Magnolia Oil & Gas Corporation · NYSE:MGY

Magnolia Oil & Gas — Investor Presentation (March 2025)

29 slides from Magnolia Oil & Gas's investor presentation, March 2025

  1. Slide 1: March 2025 Investor Presentation

    March 2025 Investor Presentation

  2. Slide 2: Disclaimer

    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. All statements, other than statements of pr

  3. Slide 3: Magnolia Oil & Gas Overview

    Magnolia Oil & Gas Overview  High-quality, low-risk pure-play South Texas operator with core Eagle Ford and Austin Chalk positions acquired at Texas attractive entry costs  Significant scale and PDP base generates material free cash Giddings flow, reduces development risk, and increases optionalit

  4. Slide 4: Magnolia's Consistent Business Model

    Magnolia’s Consistent Business Model High Quality Assets Drive Low Capital Reinvestment Deliver Mid-Single Digit Long-Term Production Rate that Grows the Business Growth with Significant Free Cash Flow Limit Capital Spending to 55% of 2025 BOE Growth of 5%-7% Annual Adjusted EBITDAX Return Substanti

  5. Slide 5: Asset Overview

    _ Sea APSE, Asset Overview

  6. Slide 6: Giddings Area Assets

    Giddings Area Assets Asset Overview  ~739,000 gross acres (~549,000 net acres) with high working Texas interest (~98% operated)  >200,000 net acres in development  Appraisal program outside of development area  2024 production averaged 67.9 Mboe/d (37% oil, 67% liquids), or ~76% of total Company

  7. Slide 7: Core Karnes Assets

    Core Karnes Assets Texas Asset Overview  Mature asset offers significant free cash flow and a low base production decline  Acreage located in the core of the Eagle Ford offering very strong economic returns in Karnes, Gonzales and Dewitt counties ~22,000 net acres producing ~21 Mboe/d (59% oil, 7

  8. Slide 8: Financial, Capital Allocation & Risk Management Overview

    Financial, Capital Allocation & Risk Management Overview

  9. Slide 9: Cash Flow Allocation Matches Magnolia's Business Model

    Cash Flow Allocation Matches Magnolia’s Business Model Allocation of Operating Cash Flow – Since Inception Dividends & (7/31/2018 – 12/31/2024) Cash Build 10% Magnolia’s “recipe” is a disciplined allocation Drilling & Completions of capital, low reinvestment rate, a balanced Share Repurchases 47% re

  10. Slide 10: Low Leverage Drives Financial Flexibility

    Fourth Quarter & Full Year 2024 Earnings Presentation Low Leverage Drives Financial Flexibility 2.6 Net Debt / EBITDA (2025E) (1) Magnolia has one of the strongest balance sheets in the industry 1.7 1.5 1.5 1.4 1.3 1.3 1.2 1.2 1.1 1.1 1.1 1.1 0.9 1.0 0.8 0.4 0.4 0.3 0.1 -0.2 (1) Source: FactSet (202

  11. Slide 11: Low Reinvestment Rate with Strong Production Growth

    Low Reinvestment Rate with Strong Production Growth 4-Year Average Reinvestment Rate1 Production Growth Per Share1 (4-Year CAGR) 80% 25% 62% 63% 16% 60% 58% 56% 56% 13% 12% 51% 52% 52% 50% 46% 47% 8% 8% 8% 8% 45% 45% 45% 42% 40% 41% 5% 3% 3% 1% 1% 1% 1% 0% -1% -3% -7% Magnolia’s Giddings Focused Dev

  12. Slide 12: High Pre-tax Operating Margins

    High Pre-tax Operating Margins Operating Margin (1) (4-Year Average) 55% 51%  Magnolia has consistently delivered one of the 49% highest operating margins relative to peers 46% 45% 42% 40% 40% 40% 39%  High-quality asset base and focus on 37% 35% 34% 33% maintaining low costs support top-tier 31%

  13. Slide 13: History of Top-Tier Return on Capital Employed

    History of Top-Tier Return on Capital Employed Historical ROCE 26%  Low reinvestment rate and 22% continued business model execution - low leverage, disciplined capital spending and high pre-tax margins are critical to sustaining high returns  Focus on cost reductions and ongoing share repurchases

  14. Slide 14: Consistent & Sizable Cash Return to Shareholders

    Consistent & Sizable Cash Return to Shareholders Cumulative Return of Capital ($MM) ~$1.6 Billion Returned to Shareholders $1,591 $1,213  Magnolia has a strong track record of returning capital to shareholders $908  Returned ~35% of current market cap over prior six years Inception $467  Focus on

  15. Slide 15: History of Significant & Consistent Share Repurchases

    History of Significant & Consistent Share Repurchases Magnolia’s Consistent Share Repurchases (1) 70 (million shares repurchased) 11.0 60 9.6 50 15.5 40 (72.9) 30 25.3 Magnolia has reduced its diluted 20 share count by approximately 23% 10 4.5 7.0 0 2019 2020 2021 2022 2023 2024 Total (1) Class A sh

