Anadarko Basin-focused E&P Mach Natural Resources aims to raise approximately $200 million through an initial public offering, regulatory filings show.
Oklahoma City-based Mach Natural Resources LP plans to sell 10 million common units representing limited partner interests in Mach for $19 to $21 per unit, the company said in an Oct. 16 statement.
Mach, led by industry veteran Tom Ward, is also granting its underwriters the option to purchase up to an additional 1.5 million common units at the initial IPO price, after discounts and commissions.
The E&P, which owns properties across western Oklahoma, southern Kansas and the Texas Panhandle, applied to list its common units on the New York Stock Exchange under the ticker symbol “MNR.”
Mach expects to generate net proceeds of approximately $181 million through the IPO based on the midpoint offering price of $20 per unit, after deducting underwriting discounts and other expenses.
Should Mach’s underwriters choose to purchase additional units in full, the company expects to raise proceeds of approximately $208.9 million, according to Securities & Exchange Commission filings.
The common units being offered to the public represent a roughly 10.5% limited partner interest in Mach—or a 12.1% limited partner interest if underwriters buy additional units.
Mach plans to use the bulk of the net proceeds from the offering to repay debt from its credit facilities.
Chesapeake and SandRidge are both publicly traded E&Ps; Tapstone was acquired by Diversified Energy for $419 million in 2021.
Founded in 2017, Mach has developed an acreage position of about 936,000 net acres in the Anadarko Basin.
Mach operates around 4,500 producing wells across its acreage footprint. They also identified more than 2,000 horizontal drilling locations, over 750 of which are located within the oil-rich Oswego formation in north-central Oklahoma.
Mach’s average production during the year ended June 30, 2023 was around 65,000 boe/d.
Mach’s net oil production totaled 3.37 MMbbl through the first six months of 2023; natural gas output totaled about 38.7 Bcf, while NGL production totaled 2.05 MMbbl, filings show.
Around 57% of Mach’s total production comes from its low-decline legacy assets. The E&P’s near-term drilling strategy centers on horizontal development in Kingfisher and Logan counties, Oklahoma.
Bayou City Energy serves (BCE) as the company’s financial sponsor. Mach and BCE partnered together in the Anadarko based on a shared business philosophy: Buy up assets shunned by the sector, operate them through the downturn and wait for a recovery, Oil and Gas Investor reported last year.
In April 2020, the Mach-BCE partnership closed a $220 million acquisition of bankrupt Oklahoma shale company Alta Mesa Resources, as well as Alta Mesa’s affiliate Kingfisher Midstream.
2023-12-08 - California major Chevron Corp. is setting aside $6.5 billion to develop its U.S. shale portfolio next year, with the bulk of the spend allocated in the Permian Basin.
2023-12-07 - Talos Energy’s appointment of Spath succeeds Bob Abendschein as executive vice president.
2023-12-05 - Alexander J. Reyes, CNX Resources Corp.'s former executive vice president of general counsel and corporate secretary, is leaving CNX after 16 years.
2023-12-01 - COP28 gives the private sector—including those from the oil and gas industry—and other delegates an opportunity to chime in on the global climate agenda set by world leaders.
2023-12-01 - Advisers need to sharpen their pencils at the negotiation table, E&P operator Bryan Sheffield said — because “all you're going to do is upset your seller by promising a market that isn't there. No one's going to pay you.”