Mach Natural Resources LP is an independent oil and gas company focused on the upstream sector, primarily engaged in the acquisition and production of oil, natural gas, and natural gas liquids in the Anadarko Basin, which spans parts of Oklahoma and Kansas.

In the fourth quarter of 2024, Mach reported total production of 86,700 barrels of oil equivalent per day, which remained stable compared to previous quarters. For the full year 2024, net income was $185 million, up from approximately $85 million in 2023, reflecting significant growth in profitability. Adjusted EBITDA for the same period was reported at $601 million, an increase from roughly $350 million in the previous year. During the fourth quarter, total revenues were approximately $235 million, which included significant contributions from midstream activities.

The lease operating expense (LOE) for the fourth quarter was $6.17 per barrel of oil equivalent, consistent with previous reporting periods. The company incurred total development costs of $60 million for the quarter and reported an operating cash flow of $134 million. After accounting for capital expenditures, free cash flow generated was $81 million.

In terms of distributions, Mach paid out $310 million in cash distributions or $3.20 per unit for the full year 2024, reflecting a commitment to return capital to unitholders. The company’s net debt was reduced to $763 million, resulting in a net-debt-to-adjusted-EBITDA ratio of 0.8x.

Looking ahead, the company has set a 2025 capital expenditure budget ranging from $260 million to $280 million and anticipates maintaining a reinvestment rate of no more than 50% of operating cash flow. Guidance for total production in 2025 is projected to be between 79,000 and 83,000 barrels of oil equivalent per day.

Mach has realized an average sales price of $70.06 per barrel for oil, $2.31 per thousand cubic feet of natural gas, and $25.82 per barrel for natural gas liquids during the fourth quarter. The commodity mix for 2024 was weighted 59% oil, 21% natural gas, and 20% natural gas liquids by revenue.

The company also closed a bolt-on acquisition for approximately $30 million, which is expected to enhance its production capabilities going forward. Overall, Mach Natural Resources LP appears to be in a stable condition with a strong financial foundation, highlighted by a low debt-to-equity ratio and consistent production figures.