Magnolia Oil & Gas(US:MGY)2023-03-02 19:47Business Overview - Magnolia Oil & Gas focuses on return-driven value creation through debt reduction, share repurchases, dividends, and accretive bolt-on acquisitions[1] - Magnolia operates in South Texas, primarily targeting the Eagle Ford and Austin Chalk formations[11] - The company has a net acreage position of approximately 482,000 acres, including ~23,300 acres in Karnes County and ~460,000 acres in the Giddings area[20] Financial Strategy - Magnolia limits its drilling and completion (D&C) capital spending to 55% of annual Adjusted EBITDAX to generate significant free cash flow[15] - The company had $400 million of principal debt outstanding and $675 million in cash as of December 31, 2022[25] - Magnolia's operating income margins were 63% during 2022[23] Shareholder Returns - Magnolia increased its dividend by 15% in 2023 to $0.46 per share annually[25] - Since Q3 2019, Magnolia has repurchased 52.3 million shares of its stock, representing approximately 20% of the diluted shares outstanding as of the authorization date[25, 34] - Magnolia plans to continue to opportunistically repurchase at least 1% of the total shares outstanding each quarter[35] Asset Development - Since inception, Magnolia has closed ~$456 million in bolt-on acquisitions, increasing its Karnes net acreage position by ~40% and Giddings by 33%[5] - 4Q22 production at Giddings has increased 23% YOY[43] - Magnolia has successfully transitioned 70,000 acres in the Giddings Field to development[64]