Mach Natural Closes $815M Acquisition of Paloma O&G Assets

Mach Natural Resources LP has closed its $815 million acquisition of certain oil and gas assets in the Anadarko Basin in Oklahoma from privately held Paloma Partners IV, LLC, which is backed by energy focused EnCap Investments L.P.

Mach also entered into an $825 million term loan credit agreement to fund the purchase from a group led by Chambers Energy Management and EOC Partners, and including Mercuria Investments US, Inc., funds managed by Farallon Capital Management LLC, Macquarie Group, and Texas Capital Bank, which acting as the administrative agent.

Mach also entered a $75 million revolving credit facility led by MidFirst Bank. Mach used proceeds from the term loan facility and cash on hand to repay the existing amounts outstanding.

In a deal that was announced in November 2023, Mach Natural said the assets have reserves of 75 million barrels of oil equivalent (mmboe) and will boost its existing output of about 65,000 barrels of oil equivalent per day (boepd) by roughly 32,000 boepd.

The assets cover about 62,000 net acres in the Anadarko Basin, one of the most productive U.S. basins and which spans parts of Oklahoma, Kansas, Texas, and Colorado.