Mach Natural Resources (MNR) Q2 2024 earnings summary

Executive summary

• Achieved average production of 89.3 MBOE per day in Q2 2024, surpassing guidance high end and reinforcing a distribution-focused strategy.

• Reported net income of $40 million and Adjusted EBITDA of $136 million for Q2 2024.

• Divested non-producing Western Anadarko acreage for $38 million and declared a $0.90 per unit quarterly distribution.

• Completed first quarterly term loan amortization payment of $21 million.

• Maintained focus on financial strength, disciplined execution, and maximizing cash distributions.

Financial highlights

• Q2 2024 revenue reached $240 million, with oil, natural gas, and NGLs sales totaling $232 million (65% oil, 15% gas, 20% NGLs).

• Adjusted EBITDA was $136 million; net income was $40 million; operating cash flow was $117 million.

• Lease operating expense was $5.72 per BOE, below guidance and down 8% year-over-year.

• Ended quarter with $145 million in cash; $75 million revolver undrawn; $804 million first lien term loan principal.

• $67.5 million cash available for distribution after $45.6 million CapEx; $85.5 million total distribution including acreage sale proceeds.

Outlook and guidance

• Reduced operated rig count in Oswego, lowering full-year CapEx midpoint by 15%.

• Full-year lease operating expense per BOE guidance midpoint lowered by 3%.

• Q3 and Q4 2024 oil volumes expected between 18.6–19.9 MBbl/d; full-year 19.4–20.6 MBbl/d.

• Full-year 2024 total oil-equivalent volumes expected between 82.2–87.2 MBOE/d, midpoint up 1%.

• Reinvestment rate to remain under 50% of operating cash flow for 2024.