Presidio Closes $83M Canyon Creek Acquisition, Boosts Dividend to $1.50/Share
FTW sits 25% above its 52-week low of $9.5.
Summary
Presidio Production Co. has closed its $83 million acquisition of Canyon Creek assets, marking its second acquisition as a public company and first in the Arkoma Basin. This follows the initial announcement of the acquisition in May and the establishment of its $1.0 billion Goldman Sachs ABS Warehouse Facility in June, from which it drew $55 million. The company issued 1,962,240 new shares to fund part of the transaction, representing material dilution. However, management expects to increase the annualized dividend rate from $1.35 to $1.50 per share, an 11% increase, which is a significant positive for investors. This closing demonstrates the company's execution of its land-and-expand strategy.
At the time of this announcement, FTW was trading at $11.92 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $349.6M. The 52-week trading range was $9.50 to $17.20. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.