Mach Natural Resources LP has announced two major acquisitions totaling $1.3 billion, marking a significant expansion of its asset base and production footprint. Through definitive agreements to acquire oil and gas assets from Sabinal Energy, LLC and IKAV Energy Inc., Mach is entering the Permian Basin and San Juan Basin, complementing its existing Mid-Continent operations.
Oil & Gas Texas Operator Account Directory – $10
Includes: Account Name, Location, Phone, Website, Wells Drilled….
🔑 Key Deal Highlights:
- $1.3B Total Consideration
Funded via $762M in equity (Mach common units) and $525M in cash & credit facility borrowings - Effective Date: April 1, 2025
Expected Close: Q3 2025
🚀 Strategic Impact
✅ Doubles Production
Mach’s production will increase from 81 Mboe/d to 152 Mboe/d, with natural gas share rising from 53% to 66%.
✅ Adds 700,000 Net Acres
Brings total acreage to 2.8 million net acres—a 33% increase.
✅ Diversifies by Basin
Mach will now operate in:
- Mid-Continent (55% production)
- Permian (via Sabinal: 130,000 acres | 11 Mboe/d | 98% liquids)
- San Juan (via IKAV: 570,000 acres | 60 Mboe/d | 94% gas)
⚙️ Operational and Financial Benefits
- Accretive to Cash Available for Distribution
- Reinvestment rate remains below 50%
- Low leverage maintained
- Discount to PDP PV-10 valuation
- Future drilling upside: potential to deploy a rig in San Juan Dry Gas Mancos Shale by Spring 2026
🗣️ Executive Commentary
Tom L. Ward, CEO of Mach:
“These acquisitions are transformative… we significantly enhance our scale and gain strategic multi-basin positioning, all while maintaining a resilient balance sheet.”
William W. McMullen, Chairman, Mach:
“With these two transactions, we grew Mach’s production by 88%. These acquisitions strengthen what is already the most attractive yield in the oil and gas space.”
IKAV Chairman and Kayne Anderson also highlighted the value potential of the assets and their alignment with Mach’s strategy.
📊 Pro Forma Production Snapshot
| Metric | Mach | Sabinal | IKAV San Juan | Pro Forma Mach |
|---|---|---|---|---|
| Oil (MBbls/d) | 20 | 10 | – | 30 |
| NGLs (MBbls/d) | 18 | – | 4 | 22 |
| Gas (MMcf/d) | 258 | 2 | 336 | 596 |
| Total (Mboe/d) | 81 | 11 | 60 | 152 |
| Liquids/Gas Mix | 47/53 | 98/2 | 6/94 | 34/66 |
🏁 Conclusion
These acquisitions mark a strategic leap for Mach Natural Resources, positioning it as a multi-basin consolidator with a focus on cash flow, unitholder returns, and long-term operational flexibility. With a presence now in the Mid-Continent, Permian, and San Juan basins, Mach is well-poised to pursue further growth and efficiency.
