Mach Natural Resources Lp · NYSE:MNR
Mach Natural Resources Lp — Q1 2025 Earnings Presentation
27 slides from Mach Natural Resources Lp's earnings presentation, May 9, 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation May 2025 NYSE: MNR machnr.com
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements This presentation is being provided by Mach Natural Resources LP (the “Company”) for informational purposes only. No persons have been authorized to make any representations regarding the information contained in this presentation, and if given or made, such
Slide 3: Company Overview
Company Overview Mach Resources. All Rights Reserved. 3
Slide 4: About Us | Company Overview
About Us | Company Overview TICKER UNIT MARKET ENTERPRISE EV / (EXCHANGE: NYSE) PRICE(1) CAP(1) VALUE(1) 2025e EBITDA MNR $13.49 $1.6B $2.0B 3.3x Based on 2025e Consensus EBITDA of $606MM (Source: FactSet) LIQUIDITY LEVERAGE $293MM 0.7x Includes Cash and Revolving Pro Forma Net Debt-to- Credit Facil
Slide 5: Our Four Pillars
Our Four Pillars MAINTAIN FINANCIAL − Focused on SUSTAINING FINANCIAL STRENGTH through all STRENGTH UNDERPINNED commodity cycles by maintaining a LOW NET DEBT TO ADJUSTED BY LOW LEVERAGE EBITDA RATIO of 1.0x or less − Committed to executing ACQUISITIONS ACCRETIVE TO OUR DISCIPLINED EXECUTION DISTRIB
Slide 6: Our Approach and Expertise
Our Approach and Expertise Mach’s Expertise: Exploiting the Acquisition Opportunity Set and Delivering Robust Distributions Since its 2017 inception, Mach has closed 21 acquisitions totaling $2.0 billion, accumulated ~2.1 million net acres (99% HBP), has paid $1.1 billion in distributions and has an
Slide 7: Cash Return on Capital Invested
Cash Return on Capital Invested Track Record Track Record of of Strong Strong CROCI CROCI through through Commodity Commodity Cycle Cycle Fluctuations Fluctuations Our LOW BASE DECLINE allows for LOW CAPITAL INTENSITY, allowing Mach to establish a strong free cash flow profile REALIZED MULTIPLE
Slide 8: Mid-Con Basin Landscape Today
Mid-Con Basin Landscape Today NEW FOCUS ON ANADARKO Significant activity fall off during Pandemic, but STEADY RAMP UP SINCE 2022 REVIVAL IN ANADARKO BASIN driven by the increased interest in developing the condensate and dry gas windows of the Anadarko Basin STRONG BASIN WIDE ASSET MARKET STRENG
Slide 9: We Are an Acquisition Company
We Are an Acquisition Company Mach: Adept at Adding Reserves via Low- Cost Acquisitions All assets to-date acquired at a DISCOUNT TO PDP PV-10 For the last five years, the Mid-Continent has provided the most attractive acquisition opportunities and thus has been the focus MACH PORTFOLIO TODAY: ~2.1
Slide 10: Asset Portfolio and History
Asset Portfolio and History Mach Resources. All Rights Reserved. 10
Slide 11: Mach Evolution & Acquisition History
Mach Evolution & Acquisition History #21 #18 & #19 XTO W. Kansas & April 2025 2,500,000 Daily Production (MBOED) Ardmore 100 #20 Sep & Oct 2024 #14 & #15 Flycatcher Cumulative Net Acreage Jan 2025 Jun 2022 #17 Acquisition # and Date #13 Paloma Mar 2022 Dec 2023 2,000,000 MBOED Production (MBOED) Pub
Slide 12: Evolution of Contiguous Mid-Con Footprint
Evolution of Contiguous Mid-Con Footprint Focused on low-cost acquisitions that are accretive to FCF Drilling opportunities provide ability to maintain production EXPERIENCED IN ADDING LOW-COST RESERVES and FCF generation Experienced in developing them more efficiently than our Mach has immens
Slide 13: XTO Acquisition Overview
XTO Acquisition Overview Transaction Details − Unadjusted Purchase Price: $60MM TOTAL NET ACREAGE TOTAL OPERATED WELLS − Effective Date: May 1, 2025 ~990,000 ~1,400 − Closing Date: April 30, 2025 Acquired Upstream Assets Assets span the ANADARKO BASIN OF OKLAHOMA AND KANSAS and the GREEN RIVER BAS
Slide 14: Investment Highlights
Investment Highlights ATTRACTIVE OPPORTUNITY FOR YIELD-FOCUSED INVESTMENT LOW DECLINE & LOW REINVESTMENT PROVIDE STRONG CASH FLOW Our variable distribution structure offers flexibility over the long-term. Mach’s FY 2024 reinvestment rate was 47%. MACH FY 2024 YIELD(1): 19% $505MM $3.20 ($ per Common
