PRESIDIO PRODUCTION Co

Previous wording

Pursuant to the terms of its ABS II Notes and Citizens RBL, the Company is required to employ a hedging strategy in which we, at all times, maintain 24 months in the case of the ABS II Notes and 36 months in the case of the Citizens RBL of commodity hedges in an amount not less than 85% and 75%, respectively, of the projected production of oil, natural gas and NGLs, limiting downside risk from material change in commodity prices. Even so, the remainder of the Company’s unhedged production exposed to commodity price volatility would negatively impact the Company’s results of operations if commodity prices were to decline materially from current levels.

Current wording

Pursuant to the terms of its ABS III Notes and Citizens RBL, the Company is required to employ a hedging strategy in which we, at all times, maintain 24 months in the case of the ABS III Notes and 36 months in the case of the Citizens RBL of commodity hedges in an amount not less than 85% and 75%, respectively, of the projected production of oil, natural gas and NGLs, limiting downside risk from material change in commodity prices. Even so, the remainder of the Company’s unhedged production exposed to commodity price volatility would negatively impact the Company’s results of operations if commodity prices were to decline materially from current levels.

Previous wording

The average WTI oil price was $72.10 per Bbl for the three months ended March 31, 2026, a less than 1% increase from $71.50 per Bbl for the three months ended March 31, 2025. Settled derivatives reduced realized oil prices by $14.33 per Bbl in the three months ended March 31, 2026 on a combined Successor and Predecessor basis, compared to a reduction of $12.58 per Bbl in the three months ended March 31, 2025.

Current wording

The average WTI oil price was $92.44 per Bbl for the three months ended June 30, 2026 (Successor), a 45% increase from $63.95 per Bbl for the three months ended June 30, 2025 (Predecessor). Settled derivatives reduced realized oil prices by $30.69 per Bbl in the three months ended June 30, 2026 (Successor), compared to a reduction of $4.51 per Bbl in the three months ended June 30, 2025 (Predecessor).

Previous wording

The average Henry Hub natural gas price was $5.05 per Mcf for the three months ended March 31, 2026, up 38% from $3.65 per Mcf for the three months ended March 31, 2025. Settled derivatives reduced realized gas prices by $1.73 per Mcf in the three months ended March 31, 2026 on a combined Successor and Predecessor basis, compared to a reduction of $0.41 per Mcf in the three months ended March 31, 2025.

Current wording

The average Henry Hub natural gas price was $2.90 per Mcf for the three months ended June 30, 2026 (Successor), a 16% decrease from $3.44 per Mcf for the three months ended June 30, 2025 (Predecessor). Settled derivatives increased realized gas prices by $3.15 per Mcf in the three months ended June 30, 2026 (Successor), compared to a reduction of $0.53 per Mcf in the three months ended June 30, 2025 (Predecessor).

Previous wording

The average Mont Belvieu NGL price was $27.14 per Bbl for the three months ended March 31, 2026, a 12% decrease from $31.01 per Bbl for the three months ended March 31, 2025. Settled derivatives reduced realized NGL prices by $3.83 per Bbl in the three months ended March 31, 2026 on a combined Successor and Predecessor basis, compared to a reduction of $7.16 per Bbl in the three months ended March 31, 2025.

Current wording

The average Mont Belvieu NGL price was $32.96 per Bbl for the three months ended June 30, 2026 (Successor), a 24% increase from $26.63 per Bbl for the three months ended June 30, 2025 (Predecessor). Settled derivatives reduced realized NGL prices by $9.30 per Bbl in the three months ended June 30, 2026 (Successor), compared to a reduction of $3.75 per Bbl in the three months ended June 30, 2025 (Predecessor).

Previous wording

The following tables set forth the results of operations for the three months ended March 31, 2026 on a combined Successor and Predecessor basis and the three months ended March 31, 2025. Average sales prices are derived from accrued accounting data for the relevant period indicated. Due to normal production declines and the effects of acquisitions, the historical information presented below should not be interpreted as indicative of future results.

