Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q4 2024 Earnings Presentation
26 slides from Magnolia Oil & Gas's earnings presentation, Feb 19, 2025
Slide 1: Fourth Quarter & Full Year 2024 Earnings Presentation
Fourth Quarter & Full Year 2024 Earnings Presentation February 18, 2025 Christopher Stavros – President & CEO Brian Corales – Senior Vice President & CFO Tom Fitter – Director, Investor Relations
Slide 2: Disclaimer
Fourth Quarter & Full Year 2024 Earnings Presentation Disclaimer FORWARD LOOKING STATEMENTS The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, a
Slide 3: Highlights & Announcements
Fourth Quarter & Full Year 2024 Earnings Presentation Highlights & Announcements Financial Operations Corporate 2024 total adjusted net income of $401 2024 production of 89.7 Mboe/d (9% annual Returned ~$378 million to million and operating income margin of 39% growth) and oil production of 38.3 Mbb
Slide 4: Magnolia's Consistent Business Model
Fourth Quarter & Full Year 2024 Earnings Presentation Magnolia’s Consistent Business Model High Quality Assets Drive Low Capital Reinvestment Deliver Mid-Single Digit Long-Term Production Rate that Grows the Business Growth with Significant Free Cash Flow Limit Capital Spending to 55% of 2025 BOE Gr
Slide 5: Low Reinvestment Rate with Strong Production Growth
Fourth Quarter & Full Year 2024 Earnings Presentation Low Reinvestment Rate with Strong Production Growth 4-Year Average Reinvestment Rate1 Production Growth Per Share1 (4-Year CAGR) 80% 25% 62% 63% 16% 60% 58% 56% 56% 13% 12% 51% 52% 52% 50% 46% 47% 8% 8% 8% 8% 45% 45% 45% 42% 40% 41% 5% 3% 3% 1% 1
Slide 6: High Pre-tax Operating Margins
Fourth Quarter & Full Year 2024 Earnings Presentation High Pre-tax Operating Margins Operating Margin (1) (4-Year Average) 55% 51% Magnolia has consistently delivered one of the 49% highest operating margins relative to peers 46% 45% 42% 40% 40% 40% 39% High-quality asset base and focus on 37% 3
Slide 7: Low Leverage Drives Financial Flexibility
Fourth Quarter & Full Year 2024 Earnings Presentation Low Leverage Drives Financial Flexibility 2.6 Net Debt / EBITDA (2025E) (1) Magnolia has one of the strongest balance sheets in the industry 1.7 1.5 1.5 1.4 1.3 1.3 1.2 1.2 1.1 1.1 1.1 1.1 0.9 1.0 0.8 0.4 0.4 0.3 0.1 -0.2 (1) Source: FactSet (202
Slide 8: History of Top-Tier Return on Capital Employed
Fourth Quarter & Full Year 2024 Earnings Presentation History of Top-Tier Return on Capital Employed Historical ROCE 26% Low reinvestment rate and 22% continued business model execution - low leverage, disciplined capital spending and high pre-tax margins are critical to sustaining high returns
Slide 9: Consistent & Sizable Cash Return to Shareholders
Fourth Quarter & Full Year 2024 Earnings Presentation Consistent & Sizable Cash Return to Shareholders Cumulative Return of Capital ($MM) ~$1.6 Billion Returned to Shareholders $1,591 $1,213 Magnolia has a strong track record of returning capital to shareholders $908 Returned ~35% of current mar
Slide 10: Key Fourth Quarter & Full Year 2024 Financial Metrics
Fourth Quarter & Full Year 2024 Earnings Presentation Key Fourth Quarter & Full Year 2024 Financial Metrics Metric Q4 2024 YoY % Change 2024 YoY % Change Total Production (Mboe/d) 93.1 9% 89.7 9% Oil Production (Mbbls/d) 38.8 9% 38.3 11% Giddings Production as a % of total 77% 3% 76% 5% Revenue ($ M
Slide 11: 2024 Cash Flow Reconciliation
Fourth Quarter & Full Year 2024 Earnings Presentation 2024 Cash Flow Reconciliation 1,400 11 17 107 1,200 165 1,000 273 $ In Millions 919 800 600 487 400 200 401 260 0 (5) (6) (1) (2) (3) (4) Cash Cash Flow Changes in Debt Dividends and Acquisitions Share DC&F Capital Cash 12/31/2023 from Working Re
Slide 12: History of Significant & Consistent Share Repurchases
Fourth Quarter & Full Year 2024 Earnings Presentation History of Significant & Consistent Share Repurchases Magnolia’s Consistent Share Repurchases (1) 70 (million shares repurchased) 11.0 60 9.6 50 15.5 40 (72.9) 30 25.3 Magnolia has reduced its diluted 20 share count by approximately 23% 10 4.5 7.
