Mach Natural Resources LP has completed $1.3 billion in acquisitions from Sabinal Energy and IKAV Energy Inc., nearly doubling its production and expanding into the Permian and San Juan Basins. The transactions, funded through a mix of debt and equity, also strengthen Mach’s financial position with an upsized $1.0 billion revolving credit facility, a new $450 million term loan, and a borrowing base increase to $1.45 billion.
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Transaction Overview
- Mach completed two acquisitions worth a combined $1.3 billion:
- Sabinal Energy, LLC assets
- Entities owning oil & gas assets managed by IKAV Energy Inc.
- The acquisitions nearly doubled Mach’s production and expanded its portfolio into the Permian Basin and San Juan Basin.
Strategic Impact
- CEO Tom L. Ward emphasized that the deals:
- Advance Mach’s strategic pillars.
- Establish meaningful positions in multiple basins.
- Create a more balanced, multi-basin portfolio.
Financial Structure
- Purchase Price: ~$1.3 billion.
- Funding Mix:
- Borrowings under credit facilities.
- Issuance of Mach common units.
- Equity Issuance:
- Total units outstanding post-deal: ~168 million.
- ~19 million units issued to Sabinal sellers.
- ~31 million units issued to IKAV San Juan sellers.
Credit Facility Amendments
- Revolving credit facility upsized:
- From $750 million → $1.0 billion.
- New term loan: $450 million.
- Total borrowing base:
- Increased from $750 million → $1.45 billion.
✅ In short: Mach used a mix of debt and equity to complete two large acquisitions, nearly doubled its production, entered the Permian & San Juan Basins, and expanded liquidity with a $1.45B borrowing base.
