Presidio Sets $1.35 Dividend Plan Ahead of EQV Merger

Charles Kennedy

Tue, February 10, 2026 at 9:09 PM GMT+9 4 min read

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Presidio Investment Holdings has unveiled a fixed dividend framework centered on steady cash returns, reinforcing its pitch to public market investors ahead of its planned merger with EQV Ventures Acquisition Corp. (NYSE: FTW).

The Fort Worth–based oil and gas operator said it intends to initiate an annual dividend of $1.35 per share, paid quarterly, once the business combination with EQV closes and the post-merger board grants formal approval. The transaction is scheduled for a shareholder vote on February 27, with the combined company expected to trade on the New York Stock Exchange under the ticker FTW.

Presidio is positioning itself as a fundamentally different kind of upstream company—one built around income generation rather than drilling-led growth. The company focuses exclusively on acquiring and operating proved developed producing (PDP) assets, emphasizing low decline rates, hedged production, limited capital spending, and stable free cash flow.

“We’re offering investors a straightforward proposition,” co-founder and co-CEO Will Ulrich said, pointing to the planned dividend as the core of the company’s equity story. Rather than reinvesting cash flow into new drilling, Presidio’s strategy is to return capital to shareholders and increase payouts over time through acquisitions.

Presidio’s approach contrasts sharply with traditional E&P companies that must continually drill to offset production declines. By operating mature wells with minimal reinvestment needs, Presidio aims to free up a larger share of cash flow for distributions.

Management argues that this capital-light structure supports a more transparent and durable dividend policy, insulated—at least in part—from commodity price swings through hedging and cost control. In investor materials, Presidio highlights a potential dividend yield in the low-teens, positioning the company closer to income-oriented mineral owners than growth-focused shale producers.

Dividend growth, according to Presidio, will come primarily through mergers and acquisitions. The company disclosed a screened backlog of potential targets totaling roughly $13 billion to $15 billion in aggregate value, consisting of cash-flow-positive PDP assets with long reserve lives. Individual opportunities range from about $160 million to more than $3 billion in enterprise value.

Presidio’s underwriting framework assumes acquisitions priced at roughly a 20% free cash flow yield, funded with a mix of equity and moderate leverage. Management models about 40% debt financing at a 7% interest rate, targeting dividend coverage of around 1.1 times on a pro forma basis—enough to support payouts while maintaining balance sheet discipline.

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The company says the current M&A environment is favorable, with many larger operators shedding non-core mature assets to focus on shale inventory or energy transition priorities.

Because EQV is still a special purpose acquisition company, its shares currently trade close to cash-in-trust value. Presidio argues this creates a disconnect between the implied valuation and the underlying dividend potential of the combined company.

In its presentation, Presidio benchmarks itself against both E&P peers and mineral companies, suggesting the stock would trade at a discount despite comparable asset quality and a similar income profile once the merger closes.

The SEC declared the transaction’s registration statement effective on January 30, clearing the way for the upcoming shareholder vote. If approved, Presidio expects to provide formal details on dividend timing shortly after closing.

While management emphasizes stability and predictability, the company also cautioned that dividends are not guaranteed and remain subject to board discretion, commodity prices, liquidity, and market conditions.

Still, Presidio’s message is clear: in an upstream sector often defined by reinvestment risk and volatile payouts, it wants to be marketed as a simple, income-oriented oil and gas equity.

By Charles Kennedy for Oilprice.com

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