Mach Natural Resources (MNR) Q2 2026 earnings summary

Executive summary

• Achieved Q2 2026 net income of $98.2 million and adjusted EBITDA of $182.2 million, with net daily production of 149 MBOE/d (15% oil, 16% NGLs, 69% natural gas), driven by major acquisitions and a strategic focus on oil-weighted projects.

• Distributed $1.5 billion in cash to unitholders since inception, with $6.67/unit paid and announced since 2024, and declared a $0.36/unit distribution for Q2 2026.

• Operates a diversified 2.8 million net acre platform across Mid-Continent, Permian, and San Juan Basins, producing stable cash flows and maintaining industry-leading efficiency.

• Maintained a strong balance sheet with $1.1 billion net debt and $311 million liquidity as of June 30, 2026.

• Focus remains on disciplined capital allocation, reinvestment rate below 50% of operating cash flow, and maximizing distributions to unitholders.

Financial highlights

• Q2 2026 revenues totaled $406 million, with oil & gas revenues at $367 million and midstream revenue at $9.4 million.

• Net income for Q2 2026 was $98.2 million ($0.58 per diluted unit); adjusted EBITDA was $182.2 million.

• Lease operating expense was $98 million ($7.21/BOE); cash G&A was $7 million ($0.54/BOE).

• Cash available for distribution was $60.1 million for Q2 2026; cash balance at quarter-end was $41 million, with $311 million available under the credit facility.

• Distributions for Q2 2026 totaled $0.36 per unit, payable August 31, 2026.

Outlook and guidance

• FY2026 net production guidance updated to 150–157 MBOE/d, with oil at 23–25 MBbl/d and natural gas at 610–630 MMcf/d.

• Reinvestment rate to remain at or below 50% of operating cash flow, with some quarter-to-quarter variability.

• Oil-focused drilling to continue through 2026, with potential shift to gas in 2027 if prices improve; full-year oil production guidance increased, while total Boe and gas guidance decreased due to capital reallocation.

• Estimated development costs for 2026 set between $310 million and $340 million, with decreased costs due to revised drilling plans.

• Systematic hedging program in place to manage commodity price risk, with significant volumes hedged through 2029.