MACH NATURAL RESOURCES LP
For the period ended Dec 31, 2025. Filed Mar 12, 2026.
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FY2025 · Filed Mar 12, 2026
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Item 7. Results of Operations
Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024
Revenue
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.
| Year Ended December 31, · Change | ||||
|---|---|---|---|---|
| ($ in thousands) | 2025 | 2024 | Amount | Percent |
| Revenues: | ||||
| Oil | $491,837 | $555,692 | $(63,855) | (11%) |
| Natural gas | 373,134 | 195,472 | 177,662 | 91% |
| Natural gas liquids | 172,679 | 185,621 | (12,942) | (7%) |
| Total oil, natural gas, and NGL sales | 1,037,650 | 936,785 | 100,865 | 11% |
| Gain (loss) on oil and natural gas derivatives, net | 81,289 | (18,854) | 100,143 | NM(1) |
| Midstream revenue | 27,561 | 24,341 | 3,220 | 13% |
| Product sales | 28,890 | 27,356 | 1,534 | 6% |
| Total revenues | $1,175,390 | $969,628 | $205,762 | 21% |
| Average Sales Price: | ||||
| Oil ($/Bbl) | $63.72 | $75.27 | $(11.55) | (15%) |
| Natural gas ($/Mcf) | $2.76 | $1.93 | $0.83 | 43% |
| NGL ($/Bbl) | $23.00 | $24.79 | $(1.79) | (7%) |
| Total ($/Boe) – before effects of realized derivatives | $27.46 | $29.52 | $(2.06) | (7%) |
| Total ($/Boe) – after effects of realized derivatives | $28.76 | $30.07 | $(1.31) | (4%) |
| Net Production Volumes: | ||||
| Oil (MBbl) | 7,719 | 7,382 | 337 | 5% |
| Natural gas (MMcf) | 135,026 | 101,147 | 33,879 | 33% |
| NGL (MBbl) | 7,507 | 7,489 | 18 | 0% |
| Total (MBoe) | 37,731 | 31,729 | 6,002 | 19% |
| Average daily total volumes (MBoe/d) | 103.37 | 86.69 | 16.68 | 19% |
(1)Not Meaningful
Revenue and Other Operating Income
Oil, natural gas and NGL sales
Revenues from oil, natural gas and NGL sales increased $100.9 million, or 11%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024. This increase was primarily related to a 19% production increase, which resulted in increased oil, natural gas and NGL sales of $115.5 million. These increases were slightly offset with an overall decrease in the average selling price of our products, which resulted in a decrease in oil, natural gas, and NGL sales of $14.6 million.
Oil, natural gas and NGL production
Production increased 6,002 MBoe, or 19%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024. The increase was primarily a result of acquisitions that closed during 2025 which added approximately 8,271 MBoe, offset by natural declines on existing wells.
Oil and natural gas derivatives
For the year ended December 31, 2025, we had realized gains on derivative instruments of $49.2 million and unrealized gains of $32.1 million for total gains of $81.3 million. For the year ended December 31, 2024, we had realized gains on derivative instruments of $17.5 million and unrealized losses of $36.3 million for total losses of $18.9 million. The increase in realized gains is primarily from the overall decrease in oil prices throughout 2025, as well as $13.8 million in early settlements from unwinding a portion of our natural gas derivatives in 2025.
Midstream revenue
Midstream revenue increased $3.2 million, or 13%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024, primarily due to the acquisition of additional midstream facilities in the IKAV Acquisition in September 2025.
Product sales
Product sales increased $1.5 million, or 6%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024. This increase was primarily a result of the increase in the average selling price of natural gas. These increases corresponded with the increase in our cost of product sales noted below.
