Transaction follows the successful integration of three previously announced acquisitions in the U.S. Midcontinent region since the establishment of Presidio’s partnership with Morgan Stanley Energy Partners.

Presidio Investment Holdings LLC (“Presidio Petroleum”, “Presidio”, or the “Company”), a portfolio company of Morgan Stanley Energy Partners, announced today that it has closed upon the issuance of term asset backed securities (the “Notes”) in a private placement transaction with a syndicate of U.S.-based institutional investors. The Notes are the largest single issuance of asset backed securities by an energy producer, the first such issuance to a syndicate of Note purchasers, and include two investment grade rated tranches. The Company plans to use the net proceeds of the issuance to accelerate its acquisition-driven growth strategy in the Midcontinent region of the United States and recapitalize its balance sheet.

Presidio was established as a differentiated oil and gas operator focused on the optimization of mature, producing oil and natural gas assets in the United States. Without drilling new wells, Presidio has achieved significant scale, growing to 38,000 boe/d of net production under management since the start of its partnership with Morgan Stanley Energy Partners. Presidio has consistently and successfully executed on its strategy to enhance the operational, financial, and sustainability performance of legacy oil and natural gas assets in pursuit of industry-leading returns.

Chris Hammack, Co-Founder and Co-Chief Executive Officer of Presidio, said, “Presidio’s disciplined operating model and culture of continuous innovation has enabled us to generate exceptional returns on capital from under-managed legacy oil and gas assets. We look forward to continuing the efficient and responsible management of our assets under this new structure.”

Will Ulrich, Co-Founder and Co-Chief Executive Officer of Presidio, added, “Presidio is the last and best steward of oil and gas assets which are essential to supporting the global economy as it continues to decarbonize. We plan to be fully compatible with the International Energy Agency’s recent Net Zero by 2050 roadmap for the global energy sector, and, as part of this Note issuance, have developed Sustainability Performance Targets with Moody’s affiliate Vigeo Eiris to formalize the reduction of Scope 1 and Scope 2 greenhouse gas emissions from our assets.”

Robert Lee, Managing Director of Morgan Stanley Energy Partners, said, “This innovative securitization of Presidio’s existing asset base will enable the Company to pursue additional, capital-efficient acquisitions in the U.S. Midcontinent. The Presidio management team has established a strong track record of strategic consolidation of legacy assets in the Anadarko Basin. We continue to see opportunity to grow the Presidio platform through consolidation and improved management of producing assets.”

John Moon, Managing Director and Head of Morgan Stanley Energy Partners, added, “We are pleased to partner with Presidio in pioneering the use of securitization as a financing strategy within the energy industry. Presidio’s diversified asset base and free cash flow profile are a strong match for long-term, investment grade debt securities, and this inaugural issuance to a broad base of U.S. institutional investors validates Presidio’s strong track record and differentiated strategy.”

Terms of the transaction were not disclosed. Sidley Austin LLP served as legal counsel to Presidio and MSEP and Guggenheim Securities LLC served as sole structuring advisor and placement agent to Presidio and MSEP in connection with the transaction.

About Presidio Petroleum

Headquartered in Fort Worth, Texas, Presidio Petroleum is a leading oil and natural gas efficiency company with assets located in the Anadarko Basin of Texas, Oklahoma, and Kansas. For further information about Presidio Petroleum, please visit www.presidiopetroleum.com.

About Morgan Stanley Energy Partners

Morgan Stanley Energy Partners is the energy-focused private equity business of Morgan Stanley Investment Management that makes privately negotiated equity and equity-related investments in energy companies located primarily in North America. Morgan Stanley Energy Partners pursues a differentiated investment strategy, focused on the buyout and build-up of strategically attractive, established energy businesses across the energy value chain in partnership with world-class management teams. For further information about Morgan Stanley Energy Partners, please visit www.morganstanley.com/im/energypartners.

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