Mach Natural Resources (MNR) Q1 2025 earnings summary

Executive summary

• Focused on oil, natural gas, and NGL production in the Anadarko Basin, supported by integrated midstream assets and four strategic pillars: financial strength, disciplined execution, disciplined reinvestment, and maximizing cash distributions.

• Reported Q1 2025 net income of $16 million and Adjusted EBITDA of $160 million, with average production of 80.9 MBOE/d (24% oil, 53% natural gas, 23% NGLs).

• Completed multiple acquisitions since early 2024, including the $60 million XTO acquisition, expanding asset base by nearly 1 million net acres and 1,600 BOE/d.

• Raised $221.1 million net proceeds from a public offering in February 2025, used to repay debt.

• Declared a quarterly cash distribution of $0.79 per unit for Q1 2025, payable June 5, 2025.

Financial highlights

• Q1 2025 total revenue was $227 million; adjusted EBITDA was $160 million; net income was $16 million; operating cash flow was $143 million.

• Lease operating expense was $49 million ($6.69/BOE); cash G&A was <$9 million ($1.20/BOE).

• Development CapEx was $52 million (37% of operating cash flow); cash available for distribution was $94.6 million.

• Average realized prices: $70.75/bbl oil, $3.56/Mcf natural gas, $27.33/bbl NGLs.

• Q1 2025 basic and diluted EPS: $0.14, down from $0.44 in Q1 2024.

Outlook and guidance

• 2025 capital expenditures budgeted between $260 million and $280 million, with reinvestment rate capped at 50%.

• Production mix projected at 54% gas, 23% NGLs, 23% oil for 2025; double-digit gas growth expected in 2026.

• Will adjust rig count to maintain reinvestment discipline and may delay third rig if needed.

• Development efforts to target Oswego, Woodford, Red Fork, and Mississippian wells.

• Maintains 2025 guidance and plans to keep reinvestment rate below 50%.