MACH NATURAL RESOURCES LP
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
MNR$9.00-9.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001628280-25-023787
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001628280-25-038877
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 85 previous paragraphs and 121 current paragraphs.
55 unchanged; 23 reworded; 36 added; 7 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 4 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (36)
Current report
(1)Not Meaningful
Current report
Oil, natural gas and NGL production
Current report
Gathering and processing expense increased $8.0 million, or 33%, and $1.25 per Boe, or 43%, for the three-month period ended June 30, 2025, as compared to the three-month period ended June 30, 2024, primarily as a result of higher fuel costs due to higher natural gas prices. Additionally, due to changes in certain purchaser contracts in the second quarter of 2025, certain post-production costs that were previously presented as a reduction to gas revenue are now presented as gathering and processing expense.
Current report
Lease operating expense increased $3.1 million, or 7% for the three-month period ended June 30, 2025, as compared to the three-month period ended June 30, 2024, primarily as a result of an increase in company labor and contract services of $2.5 million. Lease operating expenses per Boe increased by $0.80 primarily related to the above noted increases, combined with lower production for the three-month period ended June 30, 2025, as compared to the three-month period ended June 30, 2024.
Current report
Midstream operating expense increased $0.6 million, or 22% for the three-month period ended June 30, 2025, as compared to the three-month period ended June 30, 2024, primarily as a result of higher gathering operating expense of $0.4 million.
Current report
General and administrative costs decreased $2.6 million, or 23% for the three-month period ended June 30, 2025, as compared to the three-month period ended June 30, 2024. The decrease is primarily a result of additional cost recovery per the terms of joint operating agreements from acquired wells subsequent to June 30, 2024.
Current report
Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024
Current report
Revenue
Current report
(1)Not Meaningful
Current report
Revenue and Other Operating Income
Current report
Oil, natural gas and NGL production
Current report
Oil and natural gas derivatives
Current report
For the six-month period ended June 30, 2025, we had realized gains on derivative instruments of $8.7 million and unrealized gains of $6.2 million for total gains of $14.9 million. For the six-month period ended June 30, 2024, we had realized losses on derivative instruments of $0.8 million and unrealized losses of $33.1 million for total losses of $33.9 million. The increase in both realized and unrealized gains is primarily from a decrease in oil prices throughout the second quarter of 2025.
Current report
Midstream revenue
Current report
Midstream revenue decreased $0.3 million, or 2% for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024, primarily due to lower third-party volumes flowing through our midstream facilities for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024.
Current report
Product sales
Current report
Product sales increased $2.3 million, or 17% for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024. This increase was primarily a result of the increase in the average selling price of natural gas. These increases corresponded with the increase in our cost of product sales noted below.
Current report
Operating Expenses
Current report
Gathering and processing expense
Current report
Gathering and processing expense increased $4.2 million, or 7%, and $0.59 per Boe, or 17%, for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024, primarily as a result of higher fuel costs due to higher natural gas prices. Additionally, due to changes in certain purchaser contracts in the second quarter of 2025, certain post production-costs that were previously presented as a reduction to natural gas revenue are now presented as gathering and processing expense.
Current report
Lease operating expense
Current report
Lease operating expense increased $11.1 million, or 13% for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024, primarily as a result of an increase in company labor and contract services of $4.9 million, higher saltwater disposal related expenses of $3.8 million, and higher compression expenses of $1.3 million. Lease operating expenses per Boe increased by $1.22 primarily related to the above noted increases, combined with lower production for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024.
Current report
Production taxes
Current report
Production taxes decreased $0.8 million, or 3% for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024. This decrease was in line with the decrease in oil, natural gas and NGL sales.
Current report
Midstream operating expense
Current report
Midstream operating expense increased $1.0 million, or 19% for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024, primarily as a result of an increase of $0.4 million in both gathering operating expense and plant operating expense.
Current report
Cost of product sales
Current report
Cost of product sales increased $2.4 million, or 20% for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024. This increase was primarily a result of the increase in the average selling price of natural gas. These increases were consistent with the increase in product sales noted above.
Current report
Depreciation, depletion, amortization and accretion expense - oil and natural gas
Current report
General and administrative costs
Current report
General and administrative costs decreased $2.1 million, or 10% for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024. The decrease is primarily a result of additional cost recovery per the terms of joint operating agreements from acquired wells subsequent to June 30, 2024.