Slide 13: Track Record of a Safe, Sustainable and Growing Dividend
Fourth Quarter & Full Year 2024 Earnings Presentation Track Record of a Safe, Sustainable and Growing Dividend Dividend Payout Per Share CAGR Has Exceeded 16% Magnolia’s dividend has grown at a double-digit rate over the past 4 years $0.60 Sustainable dividend growth supported $0.52 even at lowe
Slide 14: Summary Balance Sheet
Fourth Quarter & Full Year 2024 Earnings Presentation Summary Balance Sheet (in thousands) December 31, 2024 December 31, 2023 Cash and cash equivalents $260,049 $401,121 Other current assets 150,775 190,152 Property, plant and equipment, net 2,306,034 2,052,021 Other assets 103,977 112,922 Total as
Slide 15: Margins and Cost Structure
Fourth Quarter & Full Year 2024 Earnings Presentation Margins and Cost Structure For the Quarters Ended For the Years Ended $ / Boe, unless otherwise noted December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Revenue $38.13 $41.06 $40.08 $40.83 Total Cash Operating Costs: Lease Op
Slide 16: Oil & Gas Reserves Detail
Fourth Quarter & Full Year 2024 Earnings Presentation Oil & Gas Reserves Detail For the Years Ended (In thousands) Three Year Total December 31, 2024 December 31, 2023 December 31, 2022 Costs incurred: Proved property acquisition costs $68,761 $326,150 $53,781 $448,692 Unproved properties acquistion
Slide 17: 2025 Operating Plan & Guidance
Fourth Quarter & Full Year 2024 Earnings Presentation 2025 Operating Plan & Guidance 2025E Production & Capital 2025E Capital First Quarter 2025 Guidance ~20-25% Production Growth Production Karnes ~94 Mboe/d 5%-7% YoY Total Growth; ~75-80% Capital Budget Giddings D&C Capital Spending Budget: $460 -
Slide 18: Summary Investment Highlights
Fourth Quarter & Full Year 2024 Earnings Presentation Summary Investment Highlights High Quality Assets Positioned for Success Leading position in the Giddings area with low breakevens and substantial running room Giddings Coveted position in the Karnes area in the core of the Eagle Ford Positiv
Slide 19: Appendix
Appendix 3 VY MAGNOLIA ore & GAS
Slide 20: Magnolia's Commitment to Sustainability
Fourth Quarter & Full Year 2024 Earnings Presentation Magnolia’s Commitment to Sustainability Safeguarding the 86% REDUCTION 12% REDUCTION 35% REDUCTION Environment Flaring Intensity Rate GHG Intensity Rate Hydrocarbon Spill Volume 2019 to 2023 2019 to 2023 2019 to 2023 Supporting Employees 29% DIVE
Slide 21: Free Cash Flow Reconciliations
Fourth Quarter & Full Year 2024 Earnings Presentation Free Cash Flow Reconciliations For the Quarters Ended For the Years Ended (in thousands) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net cash provided by operating activities $222,627 $246,882 $920,850 $855,789 Add bac
Slide 22: Adjusted EBITDAX Reconciliations
Fourth Quarter & Full Year 2024 Earnings Presentation Adjusted EBITDAX Reconciliations For the Quarters Ended For the Years Ended (in thousands) December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Net income $88,708 $113,856 $397,330 $442,604 Interest expense, net 4,688 405 14,37
Slide 23: Adjusted Net Income Reconciliation
Fourth Quarter & Full Year 2024 Earnings Presentation Adjusted Net Income Reconciliation For the Quarters Ended For the Years Ended (in thousands) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net income $88,708 $113,856 $397,330 $442,604 Adjustments: Impairment of oil and
Slide 24: 2024 Capital Structure & Liquidity Overview
Fourth Quarter & Full Year 2024 Earnings Presentation Fourth Quarter 2024 Capital Structure & Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($MM) Maintaining low financial leverage profile Capitalization Summary As of 12/31/2024 ‒ Currently have a net debt(1) position of
Slide 25: Return on Capital Employed
Fourth Quarter & Full Year 2024 Earnings Presentation Return on Capital Employed For the Quarter Ended For the Years Ended (in thousands) December 31, 2024 December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 Operating income (loss) $124,067 $51
Slide 26: Oil & Gas Production Results
Fourth Quarter & Full Year 2024 Earnings Presentation Oil & Gas Production Results Combined Karnes Giddings Combined Karnes Giddings For the Quarter Ended December 31, 2024 For the Quarter Ended December 31, 2023 Production: Oil (MBbls) 3,572 1,163 2,409 3,263 1,213 2,050 Natural gas (MMcf) 15,371 2