Mach Natural Resources LP Announces Launch of Public Offering of Common Units

Rhea-AI Summary

Mach Natural Resources LP (NYSE: MNR) has announced the launch of a public offering of 7,853,403 common units, with an additional option for underwriters to purchase up to 1,178,010 units. The company plans to use the net proceeds to fund two pending acquisitions of oil and gas assets in the Ardmore Basin of Oklahoma and the Anadarko Basin of Kansas and Oklahoma, as well as for general partnership purposes. Raymond James & Associates, Stifel, Nicolaus & Company, and Truist Securities are acting as joint book-running managers for the offering, with Johnson Rice & Company and Stephens Inc. serving as co-managers.

Positive

• Potential expansion through acquisitions of oil and gas assets in Oklahoma and Kansas
• Additional capital raised for future acquisitions and general partnership purposes
• Strong underwriting team including major financial institutions

Negative

• Potential dilution of existing shareholders due to new unit issuance
• Increased debt or financial obligations from pending acquisitions

Insights

Financial Analyst

Mach Natural Resources LP's public offering of 7,853,403 common units with an option for 1,178,010 additional units is a significant move to raise capital. The proceeds are earmarked for two pending acquisitions in the Ardmore and Anadarko Basins, indicating an aggressive growth strategy. This expansion could potentially increase the company's reserves and production capacity, positively impacting future revenue streams. However, investors should note that such acquisitions also carry execution risks and may impact short-term financial metrics. The involvement of reputable underwriters like Raymond James and Stifel lends credibility to the offering, potentially attracting institutional investors. The market's reception to this offering will be important in determining Mach's ability to fund its growth plans and maintain financial flexibility.

Oil and Gas Industry Expert

Mach's focus on acquiring assets in the Ardmore and Anadarko Basins is strategically sound. These regions are known for their rich hydrocarbon reserves, particularly in oil and natural gas liquids. The Anadarko Basin, in particular, has seen renewed interest due to advancements in horizontal drilling and hydraulic fracturing technologies. By expanding its footprint in these areas, Mach is positioning itself to capitalize on potential production upside. However, investors should consider the current volatile energy price environment and its potential impact on the profitability of these acquisitions. The success of this strategy will largely depend on Mach's operational efficiency and ability to extract value from these assets in a cost-effective manner.

Market Research Analyst

The timing of Mach's public offering is intriguing, given the current market conditions. Energy stocks have been volatile, influenced by fluctuating oil prices and global economic uncertainties. Investor appetite for energy sector offerings may be tempered by ESG considerations and the ongoing energy transition narrative. However, Mach's focus on natural gas assets could be viewed favorably, as natural gas is often seen as a transition fuel in the move towards cleaner energy sources. The success of this offering will serve as a barometer for investor sentiment towards mid-sized oil and gas companies. It's worth monitoring the pricing and demand for these units, as it could indicate broader market trends in the energy sector and appetite for growth-oriented energy investments.

OKLAHOMA CITY--(BUSINESS WIRE)-- Mach Natural Resources LP (NYSE: MNR) (“Mach” or the “Company”) announced today the launch of its public offering (the “Offering”) of 7,853,403 common units representing limited partner interests in Mach (the “common units”). Mach will also grant the underwriters an option to purchase up to an additional 1,178,010 common units at the public offering price, less underwriting discounts and commissions. Mach intends to use the net proceeds from the Offering to fund its two pending acquisitions of certain oil and gas assets located in the Ardmore Basin of Oklahoma and the Anadarko Basin of Kansas and Oklahoma, and for general partnership purposes which may include future acquisitions. Our common units trade on the New York Stock Exchange under the ticker symbol “MNR.”

Raymond James & Associates, Inc., Stifel, Nicolaus & Company, Incorporated and Truist Securities, Inc. are acting as joint book-running managers for the Offering. Johnson Rice & Company L.L.C. and Stephens Inc. are serving as co-managers for the Offering. The Offering of these securities is being made only by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. When available, a copy of the preliminary prospectus may be obtained from any of the following sources:

Raymond James & Associates, Inc. Attention: Syndicate	Stifel, Nicolaus & Company, Incorporated Attention: Syndicate Department	Truist Securities, Inc Attention: Equity Capital Markets
880 Carillon Parkway	1 South Street, 15th Floor	3333 Peachtree Road NE, 9th Floor
St. Petersburg, Florida 33716	Baltimore, MD 21202	Atlanta, GA 30326
Telephone: (800) 248-8863	Telephone: (855) 300-7136	Telephone: (800) 685-4786
Email: prospectus@raymondjames.com	Email: syndprospectus@stifel.com	Email: truistsecurities.prospectus@truist.com

Important Information

A registration statement relating to these securities has been filed with the Securities and Exchange Commission (the “SEC”) but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The registration statement may be obtained free of charge at the SEC’s website at www.sec.gov under “Mach Natural Resources LP.” This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

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.

Cautionary Note Regarding Forward-Looking Statements

This release contains statements that express Mach’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, including, but not limited to, statements regarding the size of the Offering and our ability to complete the Offering. 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 Mach, including prevailing market conditions and other factors. Please read Mach’s filings with the SEC, including “Risk Factors” in Mach’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 Mach 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

How many common units is Mach Natural Resources LP (MNR) offering in its public offering?

Mach Natural Resources LP (MNR) is offering 7,853,403 common units in its public offering, with an option for underwriters to purchase up to an additional 1,178,010 units.

What will Mach Natural Resources LP (MNR) use the proceeds from the offering for?

MNR intends to use the net proceeds to fund two pending acquisitions of oil and gas assets in the Ardmore Basin of Oklahoma and the Anadarko Basin of Kansas and Oklahoma, as well as for general partnership purposes, which may include future acquisitions.

Who are the joint book-running managers for Mach Natural Resources LP's (MNR) public offering?

Raymond James & Associates, Stifel, Nicolaus & Company, and Truist Securities are acting as joint book-running managers for MNR's public offering.

What is the ticker symbol for Mach Natural Resources LP on the New York Stock Exchange?

Mach Natural Resources LP trades on the New York Stock Exchange under the ticker symbol MNR.