MACH NATURAL RESOURCES LP

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 and nine months ended September 30, 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, 2025. 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, 2026 and 2025.

Previous wording

Within our operating areas, our assets are prospective for multiple formations, most notably the Oswego, Woodford, Mississippian, Mancos and Fruitland formations. Our experience across these formations allows us to generate significant cash available for distribution from these low declining assets in a variety of commodity price environments. We also own an extensive portfolio of complementary midstream assets that are integrated with our upstream operations. These assets include gathering systems, processing plants and water infrastructure. Our midstream assets enhance the value of our properties by allowing us to optimize pricing, increase flow assurance and eliminate third-party costs and inefficiencies. In addition, our owned midstream systems generate third-party revenue.

Current wording

Within our operating areas, our assets are prospective for multiple formations, most notably the Oswego, Woodford and Mississippian, Mancos and Fruitland formations. Our experience across these formations allows us to generate significant cash available for distribution from these low declining assets in a variety of commodity price environments. We also own an extensive portfolio of complementary midstream assets that are integrated with our upstream operations. These assets include gathering systems, processing plants and water infrastructure. Our midstream assets enhance the value of our properties by allowing us to optimize pricing, increase flow assurance and eliminate third-party costs and inefficiencies. In addition, our owned midstream systems generate third-party revenue.

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 September 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.

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, 2025 and March 31, 2026, NYMEX WTI prices for crude oil ranged from $55.27 to $102.88 per Bbl, and the NYMEX Henry Hub price of natural gas ranged from $2.70 to $7.46 per MMbtu. The war in Ukraine and conflict in the Middle East and South America, uncertainty regarding interest rates, global supply chain disruptions, tariff volatility, 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 2026.

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 2025 and October 2025, the Federal Reserve lowered the target range for the federal funds rate to its current range of 3.75% to 4.00% in light of the reduced inflation. In September 2025, inflation, as measured by the consumer price index, was 3.0%. 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 2025, October 2025 and December 2025, the Federal Reserve lowered the target range for the federal funds rate to its current range of 3.50% to 3.75% in light of the reduced inflation. In March 2026, inflation, as measured by the consumer price index, was 3.3%. 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 six 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 Credit Agreement.

Current wording

We have completed four acquisitions since the beginning of 2025, most notably the IKAV and Sabinal Acquisitions (as defined in Note 3) that closed in September 2025. 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 Credit Agreement.

Previous wording

Revenues from oil, natural gas and NGL sales increased $25.3 million, or 12% for the three-month period ended September 30, 2025, as compared to the three-month period ended September 30, 2024. This increase was primarily related to a 15% production increase, which resulted in increased oil, natural gas and NGL sales of $23.5 million. Furthermore, the increase in natural gas prices resulted in an increase in natural gas sales of $19.6 million, which was offset by decreased oil and NGL revenue of $18.1 million from the decline in oil and NGL pricing.

Current wording

Revenues from oil, natural gas and NGL sales increased $112.8 million, or 45%, for the three-month period ended March 31, 2026, as compared to the three-month period ended March 31, 2025. This increase was primarily related to a 95% production increase, which resulted in increased oil, natural gas and NGL sales of $139.7 million. These increases were 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 $26.9 million.

Previous wording

For the three-month period ended September 30, 2025, we had realized gains on derivative instruments of $9.6 million and unrealized gains of $15.1 million for total gains of $24.8 million. For the three-month period ended September 30, 2024, we had realized gains on derivative instruments of $6.6 million and unrealized gains of $27.1 million for total gains of $33.7 million. The increase in realized gains is primarily from a decrease in oil prices throughout 2025.

Current wording

For the three-month period ended March 31, 2026, we had realized gains on derivative instruments of $6.9 million and unrealized losses of $103.8 million for total losses of $96.9 million. 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. The increase in unrealized losses is primarily due to the increase in oil prices. The increase in realized gains is primarily due to $17.5 million in early settlements from unwinding a portion of our natural gas derivatives during the three month-period ended March 31, 2026.

