Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Investor Presentation (August 2025)
30 slides from Magnolia Oil & Gas's investor presentation, August 2025
Slide 1: August 2025 Investor Presentation
August 2025 Investor Presentation
Slide 2: Disclaimer
August 2025 Investor Presentation Disclaimer FORWARD LOOKING STATEMENTS The information in this presentation 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, as amended. All statem
Slide 3: Magnolia Oil & Gas Overview
August 2025 Investor Presentation Magnolia Oil & Gas Overview • High-quality, low-risk pure-play South Texas operator with core Eagle Ford and Austin Chalk positions acquired at attractive entry costs Texas • Significant scale and PDP base generates material free cash flow, reduces development risk,
Slide 4: Magnolia's Consistent Business Model
August 2025 Investor 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 Growth of ~10%, above
Slide 5: Asset Overview
Asset Overview
Slide 6: Giddings Area Assets
August 2025 Investor Presentation Giddings Area Assets Asset Overview Texas • >750,000 gross acres (~570,000 net acres) with high working interest (~98% operated) • 240,000 net acres in development – Appraisal program outside of development area • Q2 2025 production averaged 77.4 Mboe/d (35% oil, 65
Slide 7: Giddings Bolt-On Acquisitions
August 2025 Investor Presentation Giddings Bolt-On Acquisitions Oil & Gas Property Acquisition Highlights • Acquired >18,000 net acres in Giddings (>46,000 gross) in multiple transactions from small private operators for ~$40 million (1) – Includes ~500 BOEPD (~35% oil, ~68% liquids) of low decline
Slide 8: Core Karnes Assets
August 2025 Investor Presentation Core Karnes Assets Texas Asset Overview • Mature asset offers significant free cash flow and a low base production decline • Acreage located in the core of the Eagle Ford offering very strong economic returns in Karnes, Gonzales and DeWitt counties – ~22,000 net acr
Slide 9: Financial, Capital Allocation & Risk Management Overview
Financial, Capital Allocation & Risk Management Overview
Slide 10: Cash Flow Allocation Matches Magnolia's Business Model
August 2025 Investor Presentation Cash Flow Allocation Matches Magnolia’s Business Model Dividends & Allocation of Operating Cash Flow – Since Inception Cash Build (7/31/2018 – 6/30/2025) 9% Magnolia’s “recipe” is a disciplined allocation of Share Repurchases capital, low reinvestment rate, a balanc
Slide 11: Low Leverage Drives Financial Flexibility
August 2025 Investor Presentation Low Leverage Drives Financial Flexibility 2.3 Net Debt / EBITDA (2025E) (1) 1.7 Magnolia has the strongest 1.5 1.6 1.5 balance sheet in the industry 1.3 1.3 1.2 1.2 1.1 1.0 0.9 0.9 0.8 0.8 0.7 0.6 0.3 0.4 0.2 (1) Source: FactSet (2025E); includes estimate for acquis
Slide 12: Low Reinvestment Rate with Strong Production Growth
August 2025 Investor Presentation Low Reinvestment Rate with Strong Production Growth 4-Year Average Reinvestment Rate1 Production Growth Per Share1 (4-Year CAGR) 80% 25% 62% 62% 16% 58% 59% 57% 13% 55% 12% 53% 52% 51% 52% 47% 47% 8% 8% 45% 45% 45% 8% 8% 42% 40% 40% 5% 3% 3% 1% 1% 1% 1% 0% -1% -3% -
Slide 13: High Pre-tax Operating Margins
August 2025 Investor Presentation High Pre-tax Operating Margins Operating Margin(1) (4-Year Average) • Magnolia has consistently delivered one 55% 52% of the highest operating margins relative 49% 45% 45% to peers 40% 39% 39% 38% 38% • High-quality asset base and focus on 37% 34% 34% 34% 33% mainta
Slide 14: History of Top-Tier Return on Capital Employed
August 2025 Investor Presentation History of Top-Tier Return on Capital Employed Historical ROCE 26% • Low reinvestment rate and continued business model execution – low leverage, disciplined capital 21% spending and high pre-tax margins – are critical to sustaining high returns • Focus on cost redu
Slide 15: Consistent & Sizable Cash Return to Shareholders
August 2025 Investor Presentation Consistent & Sizable Cash Return to Shareholders >$1.7 Billion Returned to Shareholders Cumulative Return of Capital ($MM) $1,751 $1,591 • Magnolia has a strong track record of returning capital to shareholders $1,213 • Returned ~40% of current market cap over $908
Slide 16: History of Significant & Consistent Share Repurchases
August 2025 Investor Presentation History of Significant & Consistent Share Repurchases Magnolia’s Consistent Share Repurchases (1) 80 (million shares repurchased) 4.4 70 11.0 60 9.6 50 15.5 40 (77.2) 30 25.3 Magnolia has reduced its diluted share 20 count by approximately 25% 10 4.5 7.0 0 2019 2020
Slide 17: Track Record of a Safe, Sustainable and Growing Dividend
August 2025 Investor 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 $0.60 over the past 4 years $0.52 • Sustainable dividend growth supported even at lower product prices $0.
