Mach Natural Resources LP(US:MNR)2025-11-06 22:08Financial Performance - Total revenues for Q3 2025 reached $272.6 million, a 6.4% increase from $255.5 million in Q3 2024[39] - The company reported a net loss of $35.7 million for Q3 2025, compared to a net income of $67.4 million in Q3 2024[39] - Operating expenses for Q3 2025 totaled $291.8 million, significantly higher than $160.8 million in Q3 2024, marking an increase of 81.6%[39] - The company reported a net income of $69,893,000, a decrease from $148,662,000 in the same period of 2024[42] - The company experienced a net cash provided by operating activities of $378,207,000 for the nine months ended September 30, 2025, compared to $371,631,000 for the same period in 2024[42] - The Company’s total revenues for the nine months ended September 30, 2025, were $998.1 million, compared to $954.6 million in 2024, reflecting an increase of 4.6%[107] Sales and Revenue - Oil, natural gas, and NGL sales amounted to $234.5 million, up from $209.2 million year-over-year, reflecting a 12.1% increase[39] - For the three months ended September 30, 2025, the Company reported gross oil, natural gas, and NGL sales of $234.5 million, an increase from $212.7 million in the same period of 2024, representing a growth of 10.2%[96] - The Company’s revenue from oil sales for the nine months ended September 30, 2025, was $352.2 million, down from $420.5 million in 2024, reflecting a decrease of 16.2%[96] Assets and Liabilities - Proved oil and natural gas properties increased to $3.9 billion as of September 30, 2025, compared to $2.4 billion at the end of 2024[36] - Total current assets rose to $375.1 million from $322.1 million, indicating a 16.5% increase[36] - Long-term debt increased to $1.1 billion from $668.8 million, reflecting a 70.9% rise[36] - The company had total assets of $3.77 billion as of September 30, 2025, up from $2.34 billion as of December 31, 2024[203] - The company’s total accrued liabilities increased to $120.992 million as of September 30, 2025, up from $52.920 million at the end of 2024[130] Capital Expenditures and Investments - Capital expenditures for oil and natural gas properties totaled $165,579,000 for the nine months ended September 30, 2025, compared to $162,432,000 in 2024[42] - Capital expenditures, including acquisitions, were $594.1 million for the three months ended September 30, 2025, significantly higher than $98.9 million in the same period of 2024[201] - The Company completed the IKAV Acquisition for approximately $759.6 million, which included $349.8 million in cash and 30.6 million common units valued at approximately $409.9 million[101] - The Sabinal Acquisition was finalized for approximately $444.4 million, consisting of $199.3 million in cash and 19.2 million common units valued at approximately $256.9 million[108] Debt and Financing - As of September 30, 2025, the Company reported $1.2 billion in outstanding borrowings under the New Credit Agreement, with an effective interest rate of 8.1%[138] - The New Credit Agreement has a maximum commitment amount of $2.0 billion and requires a consolidated total net leverage ratio of less than or equal to 3.00 to 1.00[132] - The Company recorded $18.5 million in debt extinguishment costs related to the termination of the Term Loan Credit Agreement[141] - The Company’s cash paid for interest decreased to $39.0 million for the nine months ended September 30, 2025, compared to $75.4 million in 2024, a reduction of 48.3%[98] Derivative Instruments and Risk Management - The Company uses derivative contracts to reduce exposure to fluctuations in commodity prices, including fixed price swaps and costless collars[145] - The Company has open fixed price swap positions related to oil production totaling 5,423 Mbbl with an average fixed price of $66.97[149] - The Company has open costless collar positions related to oil production totaling 1,098 Mbbl with a floor price of $58.13 and a ceiling price of $78.05[152] - The Company reported total gains on derivative contracts of $24.753 million for the three months ended September 30, 2025[155] Legal and Compliance - The Company recognized $8.2 million of expense related to legal matters during the second quarter of 2025, with accrued liabilities of approximately $4.8 million as of September 30, 2025, up from $1.5 million at the end of 2024[175] - The Company has accrued approximately $4.8 million in liabilities related to legal matters as of September 30, 2025, indicating a significant increase in potential legal expenses[175] Compensation and Equity - The weighted average common units outstanding for Q3 2025 was 126,457, compared to 96,856 in Q3 2024[39] - Total non-cash compensation cost related to Time-Based Phantom Units was $5.5 million for the nine months ended September 30, 2025, compared to $4.4 million for the same period in 2024, reflecting a 25% increase[169] - Total non-cash compensation cost related to Performance Phantom Units was $0.8 million for the nine months ended September 30, 2025, compared to $0.3 million for the same period in 2024[174] Inventory and Production - As of September 30, 2025, the company's total inventory was $49.362 million, up from $24.301 million as of December 31, 2024, with production equipment valued at $45.911 million and crude oil in storage at $3.451 million[69] - The average depletion rate per barrel equivalent unit of production was $7.01 for the three months ended September 30, 2025, down from $8.17 for the same period in 2024[59]