Now by Will Ulrich, chairman, co-founder, and co-CEO of Presidio, fresh off of ringing the closing bell, and we were together on 35 when your company weeks ago IPO.
How does it feel to be back to celebrate the IPO officially?
It feels great.
We're glad to be back.
We brought 70 people from Fort Worth with us.
18 of our Presidio children came, which is an unbelievable feeling to share this experience, not just with our executives, but also with our families and the next generation and the next generation.
All right, so tell me, what is Presidio doing?
You're in oil and gas.
How are you different?
Yes, this isn't your mom and pop's oil and gas company.
This is a totally different take on the oil and gas industry.
We don't drill oil and gas wells.
We go and produce cash flow from existing wells.
We use technology and AI to enhance that cash flow, and we generate dividends for our investors, and we pay out at this point about a 13% yield on our stock.
What are the use cases for the AI in this process?
Yeah, it's really interesting and I know a lot of people talk about AI, but we're pretty advanced here and we have pretty concrete cases.
We have a target in our company to increase production 3 to 5% this year, which is a big deal without spending capital and solely using AI to do it.
So I'll give you an example.
We, uh, have built out our own systems.
We've run our own data and one of the things that we found was that as we look at our days of production, Mondays were always a down day and that was a trend we had never seen before, but we.
Able to identify it through AI and that's guys returning to work after the weekend and they're not necessarily sure where they need to go to go produce the most out of their wells, and these are our guys in the field.
Thursdays were our highest day and so what we've done is we've created a system that will flag for those guys on Monday morning which wells they need to go to specifically in order to make sure that Thursday is not the high day, but they put that production right back online on Monday morning.
How unique is this model and how big do you think it could get?
This is the only publicly traded company that's doing this for a long time.
We were the only private company doing it, and now we've had some followers, and now as we go public, I assume or suspect there'll be some followers as well into the space.
But for us, uh, there's an enormous white space.
We have a current backlog of about 10 to $15 billion of acquisition opportunities and so having access to this capital here as a public.
Business is going to differentiate us to be able to go and acquire those assets where we can acquire them at really high returns.
So we're investing our capital at 20% plus rates of returns.
What is next for Presidio?
We're going to continue to grow the business, and we've 10xed the business once before as a private company and now at a new listing, I feel like we're back at the beginning and we want to 10x the business again.
So we're at about $115 million of IBITDA.
And our goal is to get to a billion dollars of BITA over the next few years.
All right, Will, Ulrich from Presidio, congratulations on ringing the bell, and we'll talk to you soon.
