Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q3 2020 Earnings Presentation
16 slides from Magnolia Oil & Gas's earnings presentation, Nov 6, 2020
Slide 1: Third Quarter 2020 Earnings Presentation
Third Quarter 2020 Earnings Presentation November 5, 2020 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 – 3Q 2020 Highlights
Magnolia Oil & Gas – 3Q 2020 Highlights • Generated adjusted EBITDAX of $76 million versus our D&C Capital of $27 million, or just 36%, during the 3rd quarter. Magnolia is on track to spend ~60% of 2020 Adjusted EBITDAX on D&C Capital. • Free cash flow during the 3rd quarter was $46 million. • Ended
Slide 4: 3Q 2020 Key Metrics
Magnolia Oil & Gas – 3Q 2020 Key Metrics Adj. Net Income (1) & Adj. EPS (1) Total Production Free Cash Flow (1) $15.6 million 54.3 Mboe/d $46 million $0.06/share (50% Oil) Adjusted EBITDAX (1) D&C Capex Cash Balance at 9/30/20 $76 Million $27 Million $149 Million 36% of Adj. EBITDAX (1) Adjusted EPS
Slide 5: 3Q 2020 Cash Flow Summary
3Q 2020 Cash Flow Summary ($ In Millions) 200 2 180 1 4 7 160 27 69 140 120 100 80 149 60 117 40 20 0 Cash Cash Flow Changes in Other (3) Acquisitions Common D&C and Cash 6/30/20 from WC (2) Stock Facilities 9/30/20 (1) Operations Repurchases Capital (4) (1) Cash flow from operations before changes
Slide 6: Summary Balance Sheet
Magnolia Oil & Gas – Summary Balance Sheet (in thousands) September 30, 2020 December 31, 2019 Cash $148,533 $182,633 Current assets 66,329 110,585 Property, plant and equipment, net 1,169,949 3,116,757 Other assets 49,468 56,431 Total assets $1,434,279 $3,466,406 Current liabilities $124,462 $175,2
Slide 7: 3Q20 Capital Structure and Liquidity Overview
3Q20 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($MM) • Maintaining low financial leverage profile Capitalization Summary As of 9/30/20 ‒ Net Debt / Total Book Capitalization of 21% Cash and Cash Equivalents $149 ‒ Net Debt / Q3 Annualized adjusted
Slide 8: 4th Quarter 2020 Guidance
4th Quarter 2020 Guidance Total Company Production Giddings Production 7% - 10% Sequential >20% Sequential Growth Growth D&C Capex Oil Differential Activity ~55% of adj. EBITDAX $3/Bbl discount to 8 Giddings TILs MEH 8
Slide 9: Appendix
Appendix ON
Slide 10: Magnolia Oil & Gas – Overview
Magnolia Oil & Gas – Overview • High-quality, low-risk pure-play South Texas operator with a core ~460,000 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 11: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Free Cash Flow Reconciliation September 30, 2020 September 30, 2019 Net cash provided by operating activities $65,156 $179,220 Changes in operating assets and liabilities 3,438 (5,849) Cash flows from operations
Slide 12: 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: September 30, 2020 September 30, 2019 Net income $13,695 $17,357 Exploration expense 701 3,924 Asset retirement obligation accretion 1,501 1,394
Slide 13: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Adjusted Net Income September 30, 2020 September 30, 2019 Net income $13,695 $17,357 Income tax expense (benefit) ($339) $3,529 Income Before Income Taxes 13,356 20,886 Loss of derivatives, net 2,208 - Adju
Slide 14: Adjusted Earnings Reconciliation
Adjusted Earnings Reconciliation (in thousands) For the Quarter Ended Per Share For the Quarter Ended Per Share September 30, 2020 Diluted EPS September 30, 2019 Diluted EPS Net income attributable to Class A Common Stock $9,147 $0.05 $7,784 $0.05 Adjustments: Non-cash deemed dividend - - 2,763 0.01
Slide 15: Operating Highlights
Magnolia Oil & Gas – Operating Highlights For the Quarter Ended For the Quarter Ended September 30, 2020 September 30, 2019 Production: Oil (MBbls) 2,485 3,520 Natural gas (MMcf) 9,444 10,763 Natural gas liquids (MBbls) 937 1,245 Total (Mboe) 4,996 6,559 Average daily production: Oil (Bbls/d) 27,016
Slide 16: Production Results
Magnolia Oil & Gas – Production Results Combined Karnes Giddings & Other Combined Karnes Giddings & Other Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Production: Oil (MBbls) 2,485 2,025 460 3,520 3,106 414 Natural Gas (MMcf) 9,444 3,888 5,556 10,763 4,256 6,507 NGLs (