Magnolia Oil & Gas Announces Final 2021 Dividend Payment

Rhea-AI Summary

Magnolia Oil & Gas Corporation (NYSE: MGY) has declared a semi-annual cash dividend of $0.20 per share for Class A common stock, and $0.20 per Class B unit, payable on March 1, 2022, with a record date of February 14, 2022. The dividend reflects the company's positive 2021 financial results based on oil prices around $55 and natural gas at $2.75. Magnolia aims for sustainable dividends backed by actual earnings, emphasizing cash return and share count reduction while pursuing production growth.

Positive

• Declared semi-annual cash dividend of $0.20 per share, reflecting financial stability.
• Dividend payments are based on actual earnings, indicating strong cash flow generation.
• Share count reduced by 10%, enhancing shareholder value.

Negative

• None.

HOUSTON--(BUSINESS WIRE)-- Magnolia Oil & Gas Corporation (NYSE: MGY) announced today that its Board of Directors declared the final semi-annual cash dividend of $0.20 per share of Class A common stock, and a cash distribution of $0.20 per Class B unit payable on March 1, 2022 to shareholders of record as of February 14, 2022.

We believe our first semi-annual dividend installment of $0.08 per share paid last September to be secure and sustainable with oil prices at less than half their current levels. The final dividend payment of $0.20 per share is based on our actual full-year 2021 financial results, recast using $55 for oil and $2.75 for natural gas, and which approximates our long-term view of product prices. The dividend was included as part of Magnolia’s total cash return to shareholders and done in an environment where we also reduced our fully diluted share count by 10 percent and completed some small bolt-on, accretive oil and gas property acquisitions.

“Our dividend framework is aligned with the characteristics of our business model and reinforces our plan,” said Steve Chazen, Magnolia’s Chairman, President and CEO. “These principles include maintaining our low leverage, limiting our capital spending to allow for consistent and sizable free cash flow generation while providing moderate volume growth and strong pre-tax margins. Part of Magnolia’s total shareholder return proposition is a differentiated approach toward dividends that is meant to appeal to long-term investors who seek dividend safety, dividend growth, and a dividend that is paid out of actual earnings generated by the business. We expect each of these regular dividend payments to grow annually as we continue to execute our business plan which includes mid-single digit annual production growth and the reduction of our outstanding shares.”

About Magnolia Oil & Gas

Magnolia is a publicly traded oil and gas exploration and production company with operations primarily in South Texas in the core of the Eagle Ford Shale and Austin Chalk formations. Magnolia focuses on generating value for shareholders through steady production growth, strong pre-tax margins, and free cash flow. For more information, visit www.magnoliaoilgas.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220202005960/en/

Brian Corales

713-842-9036

bcorales@mgyoil.com

Source: Magnolia Oil & Gas Corporation

FAQ

What is the dividend amount declared by Magnolia Oil & Gas Corporation?

Magnolia Oil & Gas Corporation declared a cash dividend of $0.20 per share for Class A common stock.

When will the dividend for MGY shareholders be paid?

The dividend will be paid on March 1, 2022.

What were the oil and gas prices considered for the dividend declaration?

The dividend was based on oil prices of $55 and natural gas prices of $2.75.

How does Magnolia Oil & Gas ensure dividend sustainability?

Magnolia Oil & Gas focuses on generating actual earnings and maintaining low leverage.