Magnolia Oil & Gas(US:MGY)2025-10-29 20:00Financial Performance - Magnolia reported a net income of $78.2 million for Q3 2025, a decrease of 26% compared to $105.9 million in Q3 2024[3]. - Adjusted EBITDAX for Q3 2025 was $218.8 million, down 10% from $243.6 million in the same quarter last year[4]. - For the quarter ended September 30, 2025, total revenues were $324,935,000, a slight decrease of 1% compared to $333,135,000 for the same quarter in 2024[22]. - Operating income for the quarter ended September 30, 2025, was $101,464,000, a decrease of 21.5% from $129,012,000 in the same quarter of 2024[22]. - Net income attributable to Class A common stock for the quarter ended September 30, 2025, was $75,456,000, down 24.4% from $99,784,000 in the same quarter of 2024[22]. - Net income for the quarter ended September 30, 2025, was $78,233 thousand, a decrease of 26.3% compared to $105,912 thousand for the same quarter in 2024[30]. - Adjusted EBITDAX for the quarter was $218,818 thousand, down 10.2% from $243,572 thousand in the prior year[30]. - Adjusted net income for the quarter was $77,824 thousand, a decline of 22.3% from $100,256 thousand in the same quarter of 2024[33]. Production and Operations - Average daily production increased by 11% year-over-year to 100.5 Mboe/d, setting a new quarterly record[4]. - The company expects total production growth of approximately 10% for the full year 2025, up from earlier guidance of 5-7%[10]. - Average daily production of oil increased to 39,430 Bbls/d for the quarter ended September 30, 2025, compared to 38,902 Bbls/d in the same quarter of 2024, representing a growth of 1.4%[22]. - Natural gas production rose significantly to 17,515 MMcf for the quarter ended September 30, 2025, up 19.1% from 14,644 MMcf in the same quarter of 2024[22]. - Magnolia plans to maintain two drilling rigs and one completion crew through the remainder of 2025, focusing on multi-well development pads in the Giddings area[9]. Financial Metrics and Cash Flow - Free cash flow generated in Q3 2025 was $133.9 million, with operating income margins at 31%[4]. - Magnolia returned $80.3 million, or 60% of free cash flow, to shareholders through share repurchases and dividends in Q3 2025[4]. - Cash flows from operating activities for the nine months ended September 30, 2025, were $670,243,000, a decrease of 4.0% from $698,223,000 in the same period of 2024[24]. - The company reported a net cash used in investing activities of $400,643,000 for the nine months ended September 30, 2025, compared to $517,014,000 in the same period of 2024[24]. - Free cash flow for the quarter was $133,929 thousand, an increase of 6.9% from $126,117 thousand in Q3 2024[40]. Expenses and Costs - Total operating expenses increased to $223,471,000 for the quarter ended September 30, 2025, compared to $204,123,000 in the same quarter of 2024, reflecting a rise of 9.5%[22]. - The company anticipates a slight decline in lease operating expenses (LOE) to approximately $5.20 per boe in Q4 2025, with full-year LOE expected to be at least 5% lower than 2024 levels[11]. - Total adjusted cash operating costs per boe rose to $11.36, up from $10.83 in the same quarter last year[37]. - Operating income margin decreased to 10.98%, down from 15.45% in Q3 2024[37]. Asset and Revenue Analysis - The average sales price of oil per Bbl decreased to $63.55 for the quarter ended September 30, 2025, down 14.3% from $74.23 in the same quarter of 2024[22]. - Revenue per barrel of oil equivalent (boe) decreased to $35.14 in Q3 2025, down 12.0% from $39.92 in Q3 2024[37]. - Cash and cash equivalents increased to $280,485 thousand as of September 30, 2025, compared to $260,049 thousand at December 31, 2024, reflecting a growth of 8.3%[26]. - Total assets increased to $2,923,584 thousand as of September 30, 2025, up from $2,820,835 thousand at December 31, 2024, representing a growth of 3.65%[26]. Capital Expenditures - Capital expenditures for drilling and completions in Q3 2025 were $118.4 million, representing 54% of adjusted EBITDAX[4]. - Fourth quarter 2025 D&C capital spending is estimated at $110 million, bringing total capital spending for the year to approximately $450 million[10].