Current wording

The following tables set forth the results of operations for the three months ended June 30, 2026 (Successor), the period from March 4, 2026 through June 30, 2026 (Successor), the period from January 1, 2026 through March 3, 2026 (Predecessor), and the three and six months ended June 30, 2025 (Predecessor). Average sales prices are derived from accrued accounting data for the relevant period indicated. Due to normal production declines and the effects of acquisitions, the historical information presented below should not be interpreted as indicative of future results.

Previous wording

Total oil, natural gas, and NGL revenue for the three months ended March 31, 2026 on a combined Successor and Predecessor basis was $51.0 million, a 1% decline from $51.6 million for the three months ended March 31, 2025. This decrease was driven by a 3% decrease in production offset by a 2% increase in average realized sales price (excluding hedges). The decrease in production was primarily due to natural production declines offset by the effects of the EQVR Acquisition. Pricing changes included a less than 1% decrease in oil prices, an 18% decrease in NGLs prices offset by a 25% increase in gas prices.

Current wording

Total oil, natural gas, and NGL revenue for the three months ended June 30, 2026 (Successor) was $53.7 million, a 27% increase from $42.3 million for the three months ended June 30, 2025 (Predecessor). The increase was driven by a 23% increase in average realized sales price (excluding hedges) and a 3% increase in production. Pricing changes included a 59% increase in oil prices and a 35% increase in NGLs prices, offset by a 33% decrease in gas prices. The increase in production was primarily due to the effects of the EQVR Acquisition, offset by natural production declines.

Previous wording

For the three months ended March 31, 2026 on a combined Successor and Predecessor basis, the total loss on derivative financial instruments was $61.1 million, compared to a loss of $18.5 million for the three months ended March 31, 2025. This included a $44.2 million loss from marking unsettled contracts to fair value, up from a $8.3 million loss in the three months ended March 31, 2025. Cash losses on settled derivatives were $16.9 million for the three months ended March 31, 2026 on a combined Successor and Predecessor basis, due to higher market prices for crude oil, natural gas, and NGLs as compared to hedge contract prices, as well as a $2.2 million realized loss resulting from the modification of certain natural gas swap contracts concurrent with the Business Combination (see Note 4 — Derivative Instruments). Cash losses on settled derivatives were $10.2 million for the three months ended March 31, 2025, primarily reflecting higher market prices for crude oil relative to hedge contract prices offset by lower natural gas and NGLs prices as compared to hedge contract prices.

Current wording

For the six months ended June 30, 2026 on a combined Successor and Predecessor basis, the total loss on derivative financial instruments was $36.2 million, compared to a gain of $4.1 million for the six months ended June 30, 2025. This included a $26.2 million loss from marking unsettled contracts to fair value, down from an $21.4 million gain in the six months ended June 30, 2025 (Predecessor). Cash losses on settled derivatives were $10.0 million for the six months ended June 30, 2026 on a combined Successor and Predecessor basis, due to higher market prices for crude oil and NGLs as compared to hedge contract prices, as well as a $2.2 million realized loss resulting from the modification of certain natural gas swap contracts concurrent with the Business Combination, partially offset by lower market prices for natural gas relative to hedge contract market prices. Cash losses on settled derivatives were $17.3 million for the six months ended June 30, 2025 (Predecessor), primarily reflecting higher market prices for crude oil, natural gas, and NGLs as compared to hedge contract prices.

Previous wording

Lease operating expenses (“LOE”) were $18.2 million for the three months ended March 31, 2026 on a combined Successor and Predecessor basis, compared to $19.0 million for the three months ended March 31, 2025. On a per Boe basis, LOE per Boe decreased 1% to $9.95 per Boe for the three months ended March 31, 2026 on a combined Successor and Predecessor basis, from $10.07 per Boe for the three months ended March 31, 2025. The decrease in LOE per Boe was relatively immaterial period over period, with the decrease in total LOE primarily driven by a decline in production on PIH’s reserves, partially offset by the addition of production from the EQVR Acquisition.