Current report
On July 9, 2025, we entered into agreements governing the Sabinal Acquisition and the IKAV Acquisition, pursuant to which we agreed to issue an aggregate of 52,348,901 common units as consideration to the Sabinal Sellers and the IKAV Sellers. In connection with the Sabinal Acquisition and the IKAV Acquisition, we may also evaluate additional capital markets transactions; however, there is no guarantee that we will execute a capital markets transaction on favorable terms or at all. Whether or not the Sabinal Acquisition and the IKAV Acquisition close, based on our current oil and natural gas price expectations, we believe our cash flows provided by operating activities and availability under our New Revolving Credit Facility will provide us with the financial flexibility necessary to meet our cash requirements, including normal operating needs, and to pursue our currently planned 2025 development activities. Further, we believe that existing cash and cash equivalents, any positive cash flows from operations and available borrowings under our New Revolving Credit Facility will be sufficient to support working capital, capital expenditures and other cash requirements for at least the next 12 months and, based on our current expectations, for the foreseeable future thereafter.
Current report
Net cash provided by operating activities increased $11.9 million for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024. The increase in net cash provided by operating activities is primarily a result of an increase in the average selling price of natural gas, offset with a decrease in production. Additionally, we had an increase in realized gains on derivative instruments of $9.5 million for the six-month period ended June 30, 2025 primarily from a decrease in oil prices throughout the second quarter of 2025.
Current report
The New Revolving Credit Facility’s borrowing base is redetermined semi-annually, in April and October. The New Revolving Credit Facility requires the Company to maintain as of the last day of each fiscal quarter (i) a consolidated total net leverage ratio of less than or equal to 3.00 to 1.00, and (ii) a current ratio of no less than 1.00 to 1.00. In July 2025, the
Current report
Company entered into the Letter Agreement pursuant to which the lenders under the New Revolving Credit Facility waived
Current report
certain restrictions to permitted payments with respect to certain financial covenants.
Removed paragraphs (7)
Previous report
Production
Previous report
Gathering and processing expense decreased $3.8 million, or 12%, and $0.07 per Boe, or 2%, for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024, primarily as a result of the 13% decline in natural gas production and the 9% decline in NGL production.
Previous report
Lease operating expense increased $8.0 million, or 20% for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024, primarily due to a $3.0 million increase in salt water disposal related expenses, and a $2.4 million increase related to field and contract labor. Lease operating expenses per Boe increased by $1.66 primarily from the increases noted above, combined with a decrease in overall production from period to period.
Previous report
Midstream operating expense increased $0.4 million, or 16% for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024, primarily due to increased plant operating expenses of $0.3 million.
Previous report
General and administrative costs increased $0.5 million, or 5% for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024. The increase in general and administrative costs was primarily a result of an increase in equity compensation of $0.9 million for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024.
Previous report
Net cash provided by operating activities decreased $1.4 million for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024. The decrease in net cash provided by operating activities is primarily a result of a decrease in production, offset with an increase in the average selling price of natural gas.
Previous report
The following table presents our reconciliation of the GAAP financial measures of net income and net cash provided by operating activities to the non-GAAP financial measures Adjusted EBITDA and cash available for distribution, as applicable, for each of the periods indicated.
Reworded paragraphs (23)
Previous wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to provide the reader of the financial statements with a narrative from the perspective of management on the financial condition, results of operations, liquidity and certain other factors that may affect the Company’s operating results. The following discussion and analysis should be read in conjunction with our unaudited consolidated financial statements and related notes included in Part I, Item I of this Quarterly Report and also with “Risk Factors” included in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024. The following information updates the discussion of our financial condition provided in our previous filings, and analyzes the changes in the results of operations for the three months ended March 31, 2025 and 2024.
Current wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to provide the reader of the financial statements with a narrative from the perspective of management on the financial condition, results of operations, liquidity and certain other factors that may affect the Company’s operating results. The following discussion and analysis should be read in conjunction with our unaudited consolidated financial statements and related notes included in Part I, Item I of this Quarterly Report and also with “Risk Factors” included in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024. The following information updates the discussion of our financial condition provided in our previous filings and analyzes the changes in the results of operations for the three and six months ended June 30, 2025 and 2024.
