Mach Natural Resources LP: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 5 November 2026: press release. Guidance figures: 3 new. The quarter’s numbers.

Key takeaways

Net income and Adjusted EBITDA reported: Net income was $10 million and Adjusted EBITDA $183 million, against $98 million and $182 million in the second quarter. Source
Third quarter realized prices by product: Average realized prices, excluding derivatives, were $85.84 per barrel of oil, $2.17 per Mcf of gas and $30.02 per barrel of NGLs. Source
Lease operating expense fell per barrel: Lease operating expense was $88 million, or $6.49 per Boe, against $7.21 per Boe in the second quarter. Source
Development costs of $126 million: Development costs were $126 million: $120 million upstream and $6 million other, including midstream and land. Source
2027 capital plan set: Total development capital for 2027 is planned at $275 million to $325 million, with reinvestment held at no more than 50% of operating cash flow. Source
2027 production forecast given: Total production for 2027 is forecast at 134 MBoe/d to 142 MBoe/d. Source
Rig count cut after quarter-end: Operated rigs were cut from three to one after quarter-end; management said it remains positioned for a full-year 2026 reinvestment rate under 50%. Source
Third quarter distribution of $0.22: The board declared a $0.22 per common unit distribution for the third quarter of 2026. Source

“Since 2024, we have delivered a yield nearly four times the peer average, and over the last five years we have generated a cash return on capital invested averaging 35%.”
Tom L. Ward, Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Total development capital Source	full-year 2027	$275 million to $325 million	New
Reinvestment rate Source	full-year 2027	no more than 50% of operating cash flow	New
Total production Source	full-year 2027	134 MBoe/d to 142 MBoe/d	New
Reinvestment rate Source	full-year 2026	under 50%

What changed from last quarter

New guidance: 2027 total development capital guidance of $275 million to $325 million given in this release. Source
New guidance: 2027 total production guidance of 134 MBoe/d to 142 MBoe/d given in this release. Source
New: Operated rig count reduced from three to one after quarter-end. Source
New: 2027 plan allocates most capital to the Oswego play, with gas opportunities pursued selectively. Source

Third quarter results and growth

Production averaged 147 Mboe/d: Net production was 147 Mboe/d, compared with 148.9 Mboe/d in the second quarter, with 15% oil, 69% natural gas and 16% NGLs. Source
Net income and Adjusted EBITDA reported: Net income was $10 million and Adjusted EBITDA $183 million, against $98 million and $182 million in the second quarter. Source
Net income compared with prior-year loss: Net income was $10.2 million, against a net loss of $35.7 million in the third quarter of 2025, per the reconciliation table. Source
Total revenue for the quarter: Total revenue was $319 million, against $406 million in the second quarter. Source
Operating cash flow of $135 million: Net cash provided by operating activities was $135 million, against $154 million in the second quarter. Source

Realized prices and revenue mix

Third quarter realized prices by product: Average realized prices, excluding derivatives, were $85.84 per barrel of oil, $2.17 per Mcf of gas and $30.02 per barrel of NGLs. Source
Second quarter realized prices: Second quarter average realized prices, excluding derivatives, were $95.40 per barrel of oil, $1.93 per Mcf of gas and $28.99 per barrel of NGLs.
Revenue split by commodity: Production revenue from oil, natural gas and NGL sales was $360 million, split 49% oil, 34% natural gas and 17% NGLs. Source

“We are confident in the flexibility of our business model and look forward to distinguished cash returns in 2027.”
Tom L. Ward, Chief Executive Officer

Lease operating and midstream costs

Lease operating expense fell per barrel: Lease operating expense was $88 million, or $6.49 per Boe, against $7.21 per Boe in the second quarter. Source
Gathering and processing cost per Boe higher: Gathering and processing expenses were $57 million, or $4.24 per Boe, against $3.54 per Boe in the second quarter. Source
Production taxes as share of sales: Production taxes were about 4.5% of oil, natural gas and NGL sales, against 5.1% in the second quarter. Source
General and administrative expense: General and administrative expense excluding equity-based compensation was $6 million, against $7 million in the second quarter. Source
Interest expense rose year on year: Interest expense was $26 million, against $25 million in the second quarter and $16.9 million in the third quarter of 2025. Source

Development spending and drilling activity

Development costs of $126 million: Development costs were $126 million: $120 million upstream and $6 million other, including midstream and land. Source
Wells spud and brought online: 12 gross (8 net) operated wells were spud and 10 gross (6.3 net) operated wells were brought online in the quarter. Source
Second quarter development spend: Second quarter development costs were $97 million, including $80 million of upstream capital.

