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 million in the third quarter of 2025.
• Generated net cash provided by operating activities of $135 million for the quarter.
• Incurred total development costs of $126 million, consisting of $120 million in upstream capital and $6 million in other capital.
• Lease operating expenses were $88 million ($6.49 per Boe), and gathering and processing expenses were $57 million ($4.24 per Boe).
• Production taxes were 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.
• 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).
• Year-to-date 2026 Adjusted EBITDA was $560 million, compared to $406 million for the same period in 2025.
• Year-to-date 2026 net income was $73.4 million, compared to $69.9 million in 2025.

Guidance and Future Outlook

• Provided full-year 2027 outlook with total capital spending planned between $275 million and $325 million.
• Targeted a reinvestment rate of no more than 50% of operating cash flow for 2027.
• Forecasted 2027 total production to range between 134 MBoe/d and 142 MBoe/d.
• Anticipates a significant increase in fourth-quarter per-unit cash distribution due to reduced capital spending and a full-year reinvestment rate under 50%.
• Plans to allocate the vast majority of 2027 capital to the Oswego play while remaining opportunistic on material gas upside.

Business Segments and Product Lines

• Averaged total net production of 147 Mboe/d in the third quarter of 2026, consisting 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.
• Operates a diversified portfolio across the Anadarko, Permian, and San Juan Basins.
• Post-quarter-end, reduced operated rig count from three to one.
• Raised $35.5 million in gross proceeds year-to-date 2026 from the at-the-market equity program, with $34.6 million applied toward debt reduction.

Market and Competitive Landscape

• Management noted a yield nearly four times the peer average since 2024.
• Generated a cash return on capital invested averaging 35% over the last five years.
• Optimized the 2027 plan around a favorable oil outlook.
• Holds 2.8 million acres with years of high-quality inventory across three world-class basins.

Risks and Challenges

• Risks include commodity price volatility and the impact of epidemics or public health events on financial markets and operations.
• Uncertainties regarding estimated reserves, including the impact of price declines on economic producibility.
• Potential lack of transportation and storage capacity due to oversupply or government regulations.
• Risks related to capital market access, cost inflation, and availability of drilling equipment.
• Regulatory changes, including potential shut-ins or production curtailments by state commissions.
• Cybersecurity risks, including unauthorized access, data breaches, and ransomware.
• Risks associated with geopolitical events, including hostilities in the Middle East, the war in Ukraine, and sanctions.

Management Commentary and Tone

• CEO Tom L. Ward stated the company is "on track with its 2026 plan" and confident in the flexibility of the business model.
• Management emphasized a strategy built to deliver the highest possible cash distributions while maintaining a disciplined reinvestment rate, lean cost structure, and strong balance sheet.
• Ward highlighted the durable asset base built through nearly two dozen disciplined acquisitions since 2018.
• The tone is confident regarding the ability to achieve a full-year reinvestment rate under 50% and deliver distinguished cash returns in 2027.

Other Key Points

• Declared a quarterly cash distribution of $0.22 per common unit for the third quarter of 2026.
• The distribution is payable on November 30, 2026, to unitholders of record as of November 16, 2026.
• The company remains positioned to achieve a full-year 2026 reinvestment rate under 50%.
• A conference call and webcast were 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.