Previous wording
Our financial results depend on many factors, particularly commodity prices and our ability to find, develop and market our production on economically attractive terms. Commodity prices are affected by many factors outside of our control, including changes in market supply and demand. The oil and natural gas industry is cyclical and commodity prices are highly volatile and we expect continued and increased pricing volatility in the crude oil and natural gas markets. Regional and worldwide economic activity, including any economic downturn or recession that has occurred or may occur in the future, extreme weather conditions and other substantially variable factors, influence market conditions for these products. Between January 1, 2024 and March 31, 2025, NYMEX WTI prices for crude oil ranged from $65.75 to $86.91 per Bbl, and the NYMEX Henry Hub price of natural gas ranged from $1.58 to $4.49 per MMBtu. The war in Ukraine and conflict in the Middle East, uncertainty regarding interest rates, global supply chain disruptions, the potential for significant new tariffs, concerns about a potential economic downturn or recession, and instability in the financial sector have contributed to recent economic and pricing volatility and may continue to impact pricing throughout 2025.
Current wording
Our financial results depend on many factors, particularly commodity prices and our ability to find, develop and market our production on economically attractive terms. Commodity prices are affected by many factors outside of our control, including changes in market supply and demand. The oil and natural gas industry is cyclical and commodity prices are highly volatile and we expect continued and increased pricing volatility in the crude oil and natural gas markets. Regional and worldwide economic activity, including any economic downturn or recession that has occurred or may occur in the future, extreme weather conditions and other substantially variable factors, influence market conditions for these products. Between January 1, 2024 and June 30, 2025, NYMEX WTI prices for crude oil ranged from $57.13 to $86.91 per Bbl, and the NYMEX Henry Hub price of natural gas ranged from $1.58 to $4.49 per MMBtu. The war in Ukraine and conflict in the Middle East, uncertainty regarding interest rates, global supply chain disruptions, the potential for significant new tariffs, OPEC+’s decision to increase production in May and July 2025, concerns about a potential economic downturn or recession, and instability in the financial sector have contributed to recent economic and pricing volatility and may continue to impact pricing throughout 2025.
Previous wording
Between 2022 and 2024, the Federal Reserve raised the target range for the federal funds rate in an effort to curb inflation. In September 2024 and November 2024, the Federal Reserve lowered the target range for the federal funds rate to its current range of 4.25% to 4.50% in light of the reduced inflation. In March 2025, inflation, as measured by the consumer price index, was 2.4%. We cannot predict the future inflation rate but to the extent we experience high inflation, we may see cost increases in our operations, including costs for drill rigs, workover rigs, tubulars and other well equipment, as well as increased labor costs. We continue to evaluate actions to mitigate supply chain and inflationary pressures and work closely with other suppliers and contractors to ensure availability of supplies on site, especially fuel, steel and chemical supplies which are critical to many of our operations. However, these mitigation efforts may not succeed or may be insufficient. Further, if we are unable to recover higher costs through higher commodity prices, our current revenue stream, estimates of future reserves, borrowing base calculations, impairment assessments of oil and natural gas properties, and values of properties in purchase and sale transactions would all be significantly impacted.
Current wording
Between 2022 and 2024, the Federal Reserve raised the target range for the federal funds rate in an effort to curb inflation. In September 2024 and November 2024, the Federal Reserve lowered the target range for the federal funds rate to its current range of 4.25% to 4.50% in light of the reduced inflation. In June 2025, inflation, as measured by the consumer price index, was 2.7%. We cannot predict the future inflation rate but to the extent we experience high inflation, we may see cost increases in our operations, including costs for drill rigs, workover rigs, tubulars and other well equipment, as well as increased labor costs. We continue to evaluate actions to mitigate supply chain and inflationary pressures and work closely with other suppliers and contractors to ensure availability of supplies on site, especially fuel, steel and chemical supplies which are critical to many of our operations. However, these mitigation efforts may not succeed or may be insufficient. Further, if we are unable to recover higher costs through higher commodity prices, our current revenue stream, estimates of future reserves, borrowing base calculations, impairment assessments of oil and natural gas properties, and values of properties in purchase and sale transactions would all be significantly impacted.
