Mach Natural Resources LP

Q3 production was 140 thousand boe per day, with 15% oil, 69% natural gas and 16% NGLs. Average realized prices were $84.84 per barrel of oil, $2.17 per Mcf of gas, and $30.02 per barrel of NGLs. Oil and gas revenues were $360 million; total revenues including hedges and midstream activities were $319 million; adjusted EBITDA was $183 million; operating cash flow was $165 million; LOE was $88 million, or $6.49 per BOE; and cash G&A was $6 million, or $0.44 per BOE. Development CapEx was $126 million, equal to 77% of operating cash flow in the quarter, and year to date it was 59% of operating cash flow. The company ended the quarter with $31 million of cash and $250 million of availability under the credit facility. Cash available for distribution was $38 million, producing a $0.22 per unit distribution payable November 30. Management said 2027 will include 2 oil rigs and completion of the 7 Mancos wells in Q2 and Q3, with production expected to be roughly flat, up or down by about 5%.

Tom L. Ward emphasized the company’s four pillars: disciplined acquisitions, keeping reinvestment below 50% of operating cash flow, maintaining financial strength, and maximizing distributions. He repeatedly framed Mach as a cash-return company that prefers to wait for distressed asset opportunities rather than pay up in a competitive market. His tone was confident and shareholder-friendly, especially on distributions, saying he prefers to return all CAD to unitholders and let them decide what to do with it.

Kevin White focused on the quarter’s financial execution and capital spending. He cited $319 million of total revenues including hedges and midstream, $183 million of adjusted EBITDA, $165 million of operating cash flow, and $126 million of development CapEx, plus $31 million of cash and $250 million of credit availability at quarter-end. He also confirmed the $0.22 per unit distribution and the $38 million of cash available for distribution behind it.

Analysts pressed on whether Mach would use a lower distribution or buybacks to delever, but management said distributions and deleveraging are separate buckets and that it would not use Q4 distribution cash for debt reduction or repurchases. Questions also focused on 2027 activity, leverage, and M&A; management said leverage can be managed over the next year, especially if natural gas prices improve, and that there is no urgency to issue equity or cut distributions. On drilling, management said Oswego remains the core oil play, with additional options in the Western Anadarko, Red Fork, Clear Fork, and New Mexico acreage, while gas marketing upside could come later as takeaway improves and current San Juan contracts roll off.