Q3 2025 Financial Results Conference Call Slides This presentation may contain forward-looking statements which are inherently difficult to predict. Actual results and outcomes could differ materially for a variety of reasons, including, among others, fluctuations in foreign exchange rates, changes in global economic conditions, tariff and trade policies, and customer demand and spending, inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online c ...

Core Insights - Magnolia achieved a record quarterly total production rate of 100,500 barrels of oil equivalent per day in Q3 2025, reflecting an 11% year-over-year growth [1][14][19] - The company emphasizes a disciplined capital allocation strategy aimed at generating consistent and sustainable free cash flow, despite recent declines in product prices [2][3] - Magnolia plans to maintain a capital spending limit of 55% of adjusted EBITDAX, ensuring financial flexibility and operational efficiency [10][12][77] Production and Financial Performance - Total production growth for 2025 is expected to be approximately 10%, exceeding initial guidance of 5% to 7% [5][18] - Adjusted EBITDAX for Q3 was $219 million, with operating income margins at 31% [6][13] - Free cash flow generated in Q3 was $134 million, with 60% returned to shareholders through share repurchases and dividends [7][14] Capital Management and Shareholder Returns - The company ended Q3 with a cash balance of $280 million, the highest level of the year, and plans to allocate approximately $110 million in capital spending for Q4 [8][17] - Magnolia has a consistent share repurchase program, having repurchased over 79.4 million shares since its inception, leading to a 26% reduction in weighted average diluted shares outstanding [15][16] - The quarterly dividend has increased by 15% to $0.15 per share, reflecting the company's commitment to returning value to shareholders [16][17] Operational Efficiency and Future Outlook - Magnolia's operational efficiencies have led to reduced lease operating expenses and improved production efficiencies, particularly in water handling and fluid management [8][9][62] - The company plans to operate two drilling rigs and one completion crew in 2026, with a focus on appraisal activities in Giddings and Karnes areas [11][12] - Future production growth is anticipated to be mid-single-digit, with capital spending levels similar to 2025, allowing for significant free cash flow generation [11][19] Market Position and Strategic Initiatives - Magnolia continues to explore bolt-on acquisitions to enhance its asset base, leveraging its subsurface knowledge and operational expertise [3][26] - The company remains unhedged on all oil and natural gas production, with price differentials expected to be approximately $3 per barrel discount to Magellan East Houston [19][20] - Magnolia's strong balance sheet, with $730 million in total liquidity, positions it well to navigate a volatile pricing environment [17][18]

Financial Data and Key Metrics Changes - The company experienced a significant free cash flow generation during Q3, which was a primary driver for the uptick in buybacks, marking the highest buyback since Q4 2022 [5] - Free cash flow guidance remains roughly flat despite adjusted EBITDAX moving down and CapEx increasing, with a target of $575 million for free cash flow [20][21] Business Line Data and Key Metrics Changes - The company successfully acquired remaining unleased Utica rights underlying the Apex footprint, enhancing its operational leverage [7] - Drilling costs for Utica have decreased from approximately $2,200 per foot to $1,750 per foot, representing a nearly 20% reduction [33][55] Market Data and Key Metrics Changes - The company remains bullish on long-term demand for natural gas in the Appalachia region, particularly with the potential for AI-generated demand [38] - There is an increasing need for additional pipeline infrastructure to transport low-cost gas from the basin to demand centers [39] Company Strategy and Development Direction - The company plans to maintain a "maintenance mode" for production in 2026, focusing on generating free cash flow and responding flexibly to market conditions [11] - The strategy includes a focus on operational efficiency and cost reduction in drilling, with plans to develop the Utica field without significant exploration [25][30] Management's Comments on Operating Environment and Future Outlook - Management expects to see a concentration of completion activities in Q4 and Q1, with flexibility to adapt to the pricing environment in 2026 [43] - The company is open to M&A opportunities but will prioritize internal capital allocation unless a compelling external opportunity arises [12] Other Important Information - The company is awaiting the notice of final rulemaking on 45Z, with expectations for confirmation of a $30 million annual run rate once finalized [10] - Infrastructure spending will be more efficient moving forward, with a focus on adding a few pads per year rather than large-scale midstream build-outs [50][51] Q&A Session Summary Question: What drove the uptick in buybacks during Q3? - The primary driver was significant free cash flow generation, with the business valuation viewed as attractive relative to its intrinsic value [5] Question: Can you provide an update on the Utica acquisition? - The company acquired remaining unleased Utica rights and plans to leverage existing infrastructure for development [7] Question: What is the outlook for free cash flow guidance? - Free cash flow guidance remains roughly flat, with adjustments based on working capital fluctuations [20][21] Question: What are the plans for drilling and operational efficiency? - The focus will be on reducing drilling costs and increasing efficiency, with a target of $1,750 per foot for Utica [33][55] Question: How does the company view the current market for M&A? - The company is open to opportunities but will prioritize internal capital allocation unless a more attractive external opportunity arises [12] Question: What is the company's strategy for infrastructure development? - Infrastructure spending will be more efficient, focusing on a few pads per year rather than large-scale projects [50][51]

