Magnolia Oil & Gas Corporation Announces Third Quarter 2024 Results
Magnolia Oil & Gas (NYSE: MGY) reported Q3 2024 financial results with net income of $105.9 million ($0.52 per diluted share), down 10% year-over-year. Total production increased 10% to 90.7 thousand barrels of oil equivalent per day, with oil production at 38.9 thousand barrels per day. The company generated free cash flow of $126.1 million and maintained strong operational efficiency with reduced lease operating expenses. Magnolia returned 70% of free cash flow to shareholders through $61.7 million in share repurchases and dividends. The company ended the quarter with $276.1 million cash balance and expects Q4 production of approximately 93 Mboe/d.
Magnolia Oil & Gas (NYSE: MGY) ha riportato i risultati finanziari del terzo trimestre 2024, con un utile netto di 105,9 milioni di dollari (0,52 dollari per azione diluita), in calo del 10% rispetto all'anno precedente. La produzione totale è aumentata del 10% raggiungendo 90,7 mila barili di equivalente petrolio al giorno, con una produzione di petrolio pari a 38,9 mila barili al giorno. L'azienda ha generato flusso di cassa libero di 126,1 milioni di dollari e ha mantenuto una forte efficienza operativa, riducendo le spese di funzionamento degli affitti. Magnolia ha restituito il 70% del flusso di cassa libero agli azionisti attraverso 61,7 milioni di dollari in riacquisti di azioni e dividendi. Alla fine del trimestre, l'azienda disponeva di un saldo di cassa di 276,1 milioni di dollari e prevede una produzione nel quarto trimestre di circa 93 Mboe/d.
Magnolia Oil & Gas (NYSE: MGY) reportó los resultados financieros del tercer trimestre de 2024, con ingresos netos de 105.9 millones de dólares (0.52 dólares por acción diluida), una disminución del 10% en comparación con el año anterior. La producción total aumentó un 10% alcanzando 90.7 mil barriles de equivalente de petróleo por día, siendo la producción de petróleo de 38.9 mil barriles por día. La compañía generó flujo de caja libre de 126.1 millones de dólares y mantuvo una fuerte eficiencia operativa con gastos de operación por arrendamiento reducidos. Magnolia devolvió el 70% del flujo de caja libre a los accionistas a través de 61.7 millones de dólares en recompra de acciones y dividendos. Al final del trimestre, la compañía tenía un saldo de efectivo de 276.1 millones de dólares y espera una producción en el cuarto trimestre de aproximadamente 93 Mboe/d.
마그놀리아 오일 & 가스 (NYSE: MGY)는 2024년 3분기 재무 결과를 보고하였으며, 순이익이 1억 5,900만 달러 (희석주당 0.52 달러)로 지난해 대비 10% 감소했습니다. 총 생산량은 10% 증가하여 하루 90.7천 배럴의 석유등가를 기록하였으며, 석유 생산량은 하루 38.9천 배럴입니다. 회사는 1억 2,610만 달러의 잉여 현금을 생성하였고, 운영 비용을 절감하여 높은 운영 효율성을 유지하였습니다. 마그놀리아는 6,170만 달러의 자사주 매입 및 배당금을 통해 잉여 현금 흐름의 70%를 주주에게 반환했습니다. 분기를 마감할 때 회사는 2억 7,610만 달러의 현금을 보유하고 있었고, 4분기 생산량은 약 93 Mboe/d로 예상하고 있습니다.
Magnolia Oil & Gas (NYSE: MGY) a publié les résultats financiers du troisième trimestre 2024, avec un revenu net de 105,9 millions de dollars (0,52 dollar par action diluée), en baisse de 10 % par rapport à l'année précédente. La production totale a augmenté de 10 % pour atteindre 90,7 mille barils équivalent pétrole par jour, avec une production de pétrole de 38,9 mille barils par jour. L'entreprise a généré 126,1 millions de dollars de flux de trésorerie disponible et a maintenu une forte efficacité opérationnelle avec des coûts d'exploitation réduits. Magnolia a restitué 70 % du flux de trésorerie disponible aux actionnaires grâce à 61,7 millions de dollars en rachats d'actions et dividendes. À la fin du trimestre, la société disposait d'un solde de trésorerie de 276,1 millions de dollars et s'attend à une production d'environ 93 Mboe/d pour le quatrième trimestre.
