Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q3 2024 Earnings Presentation
19 slides from Magnolia Oil & Gas's earnings presentation, Oct 31, 2024
Slide 1: Third Quarter 2024 Earnings Presentation
Third Quarter 2024 Earnings Presentation October 30, 2024 Christopher Stavros – President & CEO Brian Corales – Senior Vice President & CFO Tom Fitter – Director, Investor Relations
Slide 2: Disclaimer
Third Quarter 2024 Earnings Presentation Disclaimer FORWARD LOOKING STATEMENTS The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Al
Slide 3: Third Quarter Highlights & Announcements
Third Quarter 2024 Earnings Presentation Third Quarter Highlights & Announcements Financial Operations Corporate Total adjusted net income of $100 million Q324 production of 90.7 Mboe/d Added ~$15 million of small royalty, and operating income margin of 39% (10% YoY growth) and leasehold and working
Slide 4: Key Financial Metrics
Third Quarter 2024 Earnings Presentation Key Financial Metrics Metric Q3 2024 YoY % Change Total Production (Mboe/d) 90.7 10% Oil Production (Mbbls/d) 38.9 18% Giddings Production as a % of total 76% 2% Revenue ($ MM) $333 6% Adjusted EBITDAX ($ MM) $244 2% Adjusted Net Income ($ MM) $100 (15%) D&C
Slide 5: 3Q 2024 Cash Flow Reconciliation
Third Quarter 2024 Earnings Presentation 3Q 2024 Cash Flow Reconciliation 600 $ In Millions 500 33 105 400 241 15 27 300 61 200 276 276 100 0 (1) (2) (3) (4) Cash Cash Flow Changes in DC&F Capital & Acquisitions Dividends and Share Cash 6/30/2024 from Working Capital Leasehold Distributions Repurcha
Slide 6: History of Significant & Consistent Share Repurchases
Third Quarter 2024 Earnings Presentation History of Significant & Consistent Share Repurchases Magnolia’s Consistent Share Repurchases1 (million shares repurchased) Magnolia has reduced its diluted share count by approximately 23% (1) Class A share reduction includes 3.6 million non-compete shares t
Slide 7: Track Record of a Safe, Sustainable and Growing Dividend
Third Quarter 2024 Earnings Presentation Track Record of a Safe, Sustainable and Growing Dividend Annualized Dividend Payout Per Share Magnolia’s dividend has grown at a $0.52 double-digit rate over the past 4 years $0.46 Sustainable dividend growth supported even at lower product prices $0.40
Slide 8: Summary Balance Sheet
Third Quarter 2024 Earnings Presentation Summary Balance Sheet (in thousands) September 30, 2024 December 31, 2023 Cash $276,139 $401,121 Current assets 139,059 190,152 Property, plant and equipment, net 2,273,676 2,052,021 Other assets 122,083 112,922 Total assets $2,810,957 $2,756,216 Current liab
Slide 9: Margin and Cost Structure
Third Quarter 2024 Earnings Presentation Margin and Cost Structure For the Quarters Ended $ / Boe, unless otherwise noted September 30, 2024 September 30, 2023 Revenue $39.92 $41.52 Total Cash Operating Costs: Lease Operating Expenses (1) (5.26) (4.65) Gathering, Transportation & Processing (1.28) (
Slide 10: 2024 Operating Plan & Guidance
Third Quarter 2024 Earnings Presentation 2024 Operating Plan & Guidance 2024E Production & Capital 2024E Capital Fourth Quarter 2024 Guidance ~20% Annual BOE and Oil Growth Production Karnes ~93 Mboe/d High Single-Digit YoY Total Growth; YoY Oil Growth Rate in Excess of Total Growth ~80% Giddings D&
Slide 11: Why Own Magnolia?
Third Quarter 2024 Earnings Presentation Why Own Magnolia? Maintain Conservative Financial Leverage to Provide Financial Flexibility Through Cycle • One of the lowest leverage companies in the E&P space High Quality Assets Drive Low Capital Reinvestment Rate that Provides Growth to the Business • Li
Slide 12: Appendix
Appendix 3 VY MAGNOLIA Oits GAS
Slide 13: Magnolia's Business Model & Strategy
Third Quarter 2024 Earnings Presentation Magnolia’s Business Model & Strategy High Quality Assets Drive Low Capital Deliver Mid-Single Digit Long-Term Reinvestment Rate that Provides Growth to the Production Growth with Significant Free Business Cash Flow Limit Capital Spending to 55% of 2024E BOE a
Slide 14: Free Cash Flow Reconciliations
Third Quarter 2024 Earnings Presentation Free Cash Flow Reconciliations For the Quarters Ended (in thousands) September 30, 2024 September 30, 2023 Net cash provided by operating activities $217,893 $187,310 Add back: net change in operating assets and liabilities 22,928 29,419 Cash flows from opera
Slide 15: Adjusted EBITDAX Reconciliations
Third Quarter 2024 Earnings Presentation Adjusted EBITDAX Reconciliations For the Quarters Ended (in thousands) September 30, 2024 September 30, 2023 Net income $105,912 $117,477 Interest (income) expense, net 3,856 (1,034) Income tax expense 26,530 31,211 EBIT $136,298 $147,654 Depreciation, deplet
Slide 16: Adjusted Net Income Reconciliation
Third Quarter 2024 Earnings Presentation Adjusted Net Income Reconciliation For the Quarters Ended (in thousands) September 30, 2024 September 30, 2023 Net income $105,912 $117,477 Adjustments: Non-cash gain on revaluation of contingent consideration (7,009) - Change in estimated income tax(1) 1,353
Slide 17: Q3 2024 Capital Structure & Liquidity Overview
Third Quarter 2024 Earnings Presentation Q3 2024 Capital Structure & Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($ million) Maintain low financial leverage profile Capitalization Summary As of 9/30/2024 ‒ Currently have a net debt(1) position of $124 million Cash and
Slide 18: Return on Capital Employed
Third Quarter 2024 Earnings Presentation Return on Capital Employed For the Quarters Ended (in thousands) September 30, 2024 September 30, 2023 Operating Income (A) $129,012 $148,133 Debt - beginning of period 394,131 391,590 Stockholders' Equity - beginning of period 1,918,356 1,809,858 Capital Emp
Slide 19: Production Results
Third Quarter 2024 Earnings Presentation Production Results Combined Karnes Giddings Combined Karnes Giddings For the Quarter Ended September 30, 2024 For the Quarter Ended September 30, 2023 Production: Oil (MBbls) 3,579 1,225 2,354 3,024 1,117 1,907 Natural gas (MMcf) 14,644 2,474 12,170 14,406 2,