Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q1 2023 Earnings Presentation
17 slides from Magnolia Oil & Gas's earnings presentation, May 4, 2023
Slide 1: First Quarter 2023 Earnings Presentation
Magnolia Oil & Gas First Quarter 2023 Earnings Presentation May 4, 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: First Quarter 2023 Key Financial Metrics
First Quarter 2023 Key Financial Metrics • 1Q23 total production grew 10% Y-o-Y to 79.3 Mboe/d, with D&C capital of $140 million • Actions were taken during the first quarter to reduce 2023 D&C capital spending to be between $440 - $460 million, or at least 10% lower than previous guidance and below
Slide 4: 1Q 2023 Cash Flow Reconciliation
1Q 2023 Cash Flow Reconciliation (In millions) 1,000 12 900 25 46 800 214 139 700 600 500 400 675 667 300 200 100 0 (1) (2) (3) (4) Cash Cash Flow Changes in Dividends Common Stock D&C and Cash 12/31/22 from Working Capital Repurchases Facilities Capital 3/31/23 Operations and Other (1) Cash flow fr
Slide 5: Share Repurchase Summary Through 1Q 2023
Share Repurchase Summary Through 1Q 2023 • Since the initial repurchase authorization in 3Q19, Magnolia has reduced its dilutive share count by 27.8(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 54.7 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) March 31, 2023 December 31, 2022 Cash $667,284 $675,441 Current assets 153,062 175,306 Property, plant and equipment, net 1,582,252 1,533,029 Other assets 173,456 188,809 Total assets $2,576,054 $2,572,585 Current liabilities $311,244 $340,2
Slide 8: 1Q 2023 Capital Structure and Liquidity Overview
1Q 2023 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($MM) • Maintaining low financial leverage profile Capitalization Summary As of 3/31/2023 ‒ Currently have a net cash position of $267 MM Cash and Cash Equivalents $667 ‒ Net Debt / Q1 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 March 31, 2023 March 31, 2022 Revenue $43.18 $58.44 92% of the decrease in Total Cash Operating Costs: $15.26/Boe Adjusted Operating Lease Operating Expenses (1) Margin is due t
Slide 10: Commitment to Sustainability: Environmental Social Governance
Commitment to Sustainability ENVIRONMENTAL SOCIAL GOVERNANCE Air Emissions Workforce Health & Safety Board Independence Reduced our 2021 GHG intensity rate Have not recorded a fatal accident in 71% of board members are by 9.5% compared to 2020, following connection with our operations since independ
Slide 11: Appendix
Appendix \
Slide 12: Overview
Magnolia Oil & Gas – Overview • High-quality, low-risk pure-play South Texas operator with a core ~482,000 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) March 31, 2023 March 31, 2022 Net cash provided by operating activities $219,823 $238,869 Add back: Changes in operating assets and liabilities (5,647) 29,343 Cash flows from operations before changes in operat
Slide 14: Adjusted EBITDAX Reconciliations
Adjusted EBITDAX Reconciliations For the Quarter Ended For the Quarter Ended (in thousands) March 31, 2023 March 31, 2022 Net income $106,677 $208,620 Exploration expenses 11 5,538 Asset retirement obligation accretion 841 789 Depreciation, depletion and amortization 70,701 53,106 Interest (income)
Slide 15: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation For the Quarter Ended For the Quarter Ended (in thousands) March 31, 2023 March 31, 2022 Net income $106,677 $208,620 Adjustments: Impairment of oil and natural gas properties (1) 15,735 - Change in estimated income tax(2) (3,089) - Adjusted Net Income (3) $119,323
Slide 16: Operating Highlights
Magnolia Oil & Gas – Operating Highlights For the Quarter Ended For the Quarter Ended March 31, 2023 March 31, 2022 Production: Oil (MBbls) 3,221 2,816 Natural gas (MMcf) 12,650 12,378 Natural gas liquids (MBbls) 1,812 1,586 Total (Mboe) 7,141 6,465 Average daily production: Oil (Bbls/d) 35,788 31,2
Slide 17: Production Results
Magnolia Oil & Gas – Production Results Combined Karnes Giddings & Other Combined Karnes Giddings & Other For the Quarter Ended March 31, 2023 For the Quarter Ended March 31, 2022 Production: Oil (MBbls) 3,221 1,409 1,812 2,816 1,487 1,329 Natural gas (MMcf) 12,650 3,238 9,412 12,378 3,549 8,829 Nat