Mach Natural Resources LP — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported total revenue of $406 million for the quarter ended June 30, 2026.
• Reported net income of $98 million, compared to $89.7 million in the second quarter of 2025.
• Reported Adjusted EBITDA of $182 million, an increase from $122.3 million in the second quarter of 2025.
• Generated net cash provided by operating activities of $154 million.
• Incurred total development costs of $97 million, including $80 million in upstream capital and $17 million in other capital.
• Lease operating expenses were $98 million ($7.21 per Boe).
• Gathering and processing expenses were $48 million ($3.54 per Boe).
• Interest expense was $25 million.
• General and administrative expenses were $7 million, excluding $3 million in equity-based compensation.
• Production taxes represented approximately 5.1% of oil, natural gas, and NGLs sales.
• Midstream operating profit was approximately $5 million.
• As of June 30, 2026, the company held a cash balance of $41 million.
• Utilized $730 million of its $1.0 billion Revolving Credit Facility, leaving $311 million in available liquidity.
• Average realized prices for the quarter were $95.40 per barrel of oil, $1.93 per Mcf of natural gas, and $28.99 per barrel of NGLs (excluding derivatives).

Guidance and Future Outlook

• Updated full-year 2026 guidance to reflect a strategic shift toward oil drilling.
• Estimated oil production increased by approximately 4% at the midpoint of guidance.
• Total Boe and gas production guidance decreased due to the reallocation of drilling capital and the deferral of Mancos completions to 2027.
• Estimated development costs decreased due to changes in drilling plans.
• Lifting costs are expected to increase due to the revised estimated commodity mix for the full year.

Business Segments and Product Lines

• Achieved average net production of 148.9 thousand barrels of oil equivalent per day (Mboe/d).
• Production mix consisted of 15% oil, 69% natural gas, and 16% NGLs.
• Production revenues totaled $367 million, comprised of 54% oil, 30% natural gas, and 16% NGLs.
• Spud 9 gross (5.0 net) operated wells and brought online 6 gross (4.2 net) operated wells during the quarter.
• Continued capital allocation toward oil-weighted projects in the Mid-Continent, including the restart of the Oswego drilling program in May 2026.
• Operates a diversified portfolio across the Anadarko, Permian, and San Juan Basins.

Market and Competitive Landscape

• Management cited favorable oil prices as a driver for pivoting capital to high-return oil opportunities.
• Strategy focuses on a durable platform of diversified inventory sourced through disciplined acquisitions.
• Industry context includes volatility in commodity prices and competition in the oil and natural gas sector.

Risks and Challenges

• Risks include commodity price volatility, changes in markets, and the ability to finance operations.
• Potential impacts from epidemics, public health events, and global economic activity.
• Uncertainties regarding estimated reserves and the economic producibility of such reserves in the event of price declines.
• Risks related to capital and credit market conditions, lack of transportation/storage capacity, and equipment/service availability.
• Potential financial losses from commodity price risk management programs.
• Regulatory changes, including potential shut-ins or production curtailments mandated by state commissions.
• Environmental, weather, drilling, and operating risks, including mechanical failure and depletion.
• Risks associated with servicing indebtedness, credit rating downgrades, and cost inflation.
• Cybersecurity risks, including unauthorized access, data breaches, and ransomware.
• Risks related to geopolitical events, including hostilities in the Middle East, the war in Ukraine, and sanctions on Russia.

Management Commentary and Tone

• CEO Tom L. Ward stated that quarterly results reinforce the company's distinct strategy since inception.
• Management emphasized a "returns-driven" approach and highlighted industry-leading cash return on capital invested.
• Ward noted that the company's flexibility allows it to pivot capital to high-return opportunities due to a durable platform of diversified inventory.
• The tone reflects confidence in the strategy's ability to create long-term value for unitholders.

Other Key Points

• Declared a quarterly cash distribution of $0.36 per common unit for the second quarter of 2026.
• The distribution is scheduled to be paid on August 31, 2026, to unitholders of record as of August 17, 2026.
• A conference call and webcast were scheduled for August 7, 2026, at 9:00 a.m. Central time.
• Adjusted EBITDA is presented as a non-GAAP financial measure, reconciled to net income in the release.