Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — TPG Pace Energy Holdings — Bernstein 2018 Strategic Decisions Conference
16 slides from Magnolia Oil & Gas's conference presentation, May 30, 2018
Slide 1: Bernstein 2018 Strategic Decisions Conference
Exhibit 99.1 MAGNOLIA OIL & GAS CORPORATION Bernstein 2018 Strategic Decisions Conference May 30, 2018
Slide 2: Disclaimer: Forward Looking Statements
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: Introduction to Magnolia Oil & Gas Corporation
Introduction to Magnolia Oil & Gas Corporation IPO at $10/unit; NYSE ticker of TPGE Steve Chazen and TPG partnered to form a publicly traded consolidation platform with a disciplined corporate return philosophy On March 20, 2018, TPGE entered into definitive agreements to acquire EnerVest’s South Te
Slide 4: Focused on Traditional Value Creation Metrics
Focused on Traditional Value Creation Metrics A differentiated Independent E&P Company with the objective to generate stock market value over the long term, through: Consistent organic production growth High EBIT operating margins à focused on oil Efficient capital program with short economic paybac
Slide 5: Top Tier Eagle Ford & Austin Chalk Asset Position
Top Tier Eagle Ford & Austin Chalk Asset Position High-quality, low-risk pure-play South Texas operator with a core Eagle Ford and Austin Chalk position Significant scale and PDP base generates material free cash flow, reduces development risk and increases optionality Core Karnes County Position So
Slide 6: Located in an Attractive Neighborhood
Located in an Attractive Neighborhood Core position in Karnes County Oil Window adjacent to EOG and Marathon with $28 to $32/barrel breakevens(1) and less than 1-year new well paybacks (1) Source: RSEG.
Slide 7: Great Fit with Management's Value Creation Strategy
Great Fit with Management’s Value Creation Strategy Value Creation Strategy Magnolia Oil & Gas Core Karnes County acreage with some of the best economics in the U.S(1) Highly economic wells with short payback periods creates self-funding drilling program, averaging less than 1-year paybacks Targetin
Slide 8: Post-Announcement Update
Post-Announcement Update Recent Highlights Oil weighted average production of 45.7 Mboe/d(1) 62% Oil, 78% Liquids 84% and 92% of revenue associated with oil and liquids, respectively Q1 EBITDA of $152.2 million and Free Cash Flow of $66.2 million(2) Strong Realized Pricing: Oil price realizations of
Slide 9: Focus on Maintaining High Full-Cycle Operating & EBIT Margins
Focus on Maintaining High Full-Cycle Operating & EBIT Margins Note: Boxed $58 / bbl WTI case was originally disclosed in the investor presentation posted to TPGE's website on March 20, 2018 and corresponds to base case financial projections included in preliminary merger proxy filed May 10, 2018. Il
Slide 10: Cash Flow Priorities to Maximize Shareholder Returns
Cash Flow Priorities to Maximize Shareholder Returns With a targeted goal of always being free cash flow positive, Magnolia intends to be a prudent steward of shareholder’s capital Return-focused Value Creation Debt Reduction Accretive Bolt-On Acquisitions Share Repurchases
Slide 11: Attractive Entry Valuation versus U.S. Independents
U.S. Independents <1.5x 2018E Leverage >8% Production CAGR (2017E-2019E) 2018E and 2019E FCF Positive Attractive Entry Valuation Source: Company filings, FactSet consensus peer projections as of 5/25/2018. Note: U.S. Independents include: APA, APC, AR, BBG, CDEV, CHK, CLR, CNX, COG, COP, CPE, CRZO,
Slide 12: Summary Investment Highlights – Why Own Magnolia Oil & Gas?
Source: RSEG. Assumes $550 million undrawn RBL borrowing base at closing. Summary Investment Highlights – Why Own Magnolia Oil & Gas? Multiple Levers of Growth Steady organic growth through proven drilling program while remaining well within cash flow Clean balance sheet and strong free cash flow en
Slide 13: Appendix
Appendix
Slide 14: Sources, Uses and Pro Forma Valuation
Sources, Uses and Pro Forma Valuation Note: Base case projections based on flat $58 WTI and $2.75 Henry Hub pricing and include recent acquisition. Please see preliminary merger proxy filed May 10, 2018 for details on base case projections. Other outstanding instruments from TPGE.U IPO: 21.7 million
Slide 15: Attractive Compared to In-Basin and Business Model Comps
Attractive Compared to In-Basin and Business Model Comps Source: Company filings, FactSet consensus projections as of 5/25/2018. Note: See slide 9 (Focus on Maintaining High Full-Cycle Operating & EBIT Margins) and slide 16 (Better Than Expected 1Q18 Results) for additional details on Magnolia and 2
Slide 16: Better Than Expected 1Q18 Results
Better Than Expected 1Q18 Results Magnolia Q1 2018 Results(1) The information presented is based on the unaudited lease operating statements for the Magnolia Assets and will not reconcile to the EnerVest financial statements presented in accordance with U.S. generally accepted accounting principles.
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