Mach Cuts Third-Quarter Distribution After Oil Price Drop

The Tip Desk · November 7, 2026 · 3 min read

The independent producer declared a $0.22 per common unit cash payout after total revenue fell to $319 million and average realized oil prices slipped to $85.84 a barrel.

Mach Natural Resources LP (MNR), an independent upstream oil and gas company, reported net income of $10 million for the three months ended September 30, 2026, down from a $98 million profit in the second quarter, as total revenue fell to $319 million from $406 million.

The Oklahoma City–based company said average realized prices excluding derivatives were $85.84 a barrel of oil, $2.17 a Mcf of natural gas and $30.02 a barrel of NGLs. Oil’s share of production revenues dropped to 49% from 54% in the second quarter. Production revenues from oil, natural gas and NGL sales were $360 million.

Average net production was 147 thousand barrels of oil equivalent per day, consisting of 15% oil, 69% natural gas and 16% NGLs. The company said it remained on track to achieve full-year 2026 production guidance. Adjusted EBITDA was $183 million, essentially unchanged from $182 million in the second quarter.

Lease operating expense improved to $6.49 a barrel of oil equivalent, or $88 million in absolute terms. Gathering and processing expense rose to $57 million, or $4.24 a Boe. Production taxes were about 4.5% of oil, natural gas and NGL sales. Midstream operating profit was about $5 million. General and administrative expenses excluding $3 million of equity-based compensation were $6 million. Interest expense was $26 million.

The company spudded 12 gross (8 net) operated wells and brought online 10 gross (6.3 net) operated wells. Total development costs were $126 million, including $120 million of upstream capital and $6 million of other capital including midstream and land.

The board of the general partner declared a quarterly cash distribution of $0.22 per common unit for the third quarter, payable November 30, 2026, to unitholders of record as of November 16. Chief Executive Officer Tom L. Ward said reduced capital spending currently underway in the fourth quarter would keep the company positioned to achieve a full-year 2026 reinvestment rate under 50%, which he said would translate to a significant increase in the fourth-quarter per-unit cash distribution.

Post quarter-end, Mach reduced its operated rig count from three to one. Year-to-date 2026, it raised $35.5 million in gross proceeds from its at-the-market equity program, with $34.6 million of net proceeds applied toward debt reduction.

For full-year 2027, the company plans to spend $275 million to $325 million in total capital for development while upholding a targeted reinvestment rate of no more than 50% of operating cash flow. Total production is expected to range between 134 Mboe/d and 142 Mboe/d. Ward said the company would allocate the vast majority of capital to the Oswego play and remain opportunistic on gas upside across 2.8 million acres of inventory in the Anadarko, Permian and San Juan basins.