Mach Natural Resources LP : Quarterly Results (Q1 2025 Supplemental Tables FINAL)

Published: 2025-05-08 20:08:40 ET MNR

Published on 05/08/2025 at 20:08

Consolidated Balance Sheets 2

Consolidated Statements of Cash Flows 4

Consolidated Statements of Operations 3

Non-GAAP Financial Measures and Reconciliations 6

2025 Guidance 5

Derivative Contracts 8

ASSETS

Current assets:

Cash and cash equivalents

$ 7,790

$ 105,776

Accounts receivable - joint interest and other, net

31,729

38,606

Accounts receivable - oil, gas, and NGL sales

124,936

132,945

Short-term derivative assets

14,069

Inventories

25,089

24,301

Other current assets

6,129

6,399

Total current assets

195,673

322,096

Oil and natural gas properties, using the full cost method:

Proved oil and natural gas properties

2,494,675

2,419,998

Less: accumulated depreciation, depletion and amortization

(579,780)

(520,641)

Oil and natural gas properties, net

1,914,895

1,899,357

Other property, plant and equipment

116,443

115,475

Less: accumulated depreciation

(26,032)

(23,710)

Other property, plant and equipment, net

90,411

91,765

Long-term derivative assets

114

640

Other assets

27,254

9,487

Operating lease assets

13,755

14,869

Total assets

$ 2,242,102

$ 2,338,214

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$ 43,886

$ 52,440

Accounts payable - related party

1,802

1,996

Accrued liabilities

52,091

53,500

Revenue payable

147,131

150,165

Short-term derivative liabilities

31,951

6,233

Current portion of long-term debt

82,500

Current portion of operating lease liabilities

4,992

5,587

Total current liabilities

281,853

352,421

Long-term debt

460,000

668,778

Asset retirement obligations

103,937

101,858

Long-term derivative liabilities

6,900

4,873

Long-term portion of operating leases

8,795

9,302

Other long-term liabilities

2,256

1,936

Total long-term liabilities

581,888

786,747

Commitments and contingencies (Note 10)

Partners' capital:

Partners' capital

1,378,361

1,199,046

Total liabilities and partners' capital

$ 2,242,102

$ 2,338,214

2025

2024

Revenue

Oil, natural gas, and NGL sales

$ 252,726

$ 255,240

Loss on oil and natural gas derivatives

(40,693)

(29,268)

Midstream revenue

6,130

6,219

Product sales

8,605

6,964

Total revenues

226,768

239,155

Operating expenses

Gathering and processing

28,161

31,942

Lease operating expense

48,752

40,760

Production taxes

12,774

12,752

Midstream operating expense

2,970

2,559

Cost of product sales

7,987

6,100

Depreciation, depletion, amortization and accretion - oil and natural gas

61,185

65,372

Depreciation and amortization - other

2,400

2,098

General and administrative

9,017

8,478

General and administrative - related party

1,850

Total operating expenses

175,096

171,911

Income from operations

51,672

67,244

Other (expense) income

Interest expense

(17,894)

(26,285)

Loss on debt extinguishment

(18,540)

Other income (expense), net

648

743

Total other expense

(35,786)

(25,542)

Net income

$ 15,886

$ 41,702

Net income per common unit:

Basic

$ 0.14

$ 0.44

Diluted

$ 0.14

$ 0.44

Weighted average common units outstanding:

Basic

112,125

95,000

Diluted

112,199

95,005

2025

2024

Cash flows from operating activities

Net income

$ 15,886

$ 41,702

Adjustments to reconcile net income to cash provided by operating activities

Depreciation, depletion, amortization and accretion

63,585

67,470

Loss on derivative instruments

40,693

29,268

Loss on debt extinguishment

18,540

Cash receipts on settlement of derivative contracts

4,428

6,557

Debt issuance costs and discount amortization

1,416

1,268

Equity based compensation

2,112

1,182

Adjustments to expected credit losses

(249)

454

Gain on sale of assets

(29)

(11)

Settlement of asset retirement obligations

(18)

(28)

Changes in operating assets and liabilities increasing (decreasing) cash:

Accounts receivable

8,001

(32,758)

Revenue payable

(3,034)

33,359

Accounts payable and accrued liabilities

(5,377)

(5,014)

Other

(3,435)

504

Net cash provided by operating activities

142,519

143,953

Cash flows from investing activities

Capital expenditures for oil and natural gas properties

(50,316)

(49,879)

Capital expenditures for other property and equipment

(1,071)

(4,277)

Acquisition of assets

(29,303)

(1,151)

Proceeds from sales of oil and natural gas properties

2,627

447

Proceeds from sales of other property and equipment

140

Net cash used in investing activities

(78,010)

(54,720)

Cash flows from financing activities

Proceeds from offering, net of offering costs

221,553

Repayments of borrowings on term note

(763,125)

Payments of debt extinguishment costs

(7,741)

Proceeds from borrowings on credit facilities

533,000

Repayments of borrowings on credit facilities

(73,000)

Debt issuance costs

(13,923)

(475)

Distributions to unitholders

(59,190)

(90,250)

Withholding taxes paid on vesting of phantom units

(69)

