Why Is Magnolia Oil & Gas Corp (MGY) Up 1.1% Since Last Earnings Report?

Core Viewpoint - Magnolia Oil & Gas Corp reported a mixed performance in its recent earnings, with adjusted net profit exceeding estimates but total revenues falling short due to lower natural gas revenues. The company is focusing on maintaining operational efficiency and growth in production while managing costs effectively [2][3][9]. Financial Performance - The adjusted net profit for Q2 2024 was 56 cents per share, surpassing the Zacks Consensus Estimate of 51 cents [2]. - Total revenues were $336.7 million, missing the Zacks Consensus Estimate of$341 million, primarily due to lower natural gas revenues of $18.6 million compared to the consensus mark of$24.3 million [3]. - Year-over-year, total revenues increased by 4.4% from $280.3 million [3]. - Net cash from operating activities was$269.4 million, with free cash flow of $96.7 million, and operating income constituted 40$130 million to shareholders in Q2 2024 through dividends and share repurchases [5]. - Magnolia repurchased 4 million shares for $102.7 million during the quarter, with a remaining share repurchase authorization of$5.9 million [4][5]. Production and Pricing - Average daily total output was 90,207 barrels of oil equivalent per day (boe/d), up from 81,881 boe/d year-over-year, exceeding estimates [6]. - Oil production increased by 11.4% to 37,943 barrels per day (bpd), while natural gas volumes rose by 8.7% to 164,641 thousand cubic feet per day (Mcf/d) [6]. - The average realized crude oil price was $79.74 per barrel, a 10.8$1.24 per thousand cubic feet [7]. Balance Sheet and Capital Expenditure - As of June 30, Magnolia had cash and cash equivalents of $275.7 million and long-term debt of$394.1 million, with a total debt-to-total capital ratio of 17% [8]. - The company spent $123.4 million on its capital program in the reported quarter, with operating expenses rising to$202.4 million from $159 million year-over-year [8]. Future Guidance - Magnolia plans to maintain its current operational tempo with two drilling rigs and one completion crew throughout 2024, focusing on multi-well pads in the Giddings area [9]. - Capital expenditures for drilling and completion are projected to range from$450 to $480 million for the full year, with Q3 estimates at$120 million [10]. Market Position - Magnolia Oil & Gas Corp holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months, despite a downward trend in estimates [13].