Current wording

Lease operating expenses (“LOE”) were $19.5 million for the three months ended June 30, 2026 (Successor), compared to $20.2 million for the three months ended June 30, 2025 (Predecessor). On a per Boe basis, LOE per Boe decreased 7% to $9.39 per Boe for the three months ended June 30, 2026 (Successor), from $10.06 per Boe for the three months ended June 30, 2025 (Predecessor). The decrease in LOE per Boe was primarily driven by the addition of production from the EQVR Acquisition, partially offset by a decline in base production.

Previous wording

Production and other taxes are paid on produced oil and natural gas based on rates established by federal, state, or local taxing authorities. In general, production and other taxes paid correlate to changes in oil, natural gas and NGLs revenues. Production taxes are based on the market value of production at the wellheads. Production taxes totaled $3.1 million ($1.71 per Boe) for the three months ended March 31, 2026 on a combined Successor and Predecessor basis, compared to $3.0 million ($1.59 per Boe) for the three months ended March 31, 2025. The increase primarily reflects higher mix of gas revenues.

Current wording

Production and other taxes are paid on produced oil and natural gas based on rates established by federal, state, or local taxing authorities. In general, production and other taxes paid correlate to changes in oil, natural gas and NGLs revenues. Production taxes are based on the market value of production at the wellheads.

Previous wording

Ad valorem taxes totaled $1.1 million ($0.61 per Boe) for the three months ended March 31, 2026 on a combined Successor and Predecessor basis, down from $1.3 million ($0.68 per Boe) for the three months ended March 31, 2025. Assessed property values remained consistent leading to minimal change between the periods.

Current wording

Ad valorem taxes totaled $2.0 million ($0.50 per Boe) for the six months ended June 30, 2026 on a combined Successor and Predecessor basis, compared to $2.6 million ($0.68 per Boe) for the six months ended June 30, 2025 (Predecessor).

Previous wording

Depreciation, depletion and amortization (“DD&A”) totaled $9.6 million ($5.27 per Boe) for the three months ended March 31, 2026 on a combined Successor and Predecessor basis, compared to $8.1 million ($4.29 per Boe) for the three months ended March 31, 2025. The increase was primarily attributable to higher oil and gas properties values resulting from the Business Combination.

Current wording

Depreciation, depletion and amortization (“DD&A”) totaled $16.0 million ($7.72 per Boe) for the three months ended June 30, 2026 (Successor), compared to $8.0 million ($4.00 per Boe) for the three months ended June 30, 2025 (Predecessor). The increase was primarily attributable to higher oil and gas properties values resulting from the Business Combination.

Previous wording

General and administrative (“G&A”) expense totaled $50.3 million for the three months ended March 31, 2026 on a combined Successor and Predecessor basis, compared to $16.5 million for the three months ended March 31, 2025. The increase was driven primarily by a $47.0 million of compensation expense recognized in connection with the accrual of a share-based compensation liability associated with the final vesting and settlement of PIH’s Class B units upon the closing of the Business Combination, which was offset by a $15.0 million PIH Class B unit compensation payout in the prior period.

Current wording

G&A expense totaled $57.5 million for the six months ended June 30, 2026 on a combined Successor and Predecessor basis, compared to $17.7 million for the six months ended June 30, 2025 (Predecessor). The increase was driven by $47.0 million of compensation expense recognized in connection with the accrual of a share-based compensation liability associated with the final vesting and settlement of PIH’s Class B units upon the closing of the Business Combination, $2.7 million of compensation expense related to RSUs, and $5.4 million of incremental personnel and other costs since the closing of the Business Combination, which was offset by a $15.0 million PIH Class B unit compensation payout in the prior period.

