The following is a summary of the Mach Natural Resources LP (MNR) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Mach Natural Resources reported total revenues of $232 million with oil, gas, and NGLs contributing 65%, 15%, and 20% respectively.

• Adjusted EBITDA was $136 million, with operating cash flow of $117 million.

• They paid $21 million towards principal on their first lien term loan and declared a quarterly cash distribution of $0.90 per unit.

Business Progress:

• Mach averaged 89.3 MBOE per day, exceeding the upper end of guidance, with continuous cost control and efficient drilling.

• Divested a portion of Western Anadarko acreage for $38 million to enhance distribution without affecting near-term drilling inventory.

• Mach Natural Resources maintains strategic flexibility, planning to expand beyond Mid-Continent to regions with less expensive cash flowing assets.

Opportunities:

• Mach controls approximately 1 million acres and plans to expand to other basins where production costs for cash flowing assets are lower, potentially enhancing distributions per unit.

• The company is considering acquisitions outside of the Mid-Con basin, reflecting a strategic shift towards areas with cheaper productive assets.

Risks:

• The company faces increased competition for deals within Oklahoma, which has inflated costs and could affect future acquisitions.

• A very low realized price of $1.33 per Mcf for natural gas impacts revenue, and any continued low prices could harm projected distributions.

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