Mach Natural Resources LP reported improved financial and operating results for the three months ended September 30, 2024 over the second quarter.
The Company also announced its quarterly cash distribution and provided its full year 2025 outlook.
Mach reported total revenue and net income of $256 million and $67 million in the third quarter of 2024, respectively. Adjusted EBITDA totaled $134 million. The company’s operating activities also generated net cash of $111 million.
Additionally, during the third quarter, the average realized price was $74.55 per barrel of oil, $1.73 per Mcf of natural gas, and $22.61 per barrel of natural gas liquids.
In the second quarter, Mach had total revenue of $240 million an net income of $40 million. Its average realized price was $79.27 per barrel of oil, $1.33 per Mcf of natural gas, and $23.83 per barrel of natural gas liquids.
Mach also reported it ended the third quarter with a cash balance of $185 million.
“Our quarterly results reflect Mach’s discipline to maintain a low leverage profile and consistently deliver cash distributions,” said Tom L. Ward, Chief Executive Officer. “Our recent public equity offering highlights our commitment to financing acquisitions that are accretive to our distribution while protecting our fortress balance sheet. We remain on track to finish 2024 strong and carry our momentum and financial strength into next year.”
The company averaged total net production of 81.8 thousand barrels of oil equivalent a day and its lease operating expense of $5.85 per barrel of oil equivalent was at the low-end of guidance.
Also, for the third quarter of 2024, Mach’s production revenues from oil, natural gas, and NGLs sales totaled $209 million, comprised of 60% oil, 20% natural gas, and 20% NGLs.
The company spud 11 gross (9 net) operated wells and brought online 11 gross (9 net) operated wells in the third quarter of 2024. As of September 30, 2024, the Company had 5 gross (4 net) operated wells in various stages of drilling and completion.
Mach’s lease operating expense in the third quarter of 2024 was $44 million, or $5.85 per Boe. Mach incurred $24 million, or $3.13 per Boe, of gathering and processing expenses in the third quarter of 2024. Furthermore, during the third quarter of 2024, production taxes as a percentage of oil, natural gas, and NGL sales were approximately 4.7%, midstream operating profit was approximately $4 million, general and administrative expenses—excluding equity-based compensation of $1 million—was $8 million, and interest expense was $27 million.
In the third quarter of 2024, Mach’s total capital expenditures—excluding acquisitions—were $53 million, including $50 million of upstream capital and $3 million of other capital (including midstream and land).
Distributions
Mach announced the board of directors of its general partner declared a quarterly cash distribution for the third quarter of 2024 of $0.60 per unit. The quarterly cash distribution is to be paid on December 10, 2024, to the Company’s unitholders of record as of the close of trading on November 26, 2024.
