Mach Natural Resources (MNR) Q2 2025 earnings summary

Executive summary

• Focused on four strategic pillars: financial strength, disciplined execution, low reinvestment rate, and delivering high cash returns to unit holders.

• Achieved average net production of 83.6 Mboe/d in Q2 2025, with 23% oil, 53% natural gas, and 24% NGLs.

• Reported net income of $90 million and Adjusted EBITDA of $122 million for Q2 2025.

• Announced and entered agreements for transformative acquisitions in the Permian and San Juan Basins (Sabinal and IKAV), totaling $1.3 billion, expected to close in Q3 2025.

• Public equity offerings in September 2024 and February 2025 raised $350 million in net proceeds, used for acquisitions and debt repayment.

Financial highlights

• Q2 2025 total revenues were $289 million, with production revenues of $219 million and net income of $89.7 million.

• Adjusted EBITDA for Q2 2025 was $122 million; net cash provided by operating activities reached $130 million.

• Lease operating expense was $6.52 per Boe, totaling $50 million; cash G&A was $7 million ($0.88/BOE).

• Cash available for distribution in Q2 2025 was $46 million; distribution approved at $0.38 per unit, payable in September.

• Average realized prices: $63.10/bbl oil, $2.81/Mcf natural gas, $22.41/bbl NGLs (excluding derivatives).

Outlook and guidance

• Projecting natural gas to exceed 70% of production mix in 2026 and approach 75% in 2027.

• Plan to maintain production volumes through 2027 while spending less than 50% of operating cash flow.

• 2025 capital expenditure budget set at $260–$280 million, focused on drilling and development in key formations.

• Updated forward-looking guidance will be provided after closing the Permian and San Juan Basin transactions in Q3 2025.

• Anticipates continued commodity price volatility and inflationary pressures, with mitigation efforts in place.