U.S. energy producer Presidio Investment Holdings has arranged a first-of-its-kind $1 billion debt facility with Goldman Sachs to finance acquisitions as the company prepares to go public.
The Fort Worth, Texas-based firm plans to list via a combination with blank-check company EQV Ventures Acquisition Corp in the coming weeks.
Presidio’s business model focuses on improving output from existing oil and gas wells through operational efficiencies rather than exploring new drilling sites, aiming to deliver steady returns for investors.
The new facility gives the company immediate access to funds, allowing it to move quickly on potential acquisitions.
The Goldman-backed financing uses an asset-backed securitization (ABS) warehousing structure, common in mortgages and credit cards but unprecedented in the oil and gas sector.
Under the arrangement, acquisition debt will be held by Goldman until it is packaged into a future ABS, reducing borrowing costs compared with conventional bridge loans.
Presidio co-founder Will Ulrich said the innovative financing provides a competitive edge over rivals, enabling the company to bid for assets immediately and support shareholder payouts initially set at $1.35 per share annually.
CFO John Brawley described the facility as a “very powerful tool” for executing the firm’s growth strategy.
Founded in January 2017 by Ulrich and Chris Hammack, Presidio forecasts net production of 26,000 barrels of oil equivalent per day in 2025.
The company has identified near-term acquisition opportunities worth up to $15 billion and could pursue assets valued at $3 billion each.
While currently focused on the Mid-Continent shale basin in Oklahoma, Presidio may expand to other formations, including southern Midland and parts of Texas’ Eagle Ford.
Ulrich emphasized that buying new assets is critical to sustaining and growing shareholder returns over time.