Mach Natural Resources is set to acquire oil and gas assets from Sabinal Energy and IKAV Energy for $1.3bn, nearly doubling its production and expanding across three basins. The deal includes 130,000 net acres with 11mboepd production from Sabinal, and 570,000 net acres with 60mboepd production from IKAV San Juan.

To fund the acquisitions, Mach plans to use $300m in equity and cash/credit facility borrowings. Post-acquisition, Mach’s operations will cover the Mid-Continent, Permian, and San Juan basins, with a projected production capacity of 152mboepd from 81mboepd and total acreage of 2.8 million net acres.

The transactions are expected to close in Q3 2025, subject to customary terms. CEO Tom L Ward sees the acquisitions as transformative, enhancing scale, multi-basin positioning, and maintaining a strong balance sheet. Financial advisory services are provided by Moelis & Company, Truist Securities, and legal advice by Kirkland & Ellis for the deals.

Advisory services for IKAV Energy are Wells Fargo and Haynes and Boone, LLP, and for Sabinal Energy, RBC Capital Markets and Vinson & Elkins. The acquisitions are anticipated to be immediately accretive to cash available for distribution, demonstrating Mach’s commitment to delivering long-term value to unitholders.

Read more at Yahoo Finance: Mach to acquire Permian and San Juan Basin assets for $1.3bn