Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q4 2022 Earnings Presentation
17 slides from Magnolia Oil & Gas's earnings presentation, Feb 14, 2023
Slide 1: Fourth Quarter 2022 Earnings Presentation
Magnolia Oil & Gas Fourth Quarter 2022 Earnings Presentation February 15, 2023 Christopher Stavros – President & CEO Brian Corales – Senior Vice President & CFO Jim Johnson – Vice President, Finance, IR & Treasurer Exhibit 99.2
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: Fourth Quarter and Full Year 2022 Key Financial Metrics
Fourth Quarter and Full Year 2022 Key Financial Metrics 3 • Strong organic production combined with improved product pricing resulted in substantially improved financial metrics across the board • Giddings weighted activity program continues to benefit steady production growth, full cycle margins an
Slide 4: 2022 Cash Flow Summary
2022 Cash Flow Summary 367 1,251 54 90 90 352 465 675 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Cash 12/31/21 Cash Flow from Operations Changes in Working Capital and Other Acquisitions Dividends Common Stock Repurchases D&C and Facilities Capital Cash 12/31/22 (1) (4)(3)(2) (In millions) (1)
Slide 5: Share Repurchase Summary Through 4Q 2022
Share Repurchase Summary Through 4Q 2022 5 Share Reduction Summary (Million Shares) • Since the initial repurchase authorization in 3Q19, Magnolia has reduced its dilutive share count by 25.4(1) million shares of Class A common stock as well as 26.9 million shares of Class B common stock, for a tota
Slide 6: Differentiated Dividend Framework
Magnolia Oil & Gas – Differentiated Dividend Framework 6 • The quarterly dividend rate of $0.115 per share is a 15% increase from 2022. • Differentiated dividend framework is aligned with the principles of our business model and reinforces our plan and demonstrates the quality of our assets. • Our a
Slide 7: Summary Balance Sheets
Magnolia Oil & Gas – Summary Balance Sheets 7 (in thousands) December 31, 2022 December 31, 2021 Cash $675,441 $366,982 Current assets 175,306 150,936 Property, plant and equipment, net 1,533,029 1,216,087 Other assets 188,809 12,737 Total assets $2,572,585 $1,746,742 Current liabilities $340,273 $2
Slide 8: Capital Structure and Liquidity Overview
$400 $450 2022 2023 2024 2025 2026 4Q 2022 Capital Structure and Liquidity Overview 8 Capital Structure Overview • Maintaining low financial leverage profile ‒ Currently have a net cash position of $275 MM ‒ Net Debt / Q4 Annualized adjusted EBITDAX of -0.3x • Current Liquidity of $1.1 billion, incl
Slide 9: Per Boe Revenue, Costs and Margins
$ / Boe, unless otherwise noted For the Quarters Ended For the Years Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Revenue $51.42 $52.01 $61.60 $44.75 Total cash operating costs: Lease operating expenses (1) (5.17) (4.36) (4.74) (3.84) Gathering, transportation & proc
Slide 10: Commitment to Sustainability
Commitment to Sustainability 10 ENVIRONMENTAL SOCIAL GOVERNANCE Air Emissions Reduced our 2021 GHG intensity rate by 9.5% compared to 2020, following an 8.2% reduction in 2019 Flaring Do not conduct routine flaring; reduced our 2021 gas flared as a percent of total production by 72% compared to 2019
Slide 11: Appendix
Appendix
Slide 12: Overview
Magnolia Oil & Gas – Overview • 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 free cash flow, reduces development risk, and increases optionality • As
Slide 13: Free Cash Flow Reconciliations
Free Cash Flow Reconciliations 13 (1) Free cash flow is a non-GAAP measure. For reasons management believes this is useful to investors, refer to slide 2 “Non-GAAP Financial Measures.” (in thousands) For the Quarters Ended For the Years Ended Free Cash Flow Reconciliation December 31, 2022 December
Slide 14: Adjusted EBITDAX Reconciliations
Adjusted EBITDAX Reconciliations 14 (1) EBITDAX and Adjusted EBITDAX are non-GAAP measures. For reasons management believes these are useful to Investors, refer to slide 2 “Non-GAAP Financial Measures.” (2) Costs incurred during the transition period related to the termination of the Services Agreem
Slide 15: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation 15 (1) Costs incurred during the transition period related to the termination of the Services Agreement with EnerVest Operating L.L.C. included within “General and administrative expenses” on the Company's consolidated statements of operations. (2) Represents corpo
Slide 16: Operating Highlights
Magnolia Oil & Gas – Operating Highlights 16 (1) Benchmarks are the NYMEX WTI and NYMEX HH average prices for oil and natural gas, respectively. For the Quarters Ended For the Years Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Production: Oil (MBbls) 2,972 2,844 12,1
Slide 17: Production Results
Magnolia Oil & Gas – Production Results 17 Combined Karnes Giddings & Other Combined Karnes Giddings & Other For the Quarter Ended December 31, 2022 For the Quarter Ended December 31, 2021 Production: Oil (MBbls) 2,972 1,585 1,387 2,844 1,740 1,104 Natural gas (MMcf) 12,455 3,824 8,631 11,820 4,148