Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Investor Presentation (June 2025)
29 slides from Magnolia Oil & Gas's investor presentation, June 2025
Slide 1: June 2025 Investor Presentation
June 2025 Investor Presentation
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: Magnolia Oil & Gas Overview
Magnolia Oil & Gas Overview High-quality, low-risk pure-play South Texas operator with core Eagle Ford and Austin Chalk positions acquired at Texas attractive entry costs Significant scale and PDP base generates material free cash Giddings flow, reduces development risk, and increases optionalit
Slide 4: Magnolia's Consistent Business Model
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 7% - 9% Annual Adjusted EBITDAX Return Substan
Slide 5: Asset Overview
Asset Overview
Slide 6: Giddings Area Assets
Giddings Area Assets Asset Overview Texas ~740,000 gross acres (~550,000 net acres) with high working interest (~98% operated) >200,000 net acres in development Appraisal program outside of development area Q1 2025 production averaged 76.7 Mboe/d (35% oil, 66% liquids), or ~79% of total Comp
Slide 7: Core Karnes Assets
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 acres producing ~20 Mboe/d (60% oil, 7
Slide 8: Financial, Capital Allocation & Risk Management Overview
Financial, Capital Allocation & Risk Management Overview
Slide 9: Cash Flow Allocation Matches Magnolia's Business Model
Cash Flow Allocation Matches Magnolia’s Business Model Allocation of Operating Cash Flow – Since Inception Dividends & (7/31/2018 – 3/31/2025) Cash Build 9% Magnolia’s “recipe” is a disciplined allocation Share Repurchases of capital, low reinvestment rate, a balanced 25% Drilling & Completions 48%
Slide 10: Low Leverage Drives Financial Flexibility
Low Leverage Drives Financial Flexibility Net Debt / EBITDA (2025E) (1) 2.3 Magnolia has one of the strongest 1.8 balance sheets in the industry 1.6 1.4 1.4 1.3 1.3 1.2 1.1 1.1 1.0 1.1 1.0 0.9 0.9 0.9 0.7 0.7 0.3 0.2 -0.1 (1) Source: FactSet (2025E). Net debt is calculated as the difference between
Slide 11: Low Reinvestment Rate with Strong Production Growth
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% -7% Magnolia’s Giddings Focused Dev
Slide 12: High Pre-tax Operating Margins
High Pre-tax Operating Margins Operating Margin (1) (4-Year Average) 55% 52% 49% Magnolia has consistently delivered one of the 45% 45% highest operating margins relative to peers 40% 39% 39% 38% 38% 37% 34% 34% 34% 33% High-quality asset base and focus on 31% 28% 28% maintaining low costs suppo
Slide 13: History of Top-Tier Return on Capital Employed
History of Top-Tier Return on Capital Employed Historical ROCE 26% Low reinvestment rate and 23% continued business model execution - low leverage, disciplined capital spending and high pre-tax margins are critical to sustaining high returns Focus on cost reductions and ongoing share repurchases
Slide 14: Consistent & Sizable Cash Return to Shareholders
Consistent & Sizable Cash Return to Shareholders Cumulative Return of Capital ($MM) ~$1.7 Billion Returned to Shareholders $1,673 $1,591 Magnolia has a strong track record of $1,213 returning capital to shareholders $908 Returned >40% of current market cap over prior seven years Inception $467
Slide 15: History of Significant & Consistent Share Repurchases
History of Significant & Consistent Share Repurchases Magnolia’s Consistent Share Repurchases (1) 80 (million shares repurchased) 2.2 70 11.0 60 9.6 50 15.5 40 (75.0) 30 25.3 Magnolia has reduced its diluted 20 share count by approximately 24% 10 4.5 7.0 0 2019 2020 2021 2022 2023 2024 Q1'25 Total (
Slide 16: Track Record of a Safe, Sustainable and Growing Dividend
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 over the past 4 years $0.60 Sustainable dividend growth supported $0.52 even at lower product prices $0.46 $0.40 Dividend per share payo
