Mach Natural Resources LP (NYSE:MNR) Plans Quarterly Dividend of $0.64

Key Points

• Mach Natural Resources declared a quarterly dividend of $0.64 (20.8% increase from $0.53), payable June 4 to holders of record May 21, implying a 19.4% annualized yield.
• While the dividend is currently covered (payout ratio ~95.5%), analysts' forecasts imply a future payout ratio of about 160.6%, raising concerns the dividend may be unsustainable if earnings decline.
• Insiders increased holdings—Tom L. Ward bought 153,256 shares recently—and corporate insiders now own about 87.8% of the company, indicating highly concentrated insider ownership.

Mach Natural Resources LP (NYSE:MNR - Get Free Report) declared a quarterly dividend on Thursday, May 7th. Investors of record on Thursday, May 21st will be given a dividend of 0.64 per share on Thursday, June 4th. This represents a c) dividend on an annualized basis and a dividend yield of 19.4%. The ex-dividend date is Thursday, May 21st. This is a 20.8% increase from Mach Natural Resources's previous quarterly dividend of $0.53.

Mach Natural Resources has a payout ratio of 95.5% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Analysts expect Mach Natural Resources to earn $1.32 per share next year, which means the company may not be able to cover its $2.12 annual dividend with an expected future payout ratio of 160.6%.

Mach Natural Resources Trading Down 1.6%

NYSE:MNR opened at $13.18 on Friday. The company has a quick ratio of 0.93, a current ratio of 1.05 and a debt-to-equity ratio of 0.58. Mach Natural Resources has a 1-year low of $10.46 and a 1-year high of $15.60. The firm has a market capitalization of $2.22 billion, a price-to-earnings ratio of 11.77 and a beta of -0.33. The stock has a fifty day simple moving average of $13.38 and a 200 day simple moving average of $12.38.

Mach Natural Resources (NYSE:MNR - Get Free Report) last released its quarterly earnings results on Thursday, March 12th. The company reported $0.43 earnings per share for the quarter, beating analysts' consensus estimates of $0.26 by $0.17. Mach Natural Resources had a return on equity of 16.91% and a net margin of 12.16%.The business had revenue of $387.54 million during the quarter, compared to analyst estimates of $357.31 million. Sell-side analysts forecast that Mach Natural Resources will post 1.75 earnings per share for the current year.

Insider Transactions at Mach Natural Resources

In other news, insider Tom L. Ward purchased 153,256 shares of the business's stock in a transaction dated Monday, April 13th. The stock was bought at an average cost of $13.05 per share, with a total value of $1,999,990.80. Following the purchase, the insider directly owned 13,295,039 shares of the company's stock, valued at approximately $173,500,258.95. This trade represents a 1.17% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director William Wallace Mcmullen purchased 3,215 shares of the business's stock in a transaction dated Monday, March 23rd. The shares were purchased at an average cost of $13.63 per share, with a total value of $43,820.45. Following the completion of the purchase, the director directly owned 74,859,917 shares in the company, valued at approximately $1,020,340,668.71. This represents a 0.00% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought 163,541 shares of company stock valued at $2,142,861 in the last three months. Corporate insiders own 87.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. CWM LLC bought a new position in shares of Mach Natural Resources in the 3rd quarter valued at approximately $27,000. Cooksen Wealth LLC raised its stake in shares of Mach Natural Resources by 87.5% in the 2nd quarter. Cooksen Wealth LLC now owns 2,635 shares of the company's stock valued at $38,000 after acquiring an additional 1,230 shares in the last quarter. Hilton Head Capital Partners LLC bought a new position in shares of Mach Natural Resources in the 4th quarter valued at approximately $31,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of Mach Natural Resources in the 4th quarter valued at approximately $42,000. Finally, Kestra Advisory Services LLC bought a new position in shares of Mach Natural Resources in the 4th quarter valued at approximately $44,000. 78.36% of the stock is owned by institutional investors.

About Mach Natural Resources

Mach Natural Resources LP, an independent upstream oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas. It also owns a portfolio of midstream assets, as well as owns plants and water infrastructure. The company was incorporated in 2023 and is headquartered in Oklahoma City, Oklahoma.

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