Magnolia Oil & Gas(US:MGY)2022-08-03 20:05Financial Performance - Magnolia Oil & Gas reported net income attributable to Class A Common Stock of $250.6 million for Q2 2022, translating to $1.32 per diluted share, compared to $416.6 million or $2.22 per diluted share for the six months ended June 30, 2022[116]. - Magnolia's total revenues for Q2 2022 were $484.6 million, compared to $252.1 million in Q2 2021, marking a 92% year-over-year increase[127]. - For the six months ended June 30, 2022, total revenues were $862.5 million, a 87% increase from $461.2 million in the same period of 2021[140]. - Net cash provided by operating activities for the six months ended June 30, 2022, was $618.0 million, compared to $306.0 million for the same period in 2021, reflecting a 102% increase[159]. Revenue Breakdown - Oil revenues for Q2 2022 reached $332.8 million, a 76% increase from $188.7 million in Q2 2021, driven by a 70% increase in average oil prices[127]. - Natural gas revenues increased by 156% to $85.3 million in Q2 2022 from $33.3 million in Q2 2021, supported by a 104% rise in average prices[128]. - NGL revenues rose to $66.5 million in Q2 2022, up 121% from $30.0 million in Q2 2021, with an 81% increase in average prices contributing significantly[129]. - Oil revenues for the six months ended June 30, 2022, were $595.5 million, up $259.8 million from $335.7 million in 2021, driven by a 67% increase in average prices[140]. - Natural gas revenues increased to $141.9 million, a $72.9 million rise compared to $69.0 million in 2021, attributed to a 67% increase in average prices and a 23% increase in production[141][142]. - NGL revenues rose to $125.1 million, an increase of $68.6 million from $56.5 million in 2021, due to an 81% increase in average prices[143]. Production and Operations - Total production for Q2 2022 was 74.2 thousand barrels of oil equivalent per day, a 14% increase from 64.9 thousand boe/d in Q2 2021[127]. - The average daily production for the six months ended June 30, 2022, was 73,024 boe/d, compared to 63,611 boe/d in 2021, indicating a 15% increase[140]. - The company operated a two-rig program during Q2 2022, focusing on multi-well development pads in the Giddings area[115]. - The company operated a two-rig program during the second quarter of 2022, focusing on multi-well development pads in the Giddings area[162]. Expenses and Capital Expenditures - Total operating expenses for the six months ended June 30, 2022, were $298.4 million, compared to $232.1 million in 2021, reflecting higher lease operating expenses and gathering, transportation, and processing costs[145]. - Lease operating expenses for the six months ended June 30, 2022, were $61.3 million, a $20.0 million increase from $41.4 million in 2021[145]. - Total capital expenditures for the six months ended June 30, 2022, were $207.5 million, up from $94.4 million in 2021, representing a 120% increase[162]. Shareholder Returns and Liquidity - The company declared a semi-annual cash dividend of $0.20 per share, totaling approximately $37.3 million, paid on March 1, 2022[117]. - The company declared a cash dividend of $0.20 per share of Class A Common Stock totaling $37.3 million, with $37.2 million paid as of June 30, 2022[167]. - As of June 30, 2022, Magnolia had repurchased 17.7 million shares at a cost of $246.3 million under its share repurchase program[118]. - The company repurchased 3.6 million shares of Class A Common Stock for approximately $81.7 million during the six months ended June 30, 2022[163]. - As of June 30, 2022, the company had $951.9 million in liquidity, including $450.0 million of borrowing base capacity and $501.9 million in cash and cash equivalents[154]. - As of June 30, 2022, Magnolia had $501.9 million in cash and cash equivalents[155]. Other Financial Information - Other income for the six months ended June 30, 2022, was $6.7 million, primarily from an earnout payment related to a previous sale[151]. - Magnolia's acquisitions during the six months ended June 30, 2022, were individually insignificant, totaling $4.3 million[160]. - The company experienced a net change in cash and cash equivalents of $134.9 million for the six months ended June 30, 2022, compared to a decrease of $2.3 million in 2021[157]. - A $1.00 per barrel increase in the weighted average oil price would increase revenues by approximately $11.7 million annually, while a $0.10 per Mcf increase in natural gas price would increase revenues by approximately $5.0 million annually[169]. - Magnolia owned approximately 86.9% of the interest in Magnolia LLC as of June 30, 2022, with noncontrolling interest at approximately 13.1%[165].