Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q3 2018 Earnings Presentation
12 slides from Magnolia Oil & Gas's earnings presentation, Nov 13, 2018
Slide 1: Third Quarter 2018 Earnings Presentation
Third Quarter 2018 Earnings Presentation November 13, 2018 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 ~474,000 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: Corporate Execution of Business Model and Strategy
Corporate Execution of Business Model and Strategy Magnolia Value Creation Strategy YTD and Q3 Achievements Organic production growth of 7% Q/Q and 1 Consistent organic production growth 59% YoY (excludes Harvest acquisition) 2 High full-cycle operating margins Continue to target full cycle margins
Slide 5: Q3 Key Metrics
Magnolia Oil & Gas – Q3 Key Metrics Q3 2018 Earnings Q3 2018 Pro Forma Total Production Q4 2018 Estimated Production $6.7 Million (GAAP) 55.2 Mboe/d 59 Mboe/d $58 Million (Pro Forma) Adjusted Operating Margin ($/Boe, %) (1) Q3 2018 Pro Forma EBITDAX (1) Q3 2018 Pro Forma D&C Capex $21.12 / 41% $216
Slide 6: Operating Highlights
Magnolia Oil & Gas – Operating Highlights Successor Predecessor Pro Forma July 31, 2018 through July 1, 2018 through Three Months Ended September 30, 2018 July 30, 2018 September 30, 2018 Production: Oil (MBbls) 2,023 897 3,018 Natural Gas (MMcf) 5,047 1,153 7,036 NGLs (MBbls) 642 160 885 Total (Mbo
Slide 7: Production Results
Magnolia Oil & Gas – Production Results Pro Forma Karnes Giddings Pro Forma Karnes Giddings Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Production: Oil (MBbls) 3,018 2,641 377 1,840 1,562 142 Natural Gas (MMcf) 7,036 3,754 3,282 4,239 2,094 1,977 NGLs (MBbls) 885 543
Slide 8: Focus on High Margins
Magnolia Oil & Gas – Focus on High Margins Successor $ / Boe, unless otherwise noted July 31, 2018 through September 30, 2018 Revenue ($MM) $179 Revenue $50.93 Less: Lease Operating Expenses (3.14) Less: Gathering, Transportation & Processing (1.64) Less: Taxes Other Than Income (2.67) Less: Explora
Slide 9: Reconciliation of Net Income to EBITDAX
Reconciliation of Net Income to EBITDAX (in thousands) Pro Forma Three Months Ended Nine Months Ended EBITDAX reconciliation to net income: September 30, 2018 September 30, 2018 (1) Net income attributable to Class A Common Stock $57,891 $151,316 Net income attributable to noncontrolling interest 43
Slide 10: Summary Balance Sheet
Magnolia Oil & Gas – Summary Balance Sheet (in thousands) Successor Predecessor September 30, 2018 December 31, 2017 Cash $36,715 $- Other current assets 174,998 114,536 Property, plant and equipment, net 3,016,671 1,565,537 Other assets 71,713 8,901 Total assets $3,300,097 $1,688,974 Current liabil
Slide 11: Revised Guidance
Revised Guidance Original 2018 Production Guidance Revised 2018 Guidance Further Revised 2018 Guidance 45.6 Mboe/d 50.0 Mboe/d 53.0 Mboe/d Transaction Announcement – 3/20/2018 Q2 Earnings Release – 8/14/2018 Q3 Earnings Release – 11/13/2018 10% Increase over Original 16% Increase over Original 6% In
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of net income attributable to Class A Common Stock to adjusted earnings Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the effect of certain items included in Income Attributable to Class A C