Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q4 2022 Earnings Presentation
17 slides from Magnolia Oil & Gas's earnings presentation, Feb 15, 2023
Slide 1: Fourth Quarter 2022 Earnings Presentation
Magnolia Oil & Gas Fourth Quarter 2022 Earnings Presentation February 15, 2023 Christopher Stavros – President & CEO Brian Corales – Senior Vice President & CFO Jim Johnson – Vice President, Finance, IR & Treasurer
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: Fourth Quarter and Full Year 2022 Key Financial Metrics
Fourth Quarter and Full Year 2022 Key Financial Metrics • Strong organic production combined with improved product pricing resulted in substantially improved financial metrics across the board • Giddings weighted activity program continues to benefit steady production growth, full cycle margins and
Slide 4: 2022 Cash Flow Summary
2022 Cash Flow Summary (In millions) 1,800 54 90 1,600 90 1,400 352 1,200 1,000 1,251 465 800 600 400 675 200 367 0 Cash Cash Flow (1) Changes in(2) Acquisitions Dividends(3) Common Stock(4) D&C and Cash 12/31/21 from Working Repurchases Facilities 12/31/22 Operations Capital and Capital Other (1) C
Slide 5: Share Repurchase Summary Through 4Q 2022
Share Repurchase Summary Through 4Q 2022 • Since the initial repurchase authorization in 3Q19, Magnolia has reduced its dilutive share count by 25.4(1) million shares of Class A common stock as well as 26.9 million shares of Class B common stock, for a total reduction of 52.3 million shares, or appr
Slide 6: Differentiated Dividend Framework
Magnolia Oil & Gas – Differentiated Dividend Framework Dividend Principles 15% Increase Secure & Sustainable – Dividend is safe, and supported by our strong balance sheet, prudent spending and 43% Increase consistent free cash flow Paid out of Earnings – Dividend is paid out of earnings generate
Slide 7: Summary Balance Sheets
Magnolia Oil & Gas – Summary Balance Sheets (in thousands) December 31, 2022 December 31, 2021 Cash $675,441 $366,982 Current assets 175,306 150,936 Property, plant and equipment, net 1,533,029 1,216,087 Other assets 188,809 12,737 Total assets $2,572,585 $1,746,742 Current liabilities $340,273 $218
Slide 8: 4Q 2022 Capital Structure and Liquidity Overview
4Q 2022 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($MM) • Maintaining low financial leverage profile Capitalization Summary As of 12/31/2022 ‒ Currently have a net cash position of $275 MM Cash and Cash Equivalents $675 ‒ Net Debt / Q4 Annualized
Slide 9: Margin and Cost Structure
Magnolia Oil & Gas – Margin and Cost Structure $ / Boe, unless otherwise noted For the Quarters Ended For the Years Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Revenue $51.42 $52.01 $61.60 $44.75 Total cash operating costs: Lease operating expenses (1) (5.17) (4.36)
Slide 10: Commitment to Sustainability
Commitment to Sustainability ENVIRONMENTAL SOCIAL GOVERNANCE Air Emissions Workforce Health & Safety Board Independence Reduced our 2021 GHG intensity rate Have not recorded a fatal accident in 71% of board members are by 9.5% compared to 2020, following connection with our operations since independ
Slide 11: Appendix
Appendix \
Slide 12: Overview
Magnolia Oil & Gas – Overview • High-quality, low-risk pure-play South Texas operator with a core ~482,000 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 13: Free Cash Flow Reconciliations
Free Cash Flow Reconciliations (in thousands) For the Quarters Ended For the Years Ended Free Cash Flow Reconciliation December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net cash provided by operating activities $268,002 $260,542 $1,296,687 $788,477 Add back: Net change in opera
Slide 14: Adjusted EBITDAX Reconciliations
Adjusted EBITDAX Reconciliations (in thousands) For the Quarters Ended For the Years Ended Adjusted EBITDAX reconciliation to net income: December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net income $254,762 $192,145 $1,050,249 $559,716 Exploration expenses 1,467 1,685 11,586 4
Slide 15: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation (in thousands) For the Quarters Ended For the Years Ended Adjusted Net Income December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net income $254,762 $192,145 $1,050,249 $559,716 Adjustments: Deferred income tax benefit (65,720) − (65,720) − Oth
Slide 16: Operating Highlights
Magnolia Oil & Gas – Operating Highlights For the Quarters Ended For the Years Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Production: Oil (MBbls) 2,972 2,844 12,189 11,190 Natural gas (MMcf) 12,455 11,820 50,660 43,436 Natural gas liquids (MBbls) 1,740 1,572 6,874
Slide 17: Production Results
Magnolia Oil & Gas – Production Results Giddings & Giddings & Combined Karnes Combined Karnes Other Other For the Quarter Ended December 31, 2022 For the Quarter Ended December 31, 2021 Production: Oil (MBbls) 2,972 1,585 1,387 2,844 1,740 1,104 Natural gas (MMcf) 12,455 3,824 8,631 11,820 4,148 7,6