Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q1 2020 Earnings Presentation
17 slides from Magnolia Oil & Gas's earnings presentation, May 12, 2020
Slide 1: First Quarter 2020 Earnings Presentation
First Quarter 2020 Earnings Presentation May 11, 2020 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: First Quarter 2020 Highlights
Magnolia Oil & Gas – First Quarter 2020 Highlights • Generated $134.9 million net cash flow from operating activities and $23.3 million of free cash flow in 1Q20. • Ended the first quarter of 2020 with $146.5 million of cash on the balance sheet and an undrawn $450 million revolver providing MGY wit
Slide 4: Q1 2020 Key Metrics
Magnolia Oil & Gas – Q1 2020 Key Metrics Free Cash Flow (1) Total Production Cash Operating Costs + G&A $23.3 Million 68.4 Mboe/d (55% oil) $9.42/boe 10% Growth 14% Decrease Cash Balance at 3/31/2020 Adjusted EBITDAX (1) D&C Capex $146.5 Million $123.9 Million $100.6 Million (1) Free cash flow and a
Slide 5: Q1 2020 Cash Flow Summary
Q1 2020 Cash Flow Summary ($ In Millions) 350 300 15 7 69 250 118 200 94 150 100 183 146 50 0 (3) Cash Cash Flow (1) Changes in (2) Common Stock Acquisitions D&C and Cash 12/31/19 from Operations Working Capital Repurchases Facilities Capital 3/31/20 (1) Cash flow from operations before changes in w
Slide 6: Cash Operating Margin Reconciliation
Magnolia Oil & Gas – Cash Operating Margin Reconciliation For the Quarter Ended For the Quarter Ended $ / Boe March 31, 2020 March 31, 2019 Revenue $29.15 $38.93 Direct Operating Expenses Lease Operating Expenses (3.88) (3.83) Gathering, Transportation & Processing (1.29) (1.66) Taxes Other Than Inc
Slide 7: Achieving Key Objectives Through Steady Growth
Achieving Key Objectives Through Steady Growth Production Growth Karnes Net Acreage Additions Since Inception Magnolia has added ~9,065 net acres to its Karnes position since inception, or an increase of >60%. (1) (1) Inception production is based Q3 2018 Successor Period is July 31, 2018 through Se
Slide 8: Summary Balance Sheet
Magnolia Oil & Gas – Summary Balance Sheet (In thousands) March 31, 2020 December 31, 2019 Cash $146,492 $182,633 Current assets 82,753 110,585 Property, plant and equipment, net 1,209,606 3,116,757 Other assets 51,978 56,431 Total assets $1,490,829 $3,466,406 Current liabilities $170,700 $175,208 L
Slide 9: 1Q20 Capital Structure and Liquidity Overview
1Q20 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($MM) • Maintaining low financial leverage profile Capitalization Summary As of 3/31/2020 ‒ Net Debt / Total Book Capitalization of 21% Cash and Cash Equivalents $146 ‒ Net Debt / 1Q20 Annualized Adju
Slide 10: Appendix
Appendix
Slide 11: Overview
Magnolia Oil & Gas – Overview • High-quality, low-risk pure-play South Texas operator with a core ~450,000 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 12: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow (In thousands) For the Quarter Ended For the Quarter Ended Free Cash Flow Reconciliation March 31, 2020 March 31, 2019 Net Cash provided by operating activities $134,878 $116,562 Changes in operating assets and liabilities (17,321) 33,859 Cash flows from operations b
Slide 13: Reconciliation of Net Income (Loss) to Adjusted EBITDAX
Reconciliation of Net Income (Loss) to Adjusted EBITDAX (In thousands) For the Quarter Ended For the Quarter Ended Adjusted EBITDAX reconciliation to net income (loss): March 31, 2020 March 31, 2019 Net income (loss)(1) ($1,895,299) $22,713 Exploration expense 556,427 2,476 Asset retirement obligati
Slide 14: Operating Highlights
Magnolia Oil & Gas – Operating Highlights For the Quarter Ended For the Quarter Ended March 31, 2020 March 31, 2019 Production: Oil (MBbls) 3,391 2,906 Natural Gas (MMcf) 10,053 9,763 NGLs (MBbls) 1,155 1,084 Total (Mboe) 6,222 5,617 Average Daily Production: Oil (Bbls/d) 37,259 32,289 Natural Gas (
Slide 15: Adjusted Net Income (Loss) Reconciliation
Adjusted Net Income (Loss) Reconciliation (In thousands) For the Quarter Ended For the Quarter Ended Adjusted Net Income (Loss) March 31, 2020 March 31, 2019 NET INCOME (LOSS)(1) ($1,895,299) $22,713 Income tax expense (benefit) (75,826) 3,775 INCOME (LOSS) BEFORE INCOME TAXES (1,971,125) 26,488 Adj
Slide 16: Adjusted Earnings (Loss) Reconciliation
Adjusted Earnings (Loss) Reconciliation (In thousands, except per share data) For the Quarter Ended Per Share For the Quarter Ended Per Share March 31, 2020 Diluted EPS March 31, 2019 Diluted EPS NET INCOME (LOSS) ATTRIBUTABLE TO CLASS A COMMON ($1,227,010) ($7.34) $13,026 $0.08 STOCK Adjustments: I
Slide 17: Production Results
Magnolia Oil & Gas – Production Results Combined Karnes Giddings & Other Combined Karnes Giddings & Other Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Production: Oil (MBbls) 3,391 2,799 592 2,906 2,442 464 Natural Gas (MMcf) 10,053 3,836 6,217 9,763 3,861 5,902 NGLs (MBbls) 1