Previous wording
We have completed three acquisitions since the beginning of 2024. These acquisitions are reflected in our results of operations as of and after the date of completion for each such acquisition. As a result, periods prior to each such acquisition will not contain the results of such acquired assets which will affect the comparability of our results of operations for certain historical periods. We may continue to grow our operations through acquisitions when economical, including by funding such acquisitions under our New Revolving Credit Facility.
Current wording
We have completed four acquisitions since the beginning of 2024. These acquisitions are reflected in our results of operations as of and after the date of completion for each such acquisition. As a result, periods prior to each such acquisition will not contain the results of such acquired assets which will affect the comparability of our results of operations for certain historical periods. We may continue to grow our operations through acquisitions when economical, including by funding such acquisitions under our New Revolving Credit Facility.
Previous wording
Revenues from oil, natural gas and NGL sales decreased $2.5 million, or 1%, for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024. This decrease was primarily related to a 10% production decrease, which resulted in decreased oil, natural gas and NGL sales of $23.6 million. These decreases were offset with an overall increase in the average selling price of our products, which resulted in an increase in oil, natural gas, and NGL sales of $21.0 million.
Current wording
Revenues from oil, natural gas and NGL sales decreased $12.1 million, or 5% for the three-month period ended June 30, 2025, as compared to the three-month period ended June 30, 2024. This decrease was primarily related to a 6% production decrease, which resulted in decreased oil, natural gas and NGL sales of $16.4 million. These decreases were offset with an overall increase in the average selling price of our products, which resulted in an increase in oil, natural gas, and NGL sales of $4.2 million.
Previous wording
Production decreased 815 MBoe, or 10% for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024. The decrease was primarily a result of natural well declines on our producing wells, partially offset with new production on wells completed subsequent to March 31, 2024.
Current wording
Production decreased 524 MBoe, or 6% for the three-month period ended June 30, 2025, as compared to the three-month period ended June 30, 2024. The decrease was primarily a result of natural well declines on our producing wells, partially offset with new production on wells completed subsequent to June 30, 2024.
Previous wording
For the three-month period ended March 31, 2025, we had realized gains on derivative instruments of $1.6 million and unrealized losses of $42.3 million for total losses of $40.7 million. For the three-month period ended March 31, 2024, we had realized gains on derivative instruments of $4.0 million and unrealized losses of $33.2 million for total losses of $29.3 million. The increase in unrealized losses is primarily due to the increase in natural gas prices. The decrease in realized gains is primarily due to a decrease in the spread between settlement prices and contract prices.
Current wording
For the three-month period ended June 30, 2025, we had realized gains on derivative instruments of $7.0 million and unrealized gains of $48.6 million for total gains of $55.6 million. For the three-month period ended June 30, 2024, we had realized losses on derivative instruments of $4.8 million and unrealized gains of $0.1 million for total losses of $4.6 million. The increase in both realized and unrealized gains is primarily from a decrease in oil prices throughout the second quarter.
Previous wording
Midstream revenue decreased $0.1 million, or 1% for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024, primarily due to lower salt water disposal revenue for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024.
Current wording
Midstream revenue decreased $0.2 million, or 3% for the three-month period ended June 30, 2025, as compared to the three-month period ended June 30, 2024, primarily due to lower third-party volumes flowing through our midstream facilities for the three-month period ended June 30, 2025, as compared to the three-month period ended June 30, 2024.
Previous wording
Product sales increased $1.6 million, or 24% for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024. This increase was primarily a result of increases in third-party volumes resulting in higher overall product sales and an increase in the average selling price on natural gas and NGLs. These increases corresponded with the increase in our cost of product sales noted below.
Current wording
Product sales increased $0.6 million, or 9% for the three-month period ended June 30, 2025, as compared to the three-month period ended June 30, 2024. This increase was primarily a result of increases in the average selling price of natural gas. These increases corresponded with the increase in our cost of product sales noted below.
Previous wording
Production taxes increased $22.0 thousand for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024. This increase was in line with the increase in oil, natural gas and NGL sales.
Current wording
Production taxes decreased $0.8 million, or 7% for the three-month period ended June 30, 2025, as compared to the three-month period ended June 30, 2024. This decrease was in line with the decrease in oil, natural gas and NGL sales.
