Mach Natural Resources strikes $815m deal with Paloma Partners for Oklahoma properties
Mach Natural Resources LP (NYSE: MNR) has entered a significant agreement to acquire interests in oil and gas properties from Paloma Partners IV, LLC, a move that strengthens its position in the energy sector. The deal, valued at $815 million, includes assets located in various counties in Oklahoma, with the acquisition expected to close on December 29, 2023.
Asset Highlights: Boasting Strong Production and Reserves
This acquisition features assets with a recent production rate of approximately 32,000 barrels of oil equivalent per day (Boepd), of which 23% is oil and 57% liquids. The properties hold proven developed producing (PDP) reserves of about 75 million MMBoe, adding significant value to Mach Natural Resources’ portfolio. The acquired assets, spanning approximately 62,000 net acres in the Anadarko Basin, are primarily located in Canadian and Grady Counties. The acquisition also includes high-return drilling locations with over 12 years of operated inventory.
Mach Natural Resources LP to acquire Oklahoma oil and gas assets from Paloma Partners for $815m
Acquisition Strategy and Financing
The deal aligns with the company’s strategy focused on distributions, maintaining low leverage, and a disciplined acquisition approach. Mach plans to fund the purchase through new debt financing, backed by committed financing from various financial institutions, including Chambers Energy Management and EOC Partners.
Advisory Teams and Legal Counsel
Kirkland & Ellis, Vinson & Elkins, RBC Richardson Barr, and Latham & Watkins are among the advisory firms and legal counsel involved in this transaction, indicating the deal’s complexity and significance in the energy sector.
About Mach Natural Resources LP
Mach Natural Resources LP is an independent upstream oil and gas company with a focus on acquiring, developing, and producing oil, natural gas, and NGL reserves. With this acquisition, the company further solidifies its presence in the Anadarko Basin region, encompassing Western Oklahoma, Southern Kansas, and the Texas Panhandle.