Mach Natural Resources LP Declares Fourth Quarter 2024 Cash Distribution

Rhea-AI Summary

Mach Natural Resources LP (NYSE: MNR) has announced its quarterly cash distribution for Q4 2024. The company will distribute $0.50 per unit to unitholders. The distribution will be paid on March 13, 2025, to unitholders of record as of the close of trading on February 27, 2025.

Positive

• Quarterly distribution of $0.50 per unit demonstrates commitment to shareholder returns

Negative

• None.

Insights

Financial Analyst

The declared quarterly distribution of $0.50 per unit translates to an annualized distribution of $2.00 per unit, representing a distribution yield of approximately 12.6% at current price levels. This positions Mach Natural Resources among the higher-yielding MLPs in the natural resources sector.

For MLPs, distribution coverage ratio is a critical metric that indicates distribution sustainability. While the exact coverage ratio isn't provided, investors should monitor this metric in upcoming earnings reports, as it indicates the company's ability to maintain these payments from distributable cash flow. The timing of the distribution, scheduled for mid-March, aligns with typical quarterly payment schedules and suggests normal operational cash flow management.

It's worth noting that MLP distributions come with specific tax advantages through their pass-through structure, typically resulting in a portion of distributions being classified as return of capital, which can defer tax liability for unitholders. However, this tax-advantaged status also comes with more complex tax reporting requirements through K-1 forms.

The maintenance of the distribution level signals management's confidence in near-term operational stability, particularly important given the volatile nature of commodity prices that typically impact natural resource MLPs. Investors should monitor commodity price trends and hedging strategies, as these factors directly influence the company's ability to maintain this distribution level in future quarters.

OKLAHOMA CITY--(BUSINESS WIRE)-- Mach Natural Resources LP (NYSE: MNR) (“Mach” or the “Company”) announced today that the board of directors of its general partner declared a quarterly cash distribution for the fourth quarter of 2024 of $0.50 per unit.

The quarterly cash distribution is to be paid on March 13, 2025, to the Company’s unitholders of record as of the close of trading on February 27, 2025.

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 is the Q4 2024 distribution amount for Mach Natural Resources (MNR)?

Mach Natural Resources (MNR) declared a quarterly cash distribution of $0.50 per unit for Q4 2024.

When will MNR pay its Q4 2024 distribution?

MNR will pay its Q4 2024 distribution on March 13, 2025.

What is the record date for MNR's Q4 2024 distribution?

The record date for MNR's Q4 2024 distribution is February 27, 2025, at the close of trading.

How often does Mach Natural Resources (MNR) pay distributions?

Based on this announcement, Mach Natural Resources pays distributions on a quarterly basis.