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 ($1.8B and $1.8B). Vermilion Energy Inc. has negative trailing earnings, so its P/E is not meaningful; Mach Natural Resources LP trades at 17.3×. 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 11 and Mach Natural Resources LP on 8.

Valuation

Metric MNR VET Oil & Gas E&P median
P/E 17.33 n/m 10.57
P/S 1.29 1.37 1.80
P/B 0.94 1.14 1.27
Price to free cash flow 6.96 3.01 9.99
EV/EBITDA 5.28 3.62 5.08
EV/Sales 2.18 2.09 2.39
Earnings yield 5.77% (18.02%) 6.06%
Free cash flow yield 14.36% 33.17% 6.17%

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% 9.71%
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%) —
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 0.91

Dividend

Metric MNR VET Oil & Gas E&P median
Dividend yield — 2.93% 4.93%
Payout ratio — 0.05 0.07

Size

Metric MNR VET Oil & Gas E&P median
Market cap 1.76b 1.82b 923.59m

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