Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q2 2023 Earnings Presentation
17 slides from Magnolia Oil & Gas's earnings presentation, Aug 2, 2023
Slide 1: Magnolia Oil & Gas Second Quarter 2023 Earnings Presentation
Magnolia Oil & Gas Second Quarter 2023 Earnings Presentation August 2, 2023 Christopher Stavros – President & CEO Brian Corales – Senior Vice President & CFO Jim Johnson – Vice President, Finance, IR & Treasurer
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, and Section 21E of the Securities Exchange Act of 1934, as
Slide 3: Second Quarter 2023 Key Financial Metrics
Second Quarter 2023 Key Financial Metrics • 2Q23 total production grew 10% year over year to 81.9 Mboe/d, with D&C capital of $86 million (42% of adjusted EBITDAX(1)) • Cost reduction initiative delivering strong results, reducing capital spending guidance to $425 - $440 million; represents a 14% re
Slide 4: 2Q 2023 Cash Flow Reconciliation
2Q 2023 Cash Flow Reconciliation (In millions) 900 26 25 800 49 204 87 700 7 600 500 400 667 677 300 200 100 0 (1) (2) (3) (4) Cash Cash Flow Changes in Dividends Common Stock D&C and Acquisitions Cash 3/31/2023 from Working Repurchases Facilities 6/30/2023 Operations Capital and Capital Other (1) C
Slide 5: Share Repurchase Summary Through 2Q 2023
Share Repurchase Summary Through 2Q 2023 • Since the initial repurchase authorization in 3Q19, Magnolia has reduced its dilutive share count by 30.0(1) million shares of Class A common stock as well as 26.9 million shares of Class B common stock, for a total reduction of 56.9 million shares, or appr
Slide 6: Differentiated Dividend Framework
Magnolia Oil & Gas – Differentiated Dividend Framework Dividend Principles 15% Increase Secure & Sustainable – Dividend is safe, and supported by our strong balance sheet, prudent spending and 43% Increase consistent free cash flow Paid out of Earnings – Dividend is paid out of earnings generate
Slide 7: Summary Balance Sheets
Magnolia Oil & Gas – Summary Balance Sheets (in thousands) June 30, 2023 December 31, 2022 Cash $676,568 $675,441 Current assets 138,272 175,306 Property, plant and equipment, net 1,599,504 1,533,029 Other assets 152,377 188,809 Total assets $2,566,721 $2,572,585 Current liabilities $263,000 $340,27
Slide 8: 2Q 2023 Capital Structure and Liquidity Overview
2Q 2023 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($MM) • Maintaining low financial leverage profile Capitalization Summary As of 6/30/2023 ‒ Currently have a net cash position of $277 MM Cash and Cash Equivalents $677 ‒ Net Debt / Q2 annualized a
Slide 9: Margin and Cost Structure
Magnolia Oil & Gas – Margin and Cost Structure For the Quarter Ended For the Quarter Ended $ / Boe, unless otherwise noted June 30, 2023 June 30, 2022 Revenue $37.62 $71.78 >100% of the decrease in $34.16/Boe Total Cash Operating Costs: Adjusted Operating Lease Operating Expenses (1) Margin is due t
Slide 10: Commitment to Sustainability
Commitment to Sustainability 2023 Sustainability Report Highlights Include: • Magnolia record for lowest annual flaring rate1 at 0.11%, a reduction of almost 90% since 2019 • Addition of scope 2 emissions reporting; providing further disclosure of the Company’s operations • Continued production of l
Slide 11: Appendix
Appendix \
Slide 12: Overview
Magnolia Oil & Gas – Overview • High-quality, low-risk pure-play South Texas operator with a core ~483,000 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 13: Free Cash Flow Reconciliations
Free Cash Flow Reconciliations For the Quarter Ended For the Quarter Ended (in thousands) June 30, 2023 June 30, 2022 Net cash provided by operating activities $201,775 $379,135 Add back: Changes in operating assets and liabilities 2,721 (16,690) Cash flows from operations before changes in operatin
Slide 14: Adjusted EBITDAX Reconciliations
Adjusted EBITDAX Reconciliations For the Quarter Ended For the Quarter Ended (in thousands) June 30, 2023 June 30, 2022 Net income $104,596 $299,905 Exploration expenses - 3,408 Asset retirement obligations accretion 823 802 Depreciation, depletion and amortization 77,008 57,254 Interest expense, ne
Slide 15: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation For the Quarter Ended For the Quarter Ended (in thousands) June 30, 2023 June 30, 2022 Net income $104,596 $299,905 Adjustments: Other income adjustment (1) (9,193) (6,333) Change in estimated income tax(2) 1,782 - Adjusted Net Income (3) $97,185 $293,572 (in thous
Slide 16: Operating Highlights
Magnolia Oil & Gas – Operating Highlights For the Quarter Ended For the Quarter Ended June 30, 2023 June 30, 2022 Production: Oil (MBbls) 3,100 3,019 Natural gas (MMcf) 13,784 12,464 Natural gas liquids (MBbls) 2,054 1,656 Total (Mboe) 7,451 6,752 Average daily production: Oil (Bbls/d) 34,065 33,178
Slide 17: Production Results
Magnolia Oil & Gas – Production Results Combined Karnes Giddings & Other Combined Karnes Giddings & Other For the Quarter Ended June 30, 2023 For the Quarter Ended June 30, 2022 Production: Oil (MBbls) 3,100 1,260 1,840 3,019 1,656 1,363 Natural gas (MMcf) 13,784 2,977 10,807 12,464 3,390 9,074 Natu