FTW 10-K & 10-Q changes, risk factors and insider trading

Pursuant to the terms of its ABS IIIII 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 IIIII 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.

The average WTI oil price was $72.10$92.44 per Bbl for the three months ended MarchJune 31,30, 2026,2026 (Successor), a less than 1%45% increase from $71.50$63.95 per Bbl for the three months ended March 31,June 2025.30, 2025 (Predecessor). Settled derivatives reduced realized oil prices by $14.33$30.69 per Bbl in the three months ended MarchJune 31,30, 2026 on a combined (Successor and Predecessor basis,), compared to a reduction of $12.58$4.51 per Bbl in the three months ended MarchJune 31,30, 2025.2025 (Predecessor).

The average Henry Hub natural gas price was $5.05$2.90 per Mcf for the three months ended MarchJune 31,30, 2026,2026 up(Successor), 38%a 16% decrease from $3.65$3.44 per Mcf for the three months ended MarchJune 31, 2025.30, 2025 (Predecessor). Settled derivatives reducedincreased realized gas prices by $1.73$3.15 per Mcf in the three months ended MarchJune 31,30, 2026 on a combined (Successor and Predecessor basis,), compared to a reduction of $0.41$0.53 per Mcf in the three months ended MarchJune 31,30, 2025.2025 (Predecessor).

The average Mont Belvieu NGL price was $27.14$32.96 per Bbl for the three months ended MarchJune 31,30, 2026,2026 (Successor), a 12%24% decreaseincrease from $31.01$26.63 per Bbl for the three months ended March 31,June 2025.30, 2025 (Predecessor). Settled derivatives reduced realized NGL prices by $3.83$9.30 per Bbl in the three months ended MarchJune 31,30, 2026 on a combined (Successor and Predecessor basis,), compared to a reduction of $7.16$3.75 per Bbl in the three months ended MarchJune 31,30, 2025.2025 (Predecessor).

The following tables set forth the results of operations for the three months ended MarchJune 31,30, 2026 on(Successor), athe combinedperiod from March 4, 2026 through June 30, 2026 (Successor), andthe period from January 1, 2026 through March 3, 2026 (Predecessor basis), and the three and six months ended MarchJune 31,30, 2025.2025 (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.

Total oil, natural gas, and NGL revenue for the three months ended MarchJune 31,30, 2026 on a combined (Successor and Predecessor basis) was $51.0$53.7 million, a 1%27% declineincrease from $51.6 $42.3 million for the three months ended MarchJune 31,30, 2025.2025 This(Predecessor). decreaseThe increase was driven by a 3% decrease in production offset by a 2%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 decreaseincrease in production was primarily due to natural production declines offset by the effects of the EQVR Acquisition.Acquisition, Pricing changes included a less than 1% decrease in oil prices, an 18% decrease in NGLs prices offset by anatural 25%production increase in gas prices.declines.

For the three months ended March 31,June 30, 2026 on a combined (Successor and Predecessor basis,), the total lossgain on derivative financial instruments was $61.1$24.8 million, compared to a lossgain of $18.5$22.6 million for the three months ended MarchJune 31,30, 2025.2025 (Predecessor). This included a $44.2$18.0 million lossgain from marking unsettled contracts to fair value, updown from aan $8.3$29.7 million lossgain in the three months ended MarchJune 31,30, 2025.2025 (Predecessor). Cash lossesgains 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$6.9 million for the three months ended MarchJune 31,30, 2025,2026 primarily(Successor), reflectingdue higherto lower market prices for crudenatural oilgas relative to hedge contract prices partially offset by lowerhigher naturalcrude gasoil and NGLs prices as compared to hedge contract prices. Cash losses on settled derivatives were $7.1 million for the three months ended June 30, 2025 (Predecessor), primarily reflecting higher market prices for crude oil, natural gas, and NGLs as compared to hedge contract prices.

Lease operating expenses (“LOE”) were $18.2$19.5 million for the three months ended MarchJune 31,30, 2026 on a combined (Successor and Predecessor basis,), compared to $19.0$20.2 million for the three months ended MarchJune 31,30, 2025.2025 (Predecessor). On a per Boe basis, LOE per Boe decreased 1%7% to $9.95$9.39 per Boe for the three months ended March 31,June 30, 2026 on a combined (Successor and Predecessor basis,), from $10.07$10.06 per Boe for the three months ended MarchJune 31,30, 2025.2025 (Predecessor). 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.Acquisition, partially offset by a decline in base production.

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.

Ad valorem taxes totaled $1.1 $0.9 million ($0.61$0.41 per Boe) for the three months ended MarchJune 31,30, 2026 on(Successor), acompared combinedto Successor$1.4 and Predecessor basis, down from $1.3 million ($0.68 per Boe) for the three months ended MarchJune 31,30, 2025.2025 Assessed property values remained consistent leading to minimal change between the periods.(Predecessor).

