Reserves and Production - Proved developed reserves as of December 31, 2024, include 49,629 MBbl of oil, 909,372 MMcf of natural gas, and 69,193 MBbl of natural gas liquids, totaling 270,384 MBoe[71] - The company drilled 58 gross wells in 2024 and plans to drill approximately 68 gross wells in 2025[80] - Average daily production increased to 86.69 MBoe/d in 2024, up from 50.44 MBoe/d in 2023[83] - The company converted 19,663 MBoe of proved undeveloped reserves into proved developed reserves in 2024[79] - The total acreage owned by the company as of December 31, 2024, includes 2,436,815 total acres, with 2,420,054 acres developed[85] - The company operated 58 productive development wells in 2024, with a net production of 50.9 wells, compared to 91 gross and 81.0 net in 2023[90] - The company has interests in 10,015 productive wells as of December 31, 2024, with 5,816 being natural gas wells and 4,199 being oil wells[93] Financial Performance - Total revenues for the year ended December 31, 2024, reached 762.309 million in 2023[84] - The total operating expenses for 2024 were 403.165 million in 2023[84] - The company reported a loss of 74.55 per barrel, down from 900 per ton for methane emissions exceeding thresholds, increasing to 1,500 in 2026, with ongoing litigation challenging this rule[137] - The EPA's review of the National Ambient Air Quality Standard for ozone may lead to more stringent permitting requirements, potentially increasing costs for compliance[132] - Future federal GHG regulations remain a significant possibility, which could require enhanced record-keeping and increased maintenance activities for compliance[135] - The Supreme Court's decision in Loper Bright Enterprises v. Raimondo complicates federal agencies' regulatory interpretations, impacting climate change policy administration[141] Operational Risks and Challenges - The company faces risks associated with climate change, including extreme weather events that could disrupt operations and increase operational costs[241] - Climate-related transition risks, including evolving legislation and technological advances, may lead to increased operating expenses and reduced demand for oil and natural gas[242] - Negative public perception and advocacy group pressures regarding climate change could result in increased reputational risks and regulatory scrutiny[244] - The company may incur substantial losses and liabilities due to operational risks, with insurance coverage potentially being inadequate[236] - Litigation claims from landowners and royalty owners may increase during periods of declining commodity prices, impacting financial results[235] - The company anticipates that economic uncertainty and inflation may adversely affect results of operations and liquidity[229] Partnership and Governance - The partnership agreement requires the company to distribute all available cash each quarter, which may limit its ability to grow reserves and production[286] - The company expects to rely on cash reserves and external financing sources to fund future acquisitions and growth, which may be impacted by market conditions and interest rates[287] - The general partner has control over all operational decisions, which may lead to conflicts of interest that could affect unitholders[276] - The partnership agreement does not restrict the general partner from competing with the company, potentially leading to conflicts in business opportunities[278] - Unitholders have limited voting rights, reducing their ability to influence management decisions and potentially affecting the trading price of common units[292] Market and Economic Conditions - The Federal Reserve raised the target range for the federal funds rate to 4.25% to 4.5% in November 2024, with inflation recorded at 2.9% in December 2024[230] - Supply chain constraints and inflationary pressures are expected to continue impacting operating costs, potentially affecting the ability to procure materials and equipment in a timely manner[231] - Ongoing geopolitical tensions, such as the Russian invasion of Ukraine, and decreased demand from China may contribute to an economic slowdown, adversely affecting the price of petroleum products[233] Cybersecurity and Data Protection - Cybersecurity threats pose risks to the company's information systems, potentially disrupting operations and affecting business performance[272] - The company faces various security threats, including evolving cyber-security attacks that could disrupt critical systems and lead to significant losses[273] - The regulatory environment surrounding data protection laws is uncertain, with potential significant penalties for violations that could harm the company's business and reputation[274]
Mach Natural Resources LP(MNR) - 2024 Q4 - Annual Report