Mach Natural Resources LP: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 7 May 2026: press release. Guidance figures: 1 raised. The quarter’s numbers.

Key takeaways

Net loss and Adjusted EBITDA: The company reported a net loss of $35 million, compared with net income of $73 million in the fourth quarter of 2025. Adjusted EBITDA was $195 million, compared with $187 million. Source
Production above full-year range: Net production averaged 158 Mboe/d, up from 154 Mboe/d in the fourth quarter of 2025 and above the 150 to 157 MBoe/d full-year 2026 range stated in the March release. Source
Deep Anadarko drilling paused: The company paused Deep Anadarko drilling and began moving capital to higher-return, oil-weighted projects in the Mid-Continent. Source
Realized prices rose from fourth quarter: Realized prices excluding derivatives were $69.73 per barrel of oil, $2.74 per Mcf of gas and $23.75 per barrel of NGLs, against $58.14, $2.54 and $21.28 in the fourth quarter of 2025. Source
Lease operating expense per Boe fell: Lease operating expense was $101 million, or $7.12 per Boe, compared with $7.50 per Boe in the fourth quarter of 2025. Source
Oil-weighted redirection of drilling: Management said the company began shifting its drilling program toward oil during the quarter, citing the optionality of its asset base and the flexibility of its operations. Source

“Mach is off to a strong start in 2026, executing at a high level and delivering results in line with our plan”
Tom L. Ward, Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Distribution Source	first quarter of 2026 (paid June 4, 2026)	$0.64 per common unit	Raised from $0.53 per common unit
Total capital for development	full year 2026	$315 million to $360 million
Total net production	full year 2026	150 MBoe/d to 157 MBoe/d
Reinvestment rate	2026	no more than 50% of operating cash flow

What changed from last quarter

Guidance raised: The quarterly distribution per common unit increased from $0.53 for the fourth quarter of 2025 to $0.64 for the first quarter of 2026. Source
New: After pausing Deep Anadarko drilling, the company began redirecting capital to oil-weighted projects in the Mid-Continent, with the Oswego program restarting in May 2026. Source
New: The company spud its first operated Mancos Shale well in the San Juan Basin. Source

Results and growth drivers

Net loss and Adjusted EBITDA: The company reported a net loss of $35 million, compared with net income of $73 million in the fourth quarter of 2025. Adjusted EBITDA was $195 million, compared with $187 million. Source
Unrealized derivative loss rose to $103.8 million: The reconciliation shows an unrealized loss on derivative instruments of $103.8 million in the first quarter of 2026, against $42.3 million in the same quarter of 2025. Source
Revenue fell from fourth quarter: Total revenue was $286 million, compared with $388 million in the fourth quarter of 2025. Source
Production above full-year range: Net production averaged 158 Mboe/d, up from 154 Mboe/d in the fourth quarter of 2025 and above the 150 to 157 MBoe/d full-year 2026 range stated in the March release. Source
Operating cash flow rose to $170 million: Net cash provided by operating activities was $170 million, compared with $129 million in the fourth quarter of 2025. Source

Segments and regions

Deep Anadarko drilling paused: The company paused Deep Anadarko drilling and began moving capital to higher-return, oil-weighted projects in the Mid-Continent. Source
Oswego program restarts in May: The Oswego drilling program restarted in May 2026 as part of the shift in the drilling program. Source
First operated Mancos well spud: The company spud its first operated Mancos Shale well in the San Juan Basin during the quarter. Source

“During the quarter, we began shifting our drilling program toward oil, demonstrating the optionality of our asset base and the flexibility of our operations.”
Tom L. Ward, Chief Executive Officer

Products and pricing mix

Gas share of production 70%: Production was 16% oil, 70% natural gas and 14% NGLs, against 17%, 68% and 15% in the fourth quarter of 2025. Source
Oil share of sales revenue: Oil, natural gas and NGL sales totaled $366 million, with oil at 42%, natural gas at 45% and NGLs at 13%. Source
Realized prices rose from fourth quarter: Realized prices excluding derivatives were $69.73 per barrel of oil, $2.74 per Mcf of gas and $23.75 per barrel of NGLs, against $58.14, $2.54 and $21.28 in the fourth quarter of 2025. Source