Operating Expenses
The following table summarizes our expenses for the periods indicated and includes a presentation of certain expenses on a per Boe basis, as we use this information to evaluate our performance relative to our peers and to identify and measure trends we believe may require additional analysis:
| Year Ended December 31, · Change | ||||
|---|---|---|---|---|
| ($ in thousands) | 2025 | 2024 | Amount | Percent |
| Operating Expenses: | ||||
| Gathering and processing expense | $138,836 | $106,152 | $32,684 | 31% |
| Lease operating expense | 263,793 | 180,513 | 83,280 | 46% |
| Production taxes | 48,761 | 45,674 | 3,087 | 7% |
| Midstream operating expense | 13,319 | 10,466 | 2,853 | 27% |
| Cost of product sales | 25,901 | 24,026 | 1,875 | 8% |
| Depreciation, depletion, amortization and accretion expense – oil and natural gas | 280,459 | 261,949 | 18,510 | 7% |
| Depreciation and amortization expense – other | 12,305 | 9,018 | 3,287 | 36% |
| General and administrative | 56,636 | 40,838 | 15,798 | 39% |
| Impairment of oil and gas properties | 90,430 | — | 90,430 | 100% |
| Total operating expenses | $930,440 | $678,636 | $251,804 | 37% |
| Operating Expenses ($/Boe) | ||||
| Gathering and processing expense | $3.68 | $3.35 | $0.33 | 10% |
| Lease operating expense | $6.99 | $5.69 | $1.30 | 23% |
| Production taxes (% of oil, natural gas and NGL sales) | 4.7% | 4.9% | (0.2%) | (4%) |
| Depreciation, depletion, amortization and accretion expense – oil and natural gas | $7.43 | $8.26 | $(0.83) | (10%) |
| Depreciation and amortization expense – other | $0.33 | $0.28 | $0.05 | 18% |
| General and administrative | $1.50 | $1.29 | $0.21 | 16% |
Gathering and processing expense
Gathering and processing expense increased by $32.7 million, or 31%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024, primarily as a result of higher fuel costs due to higher natural gas prices, the IKAV Acquisition which added $13.9 million of expenses, and changes in certain purchaser contracts in the second quarter of 2025, which resulted in certain post-production costs that were previously presented as a reduction to gas revenue are now presented as gathering and processing expense.
Lease operating expense
Lease operating expense increased $83.3 million, or 46%,for the year ended December 31, 2025, as compared to the year ended December 31, 2024, primarily as a result of acquisitions in the fourth quarter of 2024 and throughout 2025, which increased lease operating expenses by $76.1 million. Lease operating expenses per Boe increased by $1.30, primarily as a result of the oil-heavy production from the Sabinal Acquisition that added to our overall cost profile.
Production taxes
Production taxes increased $3.1 million, or 7%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024. This increase was primarily a result of increased production which resulted in additional production taxes of $3.5 million, partially offset with a decrease in pricing. Production taxes as a percentage of oil, natural gas and NGL sales were consistent from year to year.
Midstream operating expense
Midstream operating expense increased $2.9 million, or 27%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024. The increase in midstream operating expense is primarily related to increases from acquisitions of $1.2 million, increases of produced water operating expense of $1.1 million, and increases to gathering operating expense of $1.3 million. These increases were offset with a decrease to plant operating expense of $0.7 million, driven by lower ad valorem taxes in 2025.
Cost of product sales
Cost of product sales increased $1.9 million, or 8%, for the year ended December 31, 2025, as compared to the year ended December 31, 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.
Depreciation, depletion, amortization and accretion expense
Depreciation, depletion, amortization and accretion expense for oil and natural gas properties increased by $18.5 million, or 7%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024. The increase is primarily a result of acquisitions that closed during 2025.
General and administrative costs
General and administrative costs increased $15.8 million, or 39%, for the year ended December 31, 2025, as compared to the year ended December 31, 2024. The increase in general and administrative costs was primarily acquisition transaction expenses of $17.8 million included in general and administrative expense for the year ended December 31, 2025.
Impairment of oil and gas properties
Impairment of oil and gas properties increased $90.4 million for the year ended December 31, 2025, as compared to the year ended December 31, 2024, as a result of the full cost ceiling test during the third quarter of 2025.
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