Previous wording

Acquisition and transaction costs totaled $7.2 million for the three months ended March 31, 2026 on a combined Successor and Predecessor basis, compared to $0.4 million for the three months ended March 31, 2025. The increase was driven primarily by a $7.2 million of transaction costs recognized in the current period in connection with the Business Combination.

Current wording

Acquisition and transaction costs totaled $7.8 million for the six months ended June 30, 2026 on a combined Successor and Predecessor basis, compared to $0.8 million for the six months ended June 30, 2025 (Predecessor). The increase was driven primarily by $7.5 million of transaction costs recognized in the combined Successor and Predecessor periods in connection with the Business Combination.

Previous wording

Interest expense totaled $5.6 million for the three months ended March 31, 2026 on a combined Successor and Predecessor basis, compared to $6.3 million for the three months ended March 31, 2025. The decrease reflects the repayments of the principal under the ABS facility, which requires monthly interest and amortization determined by deal-specific metrics, including production volumes, commodity pricing, and operating costs.

Current wording

Interest expense totaled $9.9 million for the six months ended June 30, 2026 on a combined Successor and Predecessor basis, compared to $12.4 million for the six months ended June 30, 2025 (Predecessor). The decrease reflects the repayments of the principal under the ABS facility, which requires monthly interest and amortization determined by deal-specific metrics, including production volumes, commodity pricing, and operating costs.

Previous wording

We include in this report the supplemental non-GAAP financial performance measure Adjusted EBITDA and provide our calculation of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income (loss), our most directly comparable financial measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income (loss) before (1) interest expense, net, (2) depreciation, depletion, amortization and accretion, (3) unrealized loss (gain) on derivative instruments, (4) non-cash share-based compensation, (5) non-recurring compensation expense related to our Class B Units, (6) (gain) loss on sale of assets, net, (7) loss on ARO liabilities, (8) change in fair value of earnout liability, (9) income tax expense (benefit), (10) acquisition and transaction costs, and (11) certain non-recurring costs.

Current wording

We include in this report the supplemental non-GAAP financial performance measure Adjusted EBITDA and provide our calculation of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income (loss), our most directly comparable financial measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income (loss) before (1) interest expense, net, (2) depreciation, depletion, amortization and accretion, (3) unrealized loss (gain) on derivative instruments, (4) non-cash share-based compensation, (5) non-recurring compensation expense related to our Class B Units, (6) (gain) loss on sale of assets, net, (7) loss on ARO liabilities, (8) change in fair value of earnout liability, (9) loss on early extinguishment of debt, (10) income tax expense (benefit), (11) acquisition and transaction costs, and (12) certain non-recurring costs.

Previous wording

On March 4, 2026, the Company entered into a Reserve Based Lending instrument with Citizens Bank secured by its WAB assets (“Citizens RBL”). The facility provides additional liquidity with an initial borrowing base of $65.0 million, aggregate maximum credit amounts of $500.0 million, and matures on March 4, 2030. As of March 31, 2026, the Company has drawn on $37.0 million of the initial Citizens RBL borrowing base, with $28.0 million remaining. This RBL supplements the Company’s existing sources of liquidity and further supports management’s assessment that the Company will be able to satisfy working capital requirements, debt service obligations, and planned capital investments during the look-forward period. However, the Company’s ability to satisfy working capital requirements, debt service obligations, and planned capital investments will ultimately depend on future operating performance, which is subject to prevailing economic conditions in the oil and natural gas industry and other factors beyond management’s control.

Current wording

On March 4, 2026, the Company entered into a Reserve Based Lending instrument with Citizens Bank secured by its WAB assets (“Citizens RBL”). The facility provides additional liquidity with an initial borrowing base of $65.0 million, aggregate maximum credit amounts of $500.0 million, and matures on March 4, 2030. As of June 30, 2026, the Citizens RBL had no outstanding borrowings, following the Company’s repayment in full of the $37.0 million then-outstanding balance on June 9, 2026 in connection with the refinancing described below. This RBL supplements the Company’s existing sources of liquidity and further supports management’s assessment that the Company will be able to satisfy working capital requirements, debt service obligations, and planned capital investments during the look-forward period. However, the Company’s ability to satisfy working capital requirements, debt service obligations, and planned capital investments will ultimately depend on future operating performance, which is subject to prevailing economic conditions in the oil and natural gas industry and other factors beyond management’s control.

