Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q2 2022 Earnings Presentation
17 slides from Magnolia Oil & Gas's earnings presentation, Aug 2, 2022
Slide 1: Second Quarter 2022 Earnings Presentation
Magnolia Oil & Gas Second Quarter 2022 Earnings Presentation August 3, 2022 Stephen Chazen – Chairman, President & CEO Christopher Stavros – Executive Vice President & CFO Brian Corales – Vice President, Investor Relations Exhibit 99.2
Slide 2: Disclaimer
Disclaimer 2 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
Slide 3: Second Quarter 2022 Key Financial Metrics
Second Quarter 2022 Key Financial Metrics 3 Key Financial Metrics 2Q22 2Q21 % Change Adjusted net income ($ MM)(1) $294 $135 117% Diluted EPS (GAAP) $1.32 $0.48 175% Operating income margin % 68% 51% 17% Total production (Mboe/d) 74.2 64.9 14% Giddings & Other production (Mboe/d) 44.1 36.2 22% Adjus
Slide 4: 2Q 2022 QTD Cash Flow Reconciliation
2Q 2022 QTD Cash Flow Reconciliation 346 362 21 102 123 502 0 100 200 300 400 500 600 700 800 Cash 3/31/22 Cash Flow from Operations Changes in Working Capital and Other Common Stock Repurchases D&C and Facilities Capital Cash 6/30/22 (1) (3)(2) (4) (In millions) (1) Cash flow from operations before
Slide 5: Share Repurchase Summary Through 2Q 2022
Share Repurchase Summary Through 2Q 2022 5 Share Reduction Summary (Million Shares) • Since the initial repurchase authorization in 3Q19, Magnolia has reduced its dilutive share count by 22.0(1) million shares of Class A common stock as well as 24.9 million shares of Class B common stock, for a tota
Slide 6: Differentiated Dividend Framework
Magnolia Oil & Gas – Differentiated Dividend Framework 6 • We are moving to a quarterly dividend, from a semi-annual dividend, with an initial quarterly rate of $0.10 per share, a 43% annualized increase from 2021. • Differentiated dividend framework is aligned with the principles of our business mo
Slide 7: Summary Balance Sheets
Magnolia Oil & Gas – Summary Balance Sheets 7 (in thousands) June 30, 2022 December 31, 2021 Cash $501,891 $366,982 Current assets 248,589 150,936 Property, plant and equipment, net 1,319,577 1,216,087 Other assets 16,733 12,737 Total assets $2,086,790 $1,746,742 Current liabilities $333,027 $218,54
Slide 8: Capital Structure and Liquidity Overview
$400 $450 2022 2023 2024 2025 2026 2Q 2022 Capital Structure and Liquidity Overview 8 Capital Structure Overview • Maintaining low financial leverage profile ‒ Currently have a net cash position of $102 MM ‒ Net Debt / Q2 Annualized adjusted EBITDAX of -0.1x • Current Liquidity of $952 million, incl
Slide 9: Margin and Cost Structure
$ / Boe, unless otherwise noted For the Quarter Ended June 30, 2022 For the Quarter Ended June 30, 2021 Revenue $71.78 $42.64 Total Cash Operating Costs: Lease Operating Expenses (1) (4.78) (3.70) Gathering, Transportation & Processing (2.43) (1.74) Taxes Other Than Income (4.06) (2.34) Exploration
Slide 10: Commitment to Sustainability
Commitment to Sustainability 10 ENVIRONMENTAL SOCIAL GOVERNANCE Air Emissions Reduced our 2021 GHG intensity rate by 9.5% compared to 2020, following an 8.2% reduction in 2019 Flaring Do not conduct routine flaring; reduced our 2021 gas flared as a percent of total production by 72% compared to 2019
Slide 11: Appendix
Appendix
Slide 12: Overview
Magnolia Oil & Gas – Overview • High-quality, low-risk pure-play South Texas operator with a core Eagle Ford and Austin Chalk position acquired at an attractive entry multiple • Significant scale and PDP base generates material free cash flow, reduces development risk, and increases optionality • As
Slide 13: Free Cash Flow Reconciliations
Free Cash Flow Reconciliations 13 (1) Free cash flow is a non-GAAP measure. For reasons management believes this is useful to investors, refer to slide 2 “Non-GAAP Financial Measures.” (in thousands) Free Cash Flow Reconciliations For the Quarter Ended June 30, 2022 For the Quarter Ended June 30, 20
Slide 14: Adjusted EBITDAX Reconciliation
Adjusted EBITDAX Reconciliation 14 (1) EBITDAX and Adjusted EBITDAX are non-GAAP measures. For reasons management believes these are useful to Investors, refer to slide 2 “Non-GAAP Financial Measures.” (2) Costs incurred during the transition period related to the termination of the Services Agreeme
Slide 15: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation 15 (1) Costs incurred during the transition period related to the termination of the Services Agreement with EnerVest Operating L.L.C. included within “General and administrative expenses” on the Company's consolidated statements of operations. (2) Adjusted Net Inc
Slide 16: Operating Highlights
Magnolia Oil & Gas – Operating Highlights 16 (1) Benchmarks are the NYMEX WTI and NYMEX HH average prices for oil and natural gas, respectively. For the Quarter Ended June 30, 2022 For the Quarter Ended June 30, 2021 Production: Oil (MBbls) 3,019 2,903 Natural gas (MMcf) 12,464 9,947 Natural gas liq
Slide 17: Production Results
Magnolia Oil & Gas – Production Results 17 Combined Karnes Giddings & Other Combined Karnes Giddings & Other For the Quarter Ended June 30, 2022 For the Quarter Ended June 30, 2021 Production: Oil (MBbls) 3,019 1,656 1,363 2,903 1,755 1,148 Natural gas (MMcf) 12,464 3,390 9,074 9,947 2,752 7,195 Nat