Mach Natural Resources LP Reports 27% Revenue Increase to $969.6 Million for 2024

Mach Natural Resources LP, an independent upstream oil and gas company, reported total revenues of $969.6 million for the year ended December 31, 2024, a 27% increase compared to $762.3 million in 2023. This increase was driven primarily by a 72% rise in average daily production to 86.69 MBoe/d, resulting from acquisitions and a corporate reorganization in October 2023. However, the average realized price per Boe decreased by 16%, to $30.07, due to lower oil and natural gas prices. Total operating expenses increased by 68% to $678.6 million, primarily due to the increased production and the inclusion of acquired assets. Net income for 2024 was $185.2 million, compared to $68.5 million in 2023.

Significant changes occurred in 2024 compared to 2023, including a corporate reorganization that resulted in Mach Natural Resources LP becoming the holding partnership for its operating subsidiaries. The company also completed an initial public offering (IPO) in October 2023, raising net proceeds of $168.5 million. A portion of these proceeds was used to pay down existing credit facilities and repurchase common units from existing owners. Subsequent to the year-end, the company completed additional acquisitions, including the Flycatcher Acquisition for $29.8 million and a public offering of common units, raising net proceeds of $221 million.

The company's operations are concentrated in the Anadarko Basin, encompassing approximately 5,000 gross operated producing wells. The company also owns a portfolio of midstream assets, including processing plants with a combined capacity of 353 MMcf/d and 1,480 miles of gas gathering pipelines. Mach Natural Resources LP's development plan for 2025 anticipates spending between $260 million and $280 million, primarily focused on drilling Oswego, Woodford, and Mississippian wells. The company expects to fund this program through cash flow from operations. As of December 31, 2024, Mach Resources, the company's service provider, employed 505 full-time employees.

As of December 31, 2024, the company's estimated proved reserves totaled 337.3 million Boe, with a PV-10 of $1.9 billion, compared to 345.7 million Boe and a PV-10 of $2.6 billion as of December 31, 2023. The decrease in PV-10 reflects lower commodity prices. The company's proved undeveloped reserves (PUDs) as of December 31, 2024, were 89.6 million Boe, with projected future development costs of $842.1 million over the next five years. The company drilled 109 wells in 2024, with 52.4 net wells brought online. For the year ended December 31, 2024, Phillips 66 Company accounted for 32.2% of the company's oil, natural gas, and NGL sales.

The company's outlook is contingent upon various factors, including commodity price volatility, the success of its development plans, access to capital, and regulatory changes. The company acknowledges significant risks related to cash distributions, its concentrated operations, the inherent uncertainties of oil and gas exploration and production, and its reliance on Mach Resources for operational services. The company also highlights risks associated with its debt obligations, environmental regulations, and the competitive nature of the oil and gas industry. Forward-looking statements indicate the company's intention to continue its development program and pursue acquisitions, while acknowledging the uncertainties inherent in these endeavors.