Oil’s in and gas is temporarily out at Mach
Mach Natural Resources LP confirmed it paused some of its deep Anadarko Basin drilling activity and redirected efforts to oil-weighted projects in the Mid-Continent, including a directed effort in Kingfisher County.
Details of the program came as the Oklahoma City company announced financial and operating results for the first quarter, showing a $35 million loss and adjusted EBITDA of $195 million.
The company generated $170 million in net cash from its operating activities. Mach Incurred total development costs of $75 million, resulting in a reinvestment rate of 41%.
“Mach is off to a strong start in 2026, executing at a high level and delivering results in line with our plan,” said Tom L. Ward, Chief Executive Officer. “Our first quarter distribution of $0.64 per common unit reflects our continued ability to generate and deliver attractive unitholder returns while upholding our measured reinvestment approach.”
The pause in Deep Anadarko came as Mach directed capital to higher return oil-weighted projects in the Mid-Continent, marked by a restart of the Oswego drilling program in Kingfisher County this month.
Tom L. Ward continued, “During the quarter, we began shifting our drilling program toward oil, demonstrating the optionality of our asset base and the flexibility of our operations. As we move through the year, we will remain nimble and disciplined, allocating capital to highest-return opportunities and staying aligned with our core objective of maximizing distributions.”
He said the first rig was moved in on May 1 and part of a shift in drilling to add 3 oil-weighted rigs by postponing the deep Anadarko drilling.
Mach recorded 158,000 BOE a day during the quarter and 16% was oil, 70% natural gas and 14% NGLs. The company generated $107 million cash available for distribution and the distribution was 64 cents a unit.
“Mach is off to a strong start in 2026, executing at a high level and delivering results in line with our plan,” said Tom L. Ward, Chief Executive Officer. “Our first quarter distribution of $0.64 per common unit reflects our continued ability to generate and deliver attractive unitholder returns while upholding our measured reinvestment approach.”
Tom L. Ward continued, “During the quarter, we began shifting our drilling program toward oil, demonstrating the optionality of our asset base and the flexibility of our operations. As we move through the year, we will remain nimble and disciplined, allocating capital to highest-return opportunities and staying aligned with our core objective of maximizing distributions.”
Saying the company lets pricing dictate where capital is spent, Ward said rigs can be moved at 30 to 45 day intervals, further emphasizing Mach’s pivot to oil while deferring some gas activity. Ward said Mach’s guidance program will be revised after the company moves more to the oil program.
Mach also said it spud the Company’s first operated Mancos Shale well in the San Juan Basin. But things could change, according to Ward.
“We may also delay the completion of our San Juan Mancos program until 2027 to add another oil rig in the Clear Fork formation.”
First Quarter 2026 Financial Results
Mach reported total revenue and a net loss of $286 million and $35 million in the first quarter of 2026, respectively. Additionally, during the first quarter, average realized prices were $69.73 per barrel of oil, $2.74 per Mcf of natural gas, and $23.75 per barrel of natural gas liquids (“NGLs”). These prices exclude the effects of derivatives.
As of March 31, 2026, Mach had a cash balance of $53 million and $695 million utilized under its $1.0 billion revolving credit facility, leaving approximately $358 million of available liquidity.
First Quarter 2026 Operational Results
During the first quarter of 2026, Mach achieved average oil equivalent production of 158 Mboe/d, which consisted of 16% oil, 70% natural gas and 14% NGLs. Also, for the first quarter of 2026, Mach’s production revenues from oil, natural gas, and NGLs sales totaled $366 million, comprised of 42% oil, 45% natural gas, and 13% NGLs.
The Company spud 5 gross (3.2 net) operated wells and brought online 4 gross (3.0 net) operated wells in the first quarter of 2026. As of March 31, 2026, the Company had 8 gross (6.0 net) operated wells in various stages of drilling and completion.
Mach’s lease operating expense in the first quarter of 2026 was $101 million, or $7.12 per Boe. Mach incurred $59 million, or $4.18 per Boe, of gathering and processing expenses in the first quarter of 2026. Furthermore, during the first quarter of 2026, production taxes as a percentage of oil, natural gas, and NGL sales were approximately 4.5%, midstream operating profit was approximately $5 million, general and administrative expenses—excluding equity-based compensation of $4 million—was $5 million, and interest expense was $24 million.
In the first quarter of 2026, Mach’s total development costs were $75 million, including $67 million of upstream capital and $8 million of other capital (including midstream and land).
Distributions
Mach announced that the board of directors of its general partner declared a quarterly cash distribution for the first quarter of 2026 of $0.64 per common unit. The quarterly cash distribution is to be paid on June 4, 2026, to the Company’s unitholders of record as of the close of trading on May 21, 2026.