Mach Natural Resources LP: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. Guidance figures: 1 raised. The quarter’s numbers.

Key takeaways

Revenue and net income reported: Total revenue was $406 million and net income was $98 million. The first quarter had a net loss of $35 million on revenue of $286 million. Source
Net production averaged 148.9 Mboe/d: Oil averaged 22.7 MBbl/d within the total. First-quarter 2026 production averaged 158 Mboe/d. Source
Realized prices rose across products: Realized prices were $95.40 per barrel of oil, $1.93 per Mcf of gas and $28.99 per barrel of NGLs. First-quarter prices were $69.73, $2.74 and $23.75. Source
Lease operating expense per Boe rose: Lease operating expense was $98 million, or $7.21 per Boe, against $101 million, or $7.12 per Boe, in the first quarter. Source
Development costs rose to $97 million: Upstream capital was $80 million and other capital, including midstream and land, was $17 million. First-quarter development costs were $75 million, with $67 million upstream. Source
Quarterly distribution declared at $0.36: The board declared a $0.36 per common unit quarterly distribution for the second quarter, against $0.64 declared for the first quarter of 2026. Source
Oil production estimate raised: Estimated full-year oil production rose about 4% at the midpoint of guidance, as capital moves toward oil drilling. Source
Boe and gas production estimates lowered: Total Boe and gas production guidance decreased, reflecting reallocated drilling capital and deferral of Mancos completions to 2027. Source

“Our quarterly results reinforce what has set Mach apart since inception”
Tom L. Ward, Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Oil production Source	Full-year 2026	increased approximately 4% at the midpoint of guidance	Raised

What changed from last quarter

Guidance raised: Full-year estimated oil production raised about 4% at guidance midpoint. Source
Guidance lowered: Total Boe and gas production guidance decreased. Source
Guidance lowered: Estimated full-year development costs decreased. Source
Guidance raised: Estimated full-year lifting costs increased. Source
New: Mancos completions deferred from 2026 to 2027 as part of the drilling reallocation. Source

Results and earnings measures

Revenue and net income reported: Total revenue was $406 million and net income was $98 million. The first quarter had a net loss of $35 million on revenue of $286 million. Source
Adjusted EBITDA compared with prior periods: Adjusted EBITDA was $182 million, compared with $122 million in the second quarter of 2025 and $195 million in the first quarter of 2026. Source
Operating cash flow of $154 million: Net cash provided by operating activities was $154 million, against $170 million in the first quarter of 2026. Source
Unrealized derivative gain excluded: Net income included an unrealized gain of $41.7 million on derivative instruments, which Adjusted EBITDA excludes. The first quarter recorded an unrealized loss of $103.8 million. Source

Production and volumes

Net production averaged 148.9 Mboe/d: Oil averaged 22.7 MBbl/d within the total. First-quarter 2026 production averaged 158 Mboe/d. Source
Oil share of volumes eased: Volumes were 15% oil, 69% natural gas and 16% NGLs, against 16% oil, 70% natural gas and 14% NGLs in the first quarter. Source
Operated wells spud and brought online: The company spud 9 gross (5.0 net) operated wells and brought 6 gross (4.2 net) online. The first quarter had 5 gross spud and 4 gross brought online. Source

“During the quarter, favorable oil prices allowed us to pivot capital to the development of our high-return oil opportunities sourced through years of disciplined acquisitions.”
Tom L. Ward, Chief Executive Officer

Realized prices and revenue mix

Realized prices rose across products: Realized prices were $95.40 per barrel of oil, $1.93 per Mcf of gas and $28.99 per barrel of NGLs. First-quarter prices were $69.73, $2.74 and $23.75. Source
Oil share of production revenue: Production revenues of $367 million were 54% oil, 30% natural gas and 16% NGLs. First-quarter production revenues of $366 million were 42% oil, 45% natural gas and 13% NGLs. Source
Prices exclude derivative effects: The per-unit realized prices are stated before derivatives, so derivative results are not reflected in them. Source