Magnolia Oil & Gas (NYSE: MGY) hat die finanziellen Ergebnisse für das 3. Quartal 2024 bekannt gegeben, mit einem Nettoeinkommen von 105,9 Millionen US-Dollar (0,52 US-Dollar pro verwässerter Aktie), was einem Rückgang von 10% im Jahresvergleich entspricht. Die Gesamtproduktion stieg um 10% auf 90.7 Tausend Barrel Öleinheiten pro Tag, dabei betrug die Ölproduktion 38,9 Tausend Barrel pro Tag. Das Unternehmen erwirtschaftete 126,1 Millionen US-Dollar an freiem Cashflow und hielt eine starke Betriebseffizienz bei reduzierten Betriebskosten. Magnolia gab 70% des freien Cashflows an die Aktionäre zurück durch 61,7 Millionen US-Dollar in Aktienrückkäufen und Dividenden. Zum Ende des Quartals verfügte das Unternehmen über einen Bargeldbestand von 276,1 Millionen US-Dollar und rechnet mit einer Produktion im 4. Quartal von etwa 93 Mboe/d.
- 10% year-over-year increase in total production to 90.7 Mboe/d
- Free cash flow generation of $126.1 million
- 11% decline in lease operating expenses from Q1 2024
- 39% pre-tax operating margins
- 70% of free cash flow returned to shareholders
- Undrawn $450 million revolving credit facility
- 10% decrease in net income year-over-year to $105.9 million
- 55% reduction in cash balance to $276.1 million from prior year
- 15% decline in adjusted net income to $100.3 million
Insights
Strong Q3 performance with notable operational efficiency gains. Net income of
Capital discipline remains strong with
The unhedged position in oil and gas production, combined with efficient cost management and production growth, positions MGY well in the current commodity price environment. The
Share count reduction of
Third Quarter 2024 Highlights:
(In millions, except per share data) |
For the Quarter Ended September 30, 2024 |
For the Quarter Ended September 30, 2023 |
Percentage increase (decrease) |
|||
Net income |
$ |
105.9 |
$ |
117.5 |
(10 |
)% |
Adjusted net income(1) |
$ |
100.3 |
$ |
117.5 |
(15 |
)% |
Earnings per share - diluted |
$ |
0.52 |
$ |
0.54 |
(4 |
)% |
Adjusted EBITDAX(1) |
$ |
243.6 |
$ |
239.0 |
2 |
% |
Capital expenditures - D&C |
$ |
103.1 |
$ |
104.3 |
(1 |
)% |
Average daily production (Mboe/d) |
|
90.7 |
|
82.7 |
10 |
% |
Cash balance as of period end |
$ |
276.1 |
$ |
618.5 |
(55 |
)% |
Diluted weighted average total shares outstanding(2) |
|
198.4 |
|
209.1 |
(5 |
)% |
Third Quarter 2024 Highlights:
-
Magnolia reported third quarter 2024 net income attributable to Class A Common Stock of
, or$99.8 million per diluted share. Third quarter 2024 total net income was$0.52 and total adjusted net income(1) was$105.9 million . Diluted weighted average total shares outstanding for third quarter 2024 fell by$100.3 million 5% to 198.4 million(2) compared to third quarter 2023.
-
Adjusted EBITDAX(1) was
during the third quarter of 2024 and total drilling and completions (“D&C”) capital was$243.6 million , or approximately$103.1 million 42% of adjusted EBITDAX. Capital spending for the quarter was well below our earlier guidance, and mainly the result of lower well costs, ongoing efficiencies, and a small delay in timing of activity moving into the fourth quarter.
-
Lease operating expenses experienced a further sequential decline to
per barrel oil equivalent in the third quarter of 2024. This represents an$5.33 11% decline from first quarter 2024 levels and demonstrates further achievements realized from the Company’s field-level optimization and cost reduction program announced earlier this year.
-
Net cash provided by operating activities was
during the third quarter of 2024 and the Company generated free cash flow(1) of$217.9 million . Magnolia generated operating income as a percentage of revenue (pre-tax margins) of$126.1 million 39% during the third quarter.