Previous wording

As of March 31, 2026, the Company had cash and cash equivalents of $20.7 million in addition to $10.8 million held in restricted cash required as part of its ABS securitized debt to fund interest payments. As of December 31, 2025, the Company had cash and cash equivalents of $4.1 million and restricted cash of $11.2 million.

Current wording

As of June 30, 2026, the Company had cash and cash equivalents of $42.3 million in addition to $11.3 million held in restricted cash required as part of its ABS securitized debt to fund interest payments. As of December 31, 2025, the Company had cash and cash equivalents of $4.1 million and restricted cash of $11.2 million.

Previous wording

Capital expenditures totaled $0.7 million for the three months ended March 31, 2026 on a combined Successor and Predecessor basis, compared to $0.6 million in the three months ended March 31, 2025. Capital expenditures primarily related to operated capital workovers and non-operated asset capital projects. The Company expects to meet its capital expenditure needs for the foreseeable future through operating cash flow and existing cash and cash equivalents.

Current wording

Capital expenditures totaled $0.6 million for the three months ended June 30, 2026 (Successor), compared to $0.7 million in the three months ended June 30, 2025 (Predecessor). Capital expenditures totaled $1.3 million for the six months ended June 30, 2026 on a combined Successor and Predecessor basis, compared to $1.3 million in the six months ended June 30, 2025 (Predecessor). Capital expenditures primarily related to operated capital workovers and non-operated asset capital projects. The Company expects to meet its capital expenditure needs for the foreseeable future through operating cash flow and existing cash and cash equivalents.

Previous wording

At March 31, 2026, outstanding borrowings under the ABS II Notes and Citizens RBL totaled $256.8 million and $37.0 million, respectively, and $2.1 million was drawn on the Trail Dust advancing term loan.

Current wording

At June 30, 2026, outstanding borrowings under the ABS III Notes totaled $348.1 million, and $2.0 million was drawn on the Trail Dust advancing term loan. The Citizens RBL was repaid in full on June 9, 2026 in connection with the refinancing described above; the facility remained open, with the full $65.0 million borrowing base available for future draws as of June 30, 2026.

Previous wording

At March 31, 2026, we were in compliance with all covenants under both the ABS II Notes, the Citizens RBL, and the Trail Dust loan.

Current wording

At June 30, 2026, we were in compliance with all covenants under the ABS III Notes, the Citizens RBL, and the Trail Dust loan.

Previous wording

At December 31, 2025, outstanding borrowings under the ABS II Notes totaled $266.9 million, and $2.3 million was outstanding under the Trail Dust advancing term loan. Additionally, $3.5 million was drawn on the WAB RBL revolving credit facility (as defined below), which was established during the third quarter of 2025. At December 31, 2025, we were in compliance with all covenants under the ABS II Notes, Trail Dust loan and the credit facilities.

Current wording

At December 31, 2025, outstanding borrowings under the ABS II Notes totaled $266.9 million, and $2.3 million was outstanding under the Trail Dust advancing term loan. Additionally, $3.5 million was drawn on the WAB RBL revolving credit facility, which was established during the third quarter of 2025. At December 31, 2025, we were in compliance with all covenants under the ABS II Notes, Trail Dust loan and the credit facilities.

