Mach Natural Resources (MNR) Q4 2025 earnings summary

Executive summary

• Distributed $1.3 billion to unitholders since 2018, with $5.67 per unit in 2024 and a 15% annualized yield; $244 million distributed in FY2025 and $89 million in Q4 2025.

• Operates as an independent upstream oil and gas company with 2.8–3 million net acres across Anadarko, San Juan, and Permian Basins, focusing on stable, cash-flowing assets and disciplined reinvestment.

• Completed 23 acquisitions since 2018, including major deals in San Juan and Permian Basins in 2025, underpinning production growth and transforming into a multi-basin operator.

• Prioritizes maximizing cash distributions to equity holders, maintaining a reinvestment rate below 50% of operating cash flow and targeting low net debt to adjusted EBITDA ratio of 1.0x.

• Flexibility to shift between oil and gas drilling based on market conditions.

Financial highlights

• FY2025 net income was $142.98 million, adjusted EBITDA $593.26 million, and cash available for distribution $274.39 million; Q4 2025 net income $73.09 million, adjusted EBITDA $187 million, and cash available for distribution $88.02 million.

• FY2025 total revenues were $1.18–$1.2 billion; Q4 2025 revenues $387.54–$388 million.

• Q4 2025 production averaged 154 Mboe/d: 17% oil, 68% natural gas, 15% NGLs.

• Lease operating expense was $7.50 per Boe in Q4 and $6.99–$7.00 per Boe for the year.

• Proved reserves increased 109% year-over-year to 705 MMBoe, with a PV-10 value of $3.1 billion.

Outlook and guidance

• 2026 production guidance: 150–157 MBoe/d, with 22–24 MBbl/d oil, 20–22 MBbl/d NGLs, and 645–665 MMcf/d natural gas.

• 2026 capital investment planned at $315–$360 million, with a reinvestment rate capped at 50% of operating cash flow.

• Drilling to focus on natural gas in San Juan and Deep Anadarko in H1 2026, with potential return to oil drilling in H2 if prices remain high.

• Lease operating expense guidance: $6.80–$7.00/Boe; gathering and processing: $3.25–$3.50/Boe; production taxes: 4.0%–6.0%.

• Guidance does not yet include a shift to Oswego oil rig in H2 2026.