William Blair Starts Presidio Production (FTW) at Outperform, 'Stable Assets and Low Capex Drive Free Cash Flow'
William Blair analyst Neal Dingmann initiates coverage on Presidio Production (NYSE: FTW) with a Outperform rating.
The analyst comments "Thesis. Presidio will be one of the most active public proved developed producing (PDP) consolidators, using asset-backed securities (ABSs) to acquire assets instead of drilling new wells. The company will provide strong shareholder return, consisting of a 12% dividend yield today (13% pro forma) driven by M&A, AI-driven operations, optimization, and low production decline. StableAssets and Low Capex Drive Free Cash Flow (FCF).Mature low-declining assets, coupled with no new drilling or completions, resulting instrong FCF. Presidio’s low PDPdecline rate averaging 8% highlights thestability of its asset base relative to the 30%-plus decline rates typical amongother shale operators."
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Shares of closed at $11.86 yesterday.