Mach Natural Resources LP (NYSE: MNR) (“Mach” or the “Company”)
today reported financial and operating results for the three months
ended March 31, 2024. The Company also reiterated its full year
2024 outlook and announced its quarterly cash distribution.
First Quarter 2024 Highlights
- Averaged total net production of 89.0 thousand barrels of oil
equivalent per day (“Mboe/d”)
- Produced an average of 20.6 thousand barrels of oil per day
(“MBbl/d”)
- Lease operating expense of $5.03 per barrel of oil equivalent
(“Boe”) was below low-end of guidance
- Reported net income and Adjusted EBITDA(1) of $42 million and
$169 million, respectively
- Generated net cash provided by operating activities of $144
million
- Declared a quarterly cash distribution of $0.75 per unit
Tom L. Ward, Mach’s Chief Executive Officer, noted, “Our Company
was founded on the principle of maximizing distributions through
acquiring free cash flowing assets. We have achieved our
results-to-date by adhering to low leverage while focusing on our
reinvestment rate of under 50%. Our first quarter results mark a
positive start to 2024 and the continuation of our plan. Over the
years Mach has achieved strong rates on both return on capital
employed and cash return on capital invested, revealing a focus on
cash returns.”
First-Quarter 2024 Financial Results
Mach reported total revenue and net income of $239 million and
$42 million in the first quarter of 2024, respectively. Also during
the first quarter, the average realized price was $77.17 per barrel
of oil, $2.35 per Mcf of natural gas, and $26.92 per barrel of
natural gas liquids (“NGLs”). These prices exclude the effects of
derivatives.
At the end of the first quarter, Mach had a cash balance of $151
million and a Pro Forma net-debt-to-Adjusted-EBITDA(1) ratio of
0.9x.
First-Quarter 2024 Operational Results
During the first quarter of 2024, Mach achieved average oil
equivalent production of 89.0 Mboe/d, which consisted of 23% oil,
55% natural gas and 22% NGLs. Also for the first quarter of 2024,
Mach’s revenues from oil, natural gas, and NGLs sales totaled $255
million, comprised of 57% oil, 24% natural gas, and 19% NGLs.
Also during the first quarter of 2024, the Company spud 22 gross
(20 net) operated wells and brought online 22 gross (20 net)
operated wells. As of March 31, 2024, the Company had 8 gross (7
net) operated wells in various stages of drilling and
completion.
Mach’s lease operating expense in the first quarter of 2024 was
$41 million, or $5.03 per Boe. Mach incurred $32 million, or $3.94
per Boe, of gathering and processing expenses in the first quarter
of 2024. Also during the first quarter of 2024, production taxes as
a percentage of oil, natural gas, and NGL sales were approximately
5.0%, midstream operating profit was approximately $5 million,
general and administrative expenses—excluding equity-based
compensation of $1 million—was $9 million, and interest expense was
$26 million.
In the first quarter of 2024, Mach’s total capital
expenditures—excluding acquisitions—were $80 million, including $75
million of upstream capital and $5 million of other capital
(including midstream and land).
Distributions
Mach announced today that the board of directors of its general
partner declared a quarterly cash distribution for the first
quarter of 2024 of $0.75 per common unit. The quarterly cash
distribution is to be paid on June 10, 2024, to common unitholders
of record as of the close of trading on May 28, 2024.
2024 Guidance
Mach previously announced its operational and financial outlook
for 2024 on February 15, 2024. The Company reaffirms its previously
provided guidance.
Derivative Contracts
(Unaudited)
The table below represents a summary of
the Company’s derivative contracts as of May 1, 2024.
