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Company Overview - Magnolia Oil & Gas Corp (MGY) is an independent upstream operator engaged in the exploration, development, and production of natural gas, crude oil, and natural gas liquids, primarily focused on the Eagle Ford Shale and Austin Chalk formations in South Texas [10]. Zacks Rank and Style Scores - MGY holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a solid position in the market [10]. - The company has a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 10.79, which may appeal to value investors [11]. Earnings Estimates - For fiscal 2024, five analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.18 to $2.25 per share [11]. - MGY has demonstrated an average earnings surprise of 2%, suggesting a consistent performance relative to expectations [11]. Investment Consideration - With a solid Zacks Rank and top-tier Value and VGM Style Scores, MGY is recommended for investors looking for potential opportunities in the energy sector [11].

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 3 ...

Magnolia Oil & Gas Corporation (MGY) reported first-quarter 2024 adjusted net income of 49 cents per share, which beat the Zacks Consensus Estimate of 44 cents. The outperformance can be primarily attributed to a healthy increase in production volumes and higher oil prices year over year. However, the bottom line deteriorated from the year-ago quarter’s level of 56 cents due to higher year-over-year operating expenses.Total revenues came in at $319.4 million, which beat the Zacks Consensus Estimate of $308 ...

Financial Performance - For the three months ended March 31, 2024, Magnolia reported net income of $97.6 million, or $0.46 per diluted common share, compared to $85.1 million for the same period in 2023 [106]. - Oil revenues increased to $259.2 million for the three months ended March 31, 2024, up from $239.1 million in the same period of 2023, reflecting a 8.4% increase [112]. - Natural gas revenues decreased to $21.1 million for the three months ended March 31, 2024, down from $27.8 million in the same period of 2023, a decline of 24.5% [114]. - NGL revenues were $39.1 million for the three months ended March 31, 2024, compared to $41.5 million in the same period of 2023, a decrease of 5.8% [115]. - Total operating expenses for the three months ended March 31, 2024 were $194.9 million, an increase from $181.4 million in the same period of 2023, representing a 7.4% rise [117]. - For the three months ended March 31, 2024, income tax expense was $20.3 million, a $0.7 million increase compared to $19.6 million for the same period in 2023, driven by a $7.4 million increase in current income tax expense [126]. - Net cash provided by operating activities was $210.9 million for the three months ended March 31, 2024, compared to $219.8 million for the same period in 2023, impacted by timing of collections and a decrease in realized natural gas and NGL prices [133]. - The company had $3.2 million higher other expenses for the three months ended March 31, 2024, primarily due to the loss on revaluation of contingent consideration liability from an acquisition [124]. Production and Capital Expenditures - Total production for the three months ended March 31, 2024 was 84.8 thousand barrels of oil equivalent per day, an increase from 79.3 thousand boe/d in the same period of 2023, representing a 6.2% growth [105]. - The average price of oil per barrel increased to $75.89 for the three months ended March 31, 2024, compared to $74.24 in the same period of 2023, a 2.2% increase [112]. - Total capital expenditures for the three months ended March 31, 2024, were $120.986 million, down from $138.645 million in the same period of 2023 [135]. Shareholder Returns and Debt - Magnolia's board of directors authorized a share repurchase program of up to 40.0 million shares, with 33.1 million shares repurchased at a cost of $577.3 million as of March 31, 2024 [107]. - The company repurchased 2.4 million shares of Class A Common Stock at a total cost of approximately $52.4 million during the three months ended March 31, 2024 [136]. - Cash dividends declared for the three months ended March 31, 2024, totaled $24.0 million, compared to $22.4 million for the same period in 2023 [138]. - As of March 31, 2024, the company had $400.0 million of principal debt related to the 2026 Senior Notes and $849.3 million of liquidity, which includes $450.0 million of borrowing base capacity and $399.3 million of cash and cash equivalents [129]. Strategic Initiatives - The company acquired oil and gas properties in the Giddings area for approximately $264.1 million in November 2023, with additional contingent cash consideration of up to $40.0 million based on future commodity prices [109]. - Magnolia's capital allocation strategy focuses on reinvesting in its business for moderate and predictable annual volume growth while returning capital to shareholders through dividends and share repurchases [102]. - A $1.00 per barrel increase in the weighted average oil price would have increased the company's revenues by approximately $13.7 million on an annualized basis for the three months ended March 31, 2024 [140]. - The company anticipates its current cash balance and cash flows from operations will be sufficient to meet its cash requirements [128]. - Magnolia's ongoing plan is to continue spending within cash flow on drilling and completing wells while maintaining low financial leverage [135].

Magnolia Oil & Gas Corp (MGY) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.36%. A quarter ago, it was expected that this company would post earnings of $0.54 per share when it actually produced earnings of $0.50, delivering a surprise of -7.41%.Over the last four quarters, the c ...

