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Investing.com - KeyBanc has maintained its Overweight rating and $18.00 price target on Mach Natural Resources (NYSE:MNR) following the company’s completion of its acquisitions of IKAV and Sabinal. According to InvestingPro data, the stock appears undervalued, with analyst targets ranging from $18 to $22, while maintaining strong profitability with a P/E ratio of 7.45.
The acquisitions, which KeyBanc had previously forecast to close on September 30, were finalized on Monday, September 16, according to the research firm’s analyst note.
KeyBanc has adjusted its earnings estimates downward, primarily due to the full impact of physical swaps on 65% of San Juan Basin natural gas at $1.72/mcf, which the firm states it had previously underestimated.
The updated modeling also reflects a decline in oil production as Mach Natural Resources shifts its focus toward natural gas operations, according to KeyBanc.
The research firm’s analysis incorporates the 2026 guidance that Mach Natural Resources provided when announcing the completion of what KeyBanc described as "transformational acquisitions."
In other recent news, Mach Natural Resources reported its second-quarter 2025 earnings, showing mixed results. The company’s revenue exceeded expectations, reaching $289 million compared to the anticipated $260.98 million. However, earnings per share (EPS) fell short, posting $0.76 against the forecasted $0.88, marking a 13.64% negative surprise. Additionally, Mach Natural Resources completed a significant $1.3 billion acquisition of oil and gas assets from Sabinal Energy and IKAV Energy, financed through credit facilities and issuing common units. This acquisition resulted in approximately 168 million common units outstanding. Analyst coverage on the company has been positive, with KeyBanc initiating an Overweight rating and a price target of $18.00. William Blair also initiated coverage with an Outperform rating, citing the company’s strong financial position and peer-leading distribution strategy. These developments reflect Mach Natural Resources’ ongoing strategic initiatives and financial performance.
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