Mach Natural Resources (MNR) Q4 2024 earnings summary

Executive summary

• Achieved 2024 net income of $185 million and adjusted EBITDA of $601 million, with quarterly net income of $37 million and adjusted EBITDA of $162 million.

• Paid $310 million in cash distributions ($3.20 per unit) and delivered a 24% total shareholder return for 2024.

• Built a portfolio of over 1 million acres and significant midstream assets through 20 acquisitions since 2018, including two major Anadarko and Ardmore Basin deals and a $30 million bolt-on acquisition.

• Completed a $230 million public offering, used proceeds to reduce debt, and refinanced with a new $750 million revolving credit facility.

• Achieved industry-leading cash returns and distribution yield, ranking first among public upstream energy companies in 2024.

Financial highlights

• 2024 net production averaged 86.7 MBOE/d; full-year revenue was $970 million, net income $185 million, and adjusted EBITDA $601 million.

• Distributed $310 million in 2024; free cash flow was $8.43 per BOE.

• Q4 2024 revenues were $235 million, adjusted EBITDA $162 million, and operating cash flow $134 million.

• Lease operating expense was $5.69/Boe for 2024 and $6.17/Boe in Q4.

• Year-end cash balance was $106 million; pro forma net-debt-to-Adjusted-EBITDA ratio improved to 0.8x post offering.

Outlook and guidance

• 2025 capital investment planned at $225–$280 million, with a targeted reinvestment rate below 50% of operating cash flow.

• 2025 production forecasted at 79–83 MBoe/d; plan to operate three rigs, up from two in 2024, focusing on Oswego, Mississippian, Woodford, and Deep Mississippian formations.

• Interest expense midpoint lowered by $22 million for 2025.

• Strategy remains focused on maximizing distributions, disciplined reinvestment, and pursuing additional acquisitions.