-
Total production volumes in the third quarter of 2024 grew by
10% on a year-over-year basis to 90.7 thousand barrels of oil equivalent per day (“Mboe/d”) including 38.9 thousand barrels of oil per day (“Mbbls/d”) and were supported by continued strong well performance. Overall, our third quarter production was impacted by multiple unplanned third-party midstream facility outages occurring in the period. Production fromGiddings was 68.7 Mboe/d in the most recent quarter, providing overall growth of12% compared to last year’s third quarter, including oil production growth of24% .
-
The Company repurchased a total of 2.5 million shares of its Class A and Class B Common Stock during the third quarter for
. Magnolia has 3.9 million Class A common shares remaining under its current repurchase authorization, which are specifically allocated toward open market share repurchases.$61.7 million
-
As previously announced, the Board of Directors declared a cash dividend of
per share of Class A common stock, and a cash distribution of$0.13 per Class B unit, payable on December 2, 2024 to shareholders of record as of November 8, 2024.$0.13
-
Magnolia returned approximately
(3) to shareholders, or$87.8 million 70% of our free cash flow(1), during the third quarter through a combination of share repurchases and dividends while ending the period with of cash on the balance sheet and an undrawn$276.1 million revolving credit facility.$450.0 million
(1) |
Adjusted net income, adjusted EBITDAX and free cash flow are non-GAAP financial measures. For reconciliations to the most comparable GAAP measures, please see “Non-GAAP Financial Measures” at the end of this press release. |
(2) |
Weighted average total shares outstanding include diluted weighted average shares of Class A Common Stock outstanding during the period and shares of Class B Common Stock, which are anti-dilutive in the calculation of weighted average number of common shares outstanding. |
(3) |
Includes |
“Magnolia delivered another steady quarter of strong financial results and operational field performance,” said President and CEO Chris Stavros. “We continue to consistently execute our business model which includes disciplined capital spending, delivering moderate production growth, with high pre-tax operating margins, low leverage and significant free cash flow generation. We believe our business model and strategy provides us with a competitive advantage and the ability to serially compound value for our shareholders over time.
“During the third quarter, we continued to grow our production in a highly capitally efficient manner, yielding total volumes of 90.7 thousand barrels of oil equivalent per day and 38.9 thousand barrels per day of oil, despite some unplanned third-party midstream outages. Our team’s continued focus on driving down field-level operating costs has also helped our pre-tax margins and improved our free cash flow. I am very proud of the hard work and concerted effort shown by our operating personnel, helping to provide Magnolia with one of the lowest cost structures in the industry.
“Additionally, we continue to see opportunities to bolt-on small royalty, leasehold and working interest deals in both the
Operational Update
Third quarter 2024 total company production volumes averaged 90.7 Mboe/d including oil production of 38.9 Mbbls/d. Production from
Magnolia continues to operate two drilling rigs and one completion crew. Improvements in well costs and ongoing overall spending efficiencies have provided us with spare capacity within our capital budget, which will allow us to drill an additional four well pad in
Additional Guidance
Factoring in the small amount of delayed activity as well as the additional four well pad, we expect fourth quarter D&C capital to be approximately
Oil price differentials are anticipated to be approximately a
Quarterly Report on Form 10-Q
Magnolia's financial statements and related footnotes will be available in its Quarterly Report on Form 10-Q for the three months ended September 30, 2024, which is expected to be filed with the
Conference Call and Webcast
Magnolia will host an investor conference call on Thursday, October 31 at 10:00 a.m. Central (11:00 a.m. Eastern) to discuss these operating and financial results. Interested parties may join the webcast by visiting Magnolia's website at www.magnoliaoilgas.com/investors/events-and-presentations and clicking on the webcast link or by dialing 1-844-701-1059. A replay of the webcast will be posted on Magnolia's website following completion of the call.
