Mach Natural Resources Increases Its Total Production By Nearly 90% Through Acquisitions

Summary

  • Mach announced acquisitions with a total value of $1.287 billion. Deal price was 41% cash and 59% common units.
  • Mach's total production increases by close to 90% while its oil production increases by approximately 55%.
  • Compared to without the acquisitions, Mach's free cash flow per unit should increase by low teens percent.
  • Mach gains some Mancos Shale dry gas development inventory.
  • Pro forma net debt nears $1 billion though.
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Oil pumps and wind mill during sunset.

Torsten Asmus

Mach Natural Resources (MNR) announced a couple major acquisitions with a combined deal price of nearly $1.3 billion. The consideration for the acquisitions is roughly 41% cash and 59% common units.

These deals will increase Mach's total

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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