  16. Slide 16: Track Record of a Safe, Sustainable and Growing Dividend

    Track Record of a Safe, Sustainable and Growing Dividend Dividend Payout Per Share CAGR Has Exceeded 16%  Magnolia’s dividend has grown at a double-digit rate over the past 4 years $0.60  Sustainable dividend growth supported $0.52 even at lower product prices $0.46 $0.40  Dividend per share payo

  17. Slide 17: Business Risks Adequately Managed

    Business Risks Adequately Managed Level of Risk Acceptable to Magnolia Low Risk Moderate Risk Fully Exposed Risk Factor Geologic/Exploratory Political Cost Risk Reinvestment Commodity Financial 17

  18. Slide 18: Summary Investment Highlights

    Summary Investment Highlights High Quality Assets Positioned for Success  Leading position in the Giddings area with low breakevens and substantial running room Giddings  Coveted position in the Karnes area in the core of the Eagle Ford Positive Free Cash Flow and Industry Leading Margins  Genera

  19. Slide 19: 2025 Operating Plan & Guidance

    2025 Operating Plan & Guidance 2025E Production & Capital 2025E Capital First Quarter 2025 Guidance ~20-25% Production Growth Production Karnes ~94 Mboe/d 5%-7% YoY Total Growth; ~75-80% Capital Budget Giddings D&C Capital Spending Budget: $460 - $490 Million ~$135 Million 2025 Operating Plan Oil Di

  20. Slide 20: Magnolia's Commitment to Sustainability

    Magnolia’s Commitment to Sustainability Safeguarding the 86% REDUCTION 12% REDUCTION 35% REDUCTION Environment Flaring Intensity Rate GHG Intensity Rate Hydrocarbon Spill Volume 2019 to 2023 2019 to 2023 2019 to 2023 Supporting Employees 29% DIVERSITY 1,000 SHARES 2024 TOP WORKPLACES and Communities

  21. Slide 21: Appendix

    Appendix 3 VY MAGNOLIA Oits GAS

  22. Slide 22: 2024 Cash Flow Reconciliation

    2024 Cash Flow Reconciliation 1,400 11 17 107 1,200 165 1,000 273 $ In Millions 919 800 600 487 400 200 401 260 0 (5) (6) (1) (2) (3) (4) Cash Cash Flow Changes in Debt Dividends and Acquisitions Share DC&F Capital Cash 12/31/2023 from Working Refinancing Distributions Repurchases & Leasehold 12/31/

  23. Slide 23: Summary Balance Sheet

    Summary Balance Sheet (in thousands) December 31, 2024 December 31, 2023 Cash and cash equivalents $260,049 $401,121 Other current assets 150,775 190,152 Property, plant and equipment, net 2,306,034 2,052,021 Other assets 103,977 112,922 Total assets $2,820,835 $2,756,216 Current liabilities $290,26

  24. Slide 24: Fourth Quarter 2024 Capital Structure & Liquidity Overview

    Fourth Quarter 2024 Capital Structure & Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($MM)  Maintaining low financial leverage profile Capitalization Summary As of 12/31/2024 ‒ Currently have a net debt(1) position of $140 MM Cash and Cash Equivalents $260 ‒ Net debt(1)

  25. Slide 25: Margins and Cost Structure

    Margins and Cost Structure For the Quarters Ended For the Years Ended $ / Boe, unless otherwise noted December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Revenue $38.13 $41.06 $40.08 $40.83 Total Cash Operating Costs: Lease Operating Expenses (1) (5.30) (5.09) (5.44) (5.11) Gathe

  26. Slide 26: Free Cash Flow Reconciliations

    Free Cash Flow Reconciliations For the Quarters Ended For the Years Ended (in thousands) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net cash provided by operating activities $222,627 $246,882 $920,850 $855,789 Add back: net change in operating assets and liabilities 5,29

  27. Slide 27: Adjusted EBITDAX Reconciliations

    Adjusted EBITDAX Reconciliations For the Quarters Ended For the Years Ended (in thousands) December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Net income $88,708 $113,856 $397,330 $442,604 Interest expense, net 4,688 405 14,371 33 Income tax expense 22,179 31,544 95,813 107,208 E

  28. Slide 28: Adjusted Net Income Reconciliation

    Adjusted Net Income Reconciliation For the Quarters Ended For the Years Ended (in thousands) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Net income $88,708 $113,856 $397,330 $442,604 Adjustments: Impairment of oil and natural gas properties - - - 15,735 Gain on revaluatio

  29. Slide 29: Return on Capital Employed

    Return on Capital Employed For the Quarter Ended For the Years Ended (in thousands) December 31, 2024 December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 Operating income (loss) $124,067 $511,988 $534,485 $1,073,786 $602,594 ($1,925,666) $127,5

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