Mach Natural Resources announces public offering to fund acquisitions

Published 04/09/2024, 14:06
Mach Natural Resources announces public offering to fund acquisitions

OKLAHOMA CITY - Mach Natural Resources LP (NYSE: MNR), an independent upstream oil and gas company, has announced the launch of a public offering of 7,853,403 common units. The company also plans to offer underwriters the option to purchase an additional 1,178,010 units. Mach aims to use the proceeds to fund acquisitions in the Ardmore and Anadarko Basins of Oklahoma and Kansas, as well as for general partnership purposes.

The common units will be available on the New York Stock Exchange under the ticker symbol MNR. Raymond James & Associates, Stifel, Nicolaus & Company, and Truist Securities are the joint book-running managers for the offering, with Johnson Rice & Company and Stephens Inc. as co-managers.

The offering is subject to a prospectus as required by the Securities Act of 1933. Although the registration statement has been filed with the SEC, it is not yet effective, and the securities cannot be sold until the registration is complete.

Mach Natural Resources specializes in the development and production of oil, natural gas, and NGL reserves in the Anadarko Basin region, which spans Western Oklahoma, Southern Kansas, and the Texas panhandle.

The press release contains forward-looking statements regarding the offering and the company's future operations, which are subject to market conditions and other factors. Potential investors are advised to read the company's SEC filings, including risk factors in the annual report, to understand the risks and uncertainties that could affect actual results.

This news article is based on a press release statement from Mach Natural Resources LP.

In other recent news, Mach Natural Resources LP has secured commitments for up to $75 million in additional loans, reinforcing its financial position. The amendments to both the senior secured term loan and revolving credit facilities, facilitated by Texas Capital Bank and MidFirst Bank, are expected to support the company's ongoing operations and strategic initiatives. In addition, the company reported its second quarter results, missing revenue estimates with a figure of $240 million, compared to the projected $256.62 million. Despite this, Mach's net production averaged 89.3 thousand barrels of oil equivalent per day (Mboe/d) in Q2, surpassing the higher end of its guidance. The company also reported a net income of $40 million and Adjusted EBITDA of $136 million for the quarter. Reacting to market conditions, Mach reduced its operated rig count in the Oswego from two rigs to one during Q2, leading to a 15% reduction in its full-year capital expenditure guidance midpoint. These are among the recent developments in Mach Natural Resources LP's operations.

InvestingPro Insights

As Mach Natural Resources LP (NYSE: MNR) prepares for its public offering, investors are keeping a keen eye on the company's financial health and market performance. According to InvestingPro data, MNR's market capitalization stands at approximately $1.82 billion, reflecting the company's size and market value. Despite a challenging market environment, MNR has demonstrated resilience with a gross profit margin of 68.01% over the last twelve months as of Q2 2024, indicating strong operational efficiency.

Investors interested in dividends will find MNR's significant dividend yield of 18.85% particularly attractive, which is a key point of consideration for those seeking income-generating investments. Additionally, the company's stock generally trades with low price volatility, providing a level of stability in a portfolio.

An InvestingPro Tip highlights that analysts predict MNR will be profitable this year, which could be a turning point for the company after not being profitable over the last twelve months. On the other hand, the valuation implies a poor free cash flow yield, suggesting that investors may need to be cautious about the company's ability to generate cash after accounting for capital expenditures.

For those seeking more detailed analysis and additional insights, there are over 6 InvestingPro Tips available on the InvestingPro platform for Mach Natural Resources LP, which can be accessed at https://www.investing.com/pro/MNR. These tips could provide valuable guidance for investors considering participating in the public offering or adding MNR to their investment portfolio.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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