Costs and margins

Lease operating expense per Boe fell: Lease operating expense was $101 million, or $7.12 per Boe, compared with $7.50 per Boe in the fourth quarter of 2025. Source
Gathering costs per Boe rose: Gathering and processing expenses were $59 million, or $4.18 per Boe, compared with $46 million, or $3.22 per Boe, in the fourth quarter of 2025. Source
Production taxes and midstream profit: Production taxes were about 4.5% of oil, natural gas and NGL sales, and midstream operating profit was about $5 million. Source
Interest and G&A expense: General and administrative expense excluding equity-based compensation was $5 million, and interest expense was $24 million. Source

“As we move through the year, we will remain nimble and disciplined, allocating capital to highest-return opportunities and staying aligned with our core objective of maximizing distributions”
Tom L. Ward, Chief Executive Officer

Drilling activity

Eight operated wells in progress: At quarter end, eight gross (6.0 net) operated wells were in various stages of drilling and completion. Source
Wells in progress at year-end: At December 31, 2025, the company had seven gross (5.3 net) operated wells in various stages of drilling and completion.

Capital, cash and returns

Development spending of $75 million: Total development costs were $75 million, including $67 million of upstream capital and $8 million of other capital, which covers midstream and land. Source
Reinvestment rate of 41%: The reinvestment rate was 41% for the quarter, compared with 47% for full-year 2025. Source
Liquidity at quarter end: Cash was $53 million, and $695 million was drawn on the $1.0 billion revolver, leaving approximately $358 million of available liquidity. Source
Distribution payable June 4: The distribution is to be paid June 4, 2026, to unitholders of record as of the close of trading on May 21, 2026. Source

Strategy and capital allocation

Oil-weighted redirection of drilling: Management said the company began shifting its drilling program toward oil during the quarter, citing the optionality of its asset base and the flexibility of its operations. Source
Capital allocated to highest-return projects: Management said it will remain nimble and disciplined through the year, allocating capital to the highest-return projects while aiming to maximize distributions. Source
Measured reinvestment approach retained: Management tied the first quarter distribution to its continued ability to generate returns while keeping its measured reinvestment approach. Source

Coming up, as management said on 7 May 2026

Oswego drilling restarts May 2026: The Oswego drilling program restarted in May 2026, as the company moves capital toward oil-weighted projects. Source
Distribution payable June 4: The $0.64 per common unit distribution is to be paid June 4, 2026, to unitholders of record as of May 21, 2026. Source

Figures management reported

Figure	Reported
Production volume Source	158 Mboe/d
Realized oil price Source	$69.73 per barrel
Realized natural gas price Source	$2.74 per Mcf
Realized NGL price Source	$23.75 per barrel
Capital expenditure (total development costs) Source	$75 million
Reinvestment rate Source	41%
Lease operating expense per Boe Source	$7.12 per Boe
Gathering and processing expense per Boe Source	$4.18 per Boe
Production taxes as a percentage of sales Source	4.5%
Distribution per common unit Source	$0.64 per common unit

Earlier plans management reported on

On track: Management described first quarter 2026 results as in line with plan. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Mach Natural Resources LP Reports First Quarter 2026 Results; Declares Quarterly Cash Distribution of $0.64 Per Common Unit

OKLAHOMA CITY, Oklahoma, May 7, 2026 - Mach Natural Resources LP (NYSE: MNR) (“Mach” or the “Company”) today reported financial and operating results for the three months ended March 31, 2026. The Company also announced its quarterly cash distribution.

First Quarter 2026 Highlights

Averaged total net production of 158 thousand barrels of oil equivalent per day (“Mboe/d”)
Lease operating expense of $7.12 per barrel of oil equivalent (“Boe”)
Reported a net loss and Adjusted EBITDA of $35 million and $195 million, respectively
Generated net cash provided by operating activities of $170 million
Incurred total development costs of $75 million, resulting in a reinvestment rate of 41%
Declared a quarterly cash distribution of $0.64 per common unit

Recent Highlights

Spud the Company’s first operated Mancos Shale well in the San Juan Basin
Paused Deep Anadarko drilling activity and began redirecting capital to higher return, oil-weighted projects in the Mid-Continent, marked by a restart of the Oswego drilling program in May of 2026

“Mach is off to a strong start in 2026, executing at a high level and delivering results in line with our plan,” said Tom L. Ward, Chief Executive Officer. “Our first quarter distribution of $0.64 per common unit reflects our continued ability to generate and deliver attractive unitholder returns while upholding our measured reinvestment approach.”

