Magnolia Oil & Gas(US:MGY)2021-05-05 20:04Financial Performance - Magnolia recognized net income attributable to Class A Common Stock of $63.2 million, or $0.37 per diluted common share, for the three months ended March 31, 2021[119]. - Total revenues for the three months ended March 31, 2021 were $207.7 million, compared to $181.4 million for the same period in 2020, reflecting a 14.5% increase[123]. - Oil revenues for the three months ended March 31, 2021 were $146.4 million, accounting for 71% of total revenues, while oil production decreased by 24% compared to the same period in 2020[123]. - Natural gas revenues increased by 111% in average prices, resulting in $34.8 million in total revenues for the three months ended March 31, 2021, which was 17% of total revenues[124]. - NGL revenues increased by 123% in average prices, contributing $26.5 million to total revenues for the three months ended March 31, 2021, representing 13% of total revenues[125]. Production and Operating Costs - Total production for the three months ended March 31, 2021 was 62.3 thousand barrels of oil equivalent per day (Mboe/d), a decrease from 68.4 Mboe/d in the same period of 2020[118]. - The average operating costs per barrel of oil equivalent (boe) for lease operating expenses decreased to $3.46 in Q1 2021 from $3.88 in Q1 2020[127]. - Operating expenses for the three months ended March 31, 2021 totaled $107.8 million, significantly lower than $2.1 billion in the same period of 2020, primarily due to reduced impairment charges[127]. Shareholder Actions - Magnolia's board of directors authorized a share repurchase program of up to 20 million shares, with 7.4 million shares repurchased at an aggregate cost of $59.2 million as of March 31, 2021[120]. - The company repurchased 2.0 million shares of Class A Common Stock for approximately $20.3 million during the three months ended March 31, 2021, compared to 1.0 million shares for $6.5 million in the same period in 2020[146]. Expenses and Impairments - Exploration expenses decreased by $554.4 million, or $89.06 per boe, for the three months ended March 31, 2021, compared to the same period in 2020, due to a prior impairment related to unproved oil and natural gas properties[131]. - The company recognized no impairments for the three months ended March 31, 2021, while it recorded $1.4 billion in impairments for the same period in 2020 due to a decline in commodity prices[132]. - General and administrative (G&A) expenses increased to $2.3 million, or $0.72 per boe, for the three months ended March 31, 2021, driven by costs associated with the termination of the Services Agreement and increased payroll expenses[134]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $118.2 million for the three months ended March 31, 2021, down from $134.9 million for the same period in 2020, impacted by lower oil production[142]. - Total capital expenditures for the three months ended March 31, 2021, were $40.2 million, significantly lower than $101.4 million for the same period in 2020[144]. Debt and Liquidity - As of March 31, 2021, the company had $400.0 million of principal debt related to the 2026 Senior Notes and $628.2 million of liquidity, including $178.2 million in cash[138]. Price Sensitivity - A $1.00 per barrel increase in the weighted average oil price would have increased the company's revenues by approximately $10.4 million on an annualized basis for the three months ended March 31, 2021[150].