Oil Derivative Contracts
2024
Q1
Q2
Q3
Q4
Oil Volumes (MBbl)
1,094
1,099
719
660
Weighted Average Fixed Price (per Bbl)
$78.92
$74.15
$72.67
$73.16
2025
Q1
Q2
Q3
Q4
Oil Volumes (MBbl)
614
289
274
260
Weighted Average Fixed Price (per Bbl)
$72.36
$71.80
$71.80
$71.80
2026
Q1
Q2
Q3
Q4
Oil Volumes (MBbl)
245
-
-
-
Weighted Average Fixed Price (per Bbl)
$68.70
-
-
-
Natural Gas Derivative
Contracts
2024
Q1
Q2
Q3
Q4
Natural Gas Volumes (Bbtu)
2,393
2,248
10,653
10,158
Weighted Average Fixed Price (per
Mmbtu)
$3.10
$2.94
$2.96
$3.73
2025
Q1
Q2
Q3
Q4
Natural Gas Volumes (Bbtu)
4,860
4,680
4,510
4,360
Weighted Average Fixed Price (per
Mmbtu)
$4.34
$3.69
$3.92
$4.36
Conference Call and Webcast Information
Mach will host a conference call and webcast at 8:00 a.m.
Central (9:00 a.m. Eastern) on Tuesday, May 14, 2024, to discuss
its first-quarter 2024 results. Participants can access the
conference call by dialing 877-407-2984. A webcast link to the
conference call will be provided on the Company’s website at
www.ir.machnr.com. A replay will also be available on the Company’s
website following the call.
About Mach Natural Resources LP
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. For
more information, please visit www.machnr.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains statements that express the Company’s
opinions, expectations, beliefs, plans, objectives, assumptions or
projections regarding future events or future results, in contrast
with statements that reflect historical facts. All statements,
other than statements of historical fact included in this release
regarding our strategy, future operations, financial position,
estimated revenues and losses, projected costs, prospects, plans
and objectives of management are forward-looking statements When
used in this release, words such as “may,” “assume,” “forecast,”
“could,” “should,” “will,” “plan,” “believe,” “anticipate,”
“intend,” “estimate,” “expect,” “project,” “budget” and similar
expressions are used to identify forward-looking statements,
although not all forward-looking statements contain such
identifying words. These forward-looking statements are based on
management’s current belief, based on currently available
information as to the outcome and timing of future events at the
time such statement was made. Such statements are subject to a
number of assumptions, risk and uncertainties, many of which are
beyond the control of the Company. These include, but are not
limited to, commodity price volatility; the impact of epidemics,
outbreaks or other public health events, and the related effects on
financial markets, worldwide economic activity and our operations;
uncertainties about our estimated oil, natural gas and natural gas
liquids reserves, including the impact of commodity price declines
on the economic producibility of such reserves, and in projecting
future rates of production; the concentration of our operations in
the Anadarko Basin; difficult and adverse conditions in the
domestic and global capital and credit markets; lack of
transportation and storage capacity as a result of oversupply,
government regulations or other factors; lack of availability of
drilling and production equipment and services; potential financial
losses or earnings reductions resulting from our commodity price
risk management program or any inability to manage our commodity
risks; failure to realize expected value creation from property
acquisitions and trades; access to capital and the timing of
development expenditures; environmental, weather, drilling and
other operating risks; regulatory changes, including potential
shut-ins or production curtailments mandated by the Railroad
Commission of Texas, the Oklahoma Corporation Commission and/or the
Kansas Corporation Commission; competition in the oil and natural
gas industry; loss of production and leasehold rights due to
mechanical failure or depletion of wells and our inability to
re-establish their production; our ability to service our
indebtedness; any downgrades in our credit ratings that could
negatively impact our cost of and ability to access capital; cost
inflation; political and economic conditions and events in foreign
oil and natural gas producing countries, including embargoes,
continued hostilities in the Middle East and other sustained
military campaigns, the war in Ukraine and associated economic
sanctions on Russia, conditions in South America, Central America,
China and Russia, and acts of terrorism or sabotage; evolving
cybersecurity risks such as those involving unauthorized access,
denial-of-service attacks, malicious software, data privacy
breaches by employees, insider or other with authorized access,
cyber or phishing-attacks, ransomware, social engineering, physical
breaches or other actions; and risks related to our ability to
expand our business, including through the recruitment and
retention of qualified personnel. Please read the Company’s filings
with the U.S. Securities and Exchange Commission (the “SEC”),
including “Risk Factors” in the Company’s Annual Report on Form
10-K, which is on file with the SEC, for a discussion of risks and
uncertainties that could cause actual results to differ from those
in such forward-looking statements.
