Mach Natural Resources to Buy $1.3B in Oil, Gas Assets, Doubling Production and Expanding Nationwide

Author: Benzinga Newsdesk | July 10, 2025 06:50am

Mach Natural Resources LP (NYSE:MNR) ("Mach" or the "Company") today announced it has entered into two separate definitive agreements: one to acquire certain oil and gas assets from Sabinal Energy, LLC ("Sabinal"), and another to acquire entities owning oil and gas assets managed by IKAV Energy Inc (collectively "IKAV San Juan").

The combined consideration for both transactions is approximately $1.3 billion, subject to customary terms, conditions, and closing price adjustments (collectively, the "Transactions"). The Transactions are expected to close during the third quarter of 2025, each with an effective date of April 1, 2025.

A conference call and webcast are planned for 8:00 a.m. CT, Thursday, July 10, 2025. Participation details can be found within this press release.

Key Highlights

• Attractively Priced and Immediately Accretive to Cash Available for Distribution
  • $1.3 billion aggregate purchase price represents a discount to PDP PV-10
  • Immediately accretive to cash available for distribution, while pro forma Mach maintains low leverage and a reinvestment rate below 50%
• Increases Scale with Permian Basin and San Juan Basin Entry
  • Nearly doubles Mach's production, increasing from 81 Mboe/d to approximately 152 Mboe/d1
  • Increases pro forma natural gas exposure from 53% to 66%
  • Adds approximately 700,000 net acres—growing total acreage by 33% to 2.8 million acres
• Diversifies Asset Base Across Three Prolific Basins
  • Establishes presence in the Permian and San Juan Basins, complementing Mach's existing Mid-Continent operations
  • Creates a balanced production portfolio with approximately 55% exposure to the Mid-Continent and approximately 45% to the Permian and San Juan Basins
  • Enhances capital allocation flexibility—supporting free cash flow optimization—across commodity cycles
  • Opportunity to deploy a rig in the San Juan Dry Gas Mancos Shale in Spring 2026 based on pricing environment
• Enhances Strategic Growth Platform
  • Increased scale strengthens Mach's operational reach and ability to pursue future accretive acquisitions
  • Positions Mach as a natural consolidator in multiple basins—materially expanding the number of compelling acquisition opportunities
  • Supports a more flexible approach to future acquisitions—which aligns with Mach's long-term commitment to value creation and unitholder returns

Posted In: MNR