Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q3 2022 Earnings Presentation
16 slides from Magnolia Oil & Gas's earnings presentation, Nov 1, 2022
Slide 1: Third Quarter 2022 Earnings Presentation
Magnolia Oil & Gas Third Quarter 2022 Earnings Presentation November 2, 2022 Exhibit 99.2
Slide 2: Disclaimer: Forward Looking Statements
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: Third Quarter 2022 Key Financial Metrics
Third Quarter 2022 Key Financial Metrics 3 Key Financial Metrics 3Q22 3Q21 % Change Net income ($ MM) $287 $160 79% Diluted EPS ($ per share) $1.29 $0.67 93% Operating income margin % 65% 60% 5% Total production (Mboe/d) 81.5 67.4 21% Giddings & Other production (Mboe/d) 47.9 36.8 30% Adjusted EBITD
Slide 4: 3Q 2022 QTD Cash Flow Reconciliation
3Q 2022 QTD Cash Flow Reconciliation 502 361 31 27 61 116 690 0 100 200 300 400 500 600 700 800 900 1000 Cash 6/30/22 Cash Flow from Operations Changes in Working Capital and Other Dividends Common Stock Repurchases D&C and Facilities Capital Cash 9/30/22 (1) (3)(2) (In millions) (1) Cash flow from
Slide 5: Share Repurchase Summary Through 3Q 2022
Share Repurchase Summary Through 3Q 2022 5 Share Reduction Summary (Million Shares) • Since the initial repurchase authorization in 3Q19, Magnolia has reduced its dilutive share count by 25.0(1) million shares of Class A common stock as well as 24.9 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 $0.10 per share is a 43% annualized increase from 2021. • Differentiated dividend framework is aligned with the principles of our business model and reinforces our plan and demonstrates the quality of our asset
Slide 7: Summary Balance Sheets
Magnolia Oil & Gas – Summary Balance Sheets 7 (in thousands) September 30, 2022 December 31, 2021 Cash $689,539 $366,982 Current assets 209,421 150,936 Property, plant and equipment, net 1,374,849 1,216,087 Other assets 26,827 12,737 Total assets $2,300,636 $1,746,742 Current liabilities $341,972 $2
Slide 8: Capital Structure and Liquidity Overview
$400 $450 2022 2023 2024 2025 2026 3Q 2022 Capital Structure and Liquidity Overview 8 Capital Structure Overview • Maintaining low financial leverage profile ‒ Currently have a net cash position of $290 MM ‒ Net Debt / Q3 Annualized adjusted EBITDAX of -0.2x • Current Liquidity of $1.1 billion, incl
Slide 9: Margin and Cost Structure
$ / Boe, unless otherwise noted For the Quarter Ended September 30, 2022 For the Quarter Ended September 30, 2021 Revenue $64.40 $45.97 Total Cash Operating Costs: Lease Operating Expenses (1) (4.59) (3.79) Gathering, Transportation & Processing (2.57) (1.86) Taxes Other Than Income (3.55) (2.27) Ex
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) Free Cash Flow Reconciliation For the Quarter Ended September 30, 2022 For the Quarter Ended Septemb
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.” (in thousands) Adjusted EBITDAX reconciliation to net income For the Quarter Ended September 30,
Slide 15: Operating Highlights
Magnolia Oil & Gas – Operating Highlights 15 (1) Benchmarks are the NYMEX WTI and NYMEX HH average prices for oil and natural gas, respectively. For the Quarter Ended September 30, 2022 For the Quarter Ended September 30, 2021 Production: Oil (MBbls) 3,381 2,851 Natural gas (MMcf) 13,364 11,429 Natu
Slide 16: Production Results
Magnolia Oil & Gas – Production Results 16 Combined Karnes Giddings & Other Combined Karnes Giddings & Other For the Quarter Ended September 30, 2022 For the Quarter Ended September 30, 2021 Production: Oil (MBbls) 3,381 1,828 1,553 2,851 1,631 1,220 Natural gas (MMcf) 13,364 3,869 9,495 11,429 3,87