Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q3 2019 Earnings Presentation
15 slides from Magnolia Oil & Gas's earnings presentation, Nov 5, 2019
Slide 1: Third Quarter 2019 Earnings Presentation
Third Quarter 2019 Earnings Presentation November 4, 2019 Stephen I. Chazen – Chairman, President & CEO Christopher Stavros – Executive Vice President & CFO Brian Corales – Vice President, Investor Relations
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: 3rd Quarter 2019 Highlights
3rd Magnolia Oil & Gas – Quarter 2019 Highlights • Grew total Company production nearly 10% sequentially to 71.3 Mboe/d (54% oil) ‒ Karnes production grew 12% sequentially due to new wells turned in-line • Oil realizations averaged 105% of WTI for the quarter • Total cash operating costs including G
Slide 4: Q3 2019 Cash Flow Summary
Q3 2019 Cash Flow Summary ($ In Millions) $300 4 6 10 $250 98 $200 173 $150 $100 $50 $0 Other (2) Cash 6/30/19 Cash Flow from Operations (1) Working Capital Changes Common Stock Repurchases D&C and Facilities Capital Cash 9/30/19 (1) Cash flow from operations before changes in working capital. (2) I
Slide 5: Summary Balance Sheet
Magnolia Oil & Gas – Summary Balance Sheet Cash $164,489 $135,758 Current assets 127,766 156,601 Property, plant and equipment, net 3,180,166 3,073,204 Other assets 60,712 67,960 Current liabilities $190,311 $197,361 Long-term debt, net 389,528 388,635 Other long-term liabilities 169,341 139,572 Tot
Slide 6: Operating Highlights
Magnolia Oil & Gas – Operating Highlights Production: Oil (MBbls) Natural Gas (MMcf) NGLs (MBbls) 3,520 10,763 1,245 3,189 10,057 1,060 Average Daily Production: Oil (Bbls/d) Natural Gas (Mcf/d) NGLs (Bbls/d) 38,261 116,989 13,533 35,044 110,516 11,648 Revenues (in thousands): Oil Sales Natural Gas
Slide 7: Margins
Magnolia Oil & Gas – Margins September 30, 2019 June 30, 2019 Revenue Less: Lease Operating Expenses Less: Gathering, Transportation & Processing Less: Taxes Other Than Income Less: Exploration Expense Less: General & Administrative Expense (1) Less: Transaction Related Expense Total Cash Operating
Slide 8: Reconciliation of Net Income to Adjusted EBITDAX
Reconciliation of Net Income to Adjusted EBITDAX September 30, 2019 June 30, 2019 Net income (1) $17,357 $31,303 Exploration expense 3,924 3,617 Asset retirement obligation accretion 1,394 1,373 Depreciation, depletion and amortization 143,894 126,102 Amortization of intangible assets 3,626 3,626 In
Slide 9: Cash Flow Summary from Inception
Cash Flow Summary from Inception ($ In Millions) $1,000 9 10 27 $900 $800 233 62% of OCF $700 $600 816 $500 507 $400 $300 41% Increase $200 $100 $0 Other (2) Acquisitions (3) Opening Cash Cash Flow from Operations After Closing Transaction Costs Working Capital Changes Common Stock Repurchases D&C a
Slide 10: Achieving Key Objectives Through Steady Growth
Achieving Key Objectives Through Steady Growth Production Growth Karnes Net Acreage Additions Since Inception (1) (1) Q3 2018 Successor Period is July 31, 2018 through September 30, 2018. 11 Magnolia has added ~7,500 net acres to its Karnes position, representing a 52% increase over original amount
Slide 11: Appendix
Appendix
Slide 12: Overview
Magnolia Oil & Gas – Overview • ~450,000 Net Acre Position Targeting Two of the Top Oil Plays in the U.S. 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
Slide 13: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation September 30, 2019 June 30, 2019 Net income (1) $17,357 $31,303 Income tax expense $3,529 $5,145 Income before income taxes $20,886 $36,448 Adjustments for certain items affecting comparability: Adjusted income tax expense (2) (4,720) (7,654) Transaction costs - 85
Slide 14: Adjusted Earnings Reconciliation
Adjusted Earnings Reconciliation Net income attributable to Class A Common Stock $7,784 $0.05 $18,506 $0.12 Adjustments for certain items affecting comparability (1) Non-cash deemed dividend 2,763 0.01 - - Transaction costs - - 85 - Change in estimated income tax - - (18) - (1) Includes amounts attr
Slide 15: Production Results
Magnolia Oil & Gas – Production Results Production: Oil (MBbls) 3,520 3,106 414 3,189 2,797 392 Natural Gas (MMcf) 10,763 4,256 6,507 10,057 3,761 6,296 NGLs (MBbls) 1,245 714 531 1,060 561 499 Average Daily Production Volume: Oil (MBbls/d) 38.3 33.8 4.5 35.0 30.7 4.3 Natural Gas (MMcf/d) 117.0 46.3