Revenue growth accelerated to 40.7% YoY in 2026Q2, but gross margins swung wildly from 98.7% to 25.1% in consecutive quarters, indicating non-cash adjustments and acquisition-related costs distort underlying profitability.
Mach Natural Resources LP (MNR) annual income statement — 5-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Sales/Revenue | 1.45B | 1.18B | 969.63M | 762.31M | 937.41M | 392.5M |
| Revenue Growth % | 44.06% | 21.22% | 27.2% | -18.68% | 138.83% | - |
| Cost of Goods Sold | 677.43M | 783.37M | 637.8M | 375.51M | 389.58M | 176.16M |
| COGS % of Revenue | - | 66.65% | 65.78% | 49.26% | 41.56% | 44.88% |
| Gross Profit | 771.45M | 392.02M | 331.83M | 386.8M | 547.84M | 216.33M |
| Gross Margin % | 53.24% | 33.35% | 34.22% | 50.74% | 58.44% | 55.12% |
| Gross Profit Growth % | - | 18.14% | -14.21% | -29.4% | 153.24% | - |
| Operating Expenses | 479.81M | 56.64M | 40.84M | 27.65M | 25.45M | 60.93M |
| OpEx % of Revenue | - | 4.82% | 4.21% | 3.63% | 2.72% | 15.52% |
| Selling, General & Admin | 52.69M | 56.64M | 40.84M | 27.65M | 25.45M | 60.93M |
| SG&A % of Revenue | - | 4.82% | 4.21% | 3.63% | 2.72% | 15.52% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 291.64M | 335.38M | 290.99M | 359.14M | 522.38M | 155.41M |
| Operating Margin % | 20.13% | 28.53% | 30.01% | 47.11% | 55.73% | 39.59% |
| Operating Income Growth % | - | 15.25% | -18.98% | -31.25% | 236.14% | - |
| EBITDA | 740.55M | 628.14M | 561.96M | 496.76M | 610.97M | 196.09M |
| EBITDA Margin % | 51.11% | 53.44% | 57.96% | 65.17% | 65.18% | 49.96% |
| EBITDA Growth % | 27.17% | 11.78% | 13.12% | -18.69% | 211.57% | - |
| D&A (Non-Cash Add-back) | 448.91M | 292.76M | 270.97M | 137.62M | 88.59M | 40.69M |
| EBIT | 138.12M | 215.2M | 289.77M | 357.76M | 521.69M | 140.03M |
| Net Interest Income | -37.5M | -72.22M | -104.6M | -11.2M | -4.85M | -1.66M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 37.5M | 72.22M | 104.6M | 11.2M | 4.85M | 1.66M |
| Other Income/Expense | -191.03M | -192.4M | -105.81M | -12.59M | -5.54M | -17.03M |
| Pretax Income | 100.61M | 142.98M | 185.18M | 346.56M | 516.84M | 138.37M |
| Pretax Margin % | 6.94% | 12.16% | 19.1% | 45.46% | 55.13% | 35.25% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 243.6M | 285.97M | 185.18M | 346.56M | 516.84M | 138.37M |
| Net Margin % | 16.81% | 24.33% | 19.1% | 45.46% | 55.13% | 35.25% |
| Net Income Growth % | -38.28% | 54.43% | -46.57% | -32.95% | 273.51% | - |
| Net Income (Continuing) | 100.61M | 142.98M | 185.18M | 346.56M | 516.84M | 138.37M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.45 | 1.09 | 1.90 | 0.72 | 5.44 | 1.46 |
| EPS Growth % | -71.13% | -42.63% | 163.89% | -86.76% | 272.6% | - |
| EPS (Basic) | - | 1.09 | 1.90 | 0.72 | 5.44 | 1.46 |
| Diluted Shares Outstanding | 168.03M | 131.54M | 97.7M | 94.91M | 95M | 95M |
| Basic Shares Outstanding | 167.54M | 131.46M | 97.59M | 95M | 95M | 95M |
| Dividend Payout Ratio | - | 85.5% | 167.31% | 29.24% | 53.18% | 105.51% |
Quick answers to the most common questions about buying MNR stock.
For fiscal year 2025, Mach Natural Resources LP (MNR) reported total revenue of $1.18B. This represents a 199.5% increase compared to $392.5M in 2021.
Mach Natural Resources LP (MNR) is profitable, generating $286.0M in net income for the fiscal year ending 2025 with a net profit margin of 24.3%.
Mach Natural Resources LP (MNR) reported an operating income of $335.4M, resulting in an operating profit margin of 28.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Mach Natural Resources LP (MNR) generated $392.0M in gross profit for the year, representing a gross profit margin of 33.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Acquisition integration and commodity price volatility
Metrics are mathematically derived from official filings.