As a result, these forward-looking statements are not a
guarantee of our performance, and you should not place undue
reliance on such statements. Any forward-looking statement speaks
only as of the date on which such statement is made, and the
Company undertakes no obligation to correct or update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
MACH NATURAL RESOURCES
LP
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
March 31, 2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
151,300
$
152,792
Accounts receivable – joint interest and
other, net
29,541
54,155
Accounts receivable – oil, gas, and NGL
sales
127,714
78,051
Short-term derivative assets
10,855
24,802
Inventories
31,411
31,377
Other current assets
3,245
2,425
Total current assets
354,066
343,602
Oil and natural gas properties, using the
full cost method:
Proved oil and natural gas properties
2,174,723
2,097,540
Less: accumulated depreciation, depletion
and amortization
(329,560
)
(265,895
)
Oil and natural gas properties, net
1,845,163
1,831,645
Other property, plant and equipment
109,240
105,302
Less: accumulated depreciation
(17,529
)
(15,642
)
Other property, plant and equipment,
net
91,711
89,660
Long-term derivative assets
6,035
15,112
Other assets
5,833
7,102
Operating lease assets
13,564
17,394
Total assets
$
2,316,372
$
2,304,515
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
60,198
$
44,577
Accounts payable – related party
3,234
2,867
Accrued liabilities
45,516
44,529
Revenue payable
143,655
110,296
Short-term derivative liabilities
9,601
—
Current portion of long-term debt
82,500
61,875
Current portion of operating lease
liabilities
8,397
10,765
Total current liabilities
353,101
274,909
Long-term debt
725,557
745,140
Asset retirement obligations
87,132
85,094
Long-term derivative liabilities
598
—
Long-term portion of operating leases
5,200
6,705
Other long-term liabilities
1,100
943
Total long-term liabilities
819,587
837,882
Commitments and contingencies
Partners’ capital:
Partners’ capital
1,143,684
1,191,724
Total liabilities and partners’
capital
$
2,316,372
$
2,304,515
MACH NATURAL RESOURCES
LP
CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)
(in thousands, except per
common unit data)
Three Months Ended
March 31,
2024
2023
Revenue
Oil, natural gas, and NGL sales
$
255,240
$
162,448
(Loss) gain on oil and natural gas
derivatives
(29,268
)
13,054
Midstream revenue
6,219
6,532
Product sales
6,964
10,139
Total revenues
239,155
192,173
Operating expenses
Gathering and processing
31,942
9,642
Lease operating expense
40,760
32,813
Production taxes
12,752
8,674
Midstream operating expense
2,559
2,969
Cost of product sales
6,100
9,112
Depreciation, depletion, amortization and
accretion – oil and natural gas
65,372
29,567
Depreciation and amortization – other
2,098
1,357
General and administrative
8,478
3,576
General and administrative – related
party
1,850
1,067
Total operating expenses
171,911
98,777
Income from operations
67,244
93,396
Other (expense) income
Interest expense
(26,285
)
(1,814
)
Other income (expense), net
743
112
Total other expense
(25,542
)
(1,702
)
Net income
$
41,702
$
91,694
Net income per common unit:
Basic
$
0.44
Diluted
$
0.44
Weighted average common units
outstanding:
Basic
95,000
Diluted
95,005
MACH NATURAL RESOURCES
LP
CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)
(in thousands)
Three Months Ended
March 31,
2024
2023
Cash flows from operating activities
Net income
$
41,702
$
91,694
Adjustments to reconcile net income to
cash provided by operating activities
Depreciation, depletion, amortization and
accretion
67,470
30,924
Loss (gain) on derivative instruments
29,268
(13,054
)
Cash receipts (payments) on settlement of
derivative contracts, net
6,557
2,703
Debt issuance costs amortization
1,268
122
Equity based compensation
1,182
647
Credit losses
454
—
(Gain) loss on sale of assets
(11
)
(1
)
Settlement of asset retirement
obligations
(28
)
(71
)
Changes in operating assets and
liabilities (decreasing) increasing cash:
Accounts receivable
(32,758
)
45,240
Revenue payable
33,359
(2,449
)
Accounts payable and accrued
liabilities
(5,014
)
(8,189
)
Other
504
(417
)
Net cash provided by operating
activities
143,953
147,149
Cash flows from investing activities
Capital expenditures for oil and natural
gas properties
(49,879
)
(79,868
)