First Quarter 2024 Results Overview [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) The company reported a 7% production increase and 5% Adjusted EBITDAX growth, generating $117.1 million in free cash flow despite lower net income Key Financial and Operational Metrics | (In millions, except per share data) | March 31, 2024 | March 31, 2023 | Percentage increase (decrease) | | :--- | :--- | :--- | :--- | | Net income | $97.6 | $106.7 | (9)% | | Adjusted net income | $101.0 | $119.3 | (15)% | | Earnings per share - diluted | $0.46 | $0.50 | (8)% | | Adjusted EBITDAX | $227.8 | $216.9 | 5 % | | Capital expenditures - D&C | $119.0 | $139.7 | (15)% | | Average daily production (Mboe/d) | 84.8 | 79.3 | 7 % | | Cash balance as of period end | $399.3 | $667.3 | (40)% | | Diluted weighted average total shares outstanding | 204.3 | 213.9 | (5)% | - Total production grew **7%** year-over-year to **84.8 Mboe/d**, with production from the Giddings and Other area growing **17%**[5](index=5&type=chunk) - The company generated **$117.1 million in free cash flow** and maintained capital discipline with D&C capital at **$119.0 million**, a **15% decrease** from Q1 2023[5](index=5&type=chunk) - Returned **$79.2 million (68% of free cash flow)** to shareholders through **$52.4 million in share repurchases** and a declared dividend of **$0.13 per share**[5](index=5&type=chunk)[6](index=6&type=chunk) [Management Commentary and Strategy](index=2&type=section&id=Management%20Commentary%20and%20Strategy) Management emphasized disciplined capital spending, bolt-on acquisitions, and a new cost reduction program to enhance returns - A key strategic objective is to use excess cash for **attractive bolt-on oil and gas property acquisitions** to enhance returns[7](index=7&type=chunk) - The company initiated a cost reduction program aiming for a **5% to 10% reduction in cash operating costs per boe** in the second half of 2024[5](index=5&type=chunk)[8](index=8&type=chunk) [Operational Update and Acquisitions](index=2&type=section&id=Operational%20Update%20and%20Acquisitions) Production growth was driven by the Giddings area, supported by a two-rig program and a recent $125 million acquisition - Q1 2024 total production averaged **84.8 Mboe/d**, with production from Giddings and Other increasing by **17% YoY** to **61.4 Mboe/d**[9](index=9&type=chunk) - Magnolia continues to operate **two drilling rigs** and one completion crew, focusing on multi-well pads with longer laterals in the Giddings area[10](index=10&type=chunk) - The company acquired approximately **27,000 net acres** in Giddings for about **$125 million**, adding **1,000 Mboe/d** of production[5](index=5&type=chunk)[11](index=11&type=chunk) [2024 Outlook and Guidance](index=3&type=section&id=2024%20Outlook%20and%20Guidance) The company reaffirmed its full-year capital and production growth guidance while providing specific targets for Q2 2024 2024 Guidance | Guidance Metric | Full Year 2024 | Second Quarter 2024 | | :--- | :--- | :--- | | D&C Capital | $450 - $480 million | $120 - $125 million | | Total Production Growth | High single-digit % (YoY) | ~89 Mboe/d | | Oil Production Growth | High single-digit % (YoY) | N/A | - The company remains **completely unhedged** for all its oil and natural gas production[14](index=14&type=chunk) - The fully diluted share count for Q2 2024 is expected to be approximately **203 million shares**, about **4% lower** than Q2 2023 levels[14](index=14&type=chunk) Financial Statements [Operating Highlights](index=5&type=section&id=Operating%20Highlights) Total production and revenues increased year-over-year, though profitability was impacted by lower natural gas prices Key Operating Metrics | | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | **Production:** | | | | Total (Mboe) | 7,715 | 7,141 | | Total (boe/d) | 84,784 | 79,342 | | **Revenues (in thousands):** | | | | Total Revenues | $319,417 | $308,382 | | **Average sales price:** | | | | Oil (per Bbl) | $75.89 | $74.24 | | Natural gas (per Mcf) | $1.53 | $2.20 | | Total (per boe) | $41.40 | $43.18 | | **Operating costs per boe:** | | | | Lease operating expenses | $5.98 | $5.93 | | Depreciation, depletion and amortization | $12.58 | $9.90 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Revenues grew slightly, but net income and diluted EPS declined compared to the prior-year quarter Q1 2024 Statement of Operations | (In thousands, except per share data) | For the Quarter Ended March 31, 2024 | For the Quarter Ended March 31, 2023 | | :--- | :--- | :--- | | Total revenues | $319,417 | $308,382 | | Total operating expenses | $194,859 | $181,449 | | OPERATING INCOME | $124,558 | $126,933 | | NET INCOME | $97,597 | $106,677 | | NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK | $85,086 | $96,335 | | Diluted NET INCOME PER COMMON SHARE | $0.46 | $0.50 | [Summary Cash Flow Data](index=7&type=section&id=Summary%20Cash%20Flow%20Data) Operating cash flow slightly decreased while cash was primarily used for property investments and shareholder returns Q1 2024 Cash Flow Summary | (In thousands) | For the Quarter Ended March 31, 2024 | For the Quarter Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $210,932 | $219,823 | | Net cash used in investing activities | ($127,308) | ($150,215) | | Net cash used in financing activities | ($85,428) | ($77,765) | | NET CHANGE IN CASH AND CASH EQUIVALENTS | ($1,804) | ($8,157) | | Cash and cash equivalents – End of period | $399,317 | $667,284 | [Summary Balance Sheet Data](index=8&type=section&id=Summary%20Balance%20Sheet%20Data) The balance sheet shows total assets of $2.81 billion, a cash position of $399.3 million, and total equity of $1.90 billion Balance Sheet Summary | (In thousands) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $399,317 | $401,121 | | Total assets | $2,807,942 | $2,756,216 | | Current liabilities | $350,011 | $314,887 | | Long-term debt, net | $393,480 | $392,839 | | Total liabilities and equity | $2,807,942 | $2,756,216 | Non-GAAP Financial Measures [Reconciliation of Net Income to Adjusted EBITDAX](index=9&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDAX) Adjusted EBITDAX increased 5% year-over-year to $227.8 million after reconciling from GAAP net income Adjusted EBITDAX Reconciliation | (In thousands) | For the Quarter Ended March 31, 2024 | For the Quarter Ended March 31, 2023 | | :--- | :--- | :--- | | NET INCOME | $97,597 | $106,677 | | Adjustments (DD&A, Taxes, Interest, etc) | $125,572 | $94,443 | | EBITDAX | $218,964 | $197,348 | | Other Adjustments | $8,863 | $19,507 | | Adjusted EBITDAX | $227,827 | $216,855 | [Reconciliation of Net Income to Adjusted Net Income](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) Adjusted Net Income was $101.0 million after excluding non-recurring and non-cash items from GAAP net income Adjusted Net Income Reconciliation | (In thousands) | For the Quarter Ended March 31, 2024 | For the Quarter Ended March 31, 2023 | | :--- | :--- | :--- | | NET INCOME | $97,597 | $106,677 | | Adjustments | $3,410 | $12,646 | | ADJUSTED NET INCOME | $101,007 | $119,323 | [Reconciliation of Revenue to Adjusted Operating Income Margin](index=11&type=section&id=Reconciliation%20of%20Revenue%20to%20Adjusted%20Operating%20Income%20Margin) The adjusted cash operating margin remained stable at 71%, while the adjusted operating income margin declined to 39% Adjusted Margin Analysis | (in $/boe) | For the Quarter Ended March 31, 2024 | For the Quarter Ended March 31, 2023 | | :--- | :--- | :--- | | Revenue | $41.40 | $43.18 | | Total adjusted cash operating costs | ($11.86) | ($12.65) | | Adjusted cash operating margin | $29.54 | $30.53 | | Margin (%) | 71% | 71% | | Adjusted operating income margin | $16.15 | $19.98 | | Margin (%) | 39% | 46% | [Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow](index=12&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Free%20Cash%20Flow) Free cash flow increased significantly to $117.1 million from $60.6 million in the prior-year quarter Free Cash Flow Reconciliation | (In thousands) | For the Quarter Ended March 31, 2024 | For the Quarter Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $210,932 | $219,823 | | Cash flows from operations before net change in operating assets and liabilities | $217,873 | $214,176 | | Less: Additions to oil and natural gas properties (net of working capital changes) | ($100,742) | ($153,622) | | Free cash flow | $117,131 | $60,554 |