About Magnolia Oil & Gas Corporation
Magnolia (MGY) is a publicly traded oil and gas exploration and production company with operations primarily in
Cautionary Note Regarding Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Magnolia’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, the words could, should, will, may, believe, anticipate, intend, estimate, expect, project, the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events. Except as otherwise required by applicable law, Magnolia disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Magnolia cautions you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Magnolia, incident to the development, production, gathering and sale of oil, natural gas and natural gas liquids. In addition, Magnolia cautions you that the forward looking statements contained in this press release are subject to the following factors: (i) the supply and demand for oil, natural gas, NGLs, and other products or services, including impacts of actions taken by OPEC and other state-controlled oil companies; (ii) the outcome of any legal proceedings that may be instituted against Magnolia; (iii) Magnolia’s ability to realize the anticipated benefits of its acquisitions, which may be affected by, among other things, competition and the ability of Magnolia to grow and manage growth profitably; (iv) changes in applicable laws or regulations; (v) geopolitical and business conditions in key regions of the world; and (vi) the possibility that Magnolia may be adversely affected by other economic, business, and/or competitive factors, including inflation. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in Magnolia’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Magnolia’s SEC filings are available publicly on the SEC’s website at www.sec.gov.
Magnolia Oil & Gas Corporation |
||||||||||||||||
Operating Highlights |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
For the Quarters Ended |
|
For the Nine Months Ended |
||||||||||||
|
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
||||||||
Production: |
|
|
|
|
|
|
|
|
||||||||
Oil (MBbls) |
|
|
3,579 |
|
|
|
3,024 |
|
|
|
10,447 |
|
|
|
9,345 |
|
Natural gas (MMcf) |
|
|
14,644 |
|
|
|
14,406 |
|
|
|
43,375 |
|
|
|
40,839 |
|
Natural gas liquids (MBbls) |
|
|
2,325 |
|
|
|
2,179 |
|
|
|
6,592 |
|
|
|
6,045 |
|
Total (Mboe) |
|
|
8,345 |
|
|
|
7,604 |
|
|
|
24,269 |
|
|
|
22,196 |
|
|
|
|
|
|
|
|
|
|
||||||||
Average daily production: |
|
|
|
|
|
|
|
|
||||||||
Oil (Bbls/d) |
|
|
38,902 |
|
|
|
32,867 |
|
|
|
38,128 |
|
|
|
34,229 |
|
Natural gas (Mcf/d) |
|
|
159,170 |
|
|
|
156,585 |
|
|
|
158,302 |
|
|
|
149,594 |
|
Natural gas liquids (Bbls/d) |
|
|
25,271 |
|
|
|
23,686 |
|
|
|
24,060 |
|
|
|
22,142 |
|
Total (boe/d) |
|
|
90,702 |
|
|
|
82,651 |
|
|
|
88,572 |
|
|
|
81,303 |
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues (in thousands): |
|
|
|
|
|
|
|
|
||||||||
Oil revenues |
|
$ |
265,682 |
|
|
$ |
243,588 |
|
|
$ |
800,195 |
|
|
$ |
705,857 |
|
Natural gas revenues |
|
|
22,207 |
|
|
|
27,069 |
|
|
|
61,871 |
|
|
|
75,687 |
|
Natural gas liquids revenues |
|
|
45,246 |
|
|
|
45,021 |
|
|
|
127,211 |
|
|
|
122,807 |
|
Total Revenues |
|
$ |
333,135 |
|
|
$ |
315,678 |
|
|
$ |
989,277 |
|
|
$ |
904,351 |