Slide 18: Business Risks Adequately Managed
August 2025 Investor Presentation Business Risks Adequately Managed Level of Risk Acceptable to Magnolia Low Risk Moderate Risk Fully Exposed Risk Factor Geologic/Exploratory Political Cost Risk Reinvestment Commodity Financial 18
Slide 19: Summary Investment Highlights
August 2025 Investor Presentation Summary Investment Highlights High Quality Assets Positioned for Success • Leading position in the Giddings area with low capital reinvestment rate, low breakevens and substantial running room • Coveted position in the Karnes area in the core of the Eagle Ford Posit
Slide 20: FY2025 & Third Quarter 2025 Operating Plan & Guidance
August 2025 Investor Presentation FY2025 & Third Quarter 2025 Operating Plan & Guidance 2025E Production & Capital 2025E Capital Third Quarter 2025 Guidance Production Growth Production ~20-25% Karnes ~99 Mboe/d YoY 2025 Total Growth Raised to ~10% from range of 7% - 9% ~75-80% D&C Capital Spending
Slide 21: Magnolia's Commitment to Sustainability
August 2025 Investor Presentation Magnolia’s Commitment to Sustainability Safeguarding Supporting Employees Governing with the Environment and Communities Integrity 21-percent reduction in gross $304 million in royalty, lease, and 50-percent refreshment rate Scope 1 greenhouse gas surface payments t
Slide 22: Appendix
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Slide 23: Second Quarter 2025 Cash Flow Reconciliation
August 2025 Investor Presentation Second Quarter 2025 Cash Flow Reconciliation 500 16 16 29 400 49 214 300 100 $ In Millions 200 248 252 100 0 (3) (1) (2) (4) Cash Cash Flow Changes in Acquisitions Dividends and Share DC&F Capital Cash 3/31/2025 from Working Capital Distributions Repurchases & Lease
Slide 24: Summary Balance Sheet
August 2025 Investor Presentation Summary Balance Sheet (in thousands) June 30, 2025 December 31, 2024 Cash and cash equivalents $251,761 $260,049 Other current assets 164,976 150,775 Property, plant and equipment, net 2,355,555 2,306,034 Other assets 88,356 103,977 Total assets $2,860,648 $2,820,83
Slide 25: Capital Structure & Liquidity Overview
August 2025 Investor Presentation Capital Structure & Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($MM) Capitalization Summary As of 6/30/2025 Maintaining low financial leverage profile ‒ Currently have a net debt(1) position of $148 MM Cash and Cash Equivalents $252 ‒
Slide 26: Margins and Cost Structure
August 2025 Investor Presentation Margins and Cost Structure For the Quarters Ended $ / Boe, unless otherwise noted June 30, 2025 June 30, 2024 Revenue $35.68 $41.02 Total Cash Operating Costs: Lease Operating Expenses (1) (4.78) (5.33) Gathering, Transportation & Processing (1.84) (1.03) Taxes Othe
Slide 27: Free Cash Flow Reconciliations
August 2025 Investor Presentation Free Cash Flow Reconciliations For the Quarters Ended (in thousands) June 30, 2025 June 30, 2024 Net cash provided by operating activities $198,701 $269,398 Add back: net change in operating assets and liabilities 15,500 (36,665) Cash flows from operations before ne
Slide 28: Adjusted EBITDAX Reconciliations
August 2025 Investor Presentation Adjusted EBITDAX Reconciliations For the Quarters Ended (in thousands) June 30, 2025 June 30, 2024 Net income $81,028 $105,113 Interest expense, net 5,604 3,516 Income tax expense 20,938 26,769 EBIT $107,570 $135,398 Depreciation, depletion and amortization 107,082
Slide 29: Adjusted Net Income Reconciliation
August 2025 Investor Presentation Adjusted Net Income Reconciliation For the Quarters Ended (in thousands) June 30, 2025 June 30, 2024 Net income $81,028 $105,113 Adjustments: Other income adjustment(1) (130) (1,005) Change in estimated income tax(2) 26 205 Adjusted Net Income $80,924 $104,313 (in t
Slide 30: Return on Capital Employed
August 2025 Investor Presentation Return on Capital Employed For the Years Ended (in thousands) 1H 2025 December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 Operating income (loss) $243,636 $511,988 $534,485 $1,073,786 $602,594 ($1,925,666) $127
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