Mach Natural Resources LP (MNR) vs Vermilion Energy Inc. (VET)

Mach Natural Resources LP and Vermilion Energy Inc. are both Oil & Gas E&P companies. Mach Natural Resources LP and Vermilion Energy Inc. are of similar size ($1.9B and $1.8B). Vermilion Energy Inc. has negative trailing earnings, so its P/E is not meaningful; Mach Natural Resources LP trades at 18.4×. Mach Natural Resources LP grew revenue faster over the last twelve months: 34.4% against −5.20%. Mach Natural Resources LP has the higher net margin (7.44% vs −24.5%) and the lower return on invested capital (4.09% vs 5.93%). Across the 19 metrics below, Vermilion Energy Inc. leads on 10 and Mach Natural Resources LP on 9.

Valuation

Metric MNR VET Oil & Gas E&P median
P/E 18.38 n/m 11.01
P/S 1.37 1.55 1.98
P/B 1.00 1.29 1.30
Price to free cash flow 7.39 3.43 10.68
EV/EBITDA 5.47 4.16 5.09
EV/Sales 2.26 2.40 2.63
Earnings yield 5.44% (15.83%) 5.78%
Free cash flow yield 13.54% 29.15% 4.91%

Profitability

Metric MNR VET Oil & Gas E&P median
Gross margin 56.26% 62.13% 80.41%
Operating margin 14.40% 18.12% 21.39%
Net margin 7.44% (24.50%) 14.17%
Free cash flow margin 18.51% 45.31% 8.18%
Return on equity 0.00% (18.15%) 10.05%
Return on assets 3.35% (7.23%) 5.81%
Return on invested capital 4.09% 5.93% 6.32%

Growth

Metric MNR VET Oil & Gas E&P median
Revenue growth (TTM) 34.42% (5.20%) 9.94%
EPS growth (last fiscal year) (42.63%) (1,281.82%) (10.50%)
Revenue growth, 5-year CAGR — 8.21% 18.67%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric MNR VET Oil & Gas E&P median
Debt to equity 0.63 0.63 0.28
Current ratio 0.88 1.00 0.96
Net debt to EBITDA 2.03 1.30 0.89

Dividend

Metric MNR VET Oil & Gas E&P median
Dividend yield — 2.93% 3.29%
Payout ratio — — 0.35

Size

Metric MNR VET Oil & Gas E&P median
Market cap 1.81b 1.93b 1.04b

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