Costs and unit expenses

Lease operating expense per Boe rose: Lease operating expense was $98 million, or $7.21 per Boe, against $101 million, or $7.12 per Boe, in the first quarter. Source
Gathering and processing cost per Boe: Gathering and processing expense was $48 million, or $3.54 per Boe, against $59 million, or $4.18 per Boe, in the first quarter. Source
Production taxes, G&A and interest: Production taxes were about 5.1% of sales, against 4.5% in the first quarter. G&A excluding equity-based compensation was $7 million, against $5 million, and interest expense was $25 million. Source

“As we look ahead, we will remain returns-driven.”
Tom L. Ward, Chief Executive Officer

Development spending and drilling

Development costs rose to $97 million: Upstream capital was $80 million and other capital, including midstream and land, was $17 million. First-quarter development costs were $75 million, with $67 million upstream. Source
Oswego drilling restarted in May: Capital was directed to oil-weighted Mid-Continent projects, with the Oswego drilling program restarted in May 2026. The first quarter had paused Deep Anadarko drilling. Source
Mancos completions moved to 2027: Deferral of Mancos completions to 2027 was part of the drilling reallocation that lowered total Boe and gas production guidance. Source

Liquidity and distributions

Cash and revolver availability: Cash was $41 million at June 30, 2026, with $730 million drawn on the $1.0 billion revolver, leaving about $311 million available. First-quarter figures were $53 million cash, $695 million drawn and $358 million available. Source
Quarterly distribution declared at $0.36: The board declared a $0.36 per common unit quarterly distribution for the second quarter, against $0.64 declared for the first quarter of 2026. Source
Distribution payment and record dates: The distribution is payable August 31, 2026, to common unitholders of record at the close of trading on August 17, 2026. Source

Full-year 2026 guidance changes

Oil production estimate raised: Estimated full-year oil production rose about 4% at the midpoint of guidance, as capital moves toward oil drilling. Source
Boe and gas production estimates lowered: Total Boe and gas production guidance decreased, reflecting reallocated drilling capital and deferral of Mancos completions to 2027. Source
Development cost estimate lowered: Full-year estimated development costs decreased because of changes in the company’s drilling plans. Source
Lifting cost estimate raised: Full-year lifting costs increased because of the change in estimated commodity mix for 2026. Source

Strategy and capital direction

Management will stay returns-driven: Ward said the company will remain returns-driven and cited its cash return on capital invested as evidence the strategy delivers value. Source
Diversified inventory supports flexibility: Ward attributed the ability to shift capital to a platform of diversified inventory built through years of acquisitions. Source
Capital pivot tied to oil prices: Ward linked the move of capital into high-return oil projects to favorable oil prices during the quarter. Source

Figures management reported

Figure	Reported
Total net production and oil volume Source	148.9 Mboe/d total; 22.7 MBbl/d oil
Realized prices excluding derivatives Source	$95.40/bbl oil; $1.93/Mcf gas; $28.99/bbl NGLs
Lease operating expense per Boe Source	$7.21
Gathering and processing expense per Boe Source	$3.54
Total development costs Source	$97 million
Quarterly cash distribution per common unit Source	$0.36

Earlier plans management reported on

Not stated: The first-quarter release described redirecting capital to oil-weighted projects, with an Oswego restart in May 2026. The second-quarter release reports the restart as having occurred in May. 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 Second Quarter 2026 Results; Declares Quarterly Cash Distribution of $0.36 Per Common Unit; Provides Updated 2026 Outlook

OKLAHOMA CITY, Oklahoma, August 6, 2026 - Mach Natural Resources LP (NYSE: MNR) (“Mach” or the “Company”) today reported financial and operating results for the three months ended June 30, 2026. The Company also announced its quarterly cash distribution and updated its full-year 2026 outlook.

