Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q4 2018 Earnings Presentation
12 slides from Magnolia Oil & Gas's earnings presentation, Feb 25, 2019
Slide 1: Fourth Quarter 2018 Earnings Presentation
Fourth Quarter 2018 Earnings Presentation February 25, 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: Magnolia Oil & Gas – Overview
Magnolia Oil & Gas – Overview • High-quality, low-risk pure-play South Texas operator with a core ~456,000 Net Acre Position Targeting Two of the Top Eagle Ford and Austin Chalk position acquired at an attractive entry Oil Plays in the U.S. multiple • Significant scale and PDP base generates materia
Slide 4: Corporate Execution of Business Model and Strategy
Corporate Execution of Business Model and Strategy Magnolia Value Creation Strategy 2018 and Q4 Achievements (1) 1 Consistent organic production growth Organic production growth of 5% Q/Q 2 High full-cycle operating margins Continue to target full cycle margins of 50% $400 million of principal debt
Slide 5: Q4 Key Metrics
Magnolia Oil & Gas – Q4 Key Metrics Q4 2018 Earnings and EPS Q4 2018 Total Production Q4 2018 Production Guidance $33 Million or $0.21/sh 61.9 Mboe/d 59 Mboe/d $58 Million (Including NCI) Adjusted Operating Margin ($/Boe, %) (1) Q4 2018 Adjusted EBITDAX (1) Q4 2018 D&C Capex $13.39 / 30% $193 Millio
Slide 6: Focus on High Margins
Magnolia Oil & Gas – Focus on High Margins Successor Successor For the Quarter Ended July 31, 2018 through $ / Boe, unless otherwise noted December 31, 2018 December 31, 2018 Revenue $44.75 $46.63 Less: Lease Operating Expenses (3.46) (3.31) Less: Gathering, Transportation & Processing (1.60) (1.55)
Slide 7: Production Results
Magnolia Oil & Gas – Production Results Combined Karnes Giddings Combined Karnes Giddings Three Months Ended December 31, 2018 July 31, 2018 through December 31, 2018 Production: Oil (MBbls) 3,054 2,564 490 5,078 4,309 769 Natural Gas (MMcf) 8,795 3,788 5,007 14,136 6,390 7,746 NGLs (MBbls) 1,179 60
Slide 8: Operating Highlights
Magnolia Oil & Gas – Operating Highlights Successor Successor For the Quarter Ended July 31, 2018 through December 31, 2018 December 31, 2018 Production: Oil (MBbls) 3,054 5,078 Natural Gas (MMcf) 8,795 14,136 NGLs (MBbls) 1,179 1,857 Total (Mboe) 5,699 9,291 Revenues (in thousands): Oil Sales $198,
Slide 9: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of net income attributable to Class A Common Stock to adjusted earnings Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the effect of certain items included in Income Attributable to Class A C
Slide 10: Reconciliation of Net Income to EBITDAX
Reconciliation of Net Income to EBITDAX (in thousands) Successor Successor For the Quarter Ended July 31, 2018 through EBITDAX reconciliation to net income: December 31, 2018 December 31, 2018 Net income attributable to Class A Common Stock (GAAP) $32,921 $39,095 Net income attributable to noncontro
Slide 11: Successor Period Cash Flow Reconciliation
Successor Period Cash Flow Reconciliation ($ in millions) $22 $142 $331 $147 $136 $116 Opening Cash Operating Cash Flow (2) Other (3) Capital Spending Acquisitions Cash After 12/31/18 (1) Transaction (1) Represents cash remaining after cash held in Trust ($656 MM), proceeds from debt ($400 MM) and e
Slide 12: Summary Balance Sheet
Magnolia Oil & Gas – Summary Balance Sheet (in thousands) Successor Predecessor December 31, 2018 December 31, 2017 Cash $135,758 $- Current assets 156,601 114,536 Property, plant and equipment, net 3,073,204 1,565,537 Other assets 67,960 8,901 Total assets $3,433,523 $1,688,974 Current liabilities