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Mach Natural Resources LP (MNR)
NYSE:MNR
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Mach Natural Resources LP
(NYSE:MNR)
Rating:73Outperform
Price Target:
$17.00
▲(15.25%Upside)
Mach Natural Resources LP (MNR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.72B
Dividend Yield21.79%
Average Volume (3M)409.20K
Price to Earnings (P/E)9.1
Beta (1Y)0.59
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees505
SectorEnergy
Sector Strength47
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.34
Shares Outstanding118,336,365
10 Day Avg. Volume390,533
30 Day Avg. Volume409,204
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)2.94
Price to Sales (P/S)0.00
P/FCF Ratio5.61
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit3.79
Enterprise Value/Ebitda0.86
Forecast
1Y Price Target
$22.00Price Target Upside49.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Mach Natural Resources LP Business Overview & Revenue Model
Company DescriptionMach Natural Resources LP (MNR) is an energy company operating in the natural resources sector, primarily focused on the exploration, development, and production of oil and natural gas. The company leverages advanced technologies and strategic asset management to maximize resource extraction and efficiency in its operations.
How the Company Makes MoneyMach Natural Resources LP generates revenue through the sale of crude oil and natural gas extracted from its owned and operated wells. The company also engages in strategic partnerships and joint ventures to optimize production and expand its asset base. Revenue streams are primarily derived from the sale of these hydrocarbons on the open market, where prices are influenced by global demand, geopolitical factors, and market speculation. Additionally, Mach Natural Resources LP may enter into hedging contracts to stabilize cash flow amid volatile commodity prices.
Mach Natural Resources LP Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2024)
| % Change Since: 15.87%|
Next Earnings Date:Aug 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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 Financial Statement Overview
Summary
Mach Natural Resources LP exhibits a strong profitability profile with robust cash flow metrics. While there is a slight decline in revenue and net income, the balance sheet remains solid with manageable leverage, and cash flow generation is strong.Income Statement
The company exhibits a strong gross profit margin and stable net profit margin, indicating efficient cost management. The EBIT and EBITDA margins are robust, reflecting solid operational performance. However, there is a slight decline in revenue and net income in the latest TTM period, suggesting potential challenges in sustaining growth amidst market fluctuations.75
Positive
Balance Sheet
The balance sheet shows a favorable equity ratio, highlighting a strong equity base. The debt-to-equity ratio is reasonable, signaling manageable leverage. Return on equity remains healthy, although there is a slight decline in equity growth, which could impact future capital structure flexibility.70
Positive
Cash Flow
The company demonstrates strong cash flow generation capabilities with a high operating cash flow to net income ratio. The free cash flow growth is impressive, indicating good cash management and investment strategies. However, a careful watch on capital expenditures is necessary to maintain this positive cash flow trend.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 961.88M | 969.63M | 762.31M | 1.20B | 392.50M |
| Gross Profit | 477.67M | 331.83M | 386.80M | 832.38M | 216.33M |
| EBITDA | 538.14M | 560.74M | 495.38M | 768.13M | 180.72M |
| Net Income | 344.54M | 370.36M | 346.56M | 516.84M | 138.37M |
Balance Sheet | |||||
| Total Assets | 2.24B | 2.34B | 2.30B | 887.44M | 525.38M |
| Cash, Cash Equivalents and Short-Term Investments | 7.79M | 105.78M | 152.79M | 29.42M | 59.27M |
| Total Debt | 464.99M | 766.17M | 824.49M | 99.71M | 85.80M |
| Total Liabilities | 581.89M | 1.14B | 1.11B | 294.21M | 246.68M |
| Stockholders Equity | 1.66B | 1.55B | 1.19B | 593.23M | 278.70M |
Cash Flow | |||||
| Free Cash Flow | 337.59M | 284.98M | -577.91M | 310.52M | 157.45M |
| Operating Cash Flow | 503.86M | 505.29M | 491.74M | 553.54M | 198.46M |
| Investing Cash Flow | -329.61M | -306.32M | -1.03B | -372.66M | -194.74M |
| Financing Cash Flow | -317.76M | -245.99M | 658.79M | -210.74M | -4.58M |
Mach Natural Resources LP Technical Analysis
Positive
14.75
Price Trends
13.65
Positive
13.77
Positive
14.28
Positive
Market Momentum
0.29
Positive
61.20
Neutral
22.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNR, the sentiment is Positive. The current price of 14.75 is above the 20-day moving average (MA) of 14.33, above the 50-day MA of 13.65, and above the 200-day MA of 14.28, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 22.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MNR.
Mach Natural Resources LP Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.32B | 13.35 | 33.71% | 10.40% | 12.35% | -18.66% | |
73 Outperform | $1.72B | 9.09 | 12.64% | 21.79% | ― | ― | |
73 Outperform | $1.52B | 61.60 | 0.95% | ― | 31.40% | 92.89% | |
72 Outperform | $1.25B | 11.30 | 7.09% | 1.61% | -11.59% | -28.62% | |
67 Neutral | $14.88B | 9.77 | 6.38% | 5.30% | 4.12% | -66.77% | |
59 Neutral | $2.83B | 23.27 | -3.54% | 5.41% | 31.58% | -114.70% | |
56 Neutral | $1.88B | ― | -13.36% | ― | 2.24% | -918.36% |
* Energy Sector Average
Performance Comparison
MNR
Mach Natural Resources LP
14.75
-1.89
-11.36%
DMLP
Dorchester Minerals
27.91
-0.13
-0.46%
TALO
Talos Energy
8.79
-2.86
-24.55%
HPK
HighPeak Energy
10.32
-4.24
-29.12%
CRGY
Crescent Energy Company Class A
9.12
-2.52
-21.65%
BKV
BKV Corporation
23.02
4.97
27.53%
Mach Natural Resources LP Corporate Events
Business Operations and Strategy
Mach Natural Resources Releases New Investor Presentation
Neutral
Jun 11, 2025
On June 10, 2025, Mach Natural Resources LP released a new investor presentation on its website. This announcement may impact stakeholders by providing updated insights into the company’s strategic direction and operational plans.
The most recent analyst rating on (MNR) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Mach Natural Resources LP stock, see the MNR Stock Forecast page.
Private Placements and FinancingM&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Mach Natural Resources LP Reports Q1 2025 Results
Positive
May 8, 2025
Mach Natural Resources LP reported its first quarter 2025 financial and operational results, highlighting a net income of $16 million and an average production of 80.9 thousand barrels of oil equivalent per day. The company declared a quarterly cash distribution of $0.79 per common unit and successfully closed a senior secured reserve-based revolving credit facility with an initial borrowing base of $750 million. Additionally, Mach acquired oil and gas assets from XTO Energy for $60 million, reinforcing its market position and strategic focus on transitioning its drilling program toward natural gas.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.