Slide 15: Mach 2024 Drilling Program Results
Mach 2024 Drilling Program Results >225 Oswego wells turned-in-line since 2021 46 wells—combination of Oswego and Woodford—turned-in-line in 2024 with 35% achieving an IRR of >100% Wells have performed above expected type curve across multiple areas within Mach’s position 35% OF MACH’S 2024 DRILLING
Slide 16: Our Focus is Maximizing Cash Distributions
Our Focus is Maximizing Cash Distributions History of Strong Cash Distributions Across Exposure to Commodity Prices Our cash distributions are variable and sensitive to commodity prices. Commodity Cycles The price sensitivities below on cash available for distribution (“CAD”) (1) Since inception,
Slide 17: 2024 Realized Distribution Yield
Mach 19% SandRidge TXO Diversified Energy Black Stone Vitesse Evolution Petroleum Berry 2024 Realized Distribution Yield Equinor Granite Ridge Civitas Sitio Chord Riley Diamondback Repsol Permian Resources BP TotalEnergies Veren Northern Chevron PHX Shell Exxon Crescent Energy Coterra Devon Expand E
Slide 18: Total 2024 Shareholder Return
Texas Pacific Land Comstock Resources Sable Offshore Antero Gulfport Expand Diversified Energy PHX Vitesse Total 2024 Shareholder Return (TSR) Mach 24% Riley EQT Range Granite Ridge Crescent Energy Magnolia Exxon Diamondback Permian Resources TXO Partners in the Energy Space Northern EOG ATTRACTIVE
Slide 19: Compelling Investment Thesis
Compelling Investment Thesis TOP COMMITTED TO FOCUSED OPERATOR DISCIPLINED ON IN MIDCON REINVESTMENT RETURN OF CAPITAL 1 st Highest ranking Operator in 47% $310MM FY2024 reinvestment rate Cash Distributed MidCon, based on gross aligns with target of to Unitholders in producing horizontal wells reinv
Slide 20: Appendix
Appendix Mach Resources. All Rights Reserved. 20
Slide 21: Mach Debt Profile
Mach Debt Profile $452MM $293MM 0.7x NET DEBT(1) LIQUIDITY (2) NET DEBT / LTM ADJ. EBITDA(3) RBL Summary $750MM $460MM DRAWN with $750MM BORROWING BASE $290 Interest rate: SOFR (+) 300bps – 400bps Bank group includes ten lenders, led by Truist and Wells Fargo Loan maturity: 2/27/2029 $460 Sy
Slide 22: Q1 2025 Financial Info. and Non-GAAP Reconciliations
Q1 2025 Financial Info. and Non-GAAP Reconciliations (1,2,3) 1) Adjusted EBITDA is a non-GAAP financial performance measure. We define Adjusted EBITDA as net income before (1) interest expense, net, (2) depreciation, depletion, amortization and accretion, (3) unrealized loss (gain) on derivative ins
Slide 23: Hedge Summary
Hedge Summary | as of May 1, 2025 2025 2026 2027 NYMEX Swaps Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Q1 2027 Natural Gas (HH): Hedged Volume (MMBtu) 10,974 10,488 10,065 9,689 4,679 4,256 4,386 4,257 Weighted Average Swap Price ($/MMBtu) $3.48 $3.58 $4.03 $4.04 $3.53 $3.53 $3.77 $4.3
Slide 24: Q1 2025 Results
Q1 2025 Results Q1 2025 Actual Full-Year 2025 Guidance First Quarter 2025 Highlights Total Net Production 80.9 79 - 83 (MBoe/d) Delivered total net production of 80.9 MBOED Oil Production 19.6 18 - 19 (MBbls/d) Lease operating expense of $6.69 per BOE NGLs Production 18.3 18 - 19 (MBbls/d) Reported
Slide 25: Year-End 2024 Reserves Summary
Year-End 2024 Reserves Summary NET RESERVES(1) Oil NGL Gas Total Liquids PV-10 Reserve Category (MMBbl) (MMBbl) (Bcf) (MMBOE) (%) ($MM) Mach PDP 46 67 809 248 46% $1,635 Flycatcher PDP 1 1 7 3 61% 29 Total PDP 47 68 816 251 46% $1,664 Mach PUD 21 24 263 90 51% $255 Flycatcher PUD 1 3 16 7 60% 35 Tot
Slide 26: 2025 Guidance
2025 Guidance Full-Year 2025e Oil (MBbls/d) 18 – 19 NGLs (MBbls/d) 18 – 19 Net Production Natural Gas (MMcf/d) 256 – 269 Total (MBoe/d) 79 – 83 Oil (differential to NYMEX WTI) ($ / Bbl) ($1.50) - ($0.50) Price Realizations NGLs (% of WTI) 31% - 35% (excluding hedges) Natural Gas (differential to NYM
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