Mach Natural Resources LP Announces Closing of Two Acquisitions

Rhea-AI Summary

Mach Natural Resources LP (NYSE: MNR) has successfully closed two previously announced acquisitions of oil and gas assets in the Anadarko Basin of Kansas and the Ardmore Basin of Oklahoma. The combined purchase price for these assets totaled $136 million, subject to customary closing adjustments. Mach funded the transactions using proceeds from its recent secondary offering and available cash on hand.

These acquisitions represent a significant expansion of Mach's asset portfolio in key oil and gas producing regions. The closing of these deals marks an important milestone in the company's growth strategy and potentially enhances its production capabilities and resource base.

Positive

• Successful closing of two strategic acquisitions in key oil and gas basins
• Total acquisition value of $136 million, expanding asset portfolio
• Utilization of recent secondary offering proceeds for funding, demonstrating effective capital deployment

Negative

• Significant cash outlay of $136 million, potentially impacting short-term liquidity
• Integration costs and challenges associated with newly acquired assets

Insights

Financial Analyst

The acquisition of oil and gas assets for $136 million is a significant move for Mach Natural Resources LP, potentially expanding their production capabilities and reserves. This strategic investment in the Anadarko and Ardmore Basins could enhance the company's market position in these resource-rich areas.

Funding the acquisitions through a combination of secondary offering proceeds and cash on hand demonstrates financial flexibility without incurring additional debt. This approach maintains a healthier balance sheet, which is important in the volatile energy sector. The use of existing resources suggests strong cash flow management and investor confidence.

While the immediate impact on earnings is unclear without production details, these acquisitions typically aim to boost revenue and reserves. Investors should monitor future reports for integration progress and any changes in production guidance. The closing of these deals marks a pivotal moment for MNR, potentially setting the stage for future growth and increased shareholder value.

Energy Sector Specialist

The acquisition of assets in the Anadarko and Ardmore Basins is strategically significant for Mach Natural Resources. These basins are known for their substantial oil and gas reserves, particularly in unconventional plays. The Anadarko Basin in Kansas has been a prolific producer, while the Ardmore Basin in Oklahoma is recognized for its tight oil potential.

This move likely diversifies MNR's portfolio and could potentially increase their proved reserves. The $136 million investment suggests a meaningful addition to their asset base, though the true value will depend on the quality of the acquired properties and current commodity prices.

Investors should look for future updates on how these assets integrate into MNR's existing operations, any immediate production boosts and the impact on the company's reserve life index. The success of this acquisition will ultimately be measured by how efficiently Mach can exploit these new assets to generate returns above their cost of capital.

OKLAHOMA CITY--(BUSINESS WIRE)-- Mach Natural Resources LP (NYSE: MNR) (“Mach” or the “Company”) today announced the closing of its previously announced acquisitions of certain interests in oil and gas properties, rights and related assets in the Anadarko Basin of Kansas and the Ardmore Basin of Oklahoma (the “Acquired Assets”).

On a combined basis, the Acquired Assets were purchased for a total consideration of $136 million, subject to customary terms and conditions, including various closing price adjustments. The Company funded the transactions with a combination of proceeds from Mach’s recent secondary offering and cash on hand.

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.

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Mach Natural Resources LP

Investor Relations Contact: ir@machnr.com

Source: Mach Natural Resources LP

FAQ

What acquisitions did Mach Natural Resources LP (MNR) recently close?

Mach Natural Resources LP (MNR) recently closed two acquisitions of oil and gas assets in the Anadarko Basin of Kansas and the Ardmore Basin of Oklahoma.

How much did Mach Natural Resources LP (MNR) pay for the recent acquisitions?

Mach Natural Resources LP (MNR) paid a total of $136 million for the combined acquisitions, subject to customary closing adjustments.

How did Mach Natural Resources LP (MNR) fund the recent acquisitions?

Mach Natural Resources LP (MNR) funded the acquisitions using a combination of proceeds from its recent secondary offering and cash on hand.

What basins are the newly acquired assets of Mach Natural Resources LP (MNR) located in?

The newly acquired assets of Mach Natural Resources LP (MNR) are located in the Anadarko Basin of Kansas and the Ardmore Basin of Oklahoma.