Acquisitions Overview - Mach Natural Resources LP is entering into two definitive agreements to acquire oil and gas assets to enhance scale and add strategic multi-basin positioning[11] - The acquisitions include Sabinal Energy for a purchase price of $787 million, consisting of $325 million in cash and 32 million units[10] - The acquisitions include IKAV San Juan for a purchase price of $500 million, consisting of $200 million in cash and 21 million units[10] Pro Forma Impact - Pro forma Q1 2025 production increases to 152 mboe/d, up from Mach's standalone 81 mboe/d[13] - The acquisitions diversify the company's production mix, resulting in a pro forma liquids/gas ratio of 34%/66%[13] - The combined net acreage increases to 2,815,000 acres, including 130,000 net acres from Sabinal and 570,000 net acres from IKAV San Juan[13] Strategic Benefits - The transactions reinforce the company's commitment to financial strength by funding approximately 60% with common equity issued to sellers[15] - The acquisitions are accretive to the business, with assets being acquired at a discount to PDP PV-10[15] - The acquisitions reduce the company's base decline rate from 20% to 15%[17]
Mach Natural Resources (MNR) Earnings Call Presentation