Capital expenditures for other property
and equipment
(4,277
)
(2,623
)
Acquisition of assets
(1,151
)
(1,506
)
Proceeds from sales of oil and natural gas
properties
447
—
Proceeds from sales of other property and
equipment
140
36
Net cash used in investing activities
(54,720
)
(83,961
)
Cash flows from financing activities
Distributions to unitholders
(90,250
)
—
Distributions to members
—
(59,000
)
Payment of other financing fees
(475
)
(404
)
Net cash used in financing activities
(90,725
)
(59,404
)
Net increase (decrease) in cash and cash
equivalents
(1,492
)
3,784
Cash and cash equivalents, beginning of
period
152,792
29,417
Cash and cash equivalents, end of
period
$
151,300
$
33,201
(1) Adjusted EBITDA is a non-GAAP measure. Mach has defined this
measure and provided reconciliations of this non-GAAP measure to
its most directly comparable financial measure calculated and
presented in accordance with U.S. generally accepted accounting
principles (“GAAP”) at the conclusion of this press release under
“Non-GAAP Financial Measures.”
Non-GAAP Financial Measures
Pursuant to regulatory disclosure requirements, Mach is required
to reconcile non-GAAP financial measures to the related GAAP
information (GAAP refers to generally accepted accounted
principles). Such non-GAAP measures are not alternatives to GAAP
measures. We include in this press release the supplemental
non-GAAP financial performance measures Adjusted EBITDA and Cash
Available for Distribution.
These non-GAAP measures should not be considered in isolation or
as a substitute for analysis of results as reported under GAAP.
Such non-GAAP measures are used as a supplemental financial
performance measure by our management and by external users of our
financial statements, such as industry analysts, investors,
lenders, rating agencies and others, to more effectively evaluate
our operating performance and our results of operation from period
to period and against our peers without regard to financing
methods, capital structure or historical cost basis. Such non-GAAP
measures are not alternatives to GAAP measures. These non-GAAP
measures should not be considered in isolation or as a substitute
for analysis of results as reported under GAAP.
Adjusted EBITDA
We include in this press release the supplemental non-GAAP
financial performance measure Adjusted EBITDA and provide our
calculation of Adjusted EBITDA and a reconciliation of Adjusted
EBITDA to net income, our most directly comparable financial
measures calculated and presented in accordance with GAAP. We
define Adjusted EBITDA as net income before (1) interest expense,
net, (2) depreciation, depletion, amortization and accretion, (3)
unrealized (gain) loss on derivative instruments, (4) equity-based
compensation expense, (5) credit losses, and (6) (gain) loss on
sale of assets.
Adjusted EBITDA is used as a supplemental financial performance
measure by our management and by external users of our financial
statements, such as industry analysts, investors, lenders, rating
agencies and others, to more effectively evaluate our operating
performance and our results of operation from period to period and
against our peers without regard to financing methods, capital
structure or historical cost basis. We exclude the items listed
above from net income in arriving at Adjusted EBITDA because these
amounts can vary substantially from company to company within our
industry depending upon accounting methods and book values of
assets, capital structures and the method by which the assets were
acquired. Adjusted EBITDA is not a measurement of our financial
performance under GAAP and should not be considered as an
alternative to, or more meaningful than, net income as determined
in accordance with GAAP or as indicators of our operating
performance. Certain items excluded from Adjusted EBITDA are
significant components in understanding and assessing a company’s
financial performance, such as a company’s cost of capital and tax
burden, as well as the historic costs of depreciable assets, none
of which are reflected in Adjusted EBITDA. Our presentation of
Adjusted EBITDA should not be construed as an inference that our
results will be unaffected by unusual items. Our computations of
Adjusted EBITDA may not be identical to other similarly titled
measures of other companies.