Depreciation, depletion and amortization (“DD&A”) totaled $9.6$16.0 million ($5.27$7.72 per Boe) for the three months ended MarchJune 31,30, 2026 on a combined (Successor and Predecessor basis,), compared to $8.1$8.0 million ($4.29$4.00 per Boe) for the three months ended MarchJune 31,30, 2025.2025 (Predecessor). The increase was primarily attributable to higher oil and gas properties values resulting from the Business Combination.

General and administrative (“G&A”) expense totaled $50.3$7.2 million for the three months ended MarchJune 31,30, 2026 on a combined (Successor and Predecessor basis,), compared to $16.5$1.2 million for the three months ended MarchJune 31,30, 2025.2025 (Predecessor). The increase was driven primarily by a $47.0$2.2 million of compensation expense recognizedrelated into connectionRSUs withand the$3.9 accrualmillion of aincremental share-based compensation liability associated with the final vestingpersonnel and settlement ofother PIH’scosts Class B units uponsince the closing of the Business Combination, which was offset by a $15.0 million PIH Class B unit compensation payout in the prior period.Combination.

Acquisition and transaction costs totaled $7.2$0.5 million for the three months ended MarchJune 31,30, 2026 on a combined (Successor and Predecessor basis,), compared to $0.4 million for the three months ended MarchJune 31, 2025.30, The2025 increase(Predecessor). wasCosts drivenwere primarilyrelatively byconsistent abetween $7.2 million of transaction costs recognized in the current period in connection with the Business Combination.periods.

Interest expense totaled $5.6 $4.3 million for the three months ended MarchJune 31,30, 2026 on a combined (Successor and Predecessor basis,), compared to $6.3$6.1 million for the three months ended MarchJune 31,30, 2025.2025 (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.

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), (1011) acquisition and transaction costs, and (1112) certain non-recurring costs.

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 MarchJune 31,30, 2026, the CompanyCitizens hasRBL drawnhad onno outstanding borrowings, following the Company’s repayment in full of the $37.0 million ofthen-outstanding balance on June 9, 2026 in connection with the initialrefinancing Citizensdescribed RBL borrowing base, with $28.0 million remaining.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.

As of MarchJune 31,30, 2026, the Company had cash and cash equivalents of $20.7$42.3 million in addition to $10.8$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.

Capital expenditures totaled $0.7 $0.6 million for the three months ended MarchJune 31,30, 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 $0.6$1.3 million in the three six months ended MarchJune 31,30, 2025.2025 (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.

At DecemberJune 31,30, 2025,2026, outstanding borrowings under the ABS IIIII Notes totaled $266.9$348.1 million, and $2.3$2.0 million was outstandingdrawn underon the Trail Dust advancing term loan. Additionally, $3.5The 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 wasborrowing drawnbase onavailable thefor WABfuture RBLdraws revolving credit facility (as defined below), which was established during the third quarter of 2025.June At30, December 31, 2025, we were in compliance with all covenants under the ABS II Notes, Trail Dust loan and the credit facilities.2026.

Our cash flows for the three six months ended MarchJune 31,30, 2026 and 2025:

Net cash used in operating activities increased $71.6$91.4 million for the threesix months ended MarchJune 31,30, 2026 on a combined Successor and Predecessor basis, as compared to the threesix months ended MarchJune 31,30, 2025,2025 (Predecessor), primarily due to $57.8$92.8 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,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.

Net cash used in investing activities increased by $148.3$143.6 million for the threesix months ended MarchJune 31,30, 2026 on a combined Successor and Predecessor basis, as compared to the threesix months ended MarchJune 31,30, 2025,2025 (Predecessor), primarily due to $145.5 million in cash paid for acquisitions pursuant to the Business Combination, net of cash acquired, andoffset lessby more proceeds received from asset divestitures totaling $2.0$8.0 million in the first threesix months of 2026 compared to proceeds received from asset divestitures of $4.9$5.8 million in the same period for 2025.

Net cash provided by financing activities increased by $317.1$359.3 million for the threesix months ended MarchJune 31,30, 2026 on a combined Successor and Predecessor basis, as compared to the threesix months ended MarchJune 31,30, 2025,2025 (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 Combination, and $341.4 million in proceeds, net of issuance costs, from the currentissuance period,of the ABS III Notes, combined with a $60.0 million member distribution during the threesix months ended MarchJune 31,30, 2025.2025 (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.

Contractual Obligations and Contingent Liabilities and Commitments The Company has various contractual obligations arising in the normal course of operations and financing activities. These include commitments under the ABS IIIII 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.

There have been no changes to our significant accounting policies and critical accounting estimates as of MarchJune 31,30, 2026 except as follows.