MACH NATURAL RESOURCES LPMNR

MACH NATURAL RESOURCES LP Leases Disclosure

10-KFiled Mar 12, 20262 min read
Leases
Nature of Leases
The Company has operating leases on office spaces, various vehicles and compressors with remaining lease durations in excess of one year. These leases have various expiration dates through 2030. The vehicles are used for field operations and leased from third parties. The Company recognizes right-of-use asset and lease liability on the balance sheet for all leases with lease terms of greater than one year. Short-term leases that have an initial term of one year or less are not capitalized.
Discount Rate
As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and in a similar economic environment.
Future amounts due under operating lease liabilities as of December 31, 2025, were as follows (in thousands):
2026$8,046 
20276,686 
20284,475 
20292,342 
2030534 
Total lease payments22,083 
Less: imputed interest(2,532)
Total
$19,551 
The following table summarizes our total lease costs before amounts are recovered from our joint interest partners, where applicable, for the years ended December 31, 2025, 2024 and 2023 (in thousands):
Year ended December 31,
202520242023
Operating lease cost
$8,283 $11,748 $14,309 
The Company does not have any material leases that are short term. The weighted-average remaining lease term as of December 31, 2025 was 3.16 years. The weighted-average discount rate used to determine the operating lease liability as of December 31, 2025 was 7.82%.

Year ended December 31,
202520242023
Operating cash outflows from operating leases
$7,955 $11,681 $14,066 

Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2024Mar 13, 2025

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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