Second Quarter 2026 Highlights

Averaged total net production of 148.9 thousand barrels of oil equivalent per day (“Mboe/d”)
Produced an average of 22.7 thousand barrels of oil per day (“MBbl/d”)
Lease operating expense of $7.21 per barrel of oil equivalent (“Boe”)
Reported net income and Adjusted EBITDA of $98 million and $182 million, respectively
Generated net cash provided by operating activities of $154 million
Incurred total development costs of $97 million
Declared a quarterly cash distribution of $0.36 per common unit

Recent Highlights

Continued to direct capital toward oil-weighted projects in the Mid-Continent, marked by a restart of the Oswego drilling program in May of 2026

“Our quarterly results reinforce what has set Mach apart since inception,” said Tom L. Ward, Chief Executive Officer. “During the quarter, favorable oil prices allowed us to pivot capital to the development of our high-return oil opportunities sourced through years of disciplined acquisitions. Our flexibility is possible because we’ve built a durable platform of diversified inventory that will bear fruit long into the future.”

Mr. Ward continued, “As we look ahead, we will remain returns-driven. Our industry-leading cash return on capital invested demonstrates that our strategy delivers and creates long-term value for our unitholders.”

Second Quarter 2026 Financial Results

Mach reported total revenue and net income of $406 million and $98 million in the second quarter of 2026, respectively. Additionally, during the second quarter, the average realized price was $95.40 per barrel of oil, $1.93 per Mcf of natural gas, and $28.99 per barrel of natural gas liquids (“NGLs”). These prices exclude the effects of derivatives.

As of June 30, 2026, Mach had a cash balance of $41 million, and $730 million utilized under its $1.0 billion Revolving Credit Facility, leaving approximately $311 million of available liquidity.

Second Quarter 2026 Operational Results

During the second quarter of 2026, Mach achieved average oil equivalent production of 148.9 Mboe/d, which consisted of 15% oil, 69% natural gas and 16% NGLs. Also, for the second quarter of 2026, Mach’s production revenues from oil, natural gas, and NGLs sales totaled $367 million, comprised of 54% oil, 30% natural gas, and 16% NGLs.

The Company spud 9 gross (5.0 net) operated wells and brought online 6 gross (4.2 net) operated wells in the second quarter of 2026.

Mach’s lease operating expense in the second quarter of 2026 was $98 million, or $7.21 per Boe. Mach incurred $48 million, or $3.54 per Boe, of gathering and processing expenses in the second quarter of 2026. Furthermore, during the second quarter of 2026, production taxes as a percentage of oil, natural gas, and NGLs sales were approximately 5.1%, midstream operating profit was approximately $5 million, general and administrative expenses - excluding equity-based compensation of $3 million - was $7 million, and interest expense was $25 million.

In the second quarter of 2026, Mach’s total development costs were $97 million, including $80 million of upstream capital and $17 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 second quarter of 2026 of $0.36 per common unit. The quarterly cash distribution is to be paid on August 31, 2026, to common unitholders of record as of the close of trading on August 17, 2026.

2026 Outlook

Today, the Company also provided updates to its full-year 2026 guidance. As the Company shifts its focus further to oil drilling, estimated oil production increased approximately 4% at the midpoint of guidance. The reallocation of drilling capital, combined with the deferral of Mancos completions to 2027, results in a decrease to total Boe and gas production guidance.

Estimated development costs decreased due to changes in the Company’s drilling plans. Lifting costs also increased due to the change in estimated commodity mix for the full year. Additional details of Mach’s guidance are available on the Company’s website at www.machnr.com.

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, August 7, 2026, to discuss its second quarter 2026 results. 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.ir.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) gain (loss) 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 June 30,		Six Months Ended June 30,
($ in thousands)	2026	2025	2026	2025
Net Income Reconciliation to Adjusted EBITDA:
Net income	$98,213	$89,661	$63,175	$105,547
Interest expense, net	24,250	12,097	48,413	29,514
Depreciation, depletion, amortization and accretion	98,229	67,098	196,402	130,683
Unrealized (gain) loss on derivative instruments	(41,691)	(48,551)	62,078	(6,211)
Loss on debt extinguishment	-	-	-	18,540
Equity-based compensation expense	3,413	2,103	6,962	4,215
Gain on sale of assets	(183)	(138)	(175)	(167)
Adjusted EBITDA	$182,231	$122,270	$376,855	$282,121

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.