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 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: Corporate Execution of Business Model and Strategy
Corporate Execution of Business Model and Strategy Magnolia Value Creation Strategy YTD and Q3 Achievements 1 Consistent organic production growth Organic production growth of 7% Q/Q and 59% YoY (excludes Harvest acquisition) 3 Conservative leverage profile $400 million of principal debt outstanding
Slide 5: Q3 Key Metrics
Magnolia Oil & Gas – Q3 Key Metrics Q3 2018 Earnings $58 Million (Pro Forma) Adjusted operating margin and pro forma EBITDAX are non-GAAP measures. For a reconciliation of the most directly comparable GAAP measure see page 8 and 9. Adjusted operating margin based on Successor period only. Q3 2018 Pr
Slide 6: Operating Highlights
Magnolia Oil & Gas – Operating Highlights Successor Predecessor Pro Forma July 31, 2018 through September 30, 2018 July 1, 2018 through July 30, 2018 Three Months Ended 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 Net Daily Production (Mboe/d) (1) Historical reported production represents production attributable to Karnes county and Giddings field assets. Karnes Giddings Pro Forma Karnes Giddings Pro Forma Karnes Giddings Three Months Ended September 30, 2018 Three Mont
Slide 8: Focus on High Margins
Magnolia Oil & Gas – Focus on High Margins Adjusted Operating Margin is a non-GAAP measure. For reasons management believes this is useful to investors, refer to slide 2 “Non-GAAP Reconciliations.” Successor $ / Boe, unless otherwise noted July 31, 2018 through September 30, 2018 Revenue ($MM) $179
Slide 9: Reconciliation of Net Income to EBITDAX
Reconciliation of Net Income to EBITDAX Includes revenue less direct expense attributable to the Subsequent GulfTex assets of $22.0 million. Pro forma EBITDAX is a non-GAAP measure. For reasons management believes this is useful to investors, refer to slide 2 “Non-GAAP Reconciliations.” Q1 and Q2 re
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 liabi
Slide 11: Revised Guidance
Revised Guidance Original 2018 Production Guidance 45.6 Mboe/d Revised 2018 Guidance 50.0 Mboe/d Further Revised 2018 Guidance 53.0 Mboe/d Transaction Announcement – 3/20/2018 Q2 Earnings Release – 8/14/2018 10% Increase over Original Q3 Earnings Release – 11/13/2018 16% Increase over Original 6% In
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures (in thousands) Successor (Unaudited) July 31, 2018 through September 30, 2018 Per Share Diluted EPS Net income attributable to Class A Common Stock $6,708 $0.04 Adjustments for certain items affecting comparability (1) Loss on Giddings earnout (2) 6,700 0.04 Transaction c