Mach Natural Resources (MNR) Q3 2024 earnings summary

Executive summary

• Focused on oil, natural gas, and NGL production in the Anadarko Basin, supported by integrated midstream assets and a disciplined upstream MLP model with low leverage and variable distributions tied to commodity prices.

• Completed significant acquisitions in December 2023, September 2024, and October 2024, expanding production and reserves.

• Corporate reorganization and IPO in late 2023, with 103.3 million common units outstanding as of September 30, 2024.

• Q3 2024 net income was $67 million, Adjusted EBITDA $134 million, and total revenue $256 million.

• Declared a $0.60 per unit distribution for Q3, to be paid December 10, 2024.

Financial highlights

• Q3 2024 production averaged 82,000 BOE/d: 23% oil, 53% natural gas, 24% NGLs.

• Q3 2024 revenue was $255.5 million, up 46% year-over-year, with oil, natural gas, and NGL sales up 25% and total production up 66%.

• Adjusted EBITDA for Q3 2024 was $134 million; net cash from operating activities for the first nine months was $371.6 million.

• Lease operating expense for Q3 was $5.85/BOE, at the low end of guidance.

• Year-to-date cash distributions totaled $247 million, or $2.60 per unit.

Outlook and guidance

• 2025 plan includes a three-rig program, with over 40 gross wells expected to be turned online, and CapEx flexing with commodity prices.

• 2024 capital expenditure budget set at $215–$240 million, focused on drilling Oswego and Woodford wells.

• Development program is discretionary and may be adjusted based on commodity prices, drilling success, and market conditions.

• Addition of a third rig in 2025 is funded at strip pricing, enabled by improved natural gas strip year-over-year.