Magnolia Oil & Gas(MGY) ZACKS·2025-02-20 11:50Core Insights - Magnolia Oil & Gas Corporation (MGY) reported a fourth-quarter 2024 net profit of 49 cents per share, exceeding the Zacks Consensus Estimate of 46 cents, driven by increased production volumes despite a decrease from the previous year's profit of 50 cents due to rising operating expenses [1][2] Financial Performance - Total revenues for the quarter were $326.6 million, slightly above the Zacks Consensus Estimate of $326 million, marking a 1.2% increase from $322.6 million in the same quarter last year, attributed to higher revenues from natural gas liquids [2] - The company generated $222.6 million in net cash from operating activities and achieved a free cash flow of $90.3 million [3] - Operating expenses rose to $202.5 million from $184.5 million year over year [11] Dividend and Share Repurchase - Magnolia declared a cash dividend of 15 cents per share for Class A Common stock and Class B units, reflecting a 15.4% increase, resulting in an annualized dividend rate of 60 cents per share, marking the fourth consecutive year of dividend increases since 2021 [4] - In the fourth quarter, the company repurchased 2.2 million Class A Common shares for $55.8 million, totaling 11 million shares repurchased for the full year, leading to a 5% reduction in diluted weighted average share count [5][6] Production and Prices - Average daily total output was 93,096 barrels of oil equivalent per day (boe/d), up from 85,414 boe/d in the year-ago quarter, with oil and gas production increasing by 9% year over year [7] - Oil volumes reached 38,821 barrels per day (bpd), a 9.5% increase from the previous year, while natural gas volumes were 167,079 thousand cubic feet per day (Mcf/d), up 7.9% but below expectations [8] - The average realized crude oil price was $69.01 per barrel, down 12.1% from $77.39 a year ago, and the average sales price of $38.13 per boe compared to $41.06 a year prior [9] Balance Sheet and Capital Expenditure - As of December 31, Magnolia had cash and cash equivalents of $260 million and long-term debt of $392.5 million, with a total debt-to-total capital ratio of 16.6% [10] - The company spent $131.6 million on its capital program in the reported quarter [11] Guidance - For 2025, Magnolia expects drilling and completion capital spending to be between $460 million and $490 million, with production growth anticipated at 5-7% [12][13] - The first quarter of 2025 is projected to have D&C capital spending of around $135 million and total production of approximately 94 thousand boe/d [13]