Financial Performance - Magnolia Oil & Gas Corporation (MGY) reported a second-quarter 2024 net profit of 51 cents per share, an increase from 48 cents in the prior-year quarter, driven by higher production volumes and oil prices [1] - Total revenues for the quarter were 336.7million,missingtheZacksConsensusEstimateof341 million, primarily due to lower-than-expected natural gas revenues, which totaled 18.6millionagainstaconsensusof24.3 million; however, this figure represented a 4.4% increase from 280.3millionintheyear−agoperiod[2]−Thecompanyrecorded269.4 million in net cash from operating activities and achieved a free cash flow of 96.7million,withoperatingincomeconstituting40130 million to shareholders in the second quarter through dividends and share repurchases, having repurchased 4 million shares for 102.7million[4][5]ProductionandPricing−Theaveragedailytotaloutputwas90,207barrelsofoilequivalentperday(boe/d),upfrom81,881boe/dintheyear−agoquarter,exceedingestimatesof89,000boe/d;oilproductionincreasedby11.479.74 per barrel, a 10.8% increase from 71.98ayearago,whilenaturalgaspricesdecreasedby17.91.24 per thousand cubic feet [7] Balance Sheet and Capital Expenditure - As of June 30, Magnolia had cash and cash equivalents of 275.7millionandlong−termdebtof394.1 million, with a total debt-to-total capital ratio of 17% [8] - The company spent 123.4milliononitscapitalprograminthereportedquarter,withoperatingexpensesrisingto202.4 million from 159millioninthepreviousyear[8]FutureGuidance−Magnoliaplanstomaintainitscurrentoperatingtempooftwodrillingrigsandonecompletioncrewthroughout2024,expectingsignificantcostreductionsandoperationalenhancementstodrivehigh−margingrowth[9]−Thecompanyanticipatesfull−year2024capitalspendingtorangefrom450 to 480 million, projecting high single-digit growth in total production compared to 2023 [11] - Third-quarter D&C capital expenditures are estimated at 120 million, with total production expected to reach 91 thousand boe/d [12]
Magnolia Oil & Gas(MGY) ZACKS·2024-08-05 12:21