Cash Available for Distribution
Cash available for distribution is not a measure of net income
or net cash flow provided by or used in operating activities as
determined by GAAP. Cash available for distribution is a
supplemental non-GAAP financial performance measure used by our
management and by external users of our financial statements, such
as industry analysts, investors, lenders, rating agencies and
others, to assess our ability to internally fund our exploration
and development activities, pay distributions, and to service or
incur additional debt. We define cash available for distribution as
net income less (1) interest expense, net, (2) depreciation,
depletion, amortization and accretion, (3) unrealized (gain) loss
on derivative instruments, (4) equity-based compensation expense,
(5) credit losses, (6) (gain) loss on sale of assets, (7)
settlement of asset retirement obligations, (8) cash interest
expense, net (9) development costs, and (10) change in accrued
realized derivative settlements. Development costs include all of
our capital expenditures, other than acquisitions. Cash available
for distribution will not reflect changes in working capital
balances. Cash available for distribution is not a measurement of
our financial performance or liquidity under GAAP and should not be
considered as an alternative to, or more meaningful than, net
income or net cash provided by or used in operating activities as
determined in accordance with GAAP or as indicators of our
financial performance and liquidity. The GAAP measures most
directly comparable to cash available for distribution are net
income and net cash provided by operating activities. Cash
available for distribution should not be considered as an
alternative to, or more meaningful than, net income or net cash
provided by operating activities.
Reconciliation of Adjusted EBITDA and Cash Available for
Distribution to GAAP Financial Measures (Unaudited)
The following tables summarize the reconciliation of the
applicable GAAP financial measures to the non-GAAP financial
measures Adjusted EBITDA and Cash Available for Distribution.
Three Months Ended
March 31,
($ in thousands)
2024
2023
Net Income Reconciliation to Adjusted
EBITDA:
Net income
$
41,702
$
91,694
Interest expense, net
25,072
1,724
Depreciation, depletion, amortization and
accretion
67,470
30,924
Unrealized loss (gain) on derivative
instruments
33,223
(10,309
)
Equity-based compensation expense
1,182
647
Credit losses
454
—
Gain on sale of assets
(11
)
(1
)
Adjusted EBITDA
$
169,092
$
114,679
Net Income Reconciliation to Cash
Available for Distribution:
Net income
$
41,702
$
91,694
Interest expense, net
25,072
1,724
Depreciation, depletion, amortization and
accretion
67,470
30,924
Unrealized loss (gain) on derivative
instruments
33,223
(10,309
)
Equity-based compensation expense
1,182
647
Credit losses
454
—
Gain on sale of assets
(11
)
(1
)
Settlement of asset retirement
obligations
(28
)
(71
)
Cash interest expense, net
(23,804
)
(1,602
)
Development costs
(80,425
)
(104,591
)
Change in accrued realized derivative
settlements
2,602
(42
)
Cash available for distribution
$
67,437
$
8,373
Net Cash Provided by Operating
Activities Reconciliation to Cash Available for
Distribution:
Net cash provided by operating
activities
$
143,953
$
147,149
Changes in operating assets and
liabilities
3,909
(34,185
)
Development costs
(80,425
)
(104,591
)
Cash available for distribution
$
67,437
$
8,373
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version on businesswire.com: https://www.businesswire.com/news/home/20240513378446/en/
Mach Natural Resources LP Investor Relations Contact:
ir@machnr.com
Mach Natural Resources (NYSE:MNR)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
Mach Natural Resources (NYSE:MNR)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
