In the news release, Mach Natural Resources Adds Accretive
Acquisition in Anadarko Basin,
issued 13-Nov-2023 by Mach Natural
Resources over PR Newswire, we are advised by the company that the
second bullet should read "PDP reserves of approximately 75 million
barrels of oil equivalent ("MMBoe")2" rather than "PDP reserves of
approximately 31.5 million barrels of oil equivalent ("MMBoe")2" as
originally issued inadvertently. The complete, corrected release
follows:
Mach Natural Resources Adds Accretive Acquisition in Anadarko Basin
OKLAHOMA
CITY, Nov. 13, 2023 /PRNewswire/ -- Mach Natural
Resources LP (NYSE: MNR) ("Mach" or the "Company") signed an
agreement with Paloma Partners IV, LLC, a privately-held
Delaware limited liability company
backed by EnCap Investments and its affiliated companies (the
"Sellers"), to acquire certain interests in oil and gas properties,
rights and related assets located in certain counties in
Oklahoma for a total cash
consideration of $815 million,
subject to customary terms, conditions, and closing price
adjustments (the "Acquisition"). The Acquisition is expected to
close December 29, 2023, with an
effective date of September 1, 2023.
Asset Highlights
- Recent production of approximately 32,000 Boepd (23% oil,
57% liquids)1
- PDP reserves of approximately 75 million barrels of oil
equivalent ("MMBoe")2
- 1 rig currently running in Grady County with 6 additional
wells expected to be completed between effective date and closing
date
- Approximately 62,000 net acres in the Anadarko Basin in
Canadian, Grady, McClain, Caddo, Custer, Dewey, Blaine
and Kingfisher Counties,
Oklahoma, approximately 76%
located in the core development area in Canadian and Grady Counties
- High-return drilling locations with over 12 years of
operated inventory on a 1 rig program
Acquisition Highlights
The Acquisition advances the strategic and stated
objectives of the Company since our founding:
- Focus on Distributions — Acquisition is accretive
to both total cash available for distribution and expected cash
distribution per unit
- Disciplined Acquisition Strategy — Acquiring PDP
reserves and expansive SCOOP/STACK inventory at a discount to PDP
PV103
- Maintain low leverage — Post transaction closing,
Debt/EBITDA remains below 1.0x
- Reinvestment rate below 50% — Adding 1 rig on newly
acquired assets in addition to our current 2 rig development
program while remaining under 50% reinvestment rate
Financing
Mach plans to fund the purchase price with new debt
financing. Mach has received fully committed financing from a group
led by Chambers Energy Management and EOC Partners, and including
Mercuria Investments US, Inc., funds managed by Farallon Capital
Management LLC, Macquarie Group, among other financial institutions
as participants. The $825mm Senior Secured Term Loan will close in
conjunction with the closing of the Acquisition.
Advisors
Kirkland & Ellis is serving as legal advisor for Mach.
Vinson & Elkins is serving as legal advisor
and RBC Richardson Barr is serving as financial advisor for
Sellers.
Latham & Watkins is serving as legal advisor
for the term loan participants.
About Mach Natural Resources LP
Mach Natural Resources LP is an independent upstream oil and gas
company focused on the acquisition, development and production of
oil, natural gas and NGL reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas and the panhandle of
Texas.
Forward-Looking Statements and Cautionary
Statements
Certain statements in this press release concerning future
opportunities for the Company, future financial performance and
condition, guidance and any other statements regarding the
Company's future expectations, beliefs, plans, objectives,
financial conditions, returns to shareholders assumptions or future
events or performance that are not historical facts are
"forward-looking" statements based on assumptions currently
believed to be valid. Forward-looking statements are all statements
other than statements of historical facts. The words "anticipate,"
"believe," "ensure," "expect," "if," "intend," "estimate,"
"probable," "project," "forecasts," "predict," "outlook," "aim,"
"will," "could," "should," "would," "potential," "may," "might,"
"anticipate," "likely" "plan," "positioned," "strategy," and
similar expressions or other words of similar meaning, and the
negatives thereof, are intended to identify forward-looking
statements. Specific forward-looking statements include statements
regarding the Company's plans and expectations with respect to the
Acquisition and the anticipated impact of the Acquisition on the
Company's results of operations, financial position, growth
opportunities, reserve estimates and competitive position. The
forward-looking statements are intended to be subject to the safe
harbor provided by Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of
1995.
