Mach Natural Resources priced a public offering of common units following the close of $29.8 million of assets near its current holdings in the Ardmore Basin on Jan. 31. (Source: Shutterstock, Mach Natural Resources)
Mach Natural Resources announced on Feb. 6 the pricing of its public offering on 12,903,226 common units representing limited partner interests to the public at $15.50 each. The firm expects net proceeds of about $192.5 million on the offering, which is expected to close on Feb. 7.
Mach (NYSE: MNR) intends to use the net proceeds from the offering to repay in full the approximately $23 million of outstanding borrowings on its super priority credit facility; the remainder will be allocated to repay a portion of its term loan credit facility.
The firm will use cash on hand to repay the remaining balance on its term loan credit facility and terminate it following the offering.
Stifel, Nicolaus & Co.; Raymond James & Associates; TCBI Securities Inc., doing business as Texas Capital Securities; and Truist Securities are joint book-running managers for the offering. Johnson Rice & Co. and Stephens Inc. are serving as co-managers.
Last week, Mach closed Jan. 31 on its $29.8 million purchase of oil and gas assets—the so-called Flycatcher assets—located near the Ardmore Basins assets Mach bought last year. The effective date is Oct. 1, 2024.
The Flycatcher acquisition includes total proved reserves of 9.6 MMBoe with total PV-10 of $67.3 million as of Dec. 31 based on strip pricing as of Jan. 15; based on Securities and Exchange Commission pricing, the total proved reserves were recorded at 9.6 MMBoe as of Dec. 31 with total PV-10 of $63.6 million.
The total proved reserves mix is 60% liquids and 40% natural gas. The acquisition boosted Mach’s total leasehold and mineral acreage to 1,046,662 net acres.
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