Previous wording
Cost of product sales increased $1.9 million, or 31% for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024. This increase was primarily a result of increases in third-party volumes resulting in higher overall cost of product sales and the increase in the average selling price on natural gas and NGLs. These increases were consistent with the decrease in product sales noted above.
Current wording
Cost of product sales increased $0.5 million, or 8% for the three-month period ended June 30, 2025, as compared to the three-month period ended June 30, 2024. This increase was primarily a result of the increase in the average selling price of natural gas. These increases were consistent with the increase in product sales noted above.
Previous wording
Depreciation, depletion, amortization and accretion expense
Current wording
Depreciation, depletion, amortization and accretion expense - oil and natural gas
Previous wording
Depreciation, depletion, amortization and accretion expense for oil and natural gas properties decreased by $4.2 million, or 6% for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024. The decrease is primarily the result of a decrease in production used to calculate depletion.
Current wording
Depreciation, depletion, amortization and accretion expense for oil and natural gas properties decreased by $1.5 million, or 2% for the three-month period ended June 30, 2025, as compared to the three-month period ended June 30, 2024. The decrease is primarily the result of a decrease in production used to calculate depletion.
Previous wording
Our primary sources of liquidity and capital are cash flows generated by operating activities, borrowings under the New Revolving Credit Facility, and proceeds from the issuance of equity and debt. At March 31, 2025, outstanding borrowings under the New Revolving Credit Facility were $460.0 million with $5.0 million in letters of credit outstanding, and the remaining availability under the New Revolving Credit Facility was $285.0 million at March 31, 2025.
Current wording
Our primary sources of liquidity and capital are cash flows generated by operating activities, borrowings under the New Revolving Credit Facility, and proceeds from the issuance of equity and debt. At June 30, 2025, outstanding borrowings under the New Revolving Credit Facility were $565.0 million with $5.0 million in letters of credit outstanding, and the remaining availability under the New Revolving Credit Facility was $180.0 million at June 30, 2025.
Previous wording
Historically, our business plan has focused on acquiring and then exploiting the development and production of our assets. We spent approximately $52.0 million during the three-month period ended March 31, 2025 on development costs and our budget for 2025 is between $260.0 million and $280.0 million. For purposes of calculating our cash available for distribution, we define development costs as all of our capital expenditures, other than acquisitions. Our development efforts and capital for 2025 is anticipated to focus on a mix of drilling Oswego, Woodford, Red Fork and Mississippian wells.
Current wording
Historically, our business plan has focused on acquiring and then exploiting the development and production of our assets. We spent approximately $115.5 million during the six-month period ended June 30, 2025 on development costs and our budget for 2025 is between $260.0 million and $280.0 million. For purposes of calculating our cash available for distribution, we define development costs as all of our capital expenditures, other than acquisitions. Our development efforts and capital for 2025 is anticipated to focus on a mix of drilling Oswego, Woodford, Red Fork and Mississippian wells.
Previous wording
During the three-month period ended March 31, 2025, we spent approximately $42.8 million on drilling and completion activities and related equipmentand spud 6.7 net wells while bringing online 9.3 net wells, $8.2 million on remedial workovers and other capital projects, $1.0 million on midstream and other property and equipment capital projects and $26.3 million on acquisitions.
Current wording
During the six-month period ended June 30, 2025, we spent approximately$96.7 million on drilling and completion activities and related equipmentand spud 16.1 net wells while bringing online 18.6 net wells, $15.1 million on remedial workovers and other capital projects,$3.7 million on midstream and other property and equipment capital projects and$91.3 million on acquisitions of oil and natural gas properties and other property and equipment.
Previous wording
Net cash used in investing activities increased $23.3 million for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024. The increase in net cash used in investing activities is primarily a result of an increase in cash used in acquisitions of $28.2 million. This was offset by a decrease in capital expenditures on our other property and equipment of $3.2 million.
Current wording
Net cash used in investing activities increased $127.1 million for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024. The increase in net cash used in investing activities is primarily a result of increases in cash used to acquire assets of $100.1 million in the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024. This was slightly offset by decreases in capital expenditures on our oil and gas properties and on our other property and equipment of $6.3 million and $3.2 million, respectively, due to decreased drilling and completion activities in the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024.
