Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q1 2019 Earnings Presentation
13 slides from Magnolia Oil & Gas's earnings presentation, May 6, 2019
Slide 1: First Quarter 2019 Earnings Presentation
First Quarter 2019 Earnings Presentation May 6, 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 ~461,000 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: Q1 2019 Key Metrics
Magnolia Oil & Gas – Q1 2019 Key Metrics Earnings and EPS (GAAP) (1) Total Production Oil Realizations (2) $13.0 Million 62.4 Mboe/d $59.07/bbl (108% of WTI) $0.08/sh Adjusted Net Income & Total Shares (3)(4) Adjusted EBITDAX (3) D&C Capex $23.0 Million $160.1 Million $139.8 Million 251.5 Million sh
Slide 5: Operating Highlights
Magnolia Oil & Gas – Operating Highlights For the Quarter Ended For the Quarter Ended March 31, 2019 December 31, 2018 Production: Oil (MBbls) 2,906 3,054 Natural Gas (MMcf) 9,763 8,795 NGLs (MBbls) 1,084 1,179 Total (Mboe) 5,617 5,699 Revenues (in thousands): Oil Sales $171,654 $198,891 Natural Gas
Slide 6: Margins
Magnolia Oil & Gas – Margins For the Quarter Ended For the Quarter Ended $ / Boe, unless otherwise noted March 31, 2019 December 31, 2018 Revenue $38.93 $44.75 Less: Lease Operating Expenses (3.83) (3.46) Less: Gathering, Transportation & Processing (1.66) (1.60) Less: Taxes Other Than Income (2.56)
Slide 7: Reconciliation of Net Income to Adjusted EBITDAX
Reconciliation of Net Income to Adjusted EBITDAX (in thousands) For the Quarter Ended For the Quarter Ended Adjusted EBITDAX reconciliation to net income: March 31, 2019 December 31, 2018 Net income(1) $22,713 $57,808 Exploration expense 2,476 661 Asset retirement obligation accretion 1,328 1,276 De
Slide 8: Q1 2019 Cash Flow Reconciliation
Q1 2019 Cash Flow Reconciliation ($ in millions) $350 $4 $300 $38 $250 $52 $154 $200 $150 $128 $100 $136 $50 $76 $0 (2) (3) Cash Cash Flow Other Changes in Acquisitions D&C and Cash (1) 12/31/18 from Operations Working Capital Facilities Capital 3/31/19 (1) Represents cash flow from operations befor
Slide 9: Summary Balance Sheet
Magnolia Oil & Gas – Summary Balance Sheet (in thousands) March 31, 2019 December 31, 2018 Cash $76,307 $135,758 Current assets 126,938 156,601 Property, plant and equipment, net 3,168,544 3,073,204 Other assets 66,184 67,960 Total assets $3,437,973 $3,433,523 Current liabilities $184,460 $197,361 L
Slide 10: Achieving Key Objectives Through Steady Growth
Achieving Key Objectives Through Steady Growth Production Growth (1) Karnes Net Acreage Additions Since Inception (1) >70 Mboe/d 3‐5% Q/Q Growth 62.4 61.9 58.9 After completing the acquisitions expected to close in Q2 2019, Magnolia expects to have added Production from our 2019 acquisitions is expe
Slide 11: Inception Cash Flow Reconciliation
Inception Cash Flow Reconciliation ($ in millions) $700 $600 $23 $34 $500 $198 $400 $485 $300 $200 $270 $100 $116 $76 $0 Opening Cash Cash Flow from Other (2) Changes in Acquisitions (3) D&C and Cash at Inception Operations After Working Capital Facilities Capital 3/31/19 Transaction Costs (1) (1) R
Slide 12: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Adjusted Net Income March 31, 2019 December 31, 2018 Net income(1) $22,713 $57,808 Adjustments for certain items affecting comparability: Transaction costs 353 2,241 Tax impact of adjustments (74) (471) Adj
Slide 13: Production Results
Magnolia Oil & Gas – Production Results Combined Karnes Giddings & Other Combined Karnes Giddings & Other Three Months Ended March 31, 2019 Three Months Ended December 31, 2018 Production: Oil (MBbls) 2,906 2,443 464 3,054 2,564 491 Natural Gas (MMcf) 9,763 3,861 5,902 8,795 3,788 5,007 NGLs (MBbls)