Magnolia Oil & Gas(US:MGY)2024-05-08 20:01Financial Performance - For the three months ended March 31, 2024, Magnolia reported net income of $97.6 million, or $0.46 per diluted common share, compared to $85.1 million for the same period in 2023 [106]. - Oil revenues increased to $259.2 million for the three months ended March 31, 2024, up from $239.1 million in the same period of 2023, reflecting a 8.4% increase [112]. - Natural gas revenues decreased to $21.1 million for the three months ended March 31, 2024, down from $27.8 million in the same period of 2023, a decline of 24.5% [114]. - NGL revenues were $39.1 million for the three months ended March 31, 2024, compared to $41.5 million in the same period of 2023, a decrease of 5.8% [115]. - Total operating expenses for the three months ended March 31, 2024 were $194.9 million, an increase from $181.4 million in the same period of 2023, representing a 7.4% rise [117]. - For the three months ended March 31, 2024, income tax expense was $20.3 million, a $0.7 million increase compared to $19.6 million for the same period in 2023, driven by a $7.4 million increase in current income tax expense [126]. - Net cash provided by operating activities was $210.9 million for the three months ended March 31, 2024, compared to $219.8 million for the same period in 2023, impacted by timing of collections and a decrease in realized natural gas and NGL prices [133]. - The company had $3.2 million higher other expenses for the three months ended March 31, 2024, primarily due to the loss on revaluation of contingent consideration liability from an acquisition [124]. Production and Capital Expenditures - Total production for the three months ended March 31, 2024 was 84.8 thousand barrels of oil equivalent per day, an increase from 79.3 thousand boe/d in the same period of 2023, representing a 6.2% growth [105]. - The average price of oil per barrel increased to $75.89 for the three months ended March 31, 2024, compared to $74.24 in the same period of 2023, a 2.2% increase [112]. - Total capital expenditures for the three months ended March 31, 2024, were $120.986 million, down from $138.645 million in the same period of 2023 [135]. Shareholder Returns and Debt - Magnolia's board of directors authorized a share repurchase program of up to 40.0 million shares, with 33.1 million shares repurchased at a cost of $577.3 million as of March 31, 2024 [107]. - The company repurchased 2.4 million shares of Class A Common Stock at a total cost of approximately $52.4 million during the three months ended March 31, 2024 [136]. - Cash dividends declared for the three months ended March 31, 2024, totaled $24.0 million, compared to $22.4 million for the same period in 2023 [138]. - As of March 31, 2024, the company had $400.0 million of principal debt related to the 2026 Senior Notes and $849.3 million of liquidity, which includes $450.0 million of borrowing base capacity and $399.3 million of cash and cash equivalents [129]. Strategic Initiatives - The company acquired oil and gas properties in the Giddings area for approximately $264.1 million in November 2023, with additional contingent cash consideration of up to $40.0 million based on future commodity prices [109]. - Magnolia's capital allocation strategy focuses on reinvesting in its business for moderate and predictable annual volume growth while returning capital to shareholders through dividends and share repurchases [102]. - A $1.00 per barrel increase in the weighted average oil price would have increased the company's revenues by approximately $13.7 million on an annualized basis for the three months ended March 31, 2024 [140]. - The company anticipates its current cash balance and cash flows from operations will be sufficient to meet its cash requirements [128]. - Magnolia's ongoing plan is to continue spending within cash flow on drilling and completing wells while maintaining low financial leverage [135].