Mach Natural Resources LP reported strong first-quarter 2024 results, with an average production of 89.0 thousand barrels of oil equivalent per day and a net income of $42 million.
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Mach Natural Resources Wells Drilled Since 2023
The company declared a quarterly cash distribution of $0.75 per unit and maintained a cash balance of $151 million. Operating expenses were well-controlled, with lease operating expenses at $5.03 per Boe, and total capital expenditures at $80 million. Mach reaffirmed its 2024 guidance and highlighted its focus on maximizing cash returns and maintaining low leverage.
Here is a summary of Mach Natural Resources LP’s (NYSE: MNR) financial and operational results for the first quarter of 2024, along with its 2024 guidance and announced quarterly cash distribution.
Drilling & Completions
In the first quarter of 2024, Mach Natural Resources spud 22 gross (20 net) operated wells and brought online 22 gross (20 net) operated wells. As of March 31, 2024, the company had 8 gross (7 net) operated wells in various stages of drilling and completion.
Budget
In the first quarter of 2024, Mach Natural Resources’ total capital expenditures—excluding acquisitions—were $80 million. This included $75 million of upstream capital and $5 million of other capital (including midstream and land).
Price of Oil
In the first quarter of 2024, Mach Natural Resources reported an average realized price of $77.17 per barrel of oil. The company also provided details on its oil derivative contracts, indicating weighted average fixed prices for 2024 ranging from $72.67 to $78.92 per barrel.
First Quarter 2024 Highlights
- Net Production: Averaged 89.0 thousand barrels of oil equivalent per day (Mboe/d).
- Oil Production: Produced an average of 20.6 thousand barrels of oil per day (MBbl/d).
- Lease Operating Expense: $5.03 per barrel of oil equivalent (Boe), below the low-end of guidance.
- Financial Results:
- Net income: $42 million
- Adjusted EBITDA: $169 million
- Net cash provided by operating activities: $144 million
- Total revenue: $239 million
- Quarterly Cash Distribution: Declared $0.75 per unit.
Operational Results
- Production Mix: 23% oil, 55% natural gas, and 22% NGLs.
- Sales Revenue: $255 million from oil, natural gas, and NGLs sales (57% oil, 24% natural gas, 19% NGLs).
- Wells:
- Spud 22 gross (20 net) operated wells.
- Brought online 22 gross (20 net) operated wells.
- 8 gross (7 net) operated wells in various stages of drilling and completion.
- Expenses:
- Lease operating expense: $41 million ($5.03 per Boe).
- Gathering and processing expenses: $32 million ($3.94 per Boe).
- Production taxes: 5.0% of sales.
- Midstream operating profit: $5 million.
- General and administrative expenses (excluding equity-based compensation): $9 million.
- Interest expense: $26 million.
- Capital Expenditures: $80 million total, including $75 million upstream capital and $5 million other capital (midstream and land).
Conclusion
Mach Natural Resources LP delivered a strong performance in the first quarter of 2024, with solid production numbers, controlled operating expenses, and significant net income. The company declared a quarterly cash distribution of $0.75 per unit and maintained a robust cash balance, reflecting its disciplined financial management. With reaffirmed 2024 guidance and strategic focus on maximizing cash returns, Mach is well-positioned for continued growth and stability. The company remains committed to its operational efficiency and capital expenditure plans, ensuring sustained value for its stakeholders.
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