Previous wording

Our cash flows for the three months ended March 31, 2026 and 2025:

Current wording

Our cash flows for the six months ended June 30, 2026 and 2025:

Previous wording

Net cash used in operating activities increased $71.6 million for the three months ended March 31, 2026 on a combined Successor and Predecessor basis, as compared to the three months ended March 31, 2025, primarily due to $57.8 million paid for a derivative contract modification, $23.7 million paid for transaction expenses and $6.7 million in higher derivative payments in the current period, partially offset by $15.0 million in incentive compensation payments to Class B unitholders in the prior period.

Current wording

Net cash used in operating activities increased $91.4 million for the six months ended June 30, 2026 on a combined Successor and Predecessor basis, as compared to the six months ended June 30, 2025 (Predecessor), primarily due to $92.8 million paid for a derivative contract modification, $23.7 million paid for transaction expenses, partially offset by $15.0 million in incentive compensation payments to Class B unitholders and $7.3 million of higher derivative payments in the prior period.

Previous wording

Net cash used in investing activities increased by $148.3 million for the three months ended March 31, 2026 on a combined Successor and Predecessor basis, as compared to the three months ended March 31, 2025, primarily due to $145.5 million in cash paid for acquisitions pursuant to the Business Combination, net of cash acquired, and less proceeds received from asset divestitures totaling $2.0 million in the first three months of 2026 compared to proceeds received from asset divestitures of $4.9 million in same period for 2025.

Current wording

Net cash used in investing activities increased by $143.6 million for the six months ended June 30, 2026 on a combined Successor and Predecessor basis, as compared to the six months ended June 30, 2025 (Predecessor), primarily due to $145.5 million in cash paid for acquisitions pursuant to the Business Combination, net of cash acquired, offset by more proceeds received from asset divestitures totaling $8.0 million in the first six months of 2026 compared to proceeds received from asset divestitures of $5.8 million in the same period for 2025.

Previous wording

Net cash provided by financing activities increased by $317.1 million for the three months ended March 31, 2026 on a combined Successor and Predecessor basis, as compared to the three months ended March 31, 2025, primarily due to $226.6 million from the common and preferred equity financings, net of deferred issuance costs, and $34.4 million in borrowings under the new Citizens RBL, net of debt issuance costs, in connection with the Business Combination in the current period, combined with a $60.0 million member distribution during the three months ended March 31, 2025.

Current wording

Net cash provided by financing activities increased by $359.3 million for the six months ended June 30, 2026 on a combined Successor and Predecessor basis, as compared to the six months ended June 30, 2025 (Predecessor). The increase was primarily due to $226.6 million of net proceeds from the common and preferred equity financings, net of deferred issuance costs, and $34.4 million in borrowings under the new Citizens RBL, net of debt issuance costs, in connection with the Business Combination, and $341.4 million in proceeds, net of issuance costs, from the issuance of the ABS III Notes, combined with a $60.0 million member distribution during the six months ended June 30, 2025 (Predecessor). The proceeds of the issuance of the ABS III Notes were partially offset by $262.5 million used to redeem the ABS II Notes and $37.0 million used to repay the outstanding balance under the Citizens RBL in connection with the June 2026 refinancing.

Previous wording

The Company has various contractual obligations arising in the normal course of operations and financing activities. These include commitments under the ABS II Notes and Citizens RBL, which require periodic principal and interest payments (see Note 7 of the notes to the condensed consolidated financial statements). Presidio also has contractual obligations that may result in payments upon settlement of commodity derivative contracts (see Note 4 of the notes to the condensed consolidated financial statements). Additionally, the Company maintains both short-term and long-term lease obligations, primarily related to vehicle leases and office facilities.

Current wording

The Company has various contractual obligations arising in the normal course of operations and financing activities. These include commitments under the ABS III Notes and Citizens RBL, which require periodic principal and interest payments (see Note 7 of the notes to the condensed consolidated financial statements). Presidio also has contractual obligations that may result in payments upon settlement of commodity derivative contracts (see Note 4 of the notes to the condensed consolidated financial statements). Additionally, the Company maintains both short-term and long-term lease obligations, primarily related to vehicle leases and office facilities.