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Second-quarter results from Presidio Production Company (NYSE: FTW) cleared the EBITDA bar and delivered an investment-grade capital structure overhaul, making the acquisition-driven growth case look well-supported on the surface.
The complication arrived after June 30: the Canyon Creek deal, funded with an initial $55 million draw on a new Goldman Sachs-led warehouse facility, pushed pro-forma net debt to $351.5 million and leverage to approximately 2.7x on annualized second-quarter EBITDA of roughly $132.7 million.
The Q2 operating numbers are clean. Production averaged approximately 22.8 MBoe/d for the quarter, weighted toward natural gas at 57%, with oil at 16% and NGLs at 27%. Total revenue was $54.0 million.
The average realized price reached $29.24 per Boe after a $3.31 per Boe gain from derivatives, reflecting the first full quarter of the restructured hedge portfolio.
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