Magnolia Oil & Gas(US:MGY)2025-10-30 20:02Financial Performance - For the three months ended September 30, 2025, Magnolia reported net income of $75.5 million, or $0.40 per diluted common share, compared to $256.5 million, or $1.36 per diluted common share for the same period in 2024[115]. - Magnolia's total revenues for the three months ended September 30, 2025, were $324.9 million, compared to $333.1 million for the same period in 2024[123]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $670.2 million, a decrease from $698.2 million for the same period in 2024[143]. - Total capital expenditures for the nine months ended September 30, 2025, were $350.5 million, slightly lower than $351.9 million for the same period in 2024[145]. Revenue Breakdown - Oil revenues for the three months ended September 30, 2025, were $230.5 million, a decrease of $35.2 million from $265.7 million in the same period of 2024, primarily due to a 14% decrease in average prices[123]. - Natural gas revenues increased by $21.0 million to $43.2 million for the three months ended September 30, 2025, driven by a 63% increase in average prices and a 20% increase in production[124]. - NGL revenues for the three months ended September 30, 2025, were $51.2 million, up $6.0 million from the previous year, supported by a 16% increase in production[125]. Production and Operations - Total production for the three months ended September 30, 2025, was 100.5 thousand barrels of oil equivalent per day, an increase from 90.7 thousand boe/d in the same period of 2024[114]. - The company aims for steady organic production growth and significant free cash flow after capital expenditures, prioritizing reinvestment in its business and returning capital to shareholders[111]. Expenses - Total operating expenses for the three months ended September 30, 2025, were $223.5 million, an increase of 9.3% compared to $204.1 million for the same period in 2024[127]. - Gathering, transportation, and processing (GTP) costs for the three months ended September 30, 2025, were $17.7 million, or $0.64 per boe, higher than the same period in 2024[129]. - Taxes other than income for the three months ended September 30, 2025, increased by $2.1 million to $20.4 million compared to the same period in 2024[130]. - Depreciation, depletion, and amortization (DD&A) for the three months ended September 30, 2025, was $110.6 million, an increase of $3.3 million compared to the same period in 2024[131]. - General and administrative expenses for the three months ended September 30, 2025, were $24.2 million, an increase of $3.0 million compared to the same period in 2024[132]. - Interest expense, net, for the three months ended September 30, 2025, was $5.4 million, an increase of $1.5 million compared to the same period in 2024[133]. Shareholder Returns - The company declared cash dividends totaling $85.3 million to holders of its Class A Common Stock during the nine months ended September 30, 2025[117]. - The Company declared and paid cash dividends totaling $85.3 million to holders of its Class A Common Stock during the nine months ended September 30, 2025, an increase from $72.5 million in 2024[148]. - As of September 30, 2025, Magnolia had repurchased 44.8 million shares of Class A Common Stock at a cost of $859.9 million, with 5.2 million shares remaining under its repurchase authorization[118]. - During the nine months ended September 30, 2025, the Company repurchased 6.5 million shares for a total cost of approximately $152.1 million, compared to 5.3 million shares for $127.0 million in the same period of 2024[146]. Liquidity and Financial Position - As of September 30, 2025, the company had $730.5 million of liquidity, comprised of $450.0 million of borrowing capacity under the RBL Facility and $280.5 million of cash and cash equivalents[139]. - The Company had no borrowings outstanding under the RBL Facility as of September 30, 2025[149]. Market Risks - The Company is subject to market risk exposure related to changes in interest rates and commodity prices, which are expected to remain volatile[150]. - A $1.00 per barrel increase in the weighted average oil price would increase the Company's revenues by approximately $14.4 million on an annualized basis[150]. - A $0.10 per Mcf increase in the weighted average natural gas price would increase the Company's revenues by approximately $6.8 million on an annualized basis[150]. Taxation - Current income tax expense for the three months ended September 30, 2025, was $(32.3) million, a decrease of $31.8 million compared to the same period in 2024[136].