Mach Natural Resources LP(MNR) - 2025 Q1 - Quarterly Results

Overview and Highlights Mach Natural Resources reported strong Q1 2025 results, including a $60 million asset acquisition and a $0.79 per unit distribution - Acquired certain oil and gas assets in Oklahoma, Kansas, and Wyoming from XTO Energy for an unadjusted purchase price of $60 million[3] - CEO Tom L. Ward highlighted the company's ability to generate strong cash returns, reduce leverage, and strategically pivot its drilling program toward natural gas while maintaining a reinvestment rate under 50%[3] - Declared a quarterly cash distribution of $0.79 per common unit[1][5] Financial Results Mach generated $227 million in Q1 2025 total revenue and $16 million net income, maintaining a strong balance sheet Q1 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Total Revenue | $227 million | | Net Income | $16 million | | Adjusted EBITDA | $160 million | | Net Cash from Operating Activities | $143 million | | Total Development Costs | $52 million | | Reinvestment Rate | 37% | Q1 2025 Average Realized Prices (Ex-Derivatives) | Commodity | Price | | :--- | :--- | | Oil | $70.75 / bbl | | Natural Gas | $3.56 / Mcf | | NGLs | $27.33 / bbl | - As of March 31, 2025, the company had a cash balance of $8 million, $285 million in remaining availability under its Revolving Credit Facility, and a pro forma net-debt-to-Adjusted-EBITDA ratio of 0.7x[6] Operational Performance Q1 2025 average net production was 80.9 Mboe/d, with natural gas at 53%, and $253 million in production revenues Q1 2025 Production & Revenue Mix | Metric | Oil | Natural Gas | NGLs | Total | | :--- | :--- | :--- | :--- | :--- | | Production Mix | 24% | 53% | 23% | 80.9 Mboe/d | | Revenue Mix | 49% | 33% | 18% | $253 million | Q1 2025 Operating Costs per Boe | Expense Category | Cost per Boe | | :--- | :--- | | Lease Operating Expense (LOE) | $6.69 | | Gathering and Processing | $3.87 | - In Q1 2025, the company spud 8 gross (6.5 net) operated wells and brought 10 gross (8.9 net) operated wells online[8] Unitholder Distributions The board declared a quarterly cash distribution of $0.79 per common unit for Q1 2025, payable on June 5, 2025 - A quarterly cash distribution of $0.79 per common unit was declared for Q1 2025[11] - The distribution will be paid on June 5, 2025, to unitholders of record on May 22, 2025[11] 2025 Outlook The company reiterated its full-year 2025 outlook, with further details available on its website - The company reiterated its full-year 2025 outlook, with further details available on the company's website[12] Non-GAAP Financial Measures The company uses Adjusted EBITDA, a non-GAAP measure, to evaluate operating performance, with reconciliation to net income provided - The company uses Adjusted EBITDA as a supplemental non-GAAP measure to evaluate operating performance, consistent with its management and external analysts' practices[14][18] - Adjusted EBITDA is defined as net income before interest expense, DD&A, unrealized loss (gain) on derivative instruments, loss on debt extinguishment, equity-based compensation expense, and (gain) loss on sale of assets[17] Reconciliation of Net Income to Adjusted EBITDA Reconciliation of Net Income to Adjusted EBITDA ($ in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | 2025 | 2024 | | Net income | $15,886 | $41,702 | | Interest expense, net | 17,417 | 25,072 | | Depreciation, depletion, amortization and accretion | 63,585 | 67,470 | | Unrealized loss on derivative instruments | 42,340 | 33,223 | | Loss on debt extinguishment | 18,540 | — | | Equity-based compensation expense | 2,112 | 1,182 | | Gain on sale of assets | (29) | (11) | | Adjusted EBITDA | $159,851 | $168,638 | Forward-Looking Statements This report contains forward-looking statements subject to risks including commodity price volatility, regulatory changes, and cybersecurity threats - The report includes forward-looking statements that are not guarantees of future performance and are subject to significant risks and uncertainties[21][22] - Key risk factors mentioned include commodity price volatility, concentration of operations in the Anadarko Basin, capital market conditions, regulatory changes, competition, and cybersecurity threats[21]