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Mach Natural Resources LP (MNR)
NYSE:MNR
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Mach Natural Resources LP
(NYSE:MNR)
68Neutral
Mach Natural Resources LP (MNR) vs. S&P 500 (SPY)
Market Cap
$1.55B
Dividend Yield20.43%
Average Volume (3M)272.12K
Price to Earnings (P/E)6.9
Beta (1Y)0.71
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees505
SectorEnergy
Sector Strength53
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.34
Shares Outstanding118,334,520
10 Day Avg. Volume319,463
30 Day Avg. Volume272,117
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.86
Price to Cash Flow (P/CF)3.40
P/FCF Ratio3.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.67Price Target Upside61.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Mach Natural Resources LP Business Overview & Revenue Model
Company DescriptionMach Natural Resources LP, an independent upstream oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas. The company was incorporated in 2023 and is headquartered in Oklahoma City, Oklahoma.
How the Company Makes MoneyMach Natural Resources LP generates revenue through the extraction and sale of oil and natural gas. The company earns money by selling these resources to various markets, including industrial, commercial, and residential sectors. Key revenue streams include the sale of crude oil, natural gas, and natural gas liquids. The company may also engage in partnerships or joint ventures with other energy firms to enhance its exploration and production capabilities, which can contribute to increased earnings. Additionally, fluctuations in global energy prices and demand significantly impact the company's revenue.
Mach Natural Resources LP Financial Statement Overview
Summary
Mach Natural Resources LP demonstrates strong operational capabilities with improvements in cash flow management and a sound balance sheet. However, inconsistencies in revenue growth and a zero net income in 2024 pose challenges to profitability.Income Statement
Mach Natural Resources LP has shown inconsistency in revenue growth, with a significant decline from 2022 to 2023, followed by a recovery in 2024. The Gross Profit Margin improved considerably in 2024, indicating better cost management. However, Net Income has dropped to zero in 2024, impacting the Net Profit Margin negatively. The company needs to focus on improving its profitability to enhance overall performance.65
Positive
Balance Sheet
The company maintains a strong equity base as evidenced by an improving Equity Ratio, reaching approximately 66% in 2024. The Debt-to-Equity Ratio remains manageable, suggesting prudent leverage practices. However, the decline in Stockholders' Equity from 2023 to 2024, despite reduced total liabilities, indicates potential stress on equity returns and a need for careful financial management.75
Positive
Cash Flow
Operating Cash Flow has been stable with a slight increase in 2024, indicating robust operational efficiency. The Free Cash Flow turned positive in 2024 after a significant dip in 2023, reflecting improved cash management practices. The company exhibits a healthy Operating Cash Flow to Net Income Ratio in prior years, although Net Income in 2024 is zero, which could be a concern if this trend continues.80
Positive
| Breakdown | ||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 949.98M | 969.63M | 762.31M | 1.20B | 392.50M | Gross Profit |
| 365.32M | 945.60M | 386.80M | 832.38M | 216.33M | EBIT |
| 317.16M | 290.99M | 359.14M | 644.41M | 155.41M | EBITDA |
| 529.00M | 552.94M | 495.38M | 768.13M | 180.72M | Net Income Common Stockholders |
| -35.81M | 0.00 | 346.56M | 516.84M | 138.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 29.42M | 105.78M | 152.79M | 29.42M | 59.27M | Total Assets |
| 887.44M | 2.34B | 2.30B | 887.44M | 525.38M | Total Debt |
| 99.71M | 756.87M | 824.49M | 99.71M | 85.80M | Net Debt |
| 70.29M | 651.09M | 671.69M | 70.29M | 26.53M | Total Liabilities |
| 294.21M | 786.75M | 1.11B | 294.21M | 246.68M | Stockholders Equity |
| 593.23M | 1.55B | 1.19B | 593.23M | 278.70M |
| Cash Flow | Free Cash Flow | |||
| -500.50M | 505.29M | -577.91M | 310.52M | 157.45M | Operating Cash Flow |
| 481.41M | 505.29M | 491.74M | 553.54M | 198.46M | Investing Cash Flow |
| -908.54M | -306.32M | -1.03B | -372.66M | -194.74M | Financing Cash Flow |
| 552.93M | -245.99M | 658.79M | -210.74M | -4.58M |
Mach Natural Resources LP Technical Analysis
Negative
13.46
Price Trends
14.74
Negative
15.37
Negative
15.80
Negative
Market Momentum
-0.52
Positive
39.22
Neutral
39.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNR, the sentiment is Negative. The current price of 13.46 is below the 20-day moving average (MA) of 14.37, below the 50-day MA of 14.74, and below the 200-day MA of 15.80, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 39.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MNR.