“The durable asset base we have built since 2018 through nearly two dozen disciplined acquisitions will continue to reward our unitholders.”
Tom L. Ward, Chief Executive Officer

2027 guidance and production plan

2027 capital plan set: Total development capital for 2027 is planned at $275 million to $325 million, with reinvestment held at no more than 50% of operating cash flow. Source
2027 production forecast given: Total production for 2027 is forecast at 134 MBoe/d to 142 MBoe/d. Source
Oswego to take most 2027 capital: Most 2027 capital is to go to the Oswego play, with the gas portion of the portfolio pursued opportunistically. Source

Capital, liquidity and equity program

Rig count cut after quarter-end: Operated rigs were cut from three to one after quarter-end; management said it remains positioned for a full-year 2026 reinvestment rate under 50%. Source
Equity program proceeds applied to debt: Year-to-date gross proceeds of $35.5 million came from the at-the-market program, with $34.6 million net applied to debt reduction. Source
Revolver draw and liquidity at June 30: At June 30, 2026, cash was $41 million and $730 million was drawn under the $1.0 billion revolver, leaving about $311 million of liquidity.

Distributions to unitholders

Third quarter distribution of $0.22: The board declared a $0.22 per common unit distribution for the third quarter of 2026. Source
Fourth quarter distribution expected to rise: Management said reduced fourth-quarter capital spending is expected to translate into a significant increase in the fourth-quarter per-unit distribution. Source
Second quarter distribution was $0.36: The second quarter 2026 distribution was $0.36 per common unit.

Strategy, acreage and oil focus

2.8 million acres across three basins: The company reports 2.8 million acres across three basins and says it optimized the 2027 plan around oil market conditions. Source
Shift toward oil-weighted projects: Second quarter release said capital was directed to oil-weighted Mid-Continent projects, including an Oswego drilling restart in May 2026.
Returns-driven approach stated: The second quarter release said the company would remain returns-driven.

Coming up, as management said on 5 November 2026

Third quarter distribution payment date: The $0.22 per common unit distribution is to be paid November 30, 2026, to holders of record at the close of trading November 16, 2026. Source

Figures management reported

Figure	Reported
Production volumes Source	147 Mboe/d (15% oil, 69% natural gas, 16% NGLs)
Realized prices Source	oil $85.84 per barrel; gas $2.17 per Mcf; NGLs $30.02 per barrel
Capital expenditure Source	$126 million total development costs
Unit cost: lease operating expense Source	$6.49 per Boe
Unit cost: gathering and processing Source	$4.24 per Boe
Shareholder returns: distribution Source	$0.22 per common unit
Shareholder returns: equity program Source	$35.5 million gross proceeds year-to-date 2026

Earlier plans management reported on

On track: Management said Mach is on track with its 2026 plan. Source
On track: Management said Mach is on track to achieve its full-year 2026 production guidance. 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 Third Quarter 2026 Results; Declares Quarterly Cash Distribution of $0.22 Per Common Unit; Provides 2027 Outlook

OKLAHOMA CITY, Oklahoma, November 5, 2026 - Mach Natural Resources LP (NYSE: MNR) (“Mach” or the “Company”) today reported financial and operating results for the three months ended September 30, 2026. The Company also announced its quarterly cash distribution and provided its full-year 2027 outlook.

Third Quarter 2026 Highlights

Averaged total net production of 147 thousand barrels of oil equivalent per day (“Mboe/d”), with Mach on track to achieve its full-year 2026 production guidance
Lease operating expense of $6.49 per barrel of oil equivalent (“Boe”)
Reported net income and Adjusted EBITDA of $10 million and $183 million, respectively
Generated net cash provided by operating activities of $135 million
Incurred total development costs of $126 million
Declared a quarterly cash distribution of $0.22 per common unit

Recent Highlights

Post quarter-end, Mach reduced its operated rig count from three to one and remains positioned to achieve a full-year 2026 reinvestment rate under 50%
Raised $35.5 million year-to-date 2026 in gross proceeds from the Company’s at-the-market equity program with net proceeds of $34.6 million applied toward debt reduction

“Mach is on track with its 2026 plan,” said Tom L. Ward, Chief Executive Officer. “With reduced capital spending currently underway in the fourth quarter, we remain positioned to achieve a full-year reinvestment rate under 50% which will translate to a significant increase in our fourth quarter per-unit cash distribution. Since 2024, we have delivered a yield nearly four times the peer average, and over the last five years we have generated a cash return on capital invested averaging 35%. Mach’s results are the reflection of a company built to deliver the highest possible cash distributions while maintaining a disciplined reinvestment rate, a lean cost structure and a strong balance sheet.”