Previous wording

Product sales increased $2.2 million, or 11% for the nine-month period ended September 30, 2025, as compared to the nine-month period ended September 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 wording

Product sales decreased $0.9 million, or 11% for the three-month period ended March 31, 2026, as compared to the three-month period ended March 31, 2025. This decrease was primarily a result of a decreases in the average selling price on natural gas and NGLs. These decreases corresponded with the decrease in our cost of product sales noted below.

Previous wording

Midstream revenue increased $0.7 million, or 12% for the three-month period ended September 30, 2025, as compared to the three-month period ended September 30, 2024, primarily due to additional midstream facilities acquired in the IKAV acquisition.

Current wording

Midstream revenue increased $3.5 million, or 57% for the three-month period ended March 31, 2026, as compared to the three-month period ended March 31, 2025, due to the acquisition of additional midstream facilities in the IKAV Acquisition in September 2025.

Previous wording

Gathering and processing expense increased $9.6 million, or 41%, and $0.70 per Boe, or 22%, for the three-month period ended September 30, 2025, as compared to the three-month period ended September 30, 2024, primarily as a result of higher fuel costs due to higher natural gas prices, the IKAV acquisition which added $2.4 million of expenses, and changes in certain purchaser contracts in the third 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.

Current wording

Gathering and processing expense increased $31.1 million, or 110%, and $0.31 per Boe, or 8%, for the three-month period ended March 31, 2026, as compared to the three-month period ended March 31, 2025, primarily as a result of the 159% increase in natural gas production and the 18% increase in NGL production, driven by the IKAV Acquisition. 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.

Previous wording

Lease operating expense increased $15.0 million, or 34% for the three-month period ended September 30, 2025, as compared to the three-month period ended September 30, 2024, primarily as a result of the Sabinal and IKAV acquisitions, which added approximately $9.2 million of lease operating expense in the three-month period ended September 30, 2025. Additionally, there were increases in workover expenses of $1.1 million, compression expenses of $0.8 million and company labor and contract services of $0.8 million. Lease operating expenses per Boe increased by $0.97 primarily as a result of the oil heavy production from the Sabinal acquisition added to our overall cost profile.

Current wording

Lease operating expense increased $52.2 million, or 107% for the three-month period ended March 31, 2026, as compared to the three-month period ended March 31, 2025, primarily due to the IKAV and Sabinal Acquisitions. Lease operating expenses per Boe increased by $0.43 primarily as a result of the oil-heavy production from the Sabinal Acquisition that added to our overall cost profile.

Previous wording

Production taxes increased $0.6 million, or 6% for the three-month period ended September 30, 2025, as compared to the three-month period ended September 30, 2024. This increase was in line with the increase in oil, natural gas and NGL sales.

Current wording

Production taxes increased $3.8 million for the three-month period ended March 31, 2026, as compared to the three-month period ended March 31, 2025. This increase was in line with the increase in oil, natural gas and NGL sales. Production taxes as a percentage of oil, natural gas and NGL sales decreased for the three-month period ended March 31, 2026 primarily due to the lower tax rates associated with the IKAV and Sabinal Acquisitions.

Previous wording

Cost of product sales increased $2.6 million, or 15% for the nine-month period ended September 30, 2025, as compared to the nine-month period ended September 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 wording

Cost of product sales decreased $1.2 million, or 15% for the three-month period ended March 31, 2026, as compared to the three-month period ended March 31, 2025. This decrease was primarily a result of the decrease in the average selling price on natural gas and NGLs. These decreases were consistent with the decrease in product sales noted above.

Previous wording

Depreciation, depletion, amortization and accretion expense - oil and natural gas

Current wording

Depreciation, depletion, amortization and accretion expense

Previous wording

Depreciation, depletion, amortization and accretion expense for oil and natural gas properties decreased by $0.4 million, or 1% for the three-month period ended September 30, 2025, as compared to the three-month period ended September 30, 2024. The decrease is primarily the result of an increase in total reserves used to calculate depletion, offset with the increase in book value of oil and gas properties from the IKAV and Sabinal acquisitions.