These forward-looking statements involve
significant risks and uncertainties that could cause actual results
to differ materially from those anticipated, including, but not
limited to, the satisfaction of conditions to the closing of the
transaction, the Company's ability to consummate financing for the
transaction, the Company's future financial condition, results of
operations, strategy and plans; the ability of the Company to
realize anticipated synergies related to the Acquisition in the
timeframe expected or at all; changes in capital markets and the
ability of the Company to finance operations in the manner
expected; the effects of commodity prices; and the risks of oil and
gas activities. Additionally, risks and uncertainties that could
cause actual results to differ materially from those anticipated
also include: commodity price volatility; the impact of epidemics,
outbreaks or other public health events, and the related effects on
financial markets, worldwide economic activity and our operations;
the impact of COVID-19, and governmental measures related thereto,
on global demand for oil and natural gas and on the operations of
our business; uncertainties about our estimated oil, natural gas
and NGL reserves, including the impact of commodity price declines
on the economic producibility of such reserves, and in projecting
future rates of production; the concentration of our operations in
the Anadarko Basin; difficult and
adverse conditions in the domestic and global capital and credit
markets; lack of transportation and storage capacity as a result of
oversupply, government regulations or other factors; lack of
availability of drilling and production equipment and services;
potential financial losses or earnings reductions resulting from
our commodity price risk management program or any inability to
manage our commodity risks; failure to realize expected value
creation from property acquisitions and trades; access to capital
and the timing of development expenditures; environmental, weather,
drilling and other operating risks; regulatory changes, including
potential shut-ins or production curtailments mandated by the
Railroad Commission of Texas;
competition in the oil and natural gas industry; loss of production
and leasehold rights due to mechanical failure or depletion of
wells and our inability to re-establish their production; our
ability to service our indebtedness; any downgrades in our credit
ratings that could negatively impact our cost of and ability to
access capital; cost inflation; political and economic conditions
and events in foreign oil and natural gas producing countries,
including embargoes, continued hostilities in the Middle East and other sustained military
campaigns, the war in Ukraine and
associated economic sanctions on Russia, conditions in South America, Central America, China and Russia, and acts of terrorism or sabotage;
evolving cybersecurity risks such as those involving unauthorized
access, denial-of-service attacks, malicious software, data privacy
breaches by employees, insiders or other with authorized access,
cyber or phishing-attacks, ransomware, social engineering, physical
breaches or other actions; and risks related to our ability to
expand our business, including through the recruitment and
retention of qualified personnel. Expectations regarding business
outlook, including changes in revenue, pricing, capital
expenditures, cash flow generation, strategies for our operations,
oil and natural gas market conditions, legal, economic and
regulatory conditions, and environmental matters are only forecasts
regarding these matters.
Additional information concerning other risk
factors is also contained in the Company's recently filed
registration statement on Form S-1, as amended, which was
originally filed with the U.S. Securities and Exchange Commission
(the "SEC") September 22, 2023, which
is on file with the SEC, and in other documents the Company files
with the SEC. All forward-looking statements speak only as of the
date they are made and are based on information available at that
time. The Company does not assume any obligation to update
forward-looking statements to reflect circumstances or events that
occur after the date the forward-looking statements were made or to
reflect the occurrence of unanticipated events except as required
by federal securities laws. As forward-looking statements involve
significant risks and uncertainties, caution should be exercised
against placing undue reliance on such statements.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Mach Natural Resources LP
Investor Relations Contact: ir@machresources.com
_____________________________
1 As of August
2023
2 As of the Effective Date, September 1, 2023
3 Based on October 31,
2023 Strip Pricing
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SOURCE Mach Natural Resources