Magnolia Oil & Gas(US:MGY)2024-10-30 20:01Financial Performance - Magnolia reported a net income of $105.9 million for Q3 2024, a decrease of 10% compared to $117.5 million in Q3 2023[2]. - Adjusted net income for the quarter was $100.3 million, down 15% from $117.5 million year-over-year[2]. - For the quarter ended September 30, 2024, total revenues were $333,135 thousand, an increase from $315,678 thousand in the same quarter of 2023, representing a growth of 5.8%[23]. - Operating income for the quarter was $129,012 thousand, down from $148,133 thousand in the same quarter of 2023, a decrease of 12.9%[23]. - Net income attributable to Class A common stock for the quarter was $99,784 thousand, compared to $102,030 thousand in the same quarter of 2023, a decline of 2.4%[23]. - Net income for the quarter ended September 30, 2024, was $105,912, a decrease of 9.5% from $117,477 in the same quarter of 2023[26]. - Adjusted net income for the quarter was $100,256, down from $117,477 in the same quarter of 2023, a decline of 14.6%[35]. Production and Operations - Average daily production increased by 10% year-over-year to 90.7 thousand barrels of oil equivalent per day (Mboe/d), including 38.9 thousand barrels of oil per day (Mbbls/d)[5]. - Oil production for the quarter was 3,579 MBbls, up from 3,024 MBbls in the same quarter of 2023, reflecting an 18.3% increase[21]. - Average daily oil production increased to 38,902 Bbls/d from 32,867 Bbls/d, marking an 18.4% rise year-over-year[21]. - Total production volumes for Q4 2024 are projected to be approximately 93 Mboe/d, indicating high single-digit year-over-year growth[13]. Expenses and Costs - Lease operating expenses declined to $5.33 per barrel oil equivalent, an 11% decrease from Q1 2024 levels[4]. - Lease operating expenses for the quarter were $44,444 thousand, up from $35,893 thousand in the same quarter of 2023, an increase of 24.3%[23]. - Total operating expenses for the quarter were $204,123 thousand, compared to $167,545 thousand in the same quarter of 2023, an increase of 21.8%[23]. - Average sales price for oil per Bbl decreased to $74.23 from $80.56, a drop of 7.9% year-over-year[21]. - Total adjusted cash operating costs for the quarter were $10.83 per boe, slightly up from $10.68 per boe in the prior year, indicating an increase of 1.4%[39]. - Non-cash costs increased to $13.64 per boe from $11.35 per boe, marking an increase of 20.1%[39]. - General and administrative expenses remained stable at $2.04 per boe, slightly down from $2.06 per boe in the same quarter of 2023[39]. Cash Flow and Investments - Free cash flow generated during the quarter was $126.1 million, with operating income as a percentage of revenue at 39%[5]. - The company repurchased 2.5 million shares for $61.7 million, returning approximately $87.8 million to shareholders, or 70% of free cash flow[6][8]. - Net cash provided by operating activities for the quarter was $217,893, compared to $187,310 in the same quarter last year, an increase of 16.3%[26]. - The company reported a net cash used in investing activities of $129,567, a decrease from $162,390 in the prior year, reflecting a reduction of 20.2%[26]. - Additions to oil and natural gas properties were $104.87 million, compared to $106.67 million in the same quarter of 2023, showing a decrease of 1.7%[42]. - Changes in working capital associated with additions to oil and natural gas properties resulted in a cash outflow of $9.83 million, contrasting with a cash inflow of $17.74 million in the previous year[42]. Capital Expenditures - Capital expenditures for drilling and completions (D&C) were $103.1 million, approximately 42% of adjusted EBITDAX of $243.6 million[3]. - Fourth quarter D&C capital is expected to be approximately $125 million, bringing total capital spending for 2024 to around $470 million[13]. - Magnolia completed approximately $15 million in small royalty and leasehold acquisitions during the quarter to enhance future development areas[10]. Balance Sheet and Financial Position - Cash and cash equivalents at the end of the period were $276,139, down from $401,121 at the end of 2023, representing a decline of 31.2%[28]. - Total assets increased to $2,810,957 as of September 30, 2024, compared to $2,756,216 at the end of 2023, marking a growth of 2.0%[28]. - Total liabilities and equity remained stable at $2,810,957, consistent with total assets, indicating a balanced financial position[28]. - The company’s long-term debt increased slightly to $394,793 from $392,839, reflecting a marginal rise of 0.5%[28].