Street Calls of the Week
Investing.com - Stifel maintained its Buy rating and $22.00 price target on Mach Natural Resources (NYSE:MNR) after the company completed strategic acquisitions in the Permian and San Juan basins. According to InvestingPro data, MNR currently trades at $13.67 with a P/E ratio of 7.45x, suggesting potential upside to the analyst target. The company maintains a healthy 11.12% dividend yield, making it one of the highest-yielding energy stocks.
The energy partnership announced it has finalized transactions to acquire assets from Sabinal Energy LLC and IKAV Energy for approximately $1.3 billion, expanding its operational footprint in two major U.S. oil and gas regions.
Following the transaction closings, Mach Natural Resources provided updated guidance for the second half of 2025 and fiscal year 2026, reflecting the anticipated impact of these acquisitions on its financial outlook.
Stifel analyst Selman Akyol noted that after incorporating the new acquisitions and guidance updates into the firm’s financial models, their $22 price target for MNR remains unchanged.
The firm’s maintained Buy rating suggests continued confidence in Mach Natural Resources’ growth strategy through these basin-focused acquisitions.
In other recent news, Mach Natural Resources reported its second-quarter 2025 earnings, revealing a mixed financial performance. The company’s revenue surpassed expectations, reaching $289 million, which was above the anticipated $260.98 million. However, earnings per share (EPS) fell short of forecasts, posting $0.76 compared to the expected $0.88. In a significant corporate move, Mach Natural Resources completed a $1.3 billion acquisition of oil and gas assets from Sabinal Energy and IKAV Energy. This transaction was funded through a combination of credit facility borrowings and the issuance of Mach common units. Analyst firms have been active with their ratings; KeyBanc maintained its Overweight rating, while William Blair initiated coverage with an Outperform rating. KeyBanc also set a price target of $18.00 for the company’s stock. William Blair highlighted Mach’s strong financial position and distribution strategy. These developments reflect ongoing strategic and financial activities at Mach Natural Resources.
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