{"id":121722,"date":"2025-08-05T19:59:12","date_gmt":"2025-08-05T19:59:12","guid":{"rendered":"https:\/\/www.europesays.com\/us\/121722\/"},"modified":"2025-08-05T19:59:12","modified_gmt":"2025-08-05T19:59:12","slug":"fort-worth-based-presidio-holdings-to-go-public-via-reverse-spac-deal","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/121722\/","title":{"rendered":"Fort Worth-based Presidio Holdings to go public via reverse SPAC deal"},"content":{"rendered":"

Presidio Investment Holdings on Tuesday announced plans to combine<\/a> with a special purpose acquisition company to go public in a reverse merger that values the new entity at close to $700 million. <\/p>\n

The Fort Worth-based energy company \u2013 which focuses on optimizing \u201cmature\u201d oil and gas assets, but doesn\u2019t drill new wells or acquire acreage like a traditional fossil fuel operator \u2013 will merge with EQV Ventures Acquisition Corp, a blank-check company<\/a> already publicly traded<\/a> on the NYSE. <\/p>\n

Blank-check companies are publicly traded vehicles formed with the express purpose of buying a private company<\/a>. Under existing regulations, a SPAC must use 80% of its assets to execute a merger, or dissolve.<\/p>\n

Related:As Israel-Iran conflict roils markets, US oil supply becomes matter of \u2018national security\u2019<\/a><\/p>\n

Business Briefing<\/p>\n

Become a business insider with the latest news.<\/p>\n

The combined, renamed Presidio Production Company, will also be listed on the Big Board under the ticker \u201cFTW\u201d \u2013 a nod to its roots in Cowtown. <\/p>\n

It will have an enterprise value of around $660 million, including assets, which it will deploy as part of a strategy to solidify itself as the \u201clast, best steward of America\u2019s oil and gas wells.\u201d<\/p>\n

It plans to pay shareholders a dividend supported by the cash flow stemming from \u201cstable, mature oil and gas wells,\u201d according to a statement by Presidio.<\/p>\n

\u201cPresidio represents the next evolution of the public oil and gas company \u2014 efficient, predictable, and yield-driven within a simple and transparent business model,\u201d said Chris Hammack, co-founder and co-CEO, in a statement. <\/p>\n

\u201cWe believe our track record of acquisitions and meaningful cost optimization make us the strongest near-term consolidator of mature assets,\u201d he added.<\/p>\n

There have only been a handful of energy IPOs this year \u2014 seven to be exact, according to data from Renaissance Capital<\/a> \u2014 and the market has not treated them kindly. <\/p>\n

Only one, Delixy Holdings<\/a>, has had a positive return since going public last month, and it trades below $5 per share. <\/p>\n

The remainder are all in the red by double digits, a reflection of the uncertainty that\u2019s gripped global energy markets since the implementation of U.S. tariffs, and a fleeting boost from the conflict between Israel and Iran. <\/p>\n

Early optimism about a potential spurt of oil and gas deals \u2013 sparked by a wave of big mergers<\/a> involving ExxonMobil, Chevron, Conoco and a few private companies \u2014 has now been mostly tempered by realism of an oil and gas market that\u2019s been mostly stagnant. <\/p>\n

Fortunately for Presidio, however, it is not a traditional oil and gas company. <\/p>\n

In an interview with The Dallas Morning News, co-CEO Will Ulrich explained that its \u201cdifferentiated\u201d model enables the company to expand its cash flow without absorbing much of the risk associated with fluctuations in commodity prices. <\/p>\n

\u201cIt is different from other oil and gas companies in that we use a significant amount of hedging on our commodity prices, and we don\u2019t drill new oil and gas wells. So you can think of us like a widget maker,\u201d Ulrich said. <\/p>\n

\u201cWe\u2019re producing oil and gas molecules from existing well sets that we don\u2019t acquire, and then when we go and we acquire them, we have an optimization program when they go onto our platform where we\u2019re able to cut more than 50% of the operating expenses out of those businesses in our first year of owning them,\u201d he added.<\/p>\n

According to Ulrich, this enables Presidio to reap operating cash flow margins over 40%, comfortably beating the S&P 500\u2019s energy subsector comparable returns.<\/p>\n

The operations of traditional energy firms are highly capital-intensive, and IPO proceeds usually fund capital expenditures, paying down debt and mergers, among other activities. <\/p>\n

As such, the sector\u2019s fortunes are inextricably tied to the energy cycle, and companies are vulnerable to swings in global commodity prices.<\/p>\n

It\u2019s one of the reasons why Colorado-based Peak Resources withdrew its planned $66 million IPO<\/a> on July 25, citing less favorable market conditions that pushed crude prices into retreat. <\/p>\n","protected":false},"excerpt":{"rendered":"Presidio Investment Holdings on Tuesday announced plans to combine with a special purpose acquisition company to go public…\n","protected":false},"author":3,"featured_media":121723,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5138],"tags":[5229,5495,7371,7372,27812,11411,358,3187,67,586,132,5230,68,2969],"class_list":{"0":"post-121722","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-fort-worth","8":"tag-america","9":"tag-energy","10":"tag-fort-worth","11":"tag-fortworth","12":"tag-future-of-north-texas-energy-environment","13":"tag-oil-prices","14":"tag-texas","15":"tag-tx","16":"tag-united-states","17":"tag-united-states-of-america","18":"tag-unitedstates","19":"tag-unitedstatesofamerica","20":"tag-us","21":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114977935406697913","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/121722","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=121722"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/121722\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/121723"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=121722"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=121722"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=121722"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}