Financial Data and Key Metrics Changes - The company has maintained its expectation for EBITDA margins of around 16% in 2026, with an anticipated 100 basis points of expansion each year [23][28] - The company reported a 1% drag on pricing in the recent quarter, which was in line with expectations [42][46] Business Line Data and Key Metrics Changes - The company is seeing strong growth in its Boulder Canyon brand, which is the number one potato chip brand in the natural channel, with velocities up about 35% [80] - The On the Border brand is experiencing short-term challenges, but management believes these issues are not structural and can be addressed [76][78] Market Data and Key Metrics Changes - The company has a 1.9% market share in California, which represents a significant opportunity as the state accounts for about 10% of the salty snacks category in the U.S. [41] - Expansion markets such as Florida, Illinois, Colorado, and Missouri are averaging about 6% growth, outperforming the average expansion market share [114][115] Company Strategy and Development Direction - The company plans to make incremental investments to support its expansion into California, leveraging a proven playbook from previous market entries [26][27] - The strategy focuses on holding core markets while expanding into new geographies, with a strong emphasis on innovation and communication to drive growth [111][112] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the salty snacks category, noting that consumer participation is increasing and the pricing environment remains rational [120][121] - The company is committed to increasing marketing investments, particularly in retail media, to drive consumer engagement and support brand growth [124][125] Other Important Information - The company is addressing recent challenges related to potato supply quality, which impacted gross margins, but expects these issues to be isolated and resolved [61][66] - The company is focused on productivity improvements and supply chain optimization to enhance operational efficiency and support top-line growth [98][102] Q&A Session Summary Question: Can you elaborate on the California route acquisition and its impact? - Management indicated that the acquired network will allow for product introduction in early 2026, with confidence in driving growth through existing customer relationships [40] Question: What is the outlook for pricing and volume mix? - The company experienced a 1% drag on pricing but expects to manage this through effective revenue management strategies [46][47] Question: How does the competitive landscape affect the company? - Management views competitor innovations as a net positive for the category, as they can drive consumer interest and engagement [88][90] Question: What are the expectations for market share dynamics? - The company is seeing incremental market share gains in core markets, driven by strong relationships with retailers and effective execution [111][112] Question: What is the company's approach to innovation? - Management believes that innovation can drive category growth and is focused on simplifying ingredients and addressing consumer trends [130][133]

Financial Performance - The company reported Adjusted EBITDA of $1320 million in the third quarter[10] - Total Segment Margin was $146576 thousand in the third quarter[13, 21] - Available Cash Before Reserves was $35482 thousand in Q3 2025, with a Common Unit Distribution Coverage Ratio of 176x[17, 23] - The company exited the third quarter with a leverage ratio of 541x, aiming to improve the balance sheet and maintain the ratio near 40x[10] Operational Highlights - Shenandoah achieved first oil in late July and ramped up to a targeted rate of 100 kbd in early October[15] - Salamanca achieved first oil at the end of September, expecting production from the first 3 wells to approach 40 kbd, with a fourth well planned for 2Q 2026 potentially reaching 50 kbd[15] - Marine Transportation segment experienced challenging conditions in July and August but rebounded in September and October[15] Liquidity and Capital Allocation - The company has a credit facility with $800 million in commitments[8] - The current quarterly distribution remains $0165 per common unit[8] - To date, the company has repurchased $325 million of Class A convertible preferred securities and 114900 common units at an average price of $909 per unit[10]

