Mach Natural Resources completes $1.3 billion acquisition deal

OKLAHOMA CITY - Mach Natural Resources LP (NYSE:MNR), a profitable energy company with a market capitalization of $1.58 billion and an attractive P/E ratio of 7.45x, announced Tuesday it has completed its previously announced acquisitions of oil and gas assets from Sabinal Energy, LLC and entities owned by IKAV Energy Inc. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates.

The combined purchase price of approximately $1.3 billion was funded through a combination of borrowings under the company’s credit facilities and the issuance of Mach common units. Following the transactions, Mach has approximately 168 million common units outstanding, including about 19 million units issued to Sabinal sellers and 31 million units to IKAV San Juan sellers. The company maintains a notable dividend yield of 11.35% and an attractive EV/EBITDA multiple of 3.73x.

The acquisitions nearly double Mach’s production and establish new positions in the Permian and San Juan Basins, creating a more balanced multi-basin portfolio that now spans the Anadarko, Permian and San Juan Basins.

Concurrent with the acquisitions, Mach announced amendments to its credit facility, including an increase in its revolving credit facility from $750 million to $1.0 billion and the issuance of a new $450 million term loan. These changes have increased the company’s borrowing base from $750 million to $1.45 billion.

"Today marks an important step forward for Mach," said Tom L. Ward, Chief Executive Officer of Mach, in the press release statement. "With the successful completion of these two acquisitions, we have advanced our strategic pillars by nearly doubling production, establishing meaningful positions in the Permian and San Juan Basins, and creating a more balanced, multi-basin portfolio."

The company also provided updated guidance for the third and fourth quarters of 2025 and full-year 2026 guidance, with details available on the company’s website.

In other recent news, Mach Natural Resources reported its second-quarter 2025 earnings, revealing that while revenue exceeded expectations, earnings per share (EPS) did not meet forecasts. The company achieved revenue of $289 million, surpassing the anticipated $260.98 million. However, the EPS was $0.76, falling short of the forecasted $0.88, marking a 13.64% negative surprise. Additionally, analyst firms have been active in assessing Mach Natural Resources. KeyBanc initiated coverage with an Overweight rating and a price target of $18.00, emphasizing the company’s operational strategy and cost reduction focus. Meanwhile, William Blair started coverage with an Outperform rating, highlighting Mach’s strong financial position and peer-leading distribution strategy. William Blair also noted the company’s impressive 22% dividend yield and commitment to disciplined financial management. These developments provide investors with diverse insights into Mach Natural Resources’ current standing.

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