Slide 17: Business Risks Adequately Managed
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 17
Slide 18: Summary Investment Highlights
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 Giddings Coveted position in the Karnes area in the core of the Eagle Ford Positive Free Cash Flow and In
Slide 19: 2025 Operating Plan & Guidance
2025 Operating Plan & Guidance 2025E Production & Capital 2025E Capital Second Quarter 2025 Guidance Production Growth Production ~20-25% Karnes ~97 Mboe/d YoY 2025 Total Growth Increased to 7% - 9% from 5% - 7% D&C Capital Spending ~75-80% Giddings ~$110 Million D&C Capital FY 2025 Capital Reduced
Slide 20: Magnolia's Commitment to Sustainability
Magnolia’s Commitment to Sustainability Safeguarding the 86% REDUCTION 12% REDUCTION 35% REDUCTION Environment Flaring Intensity Rate GHG Intensity Rate Hydrocarbon Spill Volume 2019 to 2023 2019 to 2023 2019 to 2023 Supporting Employees 29% DIVERSITY 1,000 SHARES 2024 TOP WORKPLACES and Communities
Slide 21: Appendix
Appendix 3 VY MAGNOLIA Oits GAS
Slide 22: Q1 2025 Cash Flow Reconciliation
Q1 2025 Cash Flow Reconciliation 600 500 7 24 30 400 52 $ In Millions 232 131 300 200 260 248 100 0 (3) (1) (2) (4) (5) Cash Cash Flow Changes in Acquisitions Dividends and Share DC&F Capital Cash 12/31/2024 from Working Capital Distributions Repurchases & Leasehold 3/31/2025 Operations and Other (1
Slide 23: Summary Balance Sheet
Summary Balance Sheet (in thousands) March 31, 2025 December 31, 2024 Cash and cash equivalents $247,558 $260,049 Other current assets 159,417 150,775 Property, plant and equipment, net 2,356,122 2,306,034 Other assets 105,517 103,977 Total assets $2,868,614 $2,820,835 Current liabilities $305,117 $
Slide 24: First Quarter 2025 Capital Structure & Liquidity Overview
First Quarter 2025 Capital Structure & Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($MM) Maintaining low financial leverage profile Capitalization Summary As of 3/31/2025 ‒ Currently have a net debt(1) position of $152 MM Cash and Cash Equivalents $248 ‒ Net debt(1) /
Slide 25: Margins and Cost Structure
First Quarter 2025 Earnings Presentation Margins and Cost Structure For the Quarters Ended $ / Boe, unless otherwise noted March 31, 2025 March 31, 2024 Revenue $40.31 $41.40 Total Cash Operating Costs: Lease Operating Expenses (1) (5.34) (5.91) Gathering, Transportation & Processing (1.72) (1.11) T
Slide 26: Free Cash Flow Reconciliations
Free Cash Flow Reconciliations For the Quarters Ended (in thousands) March 31, 2025 March 31, 2024 Net cash provided by operating activities $224,490 $210,932 Add back: net change in operating assets and liabilities 7,992 6,941 Cash flows from operations before net change in operating assets and $23
Slide 27: Adjusted EBITDAX Reconciliations
Adjusted EBITDAX Reconciliations For the Quarters Ended (in thousands) March 31, 2025 March 31, 2024 Net income $106,648 $97,597 Interest expense, net 5,252 2,312 Income tax expense 25,137 20,336 EBIT $137,037 $120,245 Depreciation, depletion and amortization 105,853 97,076 Asset retirement obligati
Slide 28: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation For the Quarters Ended (in thousands) March 31, 2025 March 31, 2024 Net income $106,648 $97,597 Adjustments: (Gain) loss on revaluation of contingent consideration (1,352) 4,205 (1) Change in estimated income tax 274 (795) Adjusted Net Income $105,570 $101,007 (in
Slide 29: Return on Capital Employed
Return on Capital Employed For the Quarters Ended (in thousands) March 31, 2025 March 31, 2024 Operating income $135,822 $124,558 Operating income (A) $135,822 $124,558 Debt - beginning of period 392,513 392,839 Stockholders' equity - beginning of period 1,967,326 1,882,668 Capital employed - beginn
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