Mach Natural Resources reports strong Q2 output; cuts rig count for 2024

(WO) — Mach Natural Resources LP has announced its second-quarter results, showcasing solid upstream performance while adjusting its 2024 operational plans.

For the three months ending June 30, 2024, the company achieved total net production averaging 89.3 thousand barrels of oil equivalent per day (Mboe/d), surpassing guidance expectations. Oil production alone averaged 20.9 thousand barrels per day (MBbl/d), demonstrating robust output despite a competitive market.

The company also divested a portion of its Western Anadarko acreage for $38 million. Notably, this sale did not involve any associated production, indicating a strategic move to streamline its asset base.

Mach’s operational efficiency is evident with a lease operating expense of $5.72 per barrel of oil equivalent (Boe), coming in below the low-end of guidance. The company reported drilling 12 new wells and bringing 14 wells online during the quarter, while continuing to focus on streamlining operations.

Despite a solid performance, Mach has decided to reduce its operated rig count from two to one in the Oswego region. This decision is expected to lower the midpoint of its full-year capital expenditure guidance by 15%. The company’s updated outlook reflects a disciplined approach to reinvestment while maintaining efficient operations.

Mach's production guidance for the latter half of 2024 forecasts oil volumes between 18.6 and 19.9 MBbl/d. Full-year oil volumes are expected to range from 19.4 to 20.6 MBbl/d, with total oil-equivalent volumes projected between 82.2 Mboe/d and 87.2 Mboe/d.

The company remains committed to strategic adjustments and operational efficiencies, aligning with its goal of maintaining a balanced approach to production and capital management.