Mach Natural Resources LP(US:MNR)2025-11-07 15:00Company Overview - Mach Natural Resources (MNR) has a market capitalization of $2 billion and an enterprise value of $3.1 billion, resulting in an EV/2025e Adjusted EBITDA multiple of 3.8x[14] - The company possesses approximately 2.8 million net acres, operates around 12,600 gross producing wells, and holds proved reserves of 653 million barrels of oil equivalent (MMBOE) [14] - Natural gas accounts for 71% of the company's 2026e volumes, with approximately 50% of gas volumes unhedged [14] - Q4 2025E net daily production is estimated at 151 thousand barrels of oil equivalent per day (MBOED), comprising 18% oil, 15% NGLs, and 67% natural gas [14] Financial Performance & Strategy - Mach targets a reinvestment rate of less than 50% of operating cash flow to optimize distributions to unitholders [17] - The company aims to maintain a low net debt to adjusted EBITDA ratio of 1.0x to sustain financial strength [17] - Mach's realized multiple on invested capital (MOIC) is 1.8x through Q4 2025 [33] - Since 2024, Mach has distributed $4.87 per unit [35] Recent Transactions & Assets - Recent acquisitions in the San Juan Basin (~570,000 net acres, $771 million purchase price) and Permian Basin (~130,000 net acres, $500 million purchase price) are expected to drive CAD accretion [43] - These transactions are projected to increase CAD accretion by 7% in Year 1, 12% in Year 2, and 27% in Year 5 [44] - Following the Permian and San Juan acquisitions, the company's blended decline rate has improved to 15% [45]