Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q1 2024 Earnings Presentation
19 slides from Magnolia Oil & Gas's earnings presentation, May 8, 2024
Slide 1: First Quarter 2024 Earnings Presentation
First Quarter 2024 Earnings Presentation May 8, 2024 Christopher Stavros – President & CEO Brian Corales – Senior Vice President & CFO Tom Fitter – Director, Investor Relations
Slide 2: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTS The information in this press release 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 statements, other than statements of pr
Slide 3: First Quarter Highlights & Announcements
First Quarter Highlights & Announcements Financial Operations Corporate Total adjusted net income(1) of $101 million First quarter production of 84.8 Mboe/d (7% Closed Giddings bolt-on acquisition: and adjusted operating income margin(1) of year-over-year growth) and oil production of 39% 37.5 MBbls
Slide 4: Giddings Bolt-On Acquisition
Giddings Bolt-On Acquisition April Acquisition Highlights ❑ Acquired >27,000 net acres in Giddings (>80,000 gross) from a private operator for ~$125 million; closed on April 30th ❑ Includes ~1,000 BOEPD (~35% oil, ~68% liquids) ❑ Primarily in Fayette, Washington and Lee counties ❑ Low PDP assets are
Slide 5: Key Financial Metrics
Key Financial Metrics Metric Q1 2024 YoY % Change Total Production (Mboe/d) 84.8 7% Oil Production (Mbbls/d) (% of total production) 37.5 (44%) 5% Giddings and Other Production as a % of total 72% 6% Revenue ($ MM) $319 4% Adjusted EBITDAX ($ MM) (1) $228 5% Adjusted Net Income ($ MM) (1) $101 (15%)
Slide 6: 1Q 2024 Cash Flow Reconciliation
1Q 2024 Cash Flow Reconciliation 700 $ In Millions 6 27 600 27 51 500 218 121 400 300 200 401 399 100 0 (4) (5) (1) (2) (3) Cash Cash Flow Changes in Acquisitions Dividends and Share D&C and Cash 12/31/2023 from Working Capital Distributions Repurchases Facilities Capital 3/31/2024 Operations and Ot
Slide 7: Significant Share Repurchases Since 2019
Significant Share Repurchases Since 2019 Magnolia’s Consistent Share Repurchases1 5-Year Change in Diluted Shares Outstanding2 (million shares repurchased by year) (2019 – 2023) 339% Magnolia has reduced its diluted share count by approximately 20% 178% 97% 87% 64% 65% 40% 42% 2% 7% 12% 0% 1% -6% -3
Slide 8: Safe, Sustainable and Growing Dividend
Safe, Sustainable and Growing Dividend Annualized Dividend Payout Per Share ❑ Magnolia’s dividend has grown at a $0.52 substantial rate over the past four years $0.46 ❑ Sustainable dividend growth supported even at low commodity prices $0.40 ❑ Higher than peer average dividend growth supported by mo
Slide 9: Summary Balance Sheet
Summary Balance Sheet (in thousands) March 31, 2024 December 31, 2023 Cash $399,317 $401,121 Current assets 198,218 190,152 Property, plant and equipment, net 2,093,942 2,052,021 Other assets 116,465 112,922 Total assets $2,807,942 $2,756,216 Current liabilities $350,011 $314,887 Long-term debt, net
Slide 10: Margin and Cost Structure
Margin and Cost Structure For the Quarters Ended $ / Boe, unless otherwise noted March 31, 2024 March 31, 2023 Revenue $41.40 $43.18 Total Cash Operating Costs: Lease Operating Expenses (1) (5.91) (5.87) Gathering, Transportation & Processing (1.11) (1.78) Taxes Other Than Income (2.32) (2.70) Explo
Slide 11: 2024 Operating Plan
2024 Operating Plan 2024 Production & Capital 2024 Capital Second Quarter 2024 Guidance Annual BOE and Oil Growth ~20% Production Karnes High Single-Digit ~89 Mboe/d ~80% 2024 Budget Giddings D&C Capital Spending $450 - $480 Million (DC&F) $120 to $125 Million 2024 Operating Plan Oil Differential (T
Slide 12: Appendix
Appendix * a3; xa a VY MAGNOLIA Git sGas
Slide 13: Magnolia's Business Model & Strategy
Magnolia’s Business Model & Strategy High Quality Assets Drive Low Capital Deliver Mid-Single Digit Long-Term Reinvestment Rate that Provides Growth to the Production Growth with Significant Free Business Cash Flow1 Limit Capital Spending to 55% of 2024E BOE and Oil Growth of High Single-Digits Annu
Slide 14: Committed to Sustainability
Committed to Sustainability 2023 Sustainability Report Highlights Include: Flaring Intensity(1) Total Recordable Incident Rate(2) (TRIR) ❑ Magnolia record for lowest annual flaring rate1 at 0.11%, a 0.99% reduction of almost 90% since 2019 0.57 0.69% ❑ Addition of scope 2 emissions reporting; provid
Slide 15: Free Cash Flow Reconciliations
Free Cash Flow Reconciliations For the Quarters Ended (in thousands) March 31, 2024 March 31, 2023 Net cash provided by operating activities $210,932 $219,823 Add back: net change in operating assets and liabilities 6,941 (5,647) Cash flows from operations before net change in operating $217,873 $21
Slide 16: Adjusted EBITDAX Reconciliations
Adjusted EBITDAX Reconciliations For the Quarters Ended (in thousands) March 31, 2024 March 31, 2023 Net income $97,597 $106,677 Interest (income) expense, net 2,312 (487) Income tax expense 20,336 19,605 EBIT $120,245 $125,795 Depreciation, depletion and amortization 97,076 70,701 Asset retirement
Slide 17: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation For the Quarters Ended (in thousands) March 31, 2024 March 31, 2023 Net income $97,597 $106,677 Adjustments: Loss on revaluation of contingent consideration 4,205 - Impairment of oil and natural gas properties - 15,735 (1) Change in estimated income tax (795) (3,08
Slide 18: First Quarter 2024 Capital Structure and Liquidity Overview
First Quarter 2024 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($ million) ▪ Maintaining low financial leverage profile Capitalization Summary As of 3/31/2024 ‒ Currently have a net debt(1) position of $1 million Cash and Cash Equivalents $399 ‒ Net
Slide 19: Production Results
Production Results Combined Karnes Giddings & Other Combined Karnes Giddings & Other For the Quarter Ended March 31, 2024 For the Quarter Ended March 31, 2023 Production: Oil (MBbls) 3,415 1,298 2,117 3,221 1,409 1,812 Natural gas (MMcf) 13,749 2,596 11,153 12,650 3,238 9,412 Natural gas liquids (MB