OKLAHOMA CITY--(BUSINESS WIRE)--August 06, 2026--
Mach Natural Resources LP (NYSE: MNR) ("Mach" or the "Company") today reported financial and operating results for the three months ended June 30, 2026. The Company also announced its quarterly cash distribution and updated its full-year 2026 outlook.
Second Quarter 2026 Highlights
-- Averaged total net production of 148.9 thousand barrels of oil
equivalent per day ("Mboe/d")
-- Produced an average of 22.7 thousand barrels of oil per day ("MBbl/d")
-- Lease operating expense of $7.21 per barrel of oil equivalent ("Boe")
-- Reported net income and Adjusted EBITDA(1) of $98 million and $182
million, respectively
-- Generated net cash provided by operating activities of $154 million
-- Incurred total development costs of $97 million
-- Declared a quarterly cash distribution of $0.36 per common unit
Recent Highlights
-- Continued to direct capital toward oil-weighted projects in the
Mid-Continent, marked by a restart of the Oswego drilling program in May
of 2026
"Our quarterly results reinforce what has set Mach apart since inception, " said Tom L. Ward, Chief Executive Officer. "During the quarter, favorable oil prices allowed us to pivot capital to the development of our high-return oil opportunities sourced through years of disciplined acquisitions. Our flexibility is possible because we've built a durable platform of diversified inventory that will bear fruit long into the future."
Mr. Ward continued, "As we look ahead, we will remain returns-driven. Our industry-leading cash return on capital invested demonstrates that our strategy delivers and creates long-term value for our unitholders."
Second Quarter 2026 Financial Results
Mach reported total revenue and net income of $406 million and $98 million in the second quarter of 2026, respectively. Additionally, during the second quarter, the average realized price was $95.40 per barrel of oil, $1.93 per Mcf of natural gas, and $28.99 per barrel of natural gas liquids ("NGLs"). These prices exclude the effects of derivatives.
As of June 30, 2026, Mach had a cash balance of $41 million, and $730 million utilized under its $1.0 billion Revolving Credit Facility, leaving approximately $311 million of available liquidity.
Second Quarter 2026 Operational Results
During the second quarter of 2026, Mach achieved average oil equivalent production of 148.9 Mboe/d, which consisted of 15% oil, 69% natural gas and 16% NGLs. Also, for the second quarter of 2026, Mach's production revenues from oil, natural gas, and NGLs sales totaled $367 million, comprised of 54% oil, 30% natural gas, and 16% NGLs.
The Company spud 9 gross (5.0 net) operated wells and brought online 6 gross (4.2 net) operated wells in the second quarter of 2026.
Mach's lease operating expense in the second quarter of 2026 was $98 million, or $7.21 per Boe. Mach incurred $48 million, or $3.54 per Boe, of gathering and processing expenses in the second quarter of 2026. Furthermore, during the second quarter of 2026, production taxes as a percentage of oil, natural gas, and NGLs sales were approximately 5.1%, midstream operating profit was approximately $5 million, general and administrative expenses--excluding equity-based compensation of $3 million--was $7 million, and interest expense was $25 million.
In the second quarter of 2026, Mach's total development costs were $97 million, including $80 million of upstream capital and $17 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 second quarter of 2026 of $0.36 per common unit. The quarterly cash distribution is to be paid on August 31, 2026, to common unitholders of record as of the close of trading on August 17, 2026.
2026 Outlook
Today, the Company also provided updates to its full-year 2026 guidance. As the Company shifts its focus further to oil drilling, estimated oil production increased approximately 4% at the midpoint of guidance. The reallocation of drilling capital, combined with the deferral of Mancos completions to 2027, results in a decrease to total Boe and gas production guidance.
Estimated development costs decreased due to changes in the Company's drilling plans. Lifting costs also increased due to the change in estimated commodity mix for the full year. Additional details of Mach's guidance are available on the Company's website at www.machnr.com.
Conference Call and Webcast Information
Mach will host a conference call and webcast at 9:00 a.m. Central (10:00 a.m. Eastern) on Friday, August 7, 2026, to discuss its second quarter 2026 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.
(1) Adjusted EBITDA is a non-GAAP financial measure. Mach has defined this measure and provided reconciliations of this non-GAAP financial 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 and Disclosures."
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. The Company operates a diversified portfolio across the Anadarko, Permian and San Juan Basins. For more information, please visit www.machnr.com.
Non-GAAP Financial Measures and Disclosures
This press release includes non-GAAP financial measures. Pursuant to regulatory disclosure requirements, Mach is required to reconcile non-GAAP financial measures to the related GAAP information. Reconciliations of these non-GAAP measures are provided below. Reconciliations of these non-GAAP measures, along with other financial and operational disclosures, are also within the supplemental tables that are available on the Company's website at www.machnr.com and in the related Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the "SEC").
Adjusted EBITDA(1)
We include in this Quarterly Report 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 measure 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) loss on debt extinguishment, (5) equity-based compensation expense and (6) gain (loss) on sale of assets, net.
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.
Reconciliation of GAAP Financial Measure to Adjusted EBITDA
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ----------------------
($ in thousands) 2026 2025 2026 2025
------------------ --------- --------- --------- -----------
Net Income
Reconciliation to
Adjusted EBITDA:
Net income $ 98,213 $ 89,661 $ 63,175 $105,547
Interest
expense, net 24,250 12,097 48,413 29,514
Depreciation,
depletion,
amortization
and accretion 98,229 67,098 196,402 130,683
Unrealized
(gain) loss on
derivative
instruments (41,691) (48,551) 62,078 (6,211)
Loss on debt
extinguishment -- -- -- 18,540
Equity-based
compensation
expense 3,413 2,103 6,962 4,215
Gain on sale of
assets (183) (138) (175) (167)
------- ------- ------- -------
Adjusted EBITDA $182,231 $122,270 $376,855 $282,121
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Cautionary Note Regarding Forward-Looking Statements
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