Previous wording
Net cash used in financing activities increased $71.8 million for the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024. The increase in net cash used in investing activities is primarily due to increases in cash used for repayments of our term loan of $763.1 million, prepayment penalties of $7.7 million and new debt issuance costs of $13.4 million. These were partially offset by an increase in cash provided by borrowings on our credit facilities, net of repayments of $460.0 million, and an increase in cash provided from proceeds from follow-on offerings of $221.6 million. Additionally, there was a decrease in cash used for distributions of $31.1 million in the three-month period ended March 31, 2025, as compared to the three-month period ended March 31, 2024.
Current wording
Net cash used in financing activities decreased $31.4 million for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024. The decrease in net cash used in investing activities is primarily due to an increase in cash provided by borrowings on our credit facilities, net of repayments of $565.0 million, and an increase in cash provided from proceeds from follow-on offerings of $221.1 million. These were partially offset by increases in cash used for repayments of our term loan of $742.5 million, prepayment penalties of $7.7 million and new debt issuance costs of $13.8 million. Additionally, there was a decrease in cash used for distributions to unitholders of $8.9 million in the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024.
Previous wording
The New Revolving Credit Facility has (i) an initial borrowing base and elected commitment amount of $750.0 million, with a maximum commitment amount of $2.0 billion subject to borrowing base availability, (ii) a maturity date of February 27, 2029 and (iii) an interest rate equal to, at the Company’s election, (a) term SOFR (subject to a 0.10% per annum adjustment) plus a margin ranging from 3.00-4.00% per annum or (b) a base rate plus a margin ranging from 2.00-3.00% per annum, with the margin dependent upon borrowing base utilization at the time of determination. The Company is also required to pay a commitment fee of 0.50% per annum on the daily unused portion of the current aggregate commitments under the New Revolving Credit Facility. The Company used borrowings from the New Revolving Credit Facility, together with cash on hand and proceeds from the February 2025 Offering, to repay the Term Loan Credit Agreement and the Revolving Credit Agreement in full.
Current wording
The New Revolving Credit Facility has (i) an initial borrowing base and elected commitment amount of $750.0 million, with a maximum commitment amount of $2.0 billion subject to borrowing base availability, (ii) a maturity date of February 27, 2029 and (iii) an interest rate equal to, at the Company’s election, (a) term SOFR (subject to a 0.10% per annum adjustment) plus a margin ranging from 3.00-4.00% per annum or (b) a base rate plus a margin ranging from 2.00-3.00% per annum, with the margin dependent upon borrowing base utilization at the time of determination. The Company is also required to pay a commitment fee of 0.50% per annum on the daily unused portion of the current aggregate commitments under the New Revolving Credit Facility.
Previous wording
We are a party to firm transportation contracts for the transport of natural gas. We paid approximately $0.1 million in firm transportation contracts for the three-month period ended March 31, 2025 and expect to pay approximately $0.1 million in firm transportation contracts through 2025. For further information on firm transportation contracts, see Note 10 of our consolidated financial statements.
Current wording
We are a party to firm transportation contracts for the transport of natural gas. We paid approximately $0.1 million and $0.2 million in firm transportation contracts for the three and six month periods ended June 30, 2025, respectively. As of June 30, 2025, the Company has no material amounts remaining under these agreements. For further information on firm transportation contracts, see Note 10 of our consolidated financial statements.
Previous wording
Our operating lease obligations include long-term lease payments for office space, vehicles, equipment related to exploration, development and production activities. We paid approximately $2.1 million in operating lease payments for the three-month period ended March 31, 2025 and expect to pay approximately $15.6 million in operating lease payments through 2029. For further information on our operating lease obligations, see Note 11 of our consolidated financial statements.
Current wording
Our operating lease obligations include long-term lease payments for office space, vehicles, equipment related to exploration, development and production activities. We paid approximately $4.0 million and $1.9 million in operating lease payments for the three and six month periods ended June 30, 2025, respectively, and expect to pay approximately $17.7 million in operating lease payments through 2029. For further information on our operating lease obligations, see Note 11 of our consolidated financial statements.
