Mach Natural Resources LP, a prominent player in the oil and gas industry, recently finalized the acquisition of various oil and gas properties, rights, and related assets located across several counties in Oklahoma. This significant move was made through the purchase of assets from Paloma Partners IV, LLC, a Delaware-based private company with financial backing from EnCap Investments L.P. and its affiliates. The acquisition marks a strategic expansion for Mach Natural Resources in the region’s energy sector.
To facilitate this substantial acquisition, Mach arranged an $825 million term loan credit agreement. This substantial financial commitment was orchestrated by a consortium led by Chambers Energy Management and EOC Partners. The group included several key financial institutions like Mercuria Investments US, Inc., Farallon Capital Management LLC, Macquarie Group, and Texas Capital Bank, with Texas Capital Bank serving as the administrative agent. This credit agreement played a crucial role in providing the necessary capital for Mach to complete the acquisition.
In addition to the term loan, Mach also secured a $75 million super priority revolving credit facility, with MidFirst Bank taking the lead. This facility offered additional financial flexibility for the company. At the acquisition’s closing, Mach utilized the funds from the Term Loan Facility, coupled with available cash reserves, to clear the outstanding balances under the previously existing revolving credit agreement, leading to its termination. Following this strategic financial maneuvering, the Revolving Credit Facility remained unused.
The completion of this acquisition is a significant step for Mach Natural Resources, as it broadens the company’s footprint in the Oklahoma oil and gas landscape. This move not only enhances Mach’s asset portfolio but also strengthens its position in one of the country’s most vital energy-producing regions. The acquisition and the associated financial arrangements demonstrate Mach’s commitment to growth and its strategic approach to expanding its presence in the competitive energy market.