Current wording

Depreciation, depletion, amortization and accretion expense for oil and natural gas properties increased by $32.8 million, or 54% for the three-month period ended March 31, 2026, as compared to the three-month period ended March 31, 2025. The increase is primarily the result of the IKAV and Sabinal Acquisitions which added $1.3 billion to the balance of oil and gas properties subject to depletion.

Previous wording

Our primary sources of liquidity and capital are cash flows generated by operating activities, borrowings under the New Credit Agreement, and proceeds from the issuance of equity and debt. At September 30, 2025, outstanding borrowings under the New Credit Agreement were $1.2 billion with $5.0 million in letters of credit outstanding, and the remaining availability under the New Credit Agreement was $295.0 million at September 30, 2025.

Current wording

Our primary sources of liquidity and capital are cash flows generated by operating activities, borrowings under the New Credit Agreement, and proceeds from the issuance of equity and debt. At March 31, 2026, outstanding borrowings under the New Credit Agreement were $1.14 billion with $5.0 million in letters of credit outstanding, and the remaining availability under the New Credit Agreement was $305.0 million at March 31, 2026.

Previous wording

Historically, our business plan has focused on acquiring and then exploiting the development and production of our assets. We spent approximately $174.6 million during the nine-month period ended September 30, 2025 on development costs and our budget for the remainder of 2025 is between $70.0 million and $75.0 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 2026 is anticipated to focus on a mix of drilling Mississippian, Mancos and Fruitland wells.

Current wording

Historically, our business plan has focused on acquiring and then exploiting the development and production of our assets. We spent approximately $75.2 million during the three-month period ended March 31, 2026 on development costs and our budget for 2026 is between $315.0 million and $360.0 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 2026 is anticipated to focus on a mix of drilling Oswego, Woodford, Red Fork and Mississippian wells.

Previous wording

During the nine-month period ended September 30, 2025, we spent approximately$145.2 million on drilling and completion activities and related equipmentand spud 20.3 net wells while bringing online 20.9 net wells, $23.8 million on remedial workovers and other capital projects,$5.6 million on midstream and other property and equipment capital projects and$1.3 billion on acquisitions of oil and natural gas properties and other property and equipment.

Current wording

During the three-month period ended March 31, 2026, we spent approximately $60.9 million on drilling and completion activities and related equipmentand spud 3.7 net wells while bringing online 3 net wells, $9.6 million on remedial workovers and other capital projects and $4.7 million on midstream and other property and equipment capital projects.

Previous wording

Our 2025 and 2026 capital expenditures program is largely discretionary and within our control. We could choose to defer a portion of these planned capital expenditures depending on a variety of factors, including, but not limited to, the success of our drilling activities, prevailing and anticipated prices for oil and natural gas, the availability of necessary equipment, including acid to be used for our acid stimulation completion, infrastructure and capital, the receipt and timing of required regulatory permits and approvals, seasonal conditions, drilling and acquisition costs and the level of participation by other working interest owners. A deferral of planned capital expenditures, particularly with respect to drilling and completing new wells, could result in a reduction in anticipated production and cash flows and reduce our cash available for distribution to unitholders.

Current wording

Our 2026 capital expenditures program is largely discretionary and within our control. We could choose to defer a portion of these planned 2026 capital expenditures depending on a variety of factors, including, but not limited to, the success of our drilling activities, prevailing and anticipated prices for oil and natural gas, the availability of necessary equipment, including acid to be used for our acid stimulation completion, infrastructure and capital, the receipt and timing of required regulatory permits and approvals, seasonal conditions, drilling and acquisition costs and the level of participation by other working interest owners. A deferral of planned capital expenditures, particularly with respect to drilling and completing new wells, could result in a reduction in anticipated production and cash flows and reduce our cash available for distribution to unitholders.

