Magnolia Oil & Gas Corporation · NYSE:MGY
Magnolia Oil & Gas — Q1 2022 Earnings Presentation
17 slides from Magnolia Oil & Gas's earnings presentation, May 10, 2022
Slide 1: First Quarter 2022 Earnings Presentation
First Quarter 2022 Earnings Presentation May 10, 2022 Stephen 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: Magnolia Oil & Gas – 1Q 2022 Highlights
Magnolia Oil & Gas – 1Q 2022 Highlights • Generated total net income of $209 million during the 1st quarter which was 128% higher than 1Q21. GAAP diluted earnings per share of $0.90 was 143% higher than prior year levels. • Adjusted EBITDAX of $298 million increased 98% from 1Q21. Total 1Q22 D&C Cap
Slide 4: First Quarter 2022 Key Financial Metrics
First Quarter 2022 Key Financial Metrics • Stronger year over year product prices combined with higher production volumes resulted in significantly improved financial metrics across the board compared to the prior-year period. • Performance at Giddings continues to excel, generating ongoing operatin
Slide 5: 1Q 2022 QTD Cash Flow Reconciliation
1Q 2022 QTD Cash Flow Reconciliation (In millions) 700 28 600 49 84 500 268 400 128 300 200 367 346 100 0 (1) (2) (3) (4) (5) Cash Cash Flow Changes in Dividends D&C and Common Cash 12/31/21 from WC and Other Facilities Stock 3/31/22 Operations Capital Repurchases 1) Cash flow from operations before
Slide 6: Share Repurchase Summary Through 1Q 2022
Share Repurchase Summary Through 1Q 2022 • Since the initial repurchase authorization in 3Q19, Magnolia has reduced its dilutive share count by 19.9(1) million shares of Class A common stock as well as 22.9 million shares of Class B common stock, for a total reduction of 42.8 million shares, or appr
Slide 7: Differentiated Dividend Framework
Magnolia Oil & Gas – Differentiated Dividend Framework Dividend Principles Second dividend payment – based on the prior year’s results & Secure & Sustainable – Dividend is safe, and our view of long-term supported by our strong balance sheet, prudent product prices – $55 Oil spending and consisten
Slide 8: Summary Balance Sheet
Magnolia Oil & Gas – Summary Balance Sheet (in thousands) March 31, 2022 December 31, 2021 Cash $346,396 $366,982 Current assets 183,856 150,936 Property, plant and equipment, net 1,248,491 1,216,087 Other assets 15,871 12,737 Total assets $1,794,614 $1,746,742 Current liabilities $238,734 $218,545
Slide 9: 1Q 2022 Capital Structure and Liquidity Overview
1Q 2022 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity ($MM) • Maintaining low financial leverage profile Capitalization Summary As of 3/31/2022 ‒ Net Debt / Total Book Capitalization of 4% Cash and Cash Equivalents $346 ‒ Net Debt / Q1 Annualized adju
Slide 10: 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, 2022 March 31, 2021 Revenue $58.44 $21.12/boe $37.32 Increase Total Cash Operating Costs: Lease Operating Expenses (1) (4.41) (3.44) Gathering, Transportation & Proces
Slide 11: Commitment to Sustainability
Commitment to Sustainability ENVIRONMENTAL SOCIAL GOVERNANCE Flaring Workforce Health & Safety Board Independence Flare less than 1% of our total net Both employee total recordable 71% of board members are production incident rate and fatality rate were zero independent in 2020 Fugitive Emissions Bo
Slide 12: Appendix
Appendix \
Slide 13: Magnolia Oil & Gas – Overview
Magnolia Oil & Gas – Overview • High-quality, low-risk pure-play South Texas operator with a core ~471,000 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 14: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended March 31, 2022 March 31, 2021 Net cash provided by operating activities $238,869 $118,153 Add back: net changes in operating assets and liabilities 29,343 23,740 Cash flows from operations before changes in oper
Slide 15: Adjusted EBITDAX Reconciliation
Adjusted EBITDAX Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended March 31, 2022 March 31, 2021 Net income $208,620 $91,492 Exploration expenses 5,538 2,062 Asset retirement obligations accretion 789 1,331 Depreciation, depletion and amortization 53,106 42,944 Amortization o
Slide 16: Operating Highlights
Magnolia Oil & Gas – Operating Highlights For the Quarter Ended For the Quarter Ended March 31, 2022 March 31, 2021 Production: Oil (MBbls) 2,816 2,593 Natural gas (MMcf) 12,378 10,240 Natural gas liquids (MBbls) 1,586 1,304 Total (Mboe) 6,465 5,604 Average daily production: Oil (Bbls/d) 31,289 28,8
Slide 17: Production Results
Magnolia Oil & Gas – Production Results Combined Karnes Giddings & Other Combined Karnes Giddings & Other Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Production: Oil (MBbls) 2,816 1,487 1,329 2,593 1,579 1,014 Natural gas (MMcf) 12,378 3,549 8,829 10,240 2,923 7,317 Natural g