Mach Natural Resources LP Reports 109% Increase in Total Proved Reserves; Continues Strong Distribution Growth in 2025

Key Financial and Operational Highlights

• Massive Increase in Reserves: Mach Natural Resources LP (NYSE: MNR) announced a 109% increase in total proved reserves, now totaling 705 million barrels of oil equivalent (MMBoe) with a PV-10 value of \$3.1 billion.
• Record Cash Distribution: The company paid a quarterly cash distribution of \$89 million for Q4 2025, or \$0.53 per common unit, marking a 96% increase from Q3 2025’s cash distribution. Since its IPO, Mach has paid \$643 million in cash distributions, and since inception, \$1.3 billion.
• Strong Production Growth: Achieved peak production rates of ~40 MMcf/d from three newly drilled, three-mile lateral wells in the Deep Anadarko region, totaling roughly 45,000 feet.
• Strategic Acquisitions: Integrated two significant acquisitions in the Permian Basin and San Juan Basin during Q4 2025, transforming Mach into a scaled, multi-basin operator. Total acquisitions for 2025 amounted to \$1.3 billion.
• Financial Performance:
  • Total net production for Q4 2025 was 154 Mboe/d.
  • Lease operating expense for Q4: \$7.50 per Boe; Full-year: \$6.99 per Boe.
  • Q4 net income: \$73 million; Adjusted EBITDA: \$187 million.
  • Full-year net income: \$143 million; Adjusted EBITDA: \$593 million.
  • Q4 revenue: \$388 million; Full-year revenue: \$1.2 billion.
  • Q4 operating cash flow: \$129 million; Full-year: \$507 million.
  • Total development costs for Q4: \$77 million; Full-year: \$252 million (47% reinvestment rate).
• Operational Results:
  • Production mix in Q4: 17% oil, 68% natural gas, 15% NGLs.
  • Q4 production revenues: \$331 million (42% oil, 44% gas, 14% NGLs).
  • Brought online 13 gross (10.1 net) operated wells in Q4 2025.
  • 7 gross (5.3 net) operated wells in various stages of drilling and completion as of year-end.
  • Q4 gathering and processing expenses: \$46 million (\$3.22 per Boe).
  • Production taxes: 4.6% of oil, gas, and NGL sales.
  • Midstream operating profit: \$6 million.
  • General & administrative expenses (excluding equity-based comp): \$11 million; Interest expense: \$25 million.
• Liquidity Position: As of December 31, 2025, Mach had a cash balance of \$43 million and \$705 million drawn on a \$1 billion revolving credit facility, leaving \$338 million in available liquidity.
• Distribution Details: Q4 2025 cash distribution of \$0.53 per common unit announced February 12, 2026 and paid March 12, 2026. Full-year 2025 distributions: \$244 million (\$1.94 per common unit).
• Pro Forma Cash Return on Capital Invested (CROCI): 23% for full-year 2025.

2026 Outlook and Strategic Commentary

• Capital Plans: Mach plans to invest \$315 million to \$360 million in development in 2026, targeting a reinvestment rate of no more than 50% of operating cash flow.
• Production Guidance: Forecasted full-year net production of 150–157 Mboe/d.
• Management Statement: CEO Tom L. Ward emphasized a commitment to maximizing distributions, disciplined reinvestment, and operational optimization. Mach’s transformation into a multi-basin operator in 2025 is expected to deliver consistent value across commodity cycles.
• Reserves Composition: As of December 31, 2025, reserves comprised 69% natural gas, 16% NGLs, and 15% oil.
• Pricing Used for Reserves: Average first-day-of-month prices for prior 12 months: \$65.34/bbl (oil) and \$3.39/MMBtu (gas), adjusted per property.

Non-GAAP Financial Measures

Adjusted EBITDA, CROCI, and PV-10 are used as supplemental performance measures, with detailed reconciliations provided by Mach. These metrics are widely used by investors and analysts to gauge profitability and capital efficiency.
Adjusted EBITDA: For Q4 2025: \$186.9 million; Full-year: \$593.3 million.
CROCI: Defined as cash flow from operations plus interest expense, divided by average capital invested.
PV-10: Pre-tax present value of proved reserves, widely used for comparability. PV-10 for Mach’s reserves is \$3.1 billion.
Note: None of these metrics are substitutes for GAAP measures.

Risks and Forward-Looking Statements

• Mach’s forward-looking statements are subject to risks including commodity price volatility, regulatory changes, operational risks, access to capital, geopolitical events, and cybersecurity threats.
• Mach’s ability to realize synergies from acquisitions, maintain production levels, and execute capital plans may affect future performance.
• Investors are cautioned that statements regarding strategy, growth, reserve estimates, and financial guidance are not guarantees of future performance.

Shareholder Information

• Mach’s Annual Report on Form 10-K for the year ended December 31, 2025, is available on its website. Unitholders may request a printed copy free of charge.
• Contact Investor Relations at [email protected] or by mail: Mach Natural Resources LP, 14201 Wireless Way, Suite 300, Oklahoma City, OK, 73134.
• Mach will host a conference call and webcast on Friday, March 13, 2026, at 9:00 a.m. Central (10:00 a.m. Eastern) to discuss Q4 2025 results.

Potential Price-Sensitive Information for Investors

• 109% increase in proved reserves and transformation into a multi-basin operator substantially enhances Mach’s long-term value proposition.
• Significant increases in cash distributions indicate robust cash flow and shareholder returns.
• Strong liquidity and disciplined reinvestment suggest resilience amidst commodity cycles.
• Strategic acquisitions in the Permian and San Juan Basins may drive future growth and operational synergies.
• Consistent production guidance and capital allocation should be closely monitored for execution risk and potential impact on future distributions.
• Any deviation from guidance, integration challenges, commodity price swings, or regulatory risks could significantly affect Mach’s share value.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties and may not be realized as anticipated. Investors should review Mach Natural Resources LP’s official filings and consult their financial advisors before making investment decisions.

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