Net cash used in financing activities

(162,495)

(90,725)

Net decrease in cash and cash equivalents

(97,986)

(1,492)

Cash and cash equivalents, beginning of period

105,776

152,792

Cash and cash equivalents, end of period

$ 7,790

$ 151,300

‌2025 Guidance:‌

2025

Full-Year

Net Production Guidance

Oil (MBbls/d)

18 - 19

NGLs (MBbls/d)

18 - 19

Natural Gas (MMcf/d)

256 - 269

Total (Mboe/d)

79 - 83

Price Realizations Guidance (excluding derivatives)

Oil (differential to NYMEX WTI) ($/Bbl)

($1.50) - ($0.50)

NGLs (% of WTI)

31% - 35%

Natural Gas (differential to NYMEX Henry Hub) ($/Mcf)

($0.45) - ($0.25)

Other Guidance Items

Lease Operating Expense ($/Boe)

$6.25 - $6.50

Gathering and Processing ($/Boe)

$3.00 - $3.30

Production Taxes (% of Oil, natural gas, and NGL sales)

5.0% - 6.0%

Midstream Operating Profit ($MM)

$15 - $18

General and Administrative, excluding equity-based compensation ($MM)

$30 - $34

Interest Expense ($MM)

$53 - $58

Capital Expenditure Guidance ($MM)

Upstream (D&C and Workovers)

$225 - $240

Other (Midstream and Land)

$35 - $40

Total

$260 - $280

Adjusted EBITDA

We include in the tables below 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 measures 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 loss (gain) 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.

Cash Available for Distribution

Cash available for distribution is not a measure of net income or net cash flow provided by or used in operating activities as determined by GAAP. Cash available for distribution is a supplemental non-GAAP financial performance measure used by our management and by external users of our financial statements, such as industry analysts, investors, lenders, rating agencies and others, to assess our ability to internally fund our exploration and development activities, pay distributions, and to service or incur additional debt. We define cash available for distribution as net income adjusted for (1) interest expense, net, (2) depreciation, depletion, amortization and accretion, (3) unrealized loss (gain) on derivative instruments,

(4) loss on debt extinguishment, (5) equity-based compensation expense, (6) (gain) loss on sale of assets, net, (7) cash interest expense, net, (8) development costs and (9) change in accrued realized derivative settlements. Development costs include all of our capital expenditures, other than acquisitions. Cash available for distribution will not reflect changes in working capital balances. Cash available for distribution is not a measurement of our financial performance or liquidity under GAAP and should not be considered as an alternative to, or more meaningful than, net income or net cash provided by or used in operating activities as determined in accordance with GAAP or as indicators of our financial performance and liquidity. The GAAP measures most directly comparable to cash available for distribution are net income and net cash provided by operating activities. Cash available for distribution should not be considered as an alternative to, or more meaningful than, net income or net cash provided by operating activities.

The following table presents our reconciliation of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measures Adjusted EBITDA and cash available for distribution, as applicable, for each of the periods indicated.

($ in thousands)

2025

2024

Net Income Reconciliation to Adjusted EBITDA:

Net income

$ 15,886

$ 41,702

Interest expense, net

17,417

25,072

Depreciation, depletion, amortization and accretion

63,585

67,470

Unrealized loss on derivative instruments

42,340

33,223

Loss on debt extinguishment

18,540

Equity-based compensation expense

2,112

1,182

Gain on sale of assets

(29)

(11)

Adjusted EBITDA

$ 159,851

$ 168,638

Net Income Reconciliation to Cash Available for Distribution:

Net income

$ 15,886

$ 41,702

Interest expense, net

17,417

25,072

Depreciation, depletion, amortization and accretion

63,585

67,470

Unrealized loss on derivative instruments

42,340

33,223

Loss on debt extinguishment

18,540

Equity-based compensation expense

2,112

1,182

Gain on sale of assets

(29)

(11)

Cash interest expense, net

(16,000)

(23,804)

Development costs

(52,055)

(80,425)

Change in accrued realized derivative settlements

2,780

2,602

Cash available for distribution

$ 94,576

$ 67,011

The table below represents a summary of the Company's derivative contracts as of May 1, 2025:

2025

Oil Volumes (MBbl)

772

658

610

Weighted Average Fixed Price (per Bbl)

72.23

68.57

$68.21

2026

Oil Volumes (MBbl)

572

270

256

244

Weighted Average Fixed Price (per Bbl)

$67.41

$73.12

$66.20

$65.34

2027

Oil Volumes (MBbl)

233

Weighted Average Fixed Price (per Bbl)

$64.96

Natural Gas Derivative Contracts

2025

Natural Gas Volumes (Bbtu)

10,974

10,488

10,065

Weighted Average Fixed Price (per Mmbtu)

3.48

3.58

$4.03

2026

Natural Gas Volumes (Bbtu)

9,689

4,679

4,526

4,386

Weighted Average Fixed Price (per Mmbtu)

$4.04

$3.53

$3.77

2027

Natural Gas Volumes (Bbtu)

4,257

Weighted Average Fixed Price (per Mmbtu)

$4.36

Disclaimer

Mach Natural Resources LP published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 22:28 UTC.