- Mach Natural Resources LP (MNR, Financial) announces acquisitions in the Permian and San Juan Basins.
- The total value of these transformative transactions is approximately $1.3 billion.
- These acquisitions are expected to close in Q3 2025, enhancing Mach's production and asset base.
Oklahoma City-based Mach Natural Resources LP (MNR) has entered into definitive agreements to acquire certain oil and gas assets from Sabinal Energy, LLC and entities managed by IKAV Energy Inc. The total consideration for these acquisitions is approximately $1.3 billion, subject to customary terms and conditions. These strategic transactions are expected to close during the third quarter of 2025, with an effective date of April 1, 2025.
The acquisitions signify a major expansion for Mach, nearly doubling its production from 81 Mboe/d to approximately 152 Mboe/d. The transactions are immediately accretive to Mach’s cash available for distribution, maintaining a low leverage and a reinvestment rate below 50%. As part of the strategic entry into these prolific basins, Mach will acquire approximately 700,000 net acres, increasing its total acreage by 33% to 2.8 million acres.
From a financial standpoint, the acquisition of Sabinal's assets, valued at $500 million, will be funded with $300 million in equity consideration through Mach common units, supplemented by cash on hand and borrowings under its Revolving Credit Facility. Sabinal's assets include approximately 130,000 net acres with a production mix of 98% liquids. Meanwhile, the purchase of IKAV San Juan's assets, priced at $787 million, includes 570,000 net acres with a production focus of 94% natural gas.
In line with these acquisitions, Mach aims to create a balanced production portfolio, with enhanced capital allocation flexibility to support free cash flow optimization across various commodity cycles. This strategic growth positions Mach as a future consolidator in multiple basins, expanding its acquisition opportunities while committing to long-term value creation for its unitholders.
A conference call and webcast are scheduled for 8:00 a.m. CT on July 10, 2025, to discuss the transactions in further detail. Participation details are available on Mach’s website.
