Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q4 2020 Earnings Presentation
19 slides from Magnolia Oil & Gas's earnings presentation, Feb 23, 2021
Slide 1: Fourth Quarter 2020 Earnings Presentation
Fourth Quarter 2020 Earnings Presentation February 23, 2021 Stephen Chazen – Chairman, President & CEO Christopher Stavros – Executive Vice President & CFO Brian Corales – Vice President, Investor Relations
Slide 2: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTS The information in this presentation and the oral statements made in connection therewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities E
Slide 3: Magnolia Oil & Gas – 4Q and Full Year 2020 Highlights
Magnolia Oil & Gas – 4Q and Full Year 2020 Highlights • Will commence paying a semi-annual dividend in 2021. • Generated adjusted EBITDAX of $98.1 million versus our D&C Capital of $39.6 million, or just 40% of adjusted EBITDAX, during the 4th quarter. For 2020, Magnolia generated $338.6 million of
Slide 4: Cash Flow Allocation Matches Magnolia’s Business Model
Cash Flow Allocation Matches Magnolia’s Business Model (Percentage of Operating Cash Flow (1) – Since Inception - 7/31/18 thru 12/31/20) Cash Build Share 6% Repurchases 8% Acquisitions 26% Drilling & Completions 60% (1) Operating Cash Flow is cash flow from operations before changes in working capit
Slide 5: Giddings Field – Appraisal to Development
Giddings Field – Appraisal to Development • MGY has identified some contiguous acreage blocks which have produced consistent results to date ‒ One of these areas comprises ~70,000 acres which we have 20 wells with 90+ days of production Current Previous 90-Day 90-Day Well Count 20 Well Count 14 Bopd
Slide 6: 4Q 2020 Key Metrics
Magnolia Oil & Gas – 4Q 2020 Key Metrics Adj. Net Income (1) & Adj. EPS (1) Total Production Giddings Production $39.3 million 60.6 Mboe/d 28.3 Mboe/d $0.15/share (12% sequential growth) (39% sequential growth) (70% sequential oil growth) Adjusted EBITDAX (1) D&C Capex Free Cash Flow (1) $98.1 Milli
Slide 7: 4Q 2020 Cash Flow Summary
4Q 2020 Cash Flow Summary ($ In Millions) 16 27 16 41 90 193 149 Cash CFFO(1) Ironwood Sale Changes Common Stock DC&F Cash 9/30/20 in WC (2) Repurchases Capital 12/31/20 (1) Cash flow from operations before changes in working capital. (2) Includes $11 million decrease in working capital and $5 milli
Slide 8: Summary Balance Sheet
Magnolia Oil & Gas – Summary Balance Sheet (in thousands) December 31, 2020 December 31, 2019 Cash $192,561 $182,633 Current assets 88,965 110,585 Property, plant and equipment, net 1,149,527 3,116,757 Other assets 22,367 56,431 Total assets $1,453,420 $3,466,406 Current liabilities $128,949 $175,20
Slide 9: 4Q20 Capital Structure and Liquidity Overview
4Q20 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($MM) • Maintaining low financial leverage profile Capitalization Summary As of 12/31/2020 ‒ Net Debt / Total Book Capitalization of 17% Cash and Cash Equivalents $193 ‒ Net Debt / Q4 Annualized adjus
Slide 10: Margin and Cost Structure
Magnolia Oil & Gas – Margin and Cost Structure For the Quarter Ended For the Quarter Ended $ / Boe December 31, 2020 December 31, 2019 Revenue $26.76 $36.54 Total Cash Costs: Lease Operating Expenses (1) (3.20) (3.66) Gathering, Transportation & Processing (1.45) (1.42) Taxes Other Than Income (1.50
Slide 11: Proved Developed Reserves Detail
Proved Developed Reserves Detail For the Year Ended (In thousands) December 31, 2020 Costs incurred: Proved property acquisition costs $49,246 Unproved properties acquisitions costs 25,966 Total acquisition costs $75,212 Exploration and development costs 188,352 Total costs incurred $263,564 Less: T
Slide 12: Appendix
Appendix ON
Slide 13: Overview
Magnolia Oil & Gas – Overview • High-quality, low-risk pure-play South Texas operator with a core ~460,000 Net Acre Position Targeting Two of the Top Eagle Ford and Austin Chalk position acquired at an attractive entry Oil Plays in the U.S. multiple • Significant scale and PDP base generates materia
Slide 14: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Free Cash Flow Reconciliation December 31, 2020 December 31, 2019 Net cash provided by operating activities $79,122 $159,007 Add back: net changes in operating assets and liabilities 11,133 3,863 Cash flows from
Slide 15: Reconciliation of Net Income to Adjusted EBITDAX
Reconciliation of Net Income to Adjusted EBITDAX (in thousands) For the Quarter Ended For the Quarter Ended Adjusted EBITDAX reconciliation to net income: December 31, 2020 December 31, 2019 Net income $42,012 $13,631 Exploration expense 3,744 2,724 Asset retirement obligation accretion 1,315 1,416
Slide 16: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Adjusted Net Income December 31, 2020 December 31, 2019 Net income $42,012 $13,631 Income tax expense - $2,311 Income Before Income Taxes 42,012 15,942 Adjustments: Impairment of unproved properties 2,370 -
Slide 17: Adjusted Earnings Reconciliation
Adjusted Earnings Reconciliation (in thousands) For the Quarter Ended Per Share For the Quarter Ended Per Share December 31, 2020 Diluted EPS December 31, 2019 Diluted EPS Net income attributable to Class A Common Stock $27,745 $0.16 $8,115 $0.05 Adjustments: Impairment of unproved properties (1) 2,
Slide 18: Operating Highlights
Magnolia Oil & Gas – Operating Highlights For the Quarter Ended For the Quarter Ended December 31, 2020 December 31, 2019 Production: Oil (MBbls) 2,646 3,251 Natural gas (MMcf) 10,168 10,689 Natural gas liquids (MBbls) 1,237 1,254 Total (Mboe) 5,577 6,287 Average daily production: Oil (Bbls/d) 28,75
Slide 19: Production Results
Magnolia Oil & Gas – Production Results Giddings & Giddings & Combined Karnes Combined Karnes Other Other Three Months Ended December 31, 2020 Three Months Ended December 31, 2019 Production: Oil (MBbls) 2,646 1,862 784 3,251 2,740 511 Natural gas (MMcf) 10,168 3,463 6,705 10,690 4,207 6,483 Natural