4 days ago
Mach to acquire Permian and San Juan Basin assets for $1.3bn
Mach Natural Resources has entered definitive agreements, valued at approximately $1.3bn, to acquire oil and gas assets from Sabinal Energy and entities managed by IKAV Energy.
The combined transactions are poised to nearly double Mach's production and diversify its asset base across three prolific basins.
The acquisition of Sabinal's assets for $500m includes around 130,000 net acres. The first-quarter 2025 production average of the assets was 11 million barrels of oil equivalent per day (mboepd), including 98% liquids and 2% natural gas.
Mach plans to fund this transaction with $300m in equity and the remainder through cash and credit facility borrowings.
Furthermore, Mach's purchase of IKAV San Juan's assets for $787m will add approximately 570,000 net acres to its portfolio.
The production from these assets was around 60mboepd in the first quarter of 2025, including 94% natural gas and 6% liquids.
Funding for this acquisition will involve $462m in equity and the balance through cash and credit facilities.
Post-acquisition, Mach's operations will span the Mid-Continent, Permian, and San Juan basins, with a combined production capacity of approximately 152mboepd from its current 81mboepd, and a total acreage of 2.8 million net acres.
The transactions are expected to close in the third quarter of 2025, subject to customary terms and conditions.
Mach CEO Tom L Ward said: 'These acquisitions are transformative for 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 multi-basin positioning, all while maintaining a resilient balance sheet. Most importantly, the transactions are expected to be immediately accretive to our cash available for distribution, underscoring our commitment to delivering long-term value to our unitholders.'
Moelis & Company and Truist Securities are providing financing advisory services for Mach on the Sabinal deal, with Kirkland & Ellis providing legal advice.
Moelis & Company and Vinson & Elkins are advising on the IKAV San Juan transaction.
Wells Fargo and Haynes and Boone, LLP are advising IKAV Energy while RBC Capital Markets and Vinson & Elkins are advising Sabinal Energy.
"Mach to acquire Permian and San Juan Basin assets for $1.3bn" was originally created and published by Offshore Technology, a GlobalData owned brand.
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