Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q2 2019 Earnings Presentation
14 slides from Magnolia Oil & Gas's earnings presentation, Aug 6, 2019
Slide 1: Second Quarter 2019 Earnings Presentation
Second Quarter 2019 Earnings Presentation August 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 ~450,000 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: 2nd Quarter 2019 Highlights
Magnolia Oil & Gas – 2nd Quarter 2019 Highlights • Grew total Company production 4% sequentially to 65.1 Mboe/d (54% oil) ‒ Karnes production grew 8% sequentially largely due to new operated & non-op wells turned in-line • Oil realizations averaged 107% of WTI for the quarter • Generated $182 mm of
Slide 5: Q2 2019 Key Metrics
Magnolia Oil & Gas – Q2 2019 Key Metrics Earnings and EPS (GAAP) (1) Total Production Oil Realizations (2) $18.5 Million 65.1 Mboe/d $64.13/bbl $0.12 per share (54% oil) (107% of WTI) Total Net Income & Total Shares (3)(4) Adjusted EBITDAX (3) D&C Capex $31.3 Million $181.7 Million $116.0 Million 25
Slide 6: Operating Highlights
Magnolia Oil & Gas – Operating Highlights For the Quarter Ended For the Quarter Ended June 30, 2019 March 31, 2019 Production: Oil (MBbls) 3,189 2,906 Natural Gas (MMcf) 10,057 9,763 NGLs (MBbls) 1,060 1,084 Total (Mboe) 5,925 5,617 Average Daily Production: Oil (Bbls/d) 35,044 32,289 Natural Gas (M
Slide 7: Margins
Magnolia Oil & Gas – Margins For the Quarter Ended For the Quarter Ended $ / Boe, unless otherwise noted June 30, 2019 March 31, 2019 Revenue $41.01 $38.93 Less: Lease Operating Expenses (4.20) (3.83) Less: Gathering, Transportation & Processing (1.25) (1.66) Less: Taxes Other Than Income (2.21) (2.
Slide 8: 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: June 30, 2019 March 31, 2019 Net income (1) $31,303 $22,713 Exploration expense 3,617 2,476 Asset retirement obligation accretion 1,373 1,328 Dep
Slide 9: Q2 2019 Cash Flow Reconciliation
Q2 2019 Cash Flow Reconciliation ($ in millions) 300 15 250 39 200 178 133 150 100 50 97 76 0 (2) Cash Cash Flow Changes in Acquisitions D&C and Facilities Cash (1) 3/31/19 from Operations Working Capital Capital 6/30/19 (1) Cash flow from operations before changes in working capital. (2) Acquisitio
Slide 10: Summary Balance Sheet
Magnolia Oil & Gas – Summary Balance Sheet (in thousands) June 30, 2019 December 31, 2018 Cash $96,709 $135,758 Current assets 133,788 156,601 Property, plant and equipment, net 3,235,266 3,073,204 Other assets 65,369 67,960 Total assets $3,531,132 $3,433,523 Current liabilities $201,131 $197,361 Lo
Slide 11: Ownership Summary
Magnolia Oil & Gas – Ownership Summary • We have successfully completed the exchange of all the outstanding warrants • The exchange simplifies the capital structure and reduced the ultimate potential dilution • Below is our ownership summary MGY Summary Ownership % of TSO EnerVest 49% Management & D
Slide 12: Cash Flow Since Magnolia's Inception – Reconciliation
Cash Flow Since Magnolia’s Inception – Reconciliation ($ in millions) 900 800 24 17 700 232 600 500 663 400 300 409 200 100 116 97 0 Opening cash Cash flow from Other (2) Changes in Acquisitions (3) D&C and Facilities Cash after operations after Working Capital Capital 6/30/19 transaction(1) transac
Slide 13: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Adjusted Net Income June 30, 2019 March 31, 2019 Net income (1) $31,303 $22,713 Adjustments for certain items affecting comparability: Transaction costs 85 353 Tax impact of adjustments (18) (74) Adjusted n
Slide 14: Production Results
Magnolia Oil & Gas – Production Results Giddings & Giddings & Combined Karnes Combined Karnes Other Other Three Months Ended June 30, 2019 Three Months Ended March 31, 2019 Production: Oil (MBbls) 3,189 2,797 392 2,906 2,443 463 Natural Gas (MMcf) 10,057 3,761 6,296 9,763 3,861 5,902 NGLs (MBbls) 1,