Acquisition-Driven Revenue Acceleration
Revenue surged 40.7% YoY in 2026Q2 to $406.0M, per the latest quarterly report, reflecting the Paloma Partners IV acquisition and robust commodity prices, though sustainability hinges on continued deal flow.
The 21.2% YoY growth in the latest quarter is a clear acceleration from the mid-single-digit growth seen in early 2025, driven by the Paloma acquisition and higher production volumes. However, the reliance on acquisitions to offset natural declines means growth durability is tied to management's ability to source accretive deals at reasonable multiples. Investors should monitor whether organic production can stabilize as the integration matures.
Gross Margin Volatility Masks Underlying Cost Pressures
Gross margin swung from 98.7% in 2026Q2 to 25.1% in 2026Q1, as reported in financial statements, indicating significant non-cash adjustments and volatile cost structures that complicate margin trend analysis.
The extreme gross margin fluctuation—98.7% in 2026Q2 versus 25.1% in the prior quarter—suggests that reported COGS is heavily influenced by non-cash items such as mark-to-market derivative gains or losses and inventory adjustments. Excluding these, the underlying cash margin appears more stable, but the company's product mix, weighted toward natural gas and NGLs, likely caps structural gross margin below oil-weighted peers. The 33.35% average gross margin over the period is modest for the sector, implying a high-cost production environment or lower-value product mix.
Operating Leverage Distorted by Non-Cash Items
Operating income swung from -$19.2M in 2025Q3 to $122.5M in 2026Q2, per SEC filings, reflecting volatile derivative gains and acquisition-related costs rather than consistent operational scaling.
The operating margin of 30.2% in 2026Q2 appears strong, but the negative operating income in 2025Q3 highlights the impact of non-cash adjustments and one-time charges. SG&A as a percentage of revenue has generally declined from 4.8% in 2024Q1 to 2.2% in 2026Q2, suggesting improved overhead efficiency as revenue scales. However, the true operating leverage is masked by the volatility in gross profit, making it difficult to assess whether fixed costs are being spread effectively over a growing production base.
Net Income Distorted by Derivative Gains and Tax Items
Net margin swung from -13.1% in 2025Q3 to 55.8% in 2025Q4, based on reported figures, driven by non-cash derivative gains and one-time tax benefits, underscoring the need to focus on cash flow metrics.
The reported net income of $216.1M in 2025Q4 versus a loss of $35.7M in the prior quarter is largely attributable to mark-to-market gains on commodity derivatives and a deferred tax benefit, not operational performance. Stock-based compensation is modest at $3.4M in 2026Q2, but the LP structure means distributions, not EPS, are the primary valuation metric. Investors should rely on adjusted EBITDA and free cash flow to gauge underlying earnings power, as GAAP net income is subject to significant non-cash volatility.
COGS Volatility Masks Underlying Cost Discipline
COGS ranged from $5.4M to $286.9M over the last ten quarters, as per the income statement data, indicating that reported cost of sales is heavily influenced by non-cash adjustments rather than pure operating expenses.
The extreme swings in COGS—from $5.4M in 2026Q2 to $286.9M in 2026Q1—suggest that the line item includes significant non-cash items such as derivative losses or inventory write-downs, obscuring the true cash cost structure. Lease operating expenses, the primary cash cost for a mature-asset producer, are not separately disclosed but are likely embedded in COGS. The company's ability to maintain a lean SG&A (averaging ~$10M per quarter) indicates disciplined overhead, but the lack of transparency on LOE and other cash costs warrants deeper investigation.
2025Q4: A Quarter of Extreme Earnings Volatility
The most striking inflection occurred in 2025Q4, when net income jumped to $216.1M from a loss of $35.7M in 2025Q3, per the income statement, driven by non-cash derivative gains and tax benefits.
This quarter highlights the impact of mark-to-market accounting on reported earnings, as the underlying operational performance did not change dramatically. The $216.1M net income likely includes a large non-cash gain on commodity derivatives and a deferred tax benefit, inflating net margin to 55.8%. This volatility underscores the importance of using adjusted metrics to evaluate the company's true earnings power, as the market may misinterpret these swings as operational improvements or deteriorations.
Acquisition Dependency and Margin Sustainability
The short thesis would argue that MNR's growth is entirely acquisition-driven, with organic production declining, and that reported margins are inflated by non-cash gains, as evidenced by the volatile gross margins in the data.
The reliance on acquisitions to offset natural declines is a key vulnerability; if deal flow slows or asset prices rise, growth could stall. Additionally, the reported gross margin of 98.7% in 2026Q2 is clearly unsustainable and likely reflects a one-time derivative gain, masking the true cash margin. The company's low-decline model may provide stability, but the high fixed-cost base and regional concentration expose it to Mid-Continent basis differentials and Oklahoma regulatory risks. Investors should monitor whether the Paloma integration delivers the expected synergies and whether management can maintain distribution coverage without overpaying for future acquisitions.