Mach Natural Resources has entered into two separate definitive agreements totaling $1.3 billion that will give the traditionally Anadarko Basin-focused independent producer entry into the Permian and San Juan basins. Under the deals, Mach will acquire certain oil and gas assets of Sabinal Energy and certain entities owning oil and gas assets managed by IKAV Energy.
According to the company, the deals will nearly double its overall production from 81,000 to 152,000 BOE/D. It also increases the company’s natural gas exposure to 66% from 53%.
The acquisitions grow Mach’s overall acreage footprint by one-third to 2.8 million acres across the Permian, San Juan, and Mid-Continent.
“These acquisitions are transformative for Mach,” said Tom Ward, chief executive at Mach. “They not only strengthen our asset base but also advance the core pillars on which we’ve built the company since our founding. With this step, we significantly enhance our scale and gain strategic multibasin positioning.”
The Sabinal assets are being purchased for an unadjusted price of $500 million, subject to customary terms, conditions, and closing adjustments. Mach expects to fund the transaction with $300 million of equity consideration in the form of Mach common units, with the balance to be funded through a combination of cash on hand and borrowings under its revolving credit facility.
The acquired Sabinal assets include approximately 130,000 net acres boasting first-quarter 2025 average production of 11,000 BOE/D (98% liquids, 2% natural gas).
Mach will pay $787 million for IKAV San Juan, with $462 million of equity consideration in the form of Mach common units, and the balance to be paid by a combination of cash and credit.
IKAV San Juan’s assets include approximately 570,000 net acres. First-quarter 2025 average production was about 60,000 BOE/D (6% liquids, 94% natural gas).
Both transactions are subject to customary terms, conditions, and closing price adjustments. Mach expects the deals to close during the third quarter of 2025, each with an effective date of 1 April 2025.
Mach has been an active acquirer of assets since its inception in 2018 with more than 20 deals done over the past 7 years. Last October, the company closed a pair of deals totaling $136 million that expanded their Anadarko Basin and Ardmore Basin footprints.
Ten months prior, Mach completed the acquisition of oil and gas properties in Oklahoma held by Paloma Partners IV for $815 million.