Tom L. Ward continued, “During the quarter, we began shifting our drilling program toward oil, demonstrating the optionality of our asset base and the flexibility of our operations. As we move through the year, we will remain nimble and disciplined, allocating capital to highest-return opportunities and staying aligned with our core objective of maximizing distributions.”

First Quarter 2026 Financial Results

Mach reported total revenue and a net loss of $286 million and $35 million in the first quarter of 2026, respectively. Additionally, during the first quarter, average realized prices were $69.73 per barrel of oil, $2.74 per Mcf of natural gas, and $23.75 per barrel of natural gas liquids (“NGLs”). These prices exclude the effects of derivatives.

As of March 31, 2026, Mach had a cash balance of $53 million and $695 million utilized under its $1.0 billion revolving credit facility, leaving approximately $358 million of available liquidity.

First Quarter 2026 Operational Results

During the first quarter of 2026, Mach achieved average oil equivalent production of 158 Mboe/d, which consisted of 16% oil, 70% natural gas and 14% NGLs. Also, for the first quarter of 2026, Mach’s production revenues from oil, natural gas, and NGLs sales totaled $366 million, comprised of 42% oil, 45% natural gas, and 13% NGLs.

The Company spud 5 gross (3.2 net) operated wells and brought online 4 gross (3.0 net) operated wells in the first quarter of 2026. As of March 31, 2026, the Company had 8 gross (6.0 net) operated wells in various stages of drilling and completion.

Mach’s lease operating expense in the first quarter of 2026 was $101 million, or $7.12 per Boe. Mach incurred $59 million, or $4.18 per Boe, of gathering and processing expenses in the first quarter of 2026. Furthermore, during the first quarter of 2026, production taxes as a percentage of oil, natural gas, and NGL sales were approximately 4.5%, midstream operating profit was approximately $5 million, general and administrative expenses - excluding equity-based compensation of $4 million - was $5 million, and interest expense was $24 million.

In the first quarter of 2026, Mach’s total development costs were $75 million, including $67 million of upstream capital and $8 million of other capital (including midstream and land).

Distributions

Mach announced today that the board of directors of its general partner declared a quarterly cash distribution for the first quarter of 2026 of $0.64 per common unit. The quarterly cash distribution is to be paid on June 4, 2026, to the Company’s unitholders of record as of the close of trading on May 21, 2026.

Conference Call and Webcast Information

Mach will host a conference call and webcast at 9:00 a.m. Central (10:00 a.m. Eastern) on Friday, May 8, 2026, to discuss its first quarter 2026 results. Supplemental slides will be posted to the Company’s website. Participants can access the conference call by dialing 877-407-2984. A webcast link to the conference call will be provided on the Company’s website at www.machnr.com. A replay will also be available on the Company’s website following the call.

Adjusted EBITDA is a non-GAAP financial measure. Mach has defined this measure and provided reconciliations of this non-GAAP financial measure to its most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”) at the conclusion of this press release under “Non-GAAP Financial Measures and Disclosures.”

About Mach Natural Resources LP

Mach Natural Resources LP is an independent upstream oil and gas company focused on the acquisition, development and production of oil, natural gas, and NGL reserves. The Company operates a diversified portfolio across the Anadarko, Permian and San Juan Basins. For more information, please visit www.machnr.com.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Mach Natural Resources LP

Investor Relations Contact: ir@machnr.com

Non-GAAP Financial Measures and Disclosures

This press release includes non-GAAP financial measures. Pursuant to regulatory disclosure requirements, Mach is required to reconcile non-GAAP financial measures to the related GAAP information. Reconciliations of these non-GAAP measures are provided below. Reconciliations of these non-GAAP measures, along with other financial and operational disclosures, are also within the supplemental tables that are available on the Company’s website at www.machnr.com and in the related Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”).

