks when the moment calls for it. But our objective is to deliberately deliver on our business model over long periods of time. This quarter was no exception. A few months ago, on our first call as a public company, we told you what we intended to do. We said we would acquire producing assets and optimize them. And through closing and integrating Canyon Creek, we have. We said we would continue creating efficiencies in our balance sheet. And through refinancing our bonds and funding our first acquisition under our billion-dollar ABS acquisition warehouse with Goldman Sachs, now joined by Citizens Bank, we have. We said we would accelerate our position as the world's first agentic oil and gas company. And through this quarter's hires, led by our new Chief Technology Officer, Jason Hudak, and a team of seasoned Silicon Valley executives, we have. We set a target to raise the company's production 3% to 5% through AI without drilling and without capital expenditure, and we are well on our way. achieving a 2.3% uplift through the second quarter. We've told you about our backlog of acquisitions, which remains as attractive as ever. And like a climber who waits for the right conditions to summit, we will make our next acquisition in short order. All of this is happening against the backdrop of major changes in the global energy landscape that I discussed on last quarter's call. and we believe FTW is one of the most compelling investment cases in American energy today. We are an operator and acquirer of producing cash flowing American oil and gas assets. The case for Presidio rests on four pillars, our dividend, acquisitions, optimization and artificial intelligence. First, the dividend. The starting point for any investor in Presidio is cash return. Our annualized dividend is $1.35 per share, a yield of approximately 12% at our recent share price. Canyon Creek closed on July 1st, so the results we are reporting today contain none of its cash flow. And we intend to raise the dividend once the Canyon Creek assets are contributing to our results. We generated $15.7 million of free cash flow in the quarter, roughly 50 cents per share, against a 33.75 cent quarterly dividend. Second, growth through acquisition, backed by unique capital markets access. We have closed two acquisitions as a public company in under five months, EQVR at our formation in Canyon Creek immediately following this quarter. And our acquisition pipeline stands at approximately $17 billion. What makes that pipeline actionable rather than aspirational is our capital structure, our $1 billion ABS acquisition warehouse, our master trust drop-down structure, and refinancing flexibility that is unprecedented in the energy ABS market mean we can move on the right asset quickly and finance it efficiently in a way that most operators our size simply cannot. During the quarter, 25 opportunities came across our desk. We took 16 through review and bid on nine. We see nearly every deal in the market and we bid on a little over a third of it with discipline. Third, optimization, where the story has continued to evolve. Our operating discipline has always been core to our thesis. Historically, that discipline showed up primarily as expense discipline, and it still does. Lease operating expense came in at $9.39 per BOE this quarter. Increasingly, the same discipline, paired with our data and AI capability, is showing up on the production side. Chris will walk you through the specifics, but the headline is this. We are no longer only the best operators at controlling costs. We're becoming the best operators at growing production from assets with almost zero capital expenditures. And fourth, our artificial intelligence platform that increasingly ties the other three together. During the quarter, we appointed Jason Hudak as Chief Technology Officer. Jason is not an oil and gas person. He's a Silicon Valley technology and AI executive with nearly three decades of experience. Most recently as Vice President of Engineering at Aerospike, with prior senior roles at Twilio, RapidAPI, Foursquare, and The Office. Jason has built out a team of senior technology leaders across AI product, machine learning, data engineering, data science, and cloud infrastructure, drawing from companies including Twilio, Cisco, Aerospike, VMware, and Akamai. We are pairing world-class technology talent with the operating knowledge and field data already inside Presidio. Oil and gas expertise tells us which problems matter. Technology expertise lets us solve them faster, more consistently, and at greater scale. This is not a corporate IT initiative. It is not primarily about automating back office work. As I said previously, in this business, production, revenue, and cash flow are the prize, and that is where the mandate points. I want to be specific about what this has already produced because it's easy for the word AI to sound like a slogan rather than a result. Production for the quarter averaged 22,755 barrels of oil equivalent per day. Against our 3% to 5% full-year AI uplift target, we have now delivered approximately 2.3%, 1.4% from Doug, our production surveillance agent, and another nearly 1% from adjacent AI initiatives Chris will describe. That is measured well-level uplift, generating $4.5 million of annualized revenue in Q2, and we are just getting started. One could see substantial additional value just attributed to where our growing AI platform sits today. We now have roughly 2,000 wells on the intelligence platform. We're on track against our 3% to 5% full-year target, and Chris is going to take you into the field and show you exactly how it happens. Turning to the quarter, the second quarter was an important period of execution. We reported net income attributable to Presidio of $14.4 million, or $0.34 per Class A share, and generated adjusted EBITDA of $33.2 million, against the $30 million we guided you to, a beat of $3.2 million, or roughly 11%. Production averaged 22,755 BOE per day, with minimal capex of $600,000. We also completed a lower-cost investment-grade ABS financing. Immediately following quarter end, we closed the Canyon Creek acquisition and entered the Arcoma Basin, a transaction that, together with our lower cost of capital, supports future dividend increases subject to board approval. Canyon Creek is our second acquisition as a public company and marks our entry into the Arcoma. That entry matters because Canyon Creek is more than a single transaction. It establishes a new land and expand platform. The first deal gives us an operating foothold, local knowledge, field infrastructure, and a team in the basin. From that foundation, we apply our operating playbook, build basin-level intelligence, and evaluate adjacent opportunities. That is how we built Presidio from the beginning, with our land and expand strategy. We enter a basin through an asset we understand, improve it through operations, and then expand around that position with disciplines. We will remain selective. The objective is not to win every process or grow for growth's sake. It's to acquire the right producing assets at the right price with a clear path to operational improvement, compelling returns, and increases to the dividend. We acquire producing American oil and gas assets with existing cash flow. We make those assets more productive through operations, technology, and better decisions. We finance them efficiently. and we return a meaningful portion of the resulting cash flow to shareholders. We acquire, we optimize, we grow the dividend, we repeat. With that, I'll turn the call over to Chris.