Previous wording

Net cash provided by operating activities increased $6.6 million for the nine-month period ended September 30, 2025, as compared to the nine-month period ended September 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 $12.5 million for the nine-month period ended September 30, 2025 primarily from a decrease in oil prices throughout 2025.

Current wording

Net cash provided by operating activities increased $27.8 million for the three-month period ended March 31, 2026, as compared to the three-month period ended March 31, 2025. The increase in net cash provided by operating activities is primarily a result of an increase in cash receipts on settlement of derivative contracts of $12.8 million. In addition, there was an increase in production across all products, which was offset with a decrease in the average selling price of all products.

Previous wording

Net cash provided by (used in) financing activities

Current wording

Net cash used in financing activities

Previous wording

Net cash provided by (used in) financing activities increased $538.6 million for the nine-month period ended September 30, 2025, as compared to the nine-month period ended September 30, 2024. The increase is primarily due to an increase in cash provided by borrowings under our New Credit Agreement and Revolving Credit Agreement, net of repayments of $1.2 billion, and an increase in cash provided from proceeds from equity offerings of $91.2 million. These were partially offset by increases in cash used for repayments of borrowings under our Term Loan Credit Agreement of $721.9 million, prepayment penalties of $7.7 million and new debt issuance costs of $23.0 million. Additionally, there was a decrease in cash used for distributions to unitholders of $49.5 million in the nine-month period ended September 30, 2025, as compared to the nine-month period ended September 30, 2024.

Current wording

Net cash used in financing activities decreased $63.2 million for the three-month period ended March 31, 2026, as compared to the three-month period ended March 31, 2025. The decrease in net cash used in financing activities is primarily due to decreases 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 $13.9 million. Additionally, there was a decrease in cash provided by borrowings on our credit facilities, net of repayments of $470.0 million, and a decrease in cash provided from proceeds from follow-on offerings of $221.6 million. These were offset by an increase in cash used for distributions of $30.0 million in the three-month period ended March 31, 2026, as compared to the three-month period ended March 31, 2025.

Previous wording

On February 27, 2025, the Company entered into the New Credit Agreement, among the Company, the lenders and issuing banks party thereto from time to time and Truist Bank, as the administrative agent and collateral agent.

Current wording

On February 27, 2025, the Company entered into the New Credit Agreement, among the Company, the lenders and issuing banks party thereto from time to time and Truist Bank, as the administrative agent and collateral agent. The New Credit Agreement is secured by substantially all of our assets.

Previous wording

The New Credit Agreement’s borrowing base is redetermined semi-annually, in April and October. The New Credit Agreement 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 wording

The New Credit Agreement’s borrowing base is redetermined semi-annually, in April and October. The New Credit Agreement 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.

Previous wording

On September 12, 2025, the Company entered into a First Amendment to the New Credit Agreement, together with certain of its subsidiaries party thereto, the lenders and issuing banks party thereto and Truist Bank, as administrative agent and collateral agent (the “First Amendment”), which amends the New Credit Agreement, dated as of February 27, 2025. The First Amendment, among other things, (a) removes the 0.10% per annum credit spread adjustment otherwise applicable to the determination of Term SOFR (as defined in the New Credit Agreement), (b) excludes up to $750.0 million in principal amount of Borrowing Base Reduction Debt (as defined in the New Credit Agreement) issued prior to December 31, 2025 from the provisions otherwise requiring a borrowing base reduction as a result of the issuance of such indebtedness and (c) provides for (i) a $700.0 million aggregate increase in the borrowing base under the New Credit Agreement and (ii) the establishment of aggregate term loan commitments (prior to giving effect to any prior funding of term loans) in an amount of $450.0 million and the funding of any unfunded term loan commitments thereunder and an increase in the Aggregate Elected Revolving Commitment Amount (as defined in the New Credit Agreement) to $1.0 billion.