Mach Natural Resources LP Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.19B | 14.18 | 5.44% | 1.69% | -3.77% | -57.93% | |
68 Neutral | $1.55B | 6.93 | 15.49% | 20.43% | ― | ― | |
64 Neutral | $1.25B | 16.92 | -3.11% | ― | 35.37% | -131.25% | |
61 Neutral | $1.38B | 13.70 | 32.48% | 11.02% | -1.39% | -23.38% | |
56 Neutral | $2.17B | 23.27 | -4.74% | 5.73% | 23.01% | -153.02% | |
55 Neutral | $7.08B | 3.69 | -5.71% | 6.15% | -1.38% | -53.90% | |
46 Neutral | $1.48B | ― | -10.00% | ― | -16.89% | -221.79% |
* Energy Sector Average
Performance Comparison
MNR
Mach Natural Resources LP
13.46
-3.93
-22.60%
DMLP
Dorchester Minerals
29.22
-1.95
-6.26%
TALO
Talos Energy
7.38
-6.19
-45.62%
HPK
HighPeak Energy
9.44
-5.45
-36.60%
CRGY
Crescent Energy Company Class A
8.38
-2.20
-20.79%
BKV
BKV Corporation
17.52
-0.53
-2.94%
Mach Natural Resources LP Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -5.87% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
Mach Natural Resources demonstrated strong financial health and strategic execution despite facing low natural gas prices and increased competition. The company maintained a robust distribution strategy and continued efficient operations, planning to capitalize on higher natural gas prices in 2025.Highlights
Strong Financial Performance
Mach Natural Resources maintained a low leverage with a net debt-to-EBITDA ratio of 0.8x, down from 1.0x. The company also achieved a free cash flow of $8.43 per BOE and distributed $310 million to unitholders, maintaining a disciplined reinvestment rate of 47%.
Successful Acquisitions and Drilling
The company made 20 acquisitions since 2018, accumulating over 1 million acres and acquiring assets for $65 million that contributed $78 million of EBITDA in 2024. 35% of the wells drilled achieved over 100% rates of return, and the company plans to increase rigs in 2025 due to higher natural gas prices.
Efficient Operations
Mach reduced LOE by 25% to 35% in every acquisition and maintained low drilling and completion costs, achieving a median payout period of 15 months.
Lowlights
Low Natural Gas Prices in 2024
The year 2024 recorded the lowest natural gas prices since the early 1990s, impacting the company's revenue despite maintaining strong distribution yields.
Increased Competition in Mid-Continent
The Mid-Continent has seen increased interest from well-capitalized competitors, making acquisitions more challenging.
Company Guidance
In the recent earnings call, Mach Natural Resources emphasized their strategic pillars for fiscal year 2024, focusing on maintaining financial strength, disciplined execution, reinvestment rates, and maximizing cash distributions. The company aims for a long-term debt-to-EBITDA ratio of 1x or less, emphasizing low leverage to navigate market volatility. They reported reducing lease operating expenses (LOE) by 25-35% across acquisitions, which contributed to a 2024 EBITDA of $601 million. The reinvestment rate was kept under 50% of operating cash flow, achieving peer-leading variable distributions while targeting projects with at least 50% internal rates of return (IRR). They drilled 45 wells in their Oswego and Woodford programs, with over 35% achieving more than 100% rates of return. The company anticipates spending $225 to $240 million on drilling and completion in 2025, maintaining nearly flat production levels. They reported a net debt-to-EBITDA ratio of 0.8x, and distributed $310 million to unitholders in 2024, achieving a cash return on capital invested of 25%. The strategic approach is underscored by a focus on acquisitions that are accretive to distributions, with plans to bring in additional rigs and continue disciplined reinvestment, even amidst fluctuating commodity prices.Mach Natural Resources LP Corporate Events
M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Mach Natural Resources Reports Strong Q4 2024 Results
Positive
Mar 13, 2025
Mach Natural Resources LP reported its financial and operational results for the fourth quarter and full year 2024, highlighting a net income of $37 million for the quarter and $185 million for the year. The company successfully integrated two acquisitions and closed a bolt-on acquisition, improving its financial position by refinancing its term loan with a new revolving credit facility. Mach declared a quarterly cash distribution of $0.50 per unit for the fourth quarter of 2024, reflecting its commitment to maximizing shareholder returns. The company plans to invest $260 million to $280 million in development for 2025, with a focus on maintaining a reinvestment rate of no more than 50% of operating cash flow.
Private Placements and FinancingBusiness Operations and Strategy
Mach Natural Resources LP Secures New Credit Facility
Positive
Feb 27, 2025
On February 27, 2025, Mach Natural Resources LP announced the successful completion of a senior secured reserve-based revolving credit agreement with a syndicate of ten banks, including Truist Bank as the administrative agent. This new credit facility, with an initial borrowing base of $750 million, was used alongside proceeds from a recent public equity offering to repay and terminate existing credit agreements, thereby streamlining the company’s financial structure and potentially enhancing its operational flexibility.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.