We are currently offering a free two-week trial to Distressed Value Investing . Join our community to receive exclusive research about various companies and other opportunities along with full access to my portfolio of historic research that now includes over 1,000 reports on over 100 companies.Magnolia Oil & Gas (NYSE: MGY ) delivered strong Q1 2025 production results with total production around 3% above its guidance. As a result of its well outperformance and improved capital efficiency, Magnolia has als ...

Magnolia Oil & Gas Corporation (MGY) reported a first-quarter 2025 net profit of 55 cents per share, which beat the Zacks Consensus Estimate of 53 cents. The bottom line also increased from the year-ago quarter’s 49 cents. This outperformance can be attributed to a healthy increase in production volumes driven by strong well productivity in the company’s Giddings asset.The oil and gas exploration and production company’s total revenues were $350.3 million, which beat the Zacks Consensus Estimate of $342 mil ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Magnolia Oil & Gas Corporation (Exact Name of Registrant as Specified in its Charter) Delaware 81-5365682 (State or other jurisdictio ...

Financial Data and Key Metrics Changes - Magnolia achieved a record quarterly production rate of 96,500 barrels of oil equivalent per day, exceeding earlier guidance, with a year-over-year total production growth of 14% and oil production growth of 4% [5][6] - Total adjusted net income for the quarter was $106 million, and adjusted EBITDAX was $248 million, both up 9% compared to the previous year [6][14] - Operating income margins were 39%, and the annualized return on capital employed was 23% [6][14] - Free cash flow generated was $111 million, with 74% returned to shareholders through dividends and share repurchases [7][14] Business Line Data and Key Metrics Changes - Total production at Giddings grew by 25% compared to the prior year quarter, with Giddings oil volumes increasing by 17% [6][10] - The company expects to see higher production growth with lower capital spending, resulting in a more capital-efficient program [4][10] Market Data and Key Metrics Changes - The company noted that natural gas prices were historically higher during winter months, which influenced the decision to bring multi-well pads online [5][6] - Total revenue per BOE declined approximately 3% year-over-year due to lower oil prices, partially offset by increases in natural gas and NGL prices [18][19] Company Strategy and Development Direction - Magnolia is focused on maintaining capital discipline while increasing production growth guidance for 2025 to 7% to 9% from a previous range of 5% to 7% [10][20] - The company plans to defer the completion of several wells into the next year, allowing for flexibility in capital allocation [10][11] - Magnolia aims to be the most efficient operator of best-in-class oil and gas assets, generating high returns while employing minimal capital [12][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current product price volatility and macroeconomic uncertainty [4][10] - The company has taken proactive measures to reduce operating costs, positioning itself strongly in a potentially weaker price environment [12][11] - Management emphasized the importance of operational efficiencies and the strong performance of wells in Giddings, which has positively impacted production growth expectations [10][12] Other Important Information - The company ended the quarter with $248 million in cash and a total liquidity of approximately $700 million, including an undrawn revolving credit facility [17][18] - Magnolia's dividend has grown significantly, with a 15% increase announced earlier this year, resulting in an annualized payout rate of $0.60 per share [17][18] Q&A Session Summary Question: What is the significance of the new wells and their performance? - Management indicated that the new wells in a gassier area have shown strong financial returns and payback periods, contributing positively to production growth expectations [24][28] Question: How will sustaining capital be affected by updated drilling guidance? - Management noted that some completions would be deferred into next year, providing flexibility and potentially lowering sustaining capital requirements [33][34] Question: What is the outlook for capital allocation between gassier and oilier areas? - Management stated that the company has the flexibility to balance production between gas and oil, depending on market conditions, without a strategic shift towards one over the other [38][40] Question: What is the current M&A outlook in the market? - Management mentioned that while evaluating smaller bolt-on opportunities, the heightened level of uncertainty has slowed down M&A activity, with a widening bid-ask spread [43][44] Question: How will GP and T costs trend through 2025? - Management indicated that GP and T costs generally move in tandem with gas prices, and any fluctuations in gas prices would likely impact these costs [67][68]

Magnolia Oil & Gas (MGY) Q1 2025 Earnings Call May 01, 2025 11:00 AM ET Company Participants Timothy Yang - Executive Vice President, General Counsel, Corporate Secretary & LandChristopher Stavros - CEO, President & DirectorBrian Corales - SVP & CFOCarlos Escalante - Senior AssociateZach Parham - Executive DirectorOliver Huang - DirectorNoah Hungness - Equity Research Associate Conference Call Participants Tim Moore - Managing Director, Senior Research Analyst Operator Good morning, everyone, and thank you ...

The information in this press release includes 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 amended. All statements, other than statements of present or historical fact included in this press release, regarding Magnolia's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward looking statement ...