Adjusted EBITDA

We include in this Quarterly Report the supplemental non-GAAP financial performance measure Adjusted EBITDA and provide our calculation of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, our most directly comparable financial measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income before (1) interest expense, net, (2) depreciation, depletion, amortization and accretion, (3) unrealized (gain) loss on derivative instruments, (4) loss on debt extinguishment, (5) equity-based compensation expense and (6) loss (gain) on sale of assets, net.

Adjusted EBITDA is used as a supplemental financial performance measure by our management and by external users of our financial statements, such as industry analysts, investors, lenders, rating agencies and others, to more effectively evaluate our operating performance and our results of operation from period to period and against our peers without regard to financing methods, capital structure or historical cost basis. We exclude the items listed above from net income in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as indicators of our operating performance. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax burden, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDA. Our presentation of Adjusted EBITDA should not be construed as an inference that our results will be unaffected by unusual items. Our computations of Adjusted EBITDA may not be identical to other similarly titled measures of other companies.

Reconciliation of GAAP Financial Measure to Adjusted EBITDA

	Three Months Ended March 31,
($ in thousands)	2026	2025
Net Income Reconciliation to Adjusted EBITDA:
Net (loss) income	$(35,038)	$15,886
Interest expense, net	24,163	17,417
Depreciation, depletion, amortization and accretion	98,173	63,585
Unrealized loss on derivative instruments	103,769	42,340
Loss on debt extinguishment	-	18,540
Equity-based compensation expense	3,549	2,112
Loss (gain) on sale of assets	8	(29)
Adjusted EBITDA	$194,624	$159,851

Cautionary Note Regarding Forward-Looking Statements

Forward-looking statements notice

This release contains statements that express the Company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect historical facts. All statements, other than statements of historical fact included in this release regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this release, words such as “may,” “assume,” “forecast,” “could,” “should,” “will,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “budget” and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Specific forward-looking statements include statements regarding the Company’s projected results of operating, financial position, growth opportunities and reserve estimates. These forward-looking statements are based on management’s current belief, based on currently available information as to the outcome and timing of future events at the time such statement was made. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. These include, but are not limited to, the Company’s future financial condition, results of operations and ability to achieve the guidance provided, strategy and plans; the ability of the Company to realize anticipated synergies related to the closing of the Permian Basin and San Juan Basin transactions in the timeframe expected or at all; changes in markets and the ability of the Company to finance operations in the manner expected; commodity price volatility; the impact of epidemics, outbreaks or other public health events, and the related effects on financial markets, worldwide economic activity and our operations; uncertainties about our estimated oil, natural gas and NGL reserves, including the impact of commodity price declines on the economic producibility of such reserves, and in projecting future rates of production; difficult and adverse conditions in the domestic and global capital and credit markets; lack of transportation and storage capacity as a result of oversupply, government regulations or other factors; lack of availability of drilling and production equipment and services; potential financial losses or earnings reductions resulting from our commodity price risk management program or any inability to manage our commodity risks; failure to realize expected value creation from property acquisitions and trades; access to capital and the timing of development expenditures; environmental, weather, drilling and other operating risks; regulatory changes, including potential shut-ins or production curtailments mandated by the Railroad Commission of Texas, the Oklahoma Corporation Commission and/or the Kansas Corporation Commission; competition in the oil and natural gas industry; loss of production and leasehold rights due to mechanical failure or depletion of wells and our inability to re-establish their production; our ability to service our indebtedness; any downgrades in our credit ratings that could negatively impact our cost of and ability to access capital; cost inflation; the potential for significant new tariffs and their impact on global oil, natural gas and NGL markets; political and economic conditions and events in foreign oil and natural gas producing countries, including embargoes, continued hostilities in the Middle East and other sustained military campaigns, the war in Ukraine and associated economic sanctions on Russia, conditions in South America, Central America, China and Russia, and acts of terrorism or sabotage; evolving cybersecurity risks such as those involving unauthorized access, denial-of-service attacks, malicious software, data privacy breaches by employees, insiders or others with authorized access, cyber or phishing-attacks, ransomware, social engineering, physical breaches or other actions; and risks related to our ability to expand our business, including through the recruitment and retention of qualified personnel. Please read the Company’s filings with the SEC, including “Risk Factors” in the Company’s Annual Report on Form 10-K, which is on file with the SEC, for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements.

As a result, these forward-looking statements are not a guarantee of our performance, and you should not place undue reliance on such statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.