Mr. Ward continued, “The durable asset base we have built since 2018 through nearly two dozen disciplined acquisitions will continue to reward our unitholders. With 2.8 million acres and years of high-quality inventory across three world-class basins, we have optimized our 2027 plan around the favorable oil outlook. We will allocate the vast majority of capital to our Oswego play and remain opportunistic on the material gas upside of our portfolio. We are confident in the flexibility of our business model and look forward to distinguished cash returns in 2027.”

Third Quarter 2026 Financial Results

Mach reported total revenue and net income of $319 million and $10 million in the third quarter of 2026, respectively. Additionally, during the third quarter, the average realized price was $85.84 per barrel of oil, $2.17 per Mcf of natural gas, and $30.02 per barrel of natural gas liquids (“NGLs”). These prices exclude the effects of derivatives.

Third Quarter 2026 Operational Results

During the third quarter of 2026, Mach achieved average oil equivalent production of 147 Mboe/d, which consisted of 15% oil, 69% natural gas and 16% NGLs. Also, for the third quarter of 2026, Mach’s production revenues from oil, natural gas, and NGLs sales totaled $360 million, comprised of 49% oil, 34% natural gas, and 17% NGLs.

The Company spud 12 gross (8 net) operated wells and brought online 10 gross (6.3 net) operated wells in the third quarter of 2026.

Mach’s lease operating expense in the third quarter of 2026 was $88 million, or $6.49 per Boe. Mach incurred $57 million, or $4.24 per Boe, of gathering and processing expenses in the third quarter of 2026. Furthermore, during the third 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 $3 million - was $6 million, and interest expense was $26 million.

In the third quarter of 2026, Mach’s total development costs were $126 million, including $120 million of upstream capital and $6 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 third quarter of 2026 of $0.22 per common unit. The quarterly cash distribution is to be paid on November 30, 2026, to common unitholders of record as of the close of trading on November 16, 2026.

2027 Outlook

Today the Company provided guidance for full-year 2027. The Company plans to spend $275 million to $325 million in total capital for development, while upholding Mach’s targeted reinvestment rate of no more than 50% of operating cash flow. The 2027 forecast for total production is expected to range between 134 MBoe/d to 142 MBoe/d. Additional details of Mach’s forward-looking 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, November 6, 2026, to discuss its third 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.

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

Mach includes in this press release the supplemental non-GAAP financial performance measure Adjusted EBITDA and provides the Company’s calculation of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, the Company’s most directly comparable financial measure calculated and presented in accordance with GAAP. The Company defines Adjusted EBITDA as net (loss) income before (1) interest expense, net, (2) depreciation, depletion, amortization and accretion, (3) unrealized loss (gain) on derivative instruments, (4) impairment of oil and gas properties, (5) loss on debt extinguishment, (6) equity-based compensation expense, and (7) gain on sale of assets, net.

Adjusted EBITDA is used as a supplemental financial performance measure by Mach’s management and by external users of Mach’s financial statements, such as industry analysts, investors, lenders, rating agencies and others, to more effectively evaluate the Company’s operating performance and results of operation from period to period and against Mach’s peers without regard to financing methods, capital structure or historical cost basis. Mach excludes the items listed above from net income in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within the 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 Mach’s 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 the Company’s 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. The Company’s presentation of Adjusted EBITDA should not be construed as an inference that Mach’s results will be unaffected by unusual items. The Company’s 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 September 30,		Nine Months Ended September 30,
($ in thousands)	2026	2025	2026	2025
Net Income (Loss) Reconciliation to Adjusted EBITDA:
Net income (loss)	$10,242	$(35,654)	$73,417	$69,893
Interest expense, net	25,539	16,878	73,952	46,392
Depreciation, depletion, amortization and accretion	97,379	65,578	293,781	196,261
Unrealized loss (gain) on derivative instruments	46,915	(15,124)	108,993	(21,335)
Impairment of oil and gas properties	-	90,430	-	90,430
Loss on debt extinguishment	-	-	-	18,540
Equity-based compensation expense	3,463	2,133	10,425	6,348
Gain on sale of assets	(77)	(35)	(252)	(202)
Adjusted EBITDA	$183,461	$124,206	$560,316	$406,327

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, strategy and plans; changes in capital markets and the ability of the Company to finance operations in the manner expected; the effects of commodity prices; and the risks of oil and gas activities. Additionally, risks and uncertainties that could cause actual results to differ materially from those anticipated also include: 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 and any additional subsequent reports and other documents 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.