Financial Performance - CNX generated $226 million in Q3 2025 free cash flow[3], marking the 23rd consecutive quarter of positive free cash flow generation[3, 5] - The company anticipates approximately $640 million in free cash flow for 2025[5], driven by additional asset sales[5] - CNX has generated approximately $27 billion in free cash flow since Q1 2020[6] - The company's Q3 2025 cash operating margin was 62%[3], with an expected 2025 cash operating margin of 63%[3] - Q3 2025 fully burdened cash costs, before DD&A, were $109 per Mcfe[3], with an expected ~$112 per Mcfe for 2025[3] Capital Allocation - CNX repurchased 61 million shares in Q3 2025 at an average price of $3012 per share, totaling $182 million[5] - Since the inception of the buyback program in 2020, CNX has repurchased approximately 43% of its outstanding shares[3, 5, 12] - CNX has repurchased 957 million shares for $18 billion since Q3 2020 at an average price of $1886[11] Balance Sheet and Guidance - CNX's adjusted net debt increased in the first quarter of 2025 due to the Apex Energy acquisition[13] - The company has significant liquidity under credit facilities, with combined elected commitments of $20 billion[18] - CNX updated its 2025 free cash flow guidance to approximately $640 million, which includes approximately $115 million in expected asset sales[5, 20, 21] - The updated guidance for 2025 FCF per share is ~$475, based on shares outstanding of 134,832,658 as of 10/20/2025[20, 22] Environmental Performance - CNX captured approximately 91 million metric tons of waste methane CO₂e, which is nearly 20 times greater than scope 1 emissions[28]

Financial Performance - Revenue decreased by 2.7% to $31.2 billion in 3Q 2025, compared to $32.1 billion in 3Q 2024[6] - Adjusted EBITDA decreased by 0.7% to $9.7 billion in 3Q 2025, compared to $9.7 billion in 3Q 2024[6] - Adjusted EPS was $1.12 in both 3Q 2025 and 3Q 2024[6] - Free cash flow generation was $4.9 billion in 3Q 2025[7, 13] Connectivity & Platforms - Residential Connectivity revenue increased by 3%, driven by a 14% increase in domestic wireless revenue and a 7% increase in international connectivity revenue[8] - Domestic residential broadband ARPU increased by 2.6%[8] - The company added 414,000 wireless lines, achieving its best quarterly result on record and surpassing 14% penetration of domestic residential broadband customers[8] - Business Services connectivity revenue increased by 4.5%[8] Content & Experiences - Theme Parks revenue increased by 18.7% to $2.717 billion, with Adjusted EBITDA increasing by 13.1% to $958 million[10] - Studios revenue increased by 6.1% to $3.0 billion, while Adjusted EBITDA decreased by 21.9% to $365 million[10] - Media revenue decreased by 19.9%, but increased by 4.2% excluding $1.9 billion of incremental revenue from the Paris Olympics in 3Q 2024[10] Capital Allocation - The company returned $2.8 billion of capital to shareholders in 3Q 2025, including $1.5 billion in share repurchases and $1.2 billion in dividends[7, 12] - Share repurchases reduced total shares outstanding by 5% year-over-year[12]

Earnings Presentation Q3 2025 Results October 30, 2025 Forward-Looking Statements This presentation and other written or oral statements made from time to time by management contain "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995 and involve certain risks and uncertainties. The words "anticipate", "believe", "estimate", "expect", "intend", "will", "would", "could", "can", "should", "targeting", "projecting", "driving", "future", "plan", "predict", "may" and si ...

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Note About Forward-Looking Statements and Non-GAAP Financial Measures This presentation may contain forward-looking statements regarding our business, operations, and financial performance. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to our Forms 10-K and 10-Q, including the risk factors. We undertake no obligation to update any forward-looking statement, except as required by ...