NEW YORK - Mach Natural Resources LP (NYSE: MNR), an independent oil and gas company, has priced its public offering of 7,272,728 common units at $16.50 each. The company, which specializes in the acquisition, development, and production of oil and natural gas reserves in the Anadarko Basin region, announced the offering on Friday, with the expectation to close by September 9, 2024, subject to customary closing conditions.
The offering includes an option for underwriters to purchase up to an additional 1,090,909 common units at the public offering price, less underwriting discounts and commissions. Mach anticipates net proceeds of roughly $112.9 million after deductions, excluding potential additional sales from the underwriters' option. The funds are earmarked for two pending acquisitions of oil and gas assets in Oklahoma and Kansas and for general partnership purposes, which may comprise future acquisitions.
Raymond James & Associates, Inc., Stifel, Nicolaus & Company, Incorporated, and Truist Securities, Inc. are the joint book-running managers for the offering, with Johnson Rice & Company L.L.C. and Stephens Inc. acting as co-managers.
The offering is made through a prospectus in accordance with the Securities Act of 1933. Prospective buyers can obtain copies of the final prospectus from the book-running managers' syndicate departments upon availability.
Mach Natural Resources has declared this offering following a registration statement filed with and declared effective by the Securities and Exchange Commission (SEC) on the same date as the announcement.
Investors are cautioned that this press release contains forward-looking statements that involve assumptions, risks, and uncertainties. Mach has stated that these forward-looking statements, which are not historical facts, are based on current expectations about future events and are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
The information in this article is based on a press release statement from Mach Natural Resources LP.
In other recent news, Mach Natural Resources LP has announced a public offering of 7,853,403 common units, with an additional purchase option for underwriters of 1,178,010 units. The proceeds are intended to fund acquisitions in the Ardmore and Anadarko Basins of Oklahoma and Kansas. Raymond James & Associates, Stifel, Nicolaus & Company, and Truist Securities are managing the offering, with Johnson Rice & Company and Stephens Inc. serving as co-managers.
Simultaneously, Mach Natural Resources has secured commitments for up to $75 million in additional loans by amending its existing credit facilities, facilitated by Texas Capital Bank and MidFirst Bank. The company also reported its second quarter results, falling short of revenue estimates with $240 million against the projected $256.62 million. However, it surpassed the higher end of its production guidance, averaging 89.3 thousand barrels of oil equivalent per day (Mboe/d) in Q2.
In response to market conditions, the company reduced its operated rig count in the Oswego from two rigs to one during Q2, leading to a 15% reduction in its full-year capital expenditure guidance midpoint. Despite the shortfall in revenue, Mach reported a net income of $40 million and Adjusted EBITDA of $136 million for the quarter. These are among the recent developments in Mach Natural Resources LP's operations.
InvestingPro Insights
As Mach Natural Resources LP (NYSE: MNR) ventures into its latest public offering, keen investors are closely monitoring the company's financial health and market performance. According to recent data from InvestingPro, Mach Natural Resources holds a market capitalization of approximately $1.6 billion. Despite the challenging market conditions, the company's revenue growth has shown a notable quarterly increase of 48.26% as of Q2 2024, signaling a potential upswing in its business operations.
InvestingPro Tips suggest that Mach Natural Resources is expected to see net income growth this year, which could be a promising indicator for investors considering the public offering. Additionally, the stock's Relative Strength Index (RSI) suggests it is currently in oversold territory, potentially offering a value opportunity for buyers.
However, it's worth noting that Mach Natural Resources has been quickly burning through cash, and the stock has experienced a significant price drop over the last week, with a one-week total return of -12.73%. This may raise concerns regarding short-term volatility and cash flow sustainability. On the brighter side, the company pays a significant dividend to shareholders, boasting a dividend yield of 21.35% as of the last recorded date, which could be attractive for income-focused investors.
For those seeking more in-depth analysis and additional insights, there are 9 more InvestingPro Tips available for Mach Natural Resources, which can be found at https://www.investing.com/pro/MNR. These tips could provide further guidance on the company's valuation, profitability, and stock performance, helping investors make more informed decisions.
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