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 and reflecting 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][13] - Operating income margins were 39%, with an annualized return on capital employed of 23% [6][14] - Free cash flow generated was $111 million, with 74% of this amount returned to shareholders through dividends and share repurchases [7][14] Business Line Data and Key Metrics Changes - Production at Giddings grew by 25% year-over-year, with oil volumes increasing by 17% [6][7] - The company made a tactical decision to bring multi-well pads online in a gassier portion of Giddings, capitalizing on higher natural gas prices during winter [5][6] Market Data and Key Metrics Changes - Total revenue per BOE declined approximately 3% year-over-year due to lower oil prices, partially offset by increased natural gas and NGL prices [17][18] - Oil price differentials are anticipated to be approximately a $3 per barrel discount to Magellan East Houston, with Magnolia remaining unhedged for all its oil and natural gas production [20] Company Strategy and Development Direction - Magnolia is focused on maintaining capital discipline, reducing capital spending to a range of $430 million to $470 million for 2025, down from previous estimates [9][19] - The company aims to achieve higher production growth with lower capital spending, reflecting a more capital-efficient program [4][9] - Magnolia continues to prioritize operational efficiencies and has seen strong financial returns from new wells in Giddings, which have exhibited shallower decline profiles [8][9] 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, emphasizing a strong operational execution and asset quality [4][10] - The full-year 2025 production growth guidance has been increased to 7% to 9% from a previous range of 5% to 7% due to stronger-than-expected well performance [9][19] - Management noted that the company is well-positioned to manage through periods of weaker product prices due to its low debt levels and high-quality assets [11][12] Other Important Information - The company has repurchased 75 million shares since the program's inception, leading to a 24% reduction in weighted average diluted shares outstanding [15] - 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 [16] Q&A Session Summary Question: Inquiry about new wells and their implications for Magnolia - Management indicated that the new wells have shown strong performance, producing approximately 500 barrels of oil per day in addition to gas, and have favorable financial returns [24][28] Question: Clarification on sustaining capital in light of updated drilling guidance - Management stated that efficiencies gained this year would benefit next year's capital requirements, with some completions deferred to provide flexibility [33][34] Question: Capital allocation strategy between gassier and oilier areas - Management noted that the company can balance production between oil and gas without a strategic shift, as both streams provide good returns [39][40] Question: Acquisition outlook in the current market - Management highlighted a focus on smaller bolt-on opportunities in familiar areas, but noted that market activity has slowed due to increased uncertainty [43][44] Question: Thoughts on capital allocation and potential activity curtailment - Management expressed confidence in current operations and flexibility, indicating no immediate need to drop rigs or significantly alter activity levels [50][51] Question: Trends in GP and T costs - Management indicated that GP and T costs generally move in tandem with gas prices, and any increases in gas prices would likely lead to similar increases in GP and T costs [66]

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 ...

Core Viewpoint - Magnolia Oil & Gas Corp (MGY) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Magnolia Oil & Gas Corp for the fiscal year ending December 2025 is projected at $2.18 per share, reflecting a 2.4% increase from the previous year's reported figure [8]. - Over the past three months, analysts have raised their earnings estimates for the company by 8.5%, indicating a strong upward trend in earnings outlook [8]. Zacks Rating System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, suggesting a higher likelihood of market-beating returns [9][10]. - The Zacks Rank 2 upgrade places Magnolia Oil & Gas Corp in the top 20% of Zacks-covered stocks, indicating its strong earnings estimate revision feature [10]. Market Implications - The upgrade reflects an improvement in the company's underlying business, which is expected to lead to increased buying pressure and a potential rise in stock price [5][6]. - The correlation between earnings estimate revisions and near-term stock movements suggests that tracking these revisions can be beneficial for investment decisions [6][4].

A month has gone by since the last earnings report for Magnolia Oil & Gas Corp (MGY) . Shares have added about 3.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Magnolia Oil & Gas Corp due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving ...

Group 1 - The article promotes a free two-week trial for the investment group Distressed Value Investing, which offers exclusive research on various companies and investment opportunities [1] - The author, Aaron Chow, has over 15 years of analytical experience and co-founded a mobile gaming company that was acquired by PENN Entertainment, indicating a strong background in both analysis and industry experience [2] - Distressed Value Investing focuses on value opportunities and distressed plays, particularly in the energy sector, highlighting a niche investment strategy [2] Group 2 - The article emphasizes that past performance is not indicative of future results, which is a common disclaimer in investment discussions [3] - It clarifies that no specific investment recommendations are being made, and the views expressed may not represent the entire platform's opinions [3] - The article notes that the analysts contributing to the platform may not be licensed or certified, which is important for understanding the credibility of the analysis provided [3]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the short term [2][3] Value Score - The Value Style Score identifies attractive and discounted stocks using various financial ratios such as P/E, PEG, and Price/Sales, appealing to value investors [3] Growth Score - The Growth Style Score focuses on a company's future prospects and financial health, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by analyzing short-term price changes and earnings estimate revisions, indicating favorable buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies, highlighting stocks with strong value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with a historical average annual return of +25.41% for 1 (Strong Buy) stocks since 1988, significantly outperforming the S&P 500 [7][8] Stock to Watch: Magnolia Oil & Gas Corp - Magnolia Oil & Gas is an independent operator focused on natural gas and crude oil production, primarily in the Eagle Ford Shale and Austin Chalk formations in South Texas [12] - The company holds a 3 (Hold) Zacks Rank with a VGM Score of B and a Value Style Score of B, supported by a forward P/E ratio of 10.39, making it attractive to value investors [12][13] - Recent upward revisions in earnings estimates by analysts and a Zacks Consensus Estimate increase to $2.18 per share, along with an average earnings surprise of 9%, position MGY favorably for investors [13]