Previous wording
Cash available for distribution is not a measure of net income or net cash flow provided by or used in operating activities as determined by GAAP. Cash available for distribution is a supplemental non-GAAP financial performance measure used by our management and by external users of our financial statements, such as industry analysts, investors, lenders, rating agencies and others, to assess our ability to internally fund our exploration and development activities, pay distributions, and to service or incur additional debt. We define cash available for distribution as net income adjusted for (1) interest expense, net, (2) depreciation, depletion, amortization and accretion, (3) unrealized loss (gain) on derivative instruments, (4) loss on debt extinguishment, (5) equity-based compensation expense, (6) (gain) loss on sale of assets, net, (7) cash interest expense, net, (8) development costs and (9) change in accrued realized derivative settlements. Development costs include all of our capital expenditures, other than acquisitions. Cash available for distribution will not reflect changes in working capital balances. Cash available for distribution is not a measurement of our financial performance or liquidity under GAAP and should not be considered as an alternative to, or more meaningful than, net income or net cash provided by or used in operating activities as determined in accordance with GAAP or as indicators of our financial performance and liquidity. The GAAP measures most directly comparable to cash available for distribution are net income and net cash provided by operating activities. Cash available for distribution should not be considered as an alternative to, or more meaningful than, net income or net cash provided by operating activities.
Current wording
Cash available for distribution is not a measure of net income or net cash flow provided by or used in operating activities as determined by GAAP. Cash available for distribution is a supplemental non-GAAP financial performance measure used by our management and by external users of our financial statements, such as industry analysts, investors, lenders, rating agencies and others, to assess our ability to internally fund our exploration and development activities, pay distributions, and to service or incur additional debt. We define cash available for distribution as net income adjusted for (1) interest expense, net, (2) depreciation, depletion, amortization and accretion, (3) unrealized loss (gain) on derivative instruments, (4) loss on debt extinguishment, (5) equity-based compensation expense, (6) (gain) loss on sale of assets, net, (7) cash interest expense, net, (8) development costs and (9) change in accrued realized derivative settlements. Development costs include all of our capital expenditures, other than acquisitions. Cash available for distribution will not reflect changes in working capital balances. Cash available for distribution is not a measurement of our financial performance or liquidity under GAAP and should not be considered as an alternative to, or more meaningful than, net income or net cash provided by or used in operating activities as determined in accordance with GAAP or as indicators of our financial performance and liquidity. The GAAP measure most directly comparable to cash available for distribution is net income. Cash available for distribution should not be considered as an alternative to, or more meaningful than, net income.
Previous wording
Our critical accounting policies and estimates are disclosed in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” in our Annual Report for the year ended December 31, 2024. No modifications have been made during the three months ended March 31, 2025.
Current wording
Our critical accounting policies and estimates are disclosed in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” in our Annual Report for the year ended December 31, 2024. No modifications have been made during the six months ended June 30, 2025.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
The following table provides the components of our revenue, net of transportation and marketing costs, for the periods indicated, as well as each period’s respective average realized prices and net production volumes. Some totals and changes throughout the below section may not sum or recalculate due to rounding.
Current report — wording carried from elsewhere
Oil, natural gas and NGL sales
Current report — wording carried from elsewhere
Revenues from oil, natural gas and NGL sales decreased $14.6 million, or 3% for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024. This decrease was primarily related to the 8% production decrease, which resulted in decreased oil, natural gas and NGL sales of $39.2 million. These decreases were offset with an overall increase in the average selling price of our products, which resulted in an increase in oil, natural gas, and NGL sales of $24.6 million.
Current report — wording carried from elsewhere
Production decreased 1,338 MBoe, or 8% for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024. The decrease was primarily a result of natural well declines on our producing wells, partially offset with new production on wells completed subsequent to June 30, 2024.
Current report — wording carried from elsewhere
The following table summarizes our expenses for the periods indicated and includes a presentation of certain expenses on a per Boe basis, as we use this information to evaluate our performance relative to our peers and to identify and measure trends we believe may require additional analysis:
Current report — wording carried from elsewhere
Depreciation, depletion, amortization and accretion expense for oil and natural gas properties decreased by $5.7 million, or 4% for the six-month period ended June 30, 2025, as compared to the six-month period ended June 30, 2024. The decrease is primarily the result of a decrease in production used to calculate depletion.
Current report — wording carried from elsewhere
The Company used borrowings from the New Revolving Credit Facility, together with cash on hand and proceeds from the February 2025 Offering, to repay the Term Loan Credit Agreement and the Revolving Credit Agreement in full.