MACH NATURAL RESOURCES LP has recently released its 10-Q report. The Oklahoma City company is an independent upstream oil and gas producer focused on acquiring, developing and producing oil, natural gas and NGL reserves across the Anadarko, San Juan and Permian basins. It also owns gathering systems, processing plants and water infrastructure, and operates proved developed producing wells alongside its midstream assets.
In Item 2, management said the company’s first-quarter 2026 results reflected the impact of the IKAV and Sabinal acquisitions completed in September 2025. Oil, natural gas and NGL sales rose to $365.5 million from $252.7 million a year earlier, while total revenue increased to $285.9 million from $226.8 million after a $96.9 million net loss on derivatives, compared with a $40.7 million loss in the prior-year period.
Production nearly doubled to 14.179 million Boe from 7.283 million Boe, with average daily output climbing to 157.5 MBoe/d from 80.9 MBoe/d. The company said the increase was driven mainly by 6.719 million Boe of added production from the IKAV and Sabinal deals.
Average realized prices weakened across the portfolio. Oil averaged $69.73 per barrel, down from $70.75; natural gas fell to $2.74 per Mcf from $3.56; and NGLs dropped to $23.75 per barrel from $27.33. On a Boe basis, total realized price before derivatives declined to $25.78 from $34.70, and after derivatives to $26.26 from $34.93.
Operating costs moved higher in several categories. Gathering and processing expense jumped to $59.3 million from $28.2 million, lease operating expense rose to $100.9 million from $48.8 million, and midstream operating expense increased to $5.2 million from $3.0 million. Production taxes climbed to $16.6 million from $12.8 million, while cost of product sales declined to $6.8 million from $8.0 million.
Depreciation, depletion, amortization and accretion expense for oil and natural gas properties increased to $94.0 million from $61.2 million, which management tied to the acquisitions and the addition of $1.3 billion of oil and gas properties subject to depletion. General and administrative expense fell to $8.8 million from $10.9 million, helped by higher cost recovery under joint operating agreements, though compensation and benefits, consulting and professional fees, and equity compensation all increased.
Management also noted that the company’s midstream revenue rose to $9.6 million from $6.1 million, and product sales slipped to $7.7 million from $8.6 million. At March 31, 2026, borrowings under the New Credit Agreement stood at $1.14 billion, with $5.0 million in letters of credit outstanding. The market has reacted to these announcements by moving the company's shares -1.12% to a price of $13.24. Check out the company's full 10-Q submission here.