Magnolia Oil & Gas Corporation (NYSE:MGY) Q4 2023 Earnings Call Transcript February 15, 2024 11:00 AM ET Company Participants Tom Fitter - IR Chris Stavros - President and CEO Brian Corales - SVP and CFO Conference Call Participants Neal Dingmann - Truist Leo Mariani - MKM Partners Charles Meade - Johnson Rice Oliver Huang - TPH & Co. Ati Modak - Goldman Sachs Nicholas Pope - Seaport Research Geoff Jay - Daniel Energy Partners Zach Parham - JPMorgan Tim Rezvan - KeyBanc Capital Markets Paul Diamond - Citi O ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2023 OR Nine Greenway Plaza, Suite 1300 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-38083 Magnolia Oil & Gas Corporation (Exact Name of Registrant as Specified in its Ch ...

Financial Performance & Capital Management - Magnolia's focus on cost reductions and share repurchases in 2023 has positively impacted corporate returns[2] - Magnolia has one of the best balance sheets in the industry, with a Net Debt / EBITDA of -0.1[3] - Magnolia has reduced its diluted share count by approximately 20% since 2019[10] - Magnolia's current liquidity stands at $851 million, including a fully undrawn credit facility[23] - Magnolia returned $78 million to shareholders in Q4, including $54 million in share repurchases (2.5 million shares) and $24 million in dividends[94] Production & Operations - Magnolia's full year production showed high-single digit year-over-year growth[6] - Total production for 2023 was 82.3 Mboe/d, a 9% year-over-year increase[32, 65] - Q4 2023 total production was 85.4 Mboe/d, a 16% year-over-year increase[32, 50] - The company's 2024 operating plan includes a capital budget of $450 - $480 million[5] Sustainability - Magnolia achieved its lowest annual flaring rate at 0.11% in 2022, a reduction of almost 90% since 2019[40]