Mach Natural Resources misses revenue estimates, cuts rig count

OKLAHOMA CITY - Mach Natural Resources LP (NYSE:MNR) reported second quarter revenue of $240 million, falling short of analyst estimates of $256.62 million. The company also announced a reduction in its rig count and updated guidance for 2024.

Mach's total net production averaged 89.3 thousand barrels of oil equivalent per day (Mboe/d) in Q2, exceeding the high end of its guidance. Oil production averaged 20.9 thousand barrels per day. The company reported net income of $40 million and Adjusted EBITDA of $136 million for the quarter.

In response to market conditions, Mach reduced its operated rig count in the Oswego from two rigs to one during Q2. As a result, the company lowered its full-year capital expenditure guidance midpoint by 15%. For the full year 2024, Mach now expects oil volumes to range between 19.4 MBbl/d to 20.6 MBbl/d.

"Mach's second quarter results reflect the continuation of our 2024 plan. A steady adherence to low leverage and disciplined cash flow management allow us to announce a distribution of $0.90 per unit for the period," said Tom L. Ward, Mach's Chief Executive Officer.

The company's lease operating expense of $5.72 per barrel of oil equivalent (Boe) came in below the low end of guidance. Mach ended the quarter with a cash balance of $145 million and a pro forma net-debt-to-Adjusted-EBITDA ratio of 0.9x.

Mach's stock rose 1% following the earnings release.

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Source: Investing.com