Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q2 2019 Earnings Presentation
13 slides from Magnolia Oil & Gas's earnings presentation, Aug 6, 2019
Slide 1: Second Quarter 2019 Earnings Presentation
Second Quarter 2019 Earnings Presentation August 6, 2019 Stephen I. Chazen – Chairman, President & CEO Christopher Stavros – Executive Vice President & CFO Brian Corales – Vice President, Investor Relations
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: 2nd Quarter 2019 Highlights
Magnolia Oil & Gas – 2nd Quarter 2019 Highlights 4 Grew total Company production 4% sequentially to 65.1 Mboe/d (54% oil) Karnes production grew 8% sequentially largely due to new operated & non-op wells turned in-line Oil realizations averaged 107% of WTI for the quarter Generated $182 mm of Adjust
Slide 4: Q2 2019 Key Metrics
Magnolia Oil & Gas – Q2 2019 Key Metrics 5 Earnings and EPS (GAAP) (1) Total Production 65.1 Mboe/d (54% oil) Total Net Income & Total Shares (3)(4) $31.3 Million 250.8 Million shares Adjusted EBITDAX (3) $181.7 Million D&C Capex $116.0 Million (64% of Adjusted EBITDAX) $18.5 Million $0.12 per share
Slide 5: Operating Highlights
Magnolia Oil & Gas – Operating Highlights 6 Benchmarks are the NYMEX WTI and NYMEX HH average prices for oil and natural gas, respectively. For the Quarter Ended June 30, 2019 For the Quarter Ended March 31, 2019 Production: Oil (MBbls) 3,189 2,906 Natural Gas (MMcf) 10,057 9,763 NGLs (MBbls) 1,060
Slide 6: Margins
Magnolia Oil & Gas – Margins 7 Adjusted Operating Margin is a non-GAAP measure. For reasons management believes this is useful to investors, refer to slide 2 “Non-GAAP Financial Measures.” $ / Boe, unless otherwise noted For the Quarter Ended June 30, 2019 For the Quarter Ended March 31, 2019 Revenu
Slide 7: Reconciliation of Net Income to Adjusted EBITDAX
Reconciliation of Net Income to Adjusted EBITDAX 8 Includes net income attributable to noncontrolling interest. Transaction related costs incurred related to the execution of our business combination with EnerVest, Ltd. and its affiliates and the Harvest acquisition, including legal fees, advisory f
Slide 8: Q2 2019 Cash Flow Reconciliation
Q2 2019 Cash Flow Reconciliation 9 ($ in millions) Cash flow from operations before changes in working capital. Acquisitions include leasehold acquisitions and are net of partner contributions.
Slide 9: Summary Balance Sheet
Magnolia Oil & Gas – Summary Balance Sheet 10 (in thousands) June 30, 2019 December 31, 2018 Cash $96,709 $135,758 Current assets 133,788 156,601 Property, plant and equipment, net 3,235,266 3,073,204 Other assets 65,369 67,960 Total assets $3,531,132 $3,433,523 Current liabilities $201,131 $197,361
Slide 10: Ownership Summary
Magnolia Oil & Gas – Ownership Summary 11 We have successfully completed the exchange of all the outstanding warrants The exchange simplifies the capital structure and reduced the ultimate potential dilution Below is our ownership summary MGY Summary Ownership % of TSO EnerVest 49% Management & Dire
Slide 11: Cash Flow Since Magnolia's Inception – Reconciliation
Cash Flow Since Magnolia’s Inception – Reconciliation 12 Represents cash remaining after cash held in Trust ($656 MM) and proceeds from debt ($400 MM) and equity ($355 MM) issuances were used to pay for the EnerVest acquisition ($1.2 Bn), deferred underwriting comp ($23 MM), debt issuance costs ($23
Slide 12: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation 13 Includes net income attributable to noncontrolling interest. Adjusted Net Income is a non-GAAP measure. For reasons management believes this is useful to investors, refer to slide 2 “Non-GAAP Financial Measures.” Shares of Class B Common Stock, and corresponding
Slide 13: Production Results
Magnolia Oil & Gas – Production Results 14 Combined Karnes Giddings & Other Combined Karnes Giddings & Other Three Months Ended June 30, 2019 Three Months Ended March 31, 2019 Production: Oil (MBbls) 3,189 2,797 392 2,906 2,443 463 Natural Gas (MMcf) 10,057 3,761 6,296 9,763 3,861 5,902 NGLs (MBbls)