(Public) Why We Bought Mach Natural Resources Equity

MNR is an E&P consolidator that was bought at $10.83 and is trading at 0.9x PV-10 with $3.3B in reserves. It is projected to produce 151k boe/d by 2026 and is 71% gas-weighted. It has a low 46.5% reinvestment rate and a conservative 1.3x leverage target. It has a 10.4% FCF yield at $60 WTI/$3.50 gas and could double at $85 WTI/$4 gas. The risks include variable distributions and debt paydown priority.