MNR Earnings Prediction
The chart below shows how MNR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MNR sees a +3.71% change in stock price 10 days leading up to the earnings, and a +2.24% change 10 days following the report. On the earnings day itself, the stock moves by -1.58%. This data can give you a slight idea of what to expect for the next quarter's release.
MNR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
--
--
--
Gross Margin
--
--
--
Operating Margin
--
--
--
Net Margin
--
--
--
EPS
--
--
--
No Data Available
MNR Earnings Analysis
Mach Natural Resources LP Corporation (MNR.N) Earnings Conference Call
Positive
Strong Financial Health: Mach Natural Resources maintained a low debt-to-EBITDA ratio of 0.8x, indicating strong financial health and flexibility in volatile markets.
Strong EBITDA Performance: The company achieved a significant EBITDA of $601 million in 2024, showcasing robust operational performance despite low natural gas prices.
Unitholder Cash Distribution: Mach Natural Resources distributed $310 million to unitholders in 2024, reflecting a commitment to maximizing cash distributions.
Lease Operating Expense Reduction: The company successfully reduced lease operating expenses (LOE) by 25% to 35% through effective management, enhancing profitability.
Drilling Strategy Success: In 2024, 35% of the wells drilled achieved over 100% rates of return, demonstrating the effectiveness of their drilling strategy.
Cost Efficiency in Drilling: The average drilling and completion cost for the Oswego formation was only $2.6 million, leading to median payout periods of 15 months, which is competitive compared to other basins.
Top Distribution Yield: Mach Natural Resources ranked first among public upstream energy companies in distribution yield, highlighting its strong return to shareholders.
Asset Coverage Strength: The company has a strong asset coverage ratio of 3.9x total proved acreage, indicating solid backing for its operations and financial commitments.
Increased Drilling Activity: In 2025, the company plans to increase its drilling activity with three rigs, anticipating higher operating cash flow from improved natural gas prices.
Reinvestment Strategy Efficiency: The company has a disciplined reinvestment rate of 47%, allowing for optimized distributions while maintaining operational efficiency.
Negative
Natural Gas Price Decline: The company reported a decline in natural gas prices, which reached the lowest levels since the early 1990s, impacting overall revenue.
Net Income vs. Revenue Challenges: Despite achieving a net income of $185 million, the company faced challenges with a projected 20% decline in PDP over the next 12 months, indicating potential future revenue issues.
Low Natural Gas Prices: The average realized price for natural gas was only $2.31 per Mcf, which is significantly low and could affect profitability going forward.
G&A Expense Stability: The company’s G&A expenses remained flat at $8 million per BOE, which may indicate inefficiencies or lack of cost reduction efforts in administrative areas.
Limited Production Growth Potential: The company’s production was flat, with only a slight increase or decrease expected in 2025, suggesting limited growth potential in output.
Acquisition Growth Risks: The reliance on acquisitions for growth may pose risks, especially if market conditions change or if suitable assets become scarce.
Reinvestment Rate Analysis: The company’s reinvestment rate of 47% in 2024, while low, still indicates that a significant portion of cash flow is being reinvested rather than returned to unitholders, which could concern some investors.
High Debt Levels Risk: The company’s debt levels remain high with a first lien term principal of $763 million, which could pose risks if market conditions worsen.
MNR FAQs
How does MNR typically perform around its earnings report dates?
Is Mach Natural Resources LP (MNR) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
MNR Earning Call Sentiment
Mach Natural Resources LP (NYSE:MNR) Q4 2024 Earnings Call Transcript
MNR.N
2.24%Positive
The earnings call reveals strong financial performance with increased revenues, EBITDA, and net income driven by higher production and commodity prices. The company maintains a low net debt to EBITDA ratio and has a stable cash balance, indicating good financial health. The shareholder return plan is robust, with significant distributions and a high ranking in distribution yield. The Q&A section does not highlight major risks or uncertainties, and management's optimistic view on natural gas assets further supports a positive outlook. Overall, the sentiment is positive with potential for stock price appreciation.
