Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q2 2021 Earnings Presentation
19 slides from Magnolia Oil & Gas's earnings presentation, Aug 3, 2021
Slide 1: Second Quarter 2021 Earnings Presentation
Second Quarter 2021 Earnings Presentation August 3, 2021 Stephen 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 – 2Q 2021 Highlights
Magnolia Oil & Gas – 2Q 2021 Highlights • Total production in the second quarter 2021 increased 4% sequentially to 64.9 Mboe/d. Oil production increased 11% sequentially. • Production at Giddings was 36.2 Mboe/d increasing 55% from prior year levels. Giddings oil production of 12.6 Mbbl/d increased
Slide 4: 2Q 2021 Key Metrics
Magnolia Oil & Gas – 2Q 2021 Key Metrics Adj. Net Income (1) & Adj. EPS (1) Total Production Giddings Production $135.0 million 64.9 Mboe/d 36.2 Mboe/d $0.56/share (4% sequential growth) (55% YOY growth) Adjusted EBITDAX (1) D&C Capex Free Cash Flow (1) $195.1 Million $53.8 Million $134.0 million 28
Slide 5: 2Q 2021 Cash Flow Summary
2Q 2021 Cash Flow Summary ($In Millions) 400 9 21 350 54 300 175 250 121 200 150 100 190 178 50 0 Cash Cash Flow Changes in Acquisitions D&C and Share Cash 3/31/21 from Working Capital Facilities Capital (3) Repurchase (4) 6/30/21 Operations (1) and Other (2) (1) Cash flow from operations before cha
Slide 6: Share Repurchase Summary Through 2Q 2021
Share Repurchase Summary Through 2Q 2021 • Magnolia received initial authorization to repurchase up to 10 million shares of Class A common stock in Q3 2019. The Board of Directors increased the share repurchase authorization by an additional 10 million shares in February 2021. • Through Q2 2021, Mag
Slide 7: Summary Balance Sheet
Magnolia Oil & Gas – Summary Balance Sheet (in thousands) June 30, 2021 December 31, 2020 Cash $190,282 $192,561 Current assets 122,579 88,965 Property, plant and equipment, net 1,171,633 1,149,527 Other assets 13,851 22,367 Total assets $1,498,345 $1,453,420 Current liabilities $167,949 $128,949 Lo
Slide 8: 2Q 2021 Capital Structure and Liquidity Overview
2Q 2021 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($MM) • Maintaining low financial leverage profile Capitalization Summary As of 6/30/2021 ‒ Net Debt / Total Book Capitalization of 17% Cash and Cash Equivalents $190 ‒ Net Debt / Q2 Annualized adj
Slide 9: Margin and Cost Structure
Magnolia Oil & Gas – Margin and Cost Structure For the Quarter Ended For the Quarter Ended $ / boe, unless otherwise noted June 30, 2021 March 31, 2021 Revenue $42.42 $37.06 Total Cash Operating Costs: Lease Operating Expenses (1) (3.70) (3.44) Gathering, Transportation & Processing (1.52) (1.57) Ta
Slide 10: 2021 Consensus Estimates vs 2019 Actuals
2021 Consensus Estimates(1) vs 2019 Actuals Total Net Production (Mboe/d) D&C Capex / Adjusted EBITDAX ($MM) 66.8 66.7 $728 $696 44% $280 67% $440 56% $416 33% $288 (60%) (40%) 2019 Actual 2021E Consensus 2019 Actual 2021E Consensus Giddings Karnes D&C Capex EBITDAX - Capex Pre-Tax Net Income ($MM)
Slide 11: Commitment to Sustainability
Commitment to Sustainability ENVIRONMENTAL SOCIAL GOVERNANCE Flaring Workforce Health & Safety Board Independence Flare less than 1% of our total net Both employee total recordable 71% of board members are production incident rate and fatality rate were zero independent in 2020 Fugitive Emissions Bo
Slide 12: Appendix
Appendix Se.F
Slide 13: Magnolia Oil & Gas – Overview
Magnolia Oil & Gas – Overview • High-quality, low-risk pure-play South Texas operator with a core ~476,000 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 14: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended June 30, 2021 March 31, 2021 Net cash provided by operating activities $187,879 $118,153 Add back: Changes in operating assets and liabilities (13,263) 23,740 Cash flows from operations before changes in operati
Slide 15: Reconciliation of Net Income (Loss) to Adjusted EBITDAX
Reconciliation of Net Income (Loss) to Adjusted EBITDAX (in thousands) For the Quarter Ended For the Quarter Ended June 30, 2021 June 30, 2020 Net income (loss) $116,172 ($29,391) Exploration expense 62 6,462 Asset retirement obligation accretion 1,405 1,464 Depreciation, depletion and amortization
Slide 16: Adjusted Net Income (Loss) Reconciliation
Adjusted Net Income (Loss) Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended June 30, 2021 June 30, 2020 Net income $116,172 ($29,391) Income tax expense (benefit) $2,398 ($3,176) Income Before Income Taxes 118,570 (32,567) Adjustments: Impairment of unproved properties (1) -
Slide 17: Adjusted Earnings Reconciliation
Adjusted Earnings Reconciliation (in thousands) For the Quarter Ended Per Share For the Quarter Ended Per Share June 30, 2021 Diluted EPS June 30, 2020 Diluted EPS Net income (loss) attributable to Class A Common Stock $84,445 $0.48 ($18,272) ($0.11) Adjustments: Impairment of unproved properties (1
Slide 18: Operating Highlights
Magnolia Oil & Gas – Operating Highlights For the Quarter Ended For the Quarter Ended June 30, 2021 June 30, 2020 Production: Oil (MBbls) 2,903 3,089 Natural gas (MMcf) 9,947 9,763 Natural gas liquids (MBbls) 1,349 1,122 Total (Mboe) 5,910 5,838 Average daily production: Oil (Bbls/d) 31,897 33,940 N
Slide 19: Production Results
Magnolia Oil & Gas – Production Results Giddings & Giddings & Combined Karnes Combined Karnes Other Other Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Production: Oil (MBbls) 2,903 1,755 1,148 3,089 2,503 586 Natural gas (MMcf) 9,947 2,752 7,195 9,763 3,781 5,982 Natural gas liq