Current wording

On September 12, 2025, the Company entered into the First Amendment to the New Credit Agreement, together with certain of its subsidiaries party thereto, the lenders and issuing banks party thereto and Truist Bank, as administrative and collateral agent (the “First Amendment”). The First Amendment, among other things, (a) removes the 0.10% per annum credit spread adjustment otherwise applicable to the determination of Term SOFR (as defined in the New Credit Agreement), (b) excludes up to $750.0 million in principal amount of Borrowing Base Reduction Debt (as defined in the New Credit Agreement) issued prior to December 31, 2025 from the provisions otherwise requiring a borrowing base reduction as a result of the issuance of such indebtedness and (c) provides for (i) a $700.0 million aggregate increase in the borrowing base under the Credit Agreement and (ii) the establishment of aggregate term loan commitments (prior to giving effect to any prior funding of term loans) in an amount of $450.0 million and the funding of any unfunded term loan commitments thereunder and increase the Aggregate Elected Revolving Commitment Amount (as defined in the Credit Agreement) to $1.0 billion.

Previous wording

As part of the IKAV acquisition, we are now party a firm sales contract to deliver and sell a certain amount natural gas at a fixed price of $1.72 per MMbtu through 2030. The Company expects to fulfill its delivery commitments primarily with production from proved developed reserves. The Company’s production has been sufficient to satisfy its delivery commitments during the periods presented, and it expects its future production will continue to be the primary means of fulfilling its future commitments. However, if the Company’s operated production is not sufficient to satisfy its delivery commitments, it can and may use spot market purchases to satisfy the commitments. For further information on firm sales commitments, see Note 10 of our consolidated financial statements.

Current wording

As part of the IKAV Acquisition, we are now party to a firm sales contract to deliver and sell a certain amount of natural gas at a fixed price of $1.72 per MMbtu through 2030. We expect to fulfill the delivery commitments primarily with production from proved developed reserves. Our production has been sufficient to satisfy the delivery commitments during the periods presented, and we expect our future production will continue to be the primary means of fulfilling the future commitments. However, if our production is not sufficient to satisfy the delivery commitments, we can and may use spot market purchases to satisfy the commitments. For further information on firm sales commitments, 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 $6.1 million and $2.1 million in operating lease payments for the three and nine month periods ended September 30, 2025, respectively, and expect to pay approximately $23.6 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 $2.2 million in operating lease payments for the three-month period ended March 31, 2026 and expect to pay approximately $22.4 million in operating lease payments through 2030. For further information on our operating lease obligations, see Note 11 of our consolidated financial statements.

Previous wording

We include in this Quarterly Report the supplemental non-GAAP financial performance measure Adjusted EBITDA and provide our calculation of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, our most directly comparable financial measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income before (1) interest expense, net, (2) depreciation, depletion, amortization and accretion, (3) unrealized loss (gain) on derivative instruments, (4) impairment on oil and gas assets, (5) loss on debt extinguishment, (6) equity-based compensation expense and (7) (gain) loss on sale of assets, net.

Current wording

We include in this Quarterly Report the supplemental non-GAAP financial performance measure Adjusted EBITDA and provide our calculation of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, our most directly comparable financial measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income before (1) interest expense, net, (2) depreciation, depletion, amortization and accretion, (3) unrealized (gain) loss on derivative instruments, (4) loss on debt extinguishment, (5) equity-based compensation expense and (6) loss (gain) on sale of assets, net.

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) impairment on oil and gas assets, (5) loss on debt extinguishment, (6) equity-based compensation expense, (7) (gain) loss on sale of assets, net, (8) cash interest expense, net, (9) development costs and (10) 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.

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 (gain) loss on derivative instruments, (4) loss on debt extinguishment, (5) equity-based compensation expense, (6) loss (gain) on sale of assets, (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 nine months ended September 30, 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, 2025. No modifications have been made during the three months ended March 31, 2026.