Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q4 2021 Earnings Presentation
21 slides from Magnolia Oil & Gas's earnings presentation, Feb 16, 2022
Slide 1: Fourth Quarter 2021 Earnings Presentation
Fourth Quarter 2021 Earnings Presentation February 17, 2022 Stephen Chazen – Chairman, President & CEO Christopher Stavros – Executive Vice President & CFO Brian Corales – Vice President, Investor Relations Exhibit 99.2
Slide 2: Disclaimer
Disclaimer 2 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
Slide 3: 4Q and Full Year 2021 Highlights
Magnolia Oil & Gas – 4Q and Full Year 2021 Highlights 3 • Generated total net income of $192 million and diluted earnings per share of $0.82 during 4Q21. For the full year, total adjusted net income was $580 million or $2.42 per diluted share. • Total production for 4Q21 increased 15% year over year
Slide 4: 4Q 2021 Key Metrics
Magnolia Oil & Gas – 4Q 2021 Key Metrics 4 Adj. Net Income (1) & Adj. EPS (1) Total Production 69.4 Mboe/d (3% sequential growth) (15% YOY growth) Adjusted EBITDAX (1) $260.6 Million D&C Capex $72.1 Million (28% of Adj. EBITDAX) Fully Diluted Shares (2) 231.0 Million (Repurchased 2.7 MM in 4Q21) Fre
Slide 5: 4Q 2021 QTD Cash Flow Summary
4Q 2021 QTD Cash Flow Summary ($In millions) 1) Cash flow from operations before changes in working capital 2) Includes $10 MM change in working capital and $1 MM increase in capital accruals offset by $3 MM in other investing and other financing activities 3) D&C capital of $74 MM includes $1 MM of
Slide 6: 2021 Cash Flow Summary
2021 Cash Flow Summary (In millions) 1) Cash flow from operations before changes in working capital 2) Includes $10 MM change in working capital and $13 MM increase in capital accruals offset by $5 million debt modification and $9 MM in other investing and other financing activities 3) Includes $14
Slide 7: Margin and Cost Structure
Magnolia Oil & Gas – Margin and Cost Structure 7 (1) Lease operating expenses exclude non‐cash stock based compensation of $0.2 MM, or $0.02 per boe, and $0.05 MM, or $0.01 per boe, for the quarters ended December 31, 2021 and 2020, respectively. (2) Exploration expenses exclude non‐cash exploration
Slide 8: Summary Balance Sheet
Magnolia Oil & Gas – Summary Balance Sheet 8 (in thousands) December 31, 2021 December 31, 2020 Cash and cash equivalents $366,982 $192,561 Other current assets 151,811 88,965 Property, plant and equipment, net 1,216,087 1,149,527 Other assets 11,862 22,367 Total assets $1,746,742 $1,453,420 Current
Slide 9: 4Q 2021 Capital Structure and Liquidity Overview
4Q 2021 Capital Structure and Liquidity Overview 9 Capital Structure Overview • Maintaining low financial leverage profile ‒ Net Debt / Total Book Capitalization of 2% ‒ Net Debt / Q4 Annualized adjusted EBITDAX of 0.0x • Current Liquidity of $817 million, including fully undrawn credit facility (1)
Slide 10: Share Repurchase Summary Through 4Q 2021
Share Repurchase Summary Through 4Q 2021 10 Quarterly Share Reduction Summary (Million Shares) • Since the initial repurchase authorization in 3Q19, Magnolia has reduced its dilutive share count by 17.8(1) million shares of Class A common stock as well as 19 million shares of Class B common stock, f
Slide 11: Differentiated Dividend Framework
$0.08/share $0.20/share 3Q21 1Q22 Magnolia Oil & Gas – Differentiated Dividend Framework 11 • Differentiated dividend framework is aligned with the principles of our business model and reinforces our plan. • The dividend conveys our continued confidence in the business plan and the quality of our as
Slide 12: Proved Developed Reserves Detail
Proved Developed Reserves Detail 12 (In thousands) For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Costs incurred: Proved property acquisition costs $12,354 $49,246 Unproved properties acquisition costs 10,483 25,966 Total acquisition costs $22,837 $75,212 Exploration and d
Slide 13: Appendix
Appendix VEZ y MAGNOLIA L& GAS
Slide 14: 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 • As
Slide 15: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 15 (1) Free cash flow is a non‐GAAP measure. For reasons management believes this is useful to investors, refer to slide 2 “Non‐GAAP Financial Measures.” (in thousands) For the Quarter Ended December 31, 2021 For the Quarter Ended December 31, 2020 Net cash provided by
Slide 16: Adjusted EBITDAX Reconciliation
Adjusted EBITDAX Reconciliation 16 (1) EBITDAX and Adjusted EBITDAX are non‐GAAP measures. For reasons management believes these are useful to Investors, refer to slide 2 “Non‐GAAP Financial Measures.” (in thousands) For the Quarter Ended December 31, 2021 For the Quarter Ended December 31, 2020 Net
Slide 17: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation 17 (1) Impairment of unproved properties is included within Exploration expenses on the consolidated statements of operations. (2) Adjusted Net Income is a non‐GAAP measure. For reasons management believes this is useful to investors, refer to slide 2 “Non‐GAAP Fin
Slide 18: Adjusted Earnings Reconciliation
Adjusted Earnings Reconciliation 18 (1) Adjusted earnings is a non‐GAAP measure. For reasons management believes this is useful to investors, refer to slide 2 “Non‐GAAP Financial Measures.” (in thousands) For the Quarter Ended December 31, 2021 Per Share Diluted EPS For the Quarter Ended December 31
Slide 19: Operating Highlights
Magnolia Oil & Gas – Operating Highlights 19 (1) Benchmarks are the NYMEX WTI and NYMEX HH average prices for oil and natural gas, respectively. For the Quarter Ended December 31, 2021 For the Quarter Ended December 31, 2020 Production: Oil (MBbls) 2,844 2,646 Natural gas (MMcf) 11,820 10,168 Natura
Slide 20: Production Results
Magnolia Oil & Gas – Production Results 20 Combined Karnes Giddings & Other Combined Karnes Giddings & Other Three Months Ended December 31, 2021 Three Months Ended December 31, 2020 Production: Oil (MBbls) 2,844 1,740 1,104 2,646 1,862 784 Natural gas (MMcf) 11,820 4,148 7,672 10,168 3,463 6,705 Na
Slide 21: Commitment to Sustainability
Commitment to Sustainability 21 ENVIRONMENTAL SOCIAL GOVERNANCE Flaring Flare less than 1% of our total net production Fugitive Emissions Operate vent and flare systems to minimize fugitive emissions from storage tanks Water Resources Operations do not produce large volumes of water after initial pr