Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — TPG Pace Energy Holdings — Citi Global Energy & Utilities Conference 2018
16 slides from Magnolia Oil & Gas's conference presentation, May 16, 2018
Slide 1: Magnolia Oil & Gas Corporation - Citi Global Energy & Utilities Conference
Exhibit 99.1 MAGNOLIA OIL & GAS CORPORATION Citi Global Energy & Utilities Conference May 16, 2018
Slide 2: Disclaimer: Forward Looking Statements
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: Introduction to Magnolia Oil & Gas
Introduction to Magnolia Oil & Gas TPGE has entered into an agreement with EnerVest to create Magnolia through the carve-out of its South Texas Division (Eagle Ford & Austin Chalk) for ~$2.66 billion(1) TPGE filed preliminary merger proxy with the SEC on May 10, 2018 Transaction Overview Steve Chaze
Slide 4: High-quality, low-risk pure-play South Texas operator
High-quality, low-risk pure-play South Texas operator with a core Eagle Ford and Austin Chalk position Significant scale and PDP base generates material free cash flow, reduces development risk and increases optionality Core Karnes County Position Some of the most prolific acreage in Karnes County,
Slide 5: Value Creation Plan: Multiple Drivers of Share Price Accretion
Value Creation Plan: Multiple Drivers of Share Price Accretion Magnolia will focus on extracting money from oil rather than just extracting oil from the ground Compelling Value Proposition Overriding goal is to maximize shareholder returns We believe this can be achieved through a combination of: St
Slide 6: Industry Leading Fundamentals at a Discounted Purchase Multiple
U.S. Independents <1.5x 2018E Leverage >8% Production CAGR (2017E-2019E) 2018E and 2019E FCF Positive Industry Leading Fundamentals at a Discounted Purchase Multiple Source: Company filings, FactSet consensus peer projections as of 5/11/2018. Note: U.S. Independents include: APA, APC, AR, BBG, CDEV,
Slide 7: Karnes County – Core Eagle Ford and World Class Austin Chalk
World-class acreage footprint located in the core of the Eagle Ford, substantially de-risked 14,070 net acres (28,886 gross acres), 65% operated, 88% HBP, 35.5 Mboe/d Q1 2018 production (71% oil, 85% liquids)(1) EOG represents ~50% of non-operated interest Steady production growth while generating s
Slide 8: Karnes County has some of the Top Economics in North America
Karnes County has some of the Top Economics in North America Karnes has some of the highest U.S. IPs… Note: Magnolia type curves normalized to 5,000’ laterals. Projections based on flat $58 WTI and $2.75 Henry Hub pricing. Commodity percentage splits represent first 24 months of production. Source:
Slide 9: Giddings Field – Austin Chalk Redeveloping as an Emerging Play
Giddings Field – Austin Chalk Redeveloping as an Emerging Play Giddings Asset Overview Emerging, high-growth asset with extensive inventory potential and significant development flexibility ~344,384 net acres, 99%+ HBP and ~87% operated, 10.2 Mboe/d Q1 2018 production(1) (29% oil, 55% liquids) HBP n
Slide 10: Focus on Maintaining High Full-Cycle Operating Margins
Focus on Maintaining High Full-Cycle Operating Margins Focus on full-cycle economics is a distinguishing characteristic compared to many public peers today Illustrative Full Cycle Margin(1) Operations focused on producing best-in-class full-cycle operating margins (inclusive of development costs) Re
Slide 11: Illustrative Full Cycle Margins at Various Prices
Illustrative Full Cycle Margins at Various Prices Note: Boxed $58 / bbl WTI case corresponds to base case financial projections included in preliminary merger proxy filed May 10, 2018, which was originally disclosed in the investor presentation posted to TPGE's website on March 20, 2018. Illustrativ
Slide 12: Effective Use of Cash to Maximize Shareholder Returns
Effective Use of Cash to Maximize Shareholder Returns Robust Cumulative Free Cash Flow(1) (1) Projections based on flat $58 WTI and $2.75 Henry Hub pricing and include recent acquisition. See preliminary merger proxy filed May 10, 2018 and the investor presentation posted to TPGE’s website on March
Slide 13: Q1 Operations Update
Q1 Operations Update Magnolia Q1 2018 Results(1) Q1 Highlights Announced transaction on March 20, 2018 Filed preliminary merger proxy with SEC on May 10, 2018 Oil weighted average production of 45.7 Mboe/d(1) 62% Oil, 78% Liquids 84% and 92% of revenue associated with oil and liquids, respectively S
Slide 14: Premier Platform Positioned for Success
Premier Platform Positioned for Success Positive Free Cash Flow and Peer Leading Margins Multiple Levers of Growth Strong Balance Sheet and Financial Flexibility Experienced Management team Magnolia – Summary Investment Highlights
Slide 15: Appendix
Appendix
Slide 16: Sources, Uses and Pro Forma Valuation
Sources, Uses and Pro Forma Valuation Note: Base case projections based on flat $58 WTI and $2.75 Henry Hub pricing and include recent acquisition. Please see preliminary merger proxy filed May 10, 2018 for details on base case projections. Other outstanding instruments from TPGE.U IPO: 21.7 million
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