Mach Natural Resources LP is an independent upstream oil and gas company focused on the acquisition, development, and production of oil, natural gas, and NGL reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas.
Second Quarter 2024 Financial Results
Mach Natural Resources LP (MNR, Financial) reported total revenue of $240 million for the second quarter of 2024, falling short of the analyst estimate of $253.65 million. However, the company posted a net income of $40 million, translating to an earnings per share (EPS) of $0.70, which surpassed the analyst estimate of $0.67.
Operational Highlights
During the second quarter, Mach achieved an average oil equivalent production of 89.3 Mboe/d, consisting of 23% oil, 53% natural gas, and 24% NGLs. The average realized prices were $79.27 per barrel of oil, $1.33 per Mcf of natural gas, and $23.83 per barrel of NGLs, excluding the effects of derivatives.
Financial Metrics and Achievements
At the end of the second quarter, Mach had a cash balance of $145 million and a pro forma net-debt-to-Adjusted-EBITDA ratio of 0.9x. The company’s lease operating expense was $46 million, or $5.72 per Boe, and it incurred $24 million, or $2.93 per Boe, in gathering and processing expenses. General and administrative expenses, excluding equity-based compensation, were $9 million, and interest expense was $27 million.
Capital Expenditures and Distribution
Mach’s total capital expenditures for the second quarter, excluding acquisitions, were $46 million, including $41 million of upstream capital and $5 million of other capital. The company declared a quarterly cash distribution of $0.90 per unit, to be paid on September 10, 2024, to common unitholders of record as of August 27, 2024.
Updated 2024 Guidance
Mach updated its full-year 2024 guidance, incorporating the impact of a rig-count reduction and operational efficiencies achieved year-to-date. The company reduced its operated rig count in the Oswego from two rigs to one, lowering the midpoint of full-year capital expenditure guidance by 15%. Full-year 2024 oil volumes are expected to range between 19.4 MBbl/d to 20.6 MBbl/d, and total oil-equivalent volumes are projected to range between 82.2 Mboe/d to 87.2 Mboe/d.
"Mach’s second quarter results reflect the continuation of our 2024 plan. A steady adherence to low leverage and disciplined cash flow management allow us to announce a distribution of $0.90 per unit for the period," said Tom L. Ward, Mach’s Chief Executive Officer.
Conclusion
Mach Natural Resources LP (MNR, Financial) demonstrated a strong commitment to its distribution-focused strategy, despite facing challenges in meeting revenue expectations. The company's disciplined cash flow management and operational efficiencies have positioned it well for the remainder of 2024. Investors and stakeholders can access further details in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Mach Natural Resources LP for further details.
