Magnolia Oil & Gas(MGY) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 net income was $88.7 million, a decrease of 22$113.9 million in Q4 2023, with adjusted net income at $95.4 million, down 11$397.3 million, a 10% decrease from $442.6 million in 2023, while adjusted net income was$400.9 million, down 9% [3][5]. - Net income for the quarter ended December 31, 2024, was $88.7 million, a decrease of 22.1$113.9 million in the same quarter of 2023 [28]. - Net income attributable to Class A common stock for the quarter was $85.6 million, down from$98.4 million in the same quarter of 2023, a decrease of 13.5% [26]. - The company reported an operating income of $124.1 million for the quarter, down from$138.1 million in the same quarter of 2023, a decrease of 10.1% [26]. - Adjusted EBITDAX for the year ended December 31, 2024, was $953.3 million, up 6.0$899.2 million in 2023 [36]. Production and Reserves - Average daily production for Q4 2024 was 93.1 Mboe/d, a 9% increase from 85.4 Mboe/d in Q4 2023, with full year production averaging 89.7 Mboe/d, also up 9% [2][9]. - Magnolia added 44.3 MMboe of proved developed reserves in 2024, achieving a replacement ratio of 135% of production, with organic proved developed finding and development costs at $10.77 per boe [10][13]. - Oil production for the quarter was 3,572 MBbls, representing a 9.4$90.3 million, with total free cash flow for the year at $430.2 million, representing 88$131.6 million, a 44% increase from $91.5 million in Q4 2023, with full year expenditures at$477.0 million, up 13% [2][10]. - Net cash provided by operating activities for the year ended December 31, 2024, was $920.9 million, an increase of 7.6$855.8 million in 2023 [28]. - The company reported a net cash used in investing activities of $655.1 million for the year ended December 31, 2024, down from$814.9 million in 2023 [28]. Shareholder Returns - A 15% increase in the quarterly dividend to $0.15 per share was approved, marking the fourth consecutive year of dividend growth [7][10]. - Magnolia repurchased 2.2 million shares for$55.8 million in Q4 2024, totaling 11.0 million shares repurchased for the year, leading to a 5% reduction in diluted weighted average shares outstanding [10][12]. - The company repurchased $55.2 million of Class A Common Stock during the quarter, compared to$53.6 million in the same quarter of 2023 [28]. Operational Efficiency - The company plans to maintain two drilling rigs and one completion crew in 2025, expecting total production growth of 5% to 7% for the year [12][14]. - The company anticipates continued growth in production and revenue, driven by ongoing operational efficiencies and market demand [23]. Revenue and Costs - For the quarter ended December 31, 2024, Magnolia Oil & Gas Corporation reported total revenues of $326.6 million, a slight increase from$322.6 million in the same quarter of 2023 [23]. - Total operating expenses for the quarter were $202.5 million, compared to$184.5 million in the same quarter of 2023, an increase of 9.8% [26]. - Lease operating expenses rose to $45.9 million from$40.4 million year-over-year, marking a 12.4% increase [26]. - Total revenues per barrel (boe) for Q4 2024 were $38.13, a decrease of 4.5$41.06 in Q4 2023 [43]. - Adjusted cash operating margin for Q4 2024 was $27.51 per boe, down 10.3$30.51 per boe in Q4 2023 [43]. - Total adjusted cash operating costs for Q4 2024 were $10.62 per boe, slightly up from$10.55 per boe in Q4 2023 [43]. - Operating income margin for Q4 2024 was $14.48 per boe, down from$17.56 per boe in Q4 2023 [43].