Magnolia Oil & Gas Corp (MGY) came out with quarterly earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.77%. A quarter ago, it was expected that this company would post earnings of $0.46 per share when it actually produced earnings of $0.49, delivering a surprise of 6.52%.Over the last four quarters, the com ...

Financial Performance - Magnolia reported a net income of $106.6 million for Q1 2025, a 9% increase from $97.6 million in Q1 2024[3] - Adjusted EBITDAX for Q1 2025 was $248.4 million, up 9% from $227.8 million in the same quarter last year[3] - Total revenues for the quarter ended March 31, 2025, increased to $350,300,000 from $319,417,000 in the same quarter of 2024, representing a growth of 9.2%[23] - Net income for the quarter ended March 31, 2025, was $106,648,000, compared to $97,597,000 for the same period in 2024, representing an increase of 9.4%[35] - Adjusted net income for the quarter ended March 31, 2025, was $105,570,000, up from $101,007,000 in 2024, reflecting a growth of 4.6%[35] Production and Operations - Average daily production increased by 14% year-over-year to 96.5 Mboe/d, including 39.1 Mbbls/d of oil[4] - Giddings production volumes grew by 25% year-over-year, contributing 79% of total company production in Q1 2025[9] - Oil production increased to 3,517 MBbls in Q1 2025 from 3,415 MBbls in Q1 2024, a rise of 3.0%[21] - Natural gas production rose significantly to 16,492 MMcf in Q1 2025, compared to 13,749 MMcf in Q1 2024, marking an increase of 19.9%[21] - Average daily production of total oil equivalent (boe/d) increased to 96,549 in Q1 2025 from 84,784 in Q1 2024, reflecting a growth of 13.5%[21] Cash Flow and Shareholder Returns - The company generated free cash flow of $110.5 million, returning $81.7 million, or 74% of free cash flow, to shareholders through share repurchases and dividends[5] - Free cash flow for the quarter ended March 31, 2025, was $110,524,000, down from $117,131,000 in Q1 2024, a decrease of 5.7%[42] - The company repurchased 2.2 million shares of Class A Common Stock for $52.0 million during the first quarter[4] - The company repurchased Class A common stock amounting to $52,393,000 during Q1 2025, compared to $51,201,000 in Q1 2024[25] Guidance and Capital Expenditures - Full-year 2025 production growth guidance has been raised to 7-9%, up from the previous 5-7%[4] - Capital expenditures for 2025 have been reduced to a range of $430 to $470 million, a decrease of over 5% from the initial plan[4] - Magnolia plans to maintain two drilling rigs and one completion crew throughout 2025, focusing on multi-well development pads in the Giddings area[11] Costs and Expenses - Operating expenses totaled $214,478,000 in Q1 2025, up from $194,859,000 in Q1 2024, an increase of 10.0%[23] - The average sales price of oil per barrel decreased to $69.81 in Q1 2025 from $75.89 in Q1 2024, a decline of 8.7%[23] - Revenue per barrel of oil equivalent (boe) decreased to $40.31 in Q1 2025 from $41.40 in Q1 2024, a decline of 2.6%[39] - Total adjusted cash operating costs per boe were $11.74 for Q1 2025, slightly down from $11.86 in Q1 2024, indicating a reduction of 1.0%[39] - Adjusted cash operating margin per boe was $28.57 in Q1 2025, compared to $29.54 in Q1 2024, resulting in a margin percentage of 71% for both periods[39] Balance Sheet and Liquidity - The company ended Q1 2025 with a cash balance of $247.6 million and an undrawn $450 million revolving credit facility[5] - Cash and cash equivalents at the end of Q1 2025 were $247,558,000, down from $399,317,000 at the end of Q1 2024[25] Tax and Effective Rate - The effective tax rate for the quarters ended March 31, 2025, and 2024, was 20.3% and 18.9%, respectively, indicating an increase in the tax burden[35] Strategic Focus - The company continues to focus on maintaining profitability and cash flow generation while managing operating costs effectively[38]

Group 1 - Magnolia Oil & Gas (NYSE: MGY) is not considered a cheap entry in the oil and gas industry, indicating a premium valuation due to good management and execution [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] Group 2 - The analysis of oil and gas companies includes a breakdown of balance sheets, competitive positions, and development prospects to identify undervalued opportunities [1]

J.P. Morgan analyst Zach Parham shared his view on Magnolia Oil & Gas Corporation MGY ahead of the earnings release on May 1st.The analyst maintained a Neutral rating on the stock with a price forecast of $24 after updating for first-quarter commodity prices.Parham writes that Magnolia Oil & Gas remains on track with its 2-rig/1-frac crew program and is committed to keeping capex below 55% of EBITDA.Despite commodity price volatility, the analyst expects capital expenditure to stay under 50% of EBITDA due t ...