Mach Natural Resources LP — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported total revenue of $319 million for the three months ended September 30, 2026.
• Reported net income of $10 million for the quarter, compared to a net loss of $35.7 million in the same period in 2025.
• Reported Adjusted EBITDA of $183 million for the quarter, an increase from $124.2 million in the third quarter of 2025.
• Generated net cash provided by operating activities of $135 million for the quarter.
• Lease operating expense was $6.49 per barrel of oil equivalent (Boe), totaling $88 million.
• Gathering and processing expenses were $4.24 per Boe, totaling $57 million.
• Production taxes represented approximately 4.5% of oil, natural gas, and NGL sales.
• General and administrative expenses were $6 million, excluding $3 million in equity-based compensation.
• Interest expense was $26 million for the quarter.
• Total development costs incurred were $126 million, comprising $120 million in upstream capital and $6 million in other capital.
• Average realized prices for the quarter were $85.84 per barrel of oil, $2.17 per Mcf of natural gas, and $30.02 per barrel of NGLs (excluding derivatives).

Guidance and Future Outlook:

• Provided full-year 2027 outlook with expected total production ranging between 134 MBoe/d and 142 MBoe/d.
• Plans to spend $275 million to $325 million in total capital for development in 2027.
• Maintains a targeted reinvestment rate of no more than 50% of operating cash flow for 2027.
• On track to achieve a full-year 2026 reinvestment rate under 50%.
• Anticipates a significant increase in fourth-quarter per-unit cash distribution due to reduced capital spending.
• Optimized 2027 plan around a favorable oil outlook, with the vast majority of capital allocated to the Oswego play.
• Remains opportunistic regarding material gas upside within the portfolio.

Business Segments and Product Lines:

• Achieved average net production of 147 thousand barrels of oil equivalent per day (Mboe/d) in the third quarter.
• Production mix consisted of 15% oil, 69% natural gas, and 16% NGLs.
• Production revenues totaled $360 million, comprised of 49% oil, 34% natural gas, and 17% NGLs.
• Spud 12 gross (8 net) operated wells and brought online 10 gross (6.3 net) operated wells during the quarter.
• Post-quarter, reduced operated rig count from three to one.
• Operates a diversified portfolio across the Anadarko, Permian, and San Juan Basins with 2.8 million acres.

Market and Competitive Landscape:

• Delivered a yield nearly four times the peer average since 2024.
• Generated a cash return on capital invested averaging 35% over the last five years.
• Raised $35.5 million in gross proceeds year-to-date 2026 from the at-the-market equity program, with $34.6 million in net proceeds applied toward debt reduction.

Risks and Challenges:

• Forward-looking statements are subject to risks including commodity price volatility, epidemics, and public health events.
• Risks include uncertainties regarding estimated reserves, economic producibility, and production rates.
• Potential impacts from difficult capital markets, lack of transportation capacity, and equipment/service availability.
• Risks associated with commodity price risk management programs and potential financial losses.
• Regulatory changes, including potential shut-ins or production curtailments by state commissions.
• Operational risks such as mechanical failure, depletion, and loss of leasehold rights.
• 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 economic sanctions.

Management Commentary and Tone:

• CEO Tom L. Ward stated the company is "on track with its 2026 plan."
• Management expressed confidence in the flexibility of the business model and expects distinguished cash returns in 2027.
• Highlighted the durable asset base built since 2018 through nearly two dozen disciplined acquisitions.
• Emphasized a strategy focused on delivering the highest possible cash distributions while maintaining a disciplined reinvestment rate, lean cost structure, and strong balance sheet.

Other Key Points:

• Declared a quarterly cash distribution of $0.22 per common unit for the third quarter of 2026.
• Distribution payment date is November 30, 2026, to unitholders of record as of November 16, 2026.
• Conference call and webcast scheduled for November 6, 2026, at 9:00 a.m. Central time.
• Non-GAAP financial measures, including Adjusted EBITDA, are reconciled to GAAP net income in the release.