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 Exhibit 99.2
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 Eagle Ford and Austin Chalk position acquired at an attractive entry multiple Significant scale and PDP base generates material free cash flow, reduces development risk and increases optionality Asset Ove
Slide 4: Q1 2019 Key Metrics
Magnolia Oil & Gas – Q1 2019 Key Metrics Earnings and EPS (GAAP) (1) Total Production 62.4 Mboe/d Adjusted Net Income & Total Shares (3)(4) $23.0 Million 251.5 Million shares Adjusted EBITDAX (3) $160.1 Million D&C Capex $139.8 Million $13.0 Million $0.08/sh Oil Realizations (2) $59.07/bbl (108% of
Slide 5: Operating Highlights
Magnolia Oil & Gas – Operating Highlights Benchmarks are the NYMEX WTI and NYMEX HH average prices for oil and natural gas, respectively. For the Quarter Ended March 31, 2019 For the Quarter Ended December 31, 2018 Production: Oil (MBbls) 2,906 3,054 Natural Gas (MMcf) 9,763 8,795 NGLs (MBbls) 1,084
Slide 6: Margins
Magnolia Oil & Gas – Margins Adjusted Operating Margin is a non-GAAP measure. For reasons management believes this is useful to investors, refer to slide 2 “Non-GAAP Financial Measures.” $ / Boe, unless otherwise noted For the Quarter Ended March 31, 2019 For the Quarter Ended December 31, 2018 Reve
Slide 7: Reconciliation of Net Income to Adjusted EBITDAX
Reconciliation of Net Income to Adjusted EBITDAX Includes net income attributable to noncontrolling interest. Transaction related costs incurred related to the execution of our business combination with EnerVest, Ltd. and its affiliates and the Harvest acquisition, including legal fees, advisory fee
Slide 8: Q1 2019 Cash Flow Reconciliation
Q1 2019 Cash Flow Reconciliation ($ in millions) Represents cash flow from operations before changes in working capital. Represents cash received in final settlement of EnerVest Acquisition. Acquisitions include leasehold acquisitions and are net of partner contributions. (1) (2) (3)
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 Includes pending acquisitions expected to close in Q2 2019, subject to customary closing conditions. Q3 2018 Successor Period is July 31, 2018 through September 30, 2018. Karnes Net Acreage Additions Since Inception (1) After completing the acquisitions
Slide 11: Inception Cash Flow Reconciliation
Inception Cash Flow Reconciliation Represents cash remaining after cash held in Trust ($656 MM) and proceeds from debt ($400 MM) and equity ($355 MM) issuances were used to pay for the EnerVest acquisition ($1.2 Bn), deferred underwriting comp ($23 MM), debt issuance costs ($23 MM), repayment of the
Slide 12: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Includes net income attributable to noncontrolling interest. Adjusted Net Income is a non-GAAP measure. For reasons management believes this is useful to investors, refer to slide 2 “Non-GAAP Financial Measures.” Shares of Class B Common Stock, and corresponding Ma
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)