|
|
|
|
|
|
|
|
|
|
||||||||
Average sales price: |
|
|
|
|
|
|
|
|
||||||||
Oil (per Bbl) |
|
$ |
74.23 |
|
|
$ |
80.56 |
|
|
$ |
76.59 |
|
|
$ |
75.54 |
|
Natural gas (per Mcf) |
|
|
1.52 |
|
|
|
1.88 |
|
|
|
1.43 |
|
|
|
1.85 |
|
Natural gas liquids (per Bbl) |
|
|
19.46 |
|
|
|
20.66 |
|
|
|
19.30 |
|
|
|
20.32 |
|
Total (per boe) |
|
$ |
39.92 |
|
|
$ |
41.52 |
|
|
$ |
40.76 |
|
|
$ |
40.74 |
|
|
|
|
|
|
|
|
|
|
||||||||
NYMEX WTI (per Bbl) |
|
$ |
75.16 |
|
|
$ |
82.18 |
|
|
$ |
77.55 |
|
|
$ |
77.37 |
|
NYMEX Henry Hub (per MMBtu) |
|
$ |
2.16 |
|
|
$ |
2.54 |
|
|
$ |
2.10 |
|
|
$ |
2.69 |
|
Realization to benchmark: |
|
|
|
|
|
|
|
|
||||||||
Oil (% of WTI) |
|
|
99 |
% |
|
|
98 |
% |
|
|
99 |
% |
|
|
98 |
% |
Natural Gas (% of Henry Hub) |
|
|
70 |
% |
|
|
74 |
% |
|
|
68 |
% |
|
|
69 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses (in thousands): |
|
|
|
|
|
|
|
|
||||||||
Lease operating expenses |
|
$ |
44,444 |
|
|
$ |
35,893 |
|
|
$ |
134,945 |
|
|
$ |
115,060 |
|
Gathering, transportation and processing |
|
|
10,676 |
|
|
|
10,297 |
|
|
|
27,668 |
|
|
|
33,419 |
|
Taxes other than income |
|
|
18,269 |
|
|
|
14,823 |
|
|
|
56,011 |
|
|
|
49,331 |
|
Depreciation, depletion and amortization |
|
|
107,336 |
|
|
|
81,158 |
|
|
|
309,155 |
|
|
|
228,868 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating costs per boe: |
|
|
|
|
|
|
|
|
||||||||
Lease operating expenses |
|
$ |
5.33 |
|
|
$ |
4.72 |
|
|
$ |
5.56 |
|
|
$ |
5.18 |
|
Gathering, transportation and processing |
|
|
1.28 |
|
|
|
1.35 |
|
|
|
1.14 |
|
|
|
1.51 |
|
Taxes other than income |
|
|
2.19 |
|
|
|
1.95 |
|
|
|
2.31 |
|
|
|
2.22 |
|
Depreciation, depletion and amortization |
|
|
12.86 |
|
|
|
10.67 |
|
|
|
12.74 |
|
|
|
10.31 |
|
Magnolia Oil & Gas Corporation |
|||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||
(In thousands, except per share data) |
|||||||||||||||
|
|
For the Quarters Ended |
|
For the Nine Months Ended |
|||||||||||
|
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|||||||
REVENUES |
|
|
|
|
|
|
|
|
|||||||
Oil revenues |
|
$ |
265,682 |
|
|
$ |
243,588 |
|
|
$ |
800,195 |
|
|
$ |
705,857 |
Natural gas revenues |
|
|
22,207 |
|
|
|
27,069 |
|
|
|
61,871 |
|
|
|
75,687 |
Natural gas liquids revenues |
|
|
45,246 |
|
|
|
45,021 |
|
|
|
127,211 |
|
|
|
122,807 |
Total revenues |
|
|
333,135 |
|
|
|
315,678 |
|
|
|
989,277 |
|
|
|
904,351 |
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|||||||
Lease operating expenses |
|
|
44,444 |
|
|
|
35,893 |
|
|
|
134,945 |
|
|
|
115,060 |
Gathering, transportation and processing |
|
|
10,676 |
|
|
|
10,297 |
|
|
|
27,668 |
|
|
|
33,419 |
Taxes other than income |
|
|
18,269 |
|
|
|
14,823 |
|
|
|
56,011 |
|
|
|
49,331 |
Exploration expenses |
|
|
491 |
|
|
|
5,128 |
|
|
|
918 |
|
|
|
5,139 |
Asset retirement obligations accretion |
|
|
1,749 |
|
|
|
875 |
|
|
|
5,112 |
|
|
|
2,539 |
Depreciation, depletion and amortization |
|
|
107,336 |
|
|
|
81,158 |
|
|
|
309,155 |
|
|
|
228,868 |
Impairment of oil and natural gas properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,735 |
General and administrative expenses |
|
|
21,158 |
|
|
|
19,371 |
|
|
|
67,547 |
|
|
|
57,863 |
Total operating expenses |
|
|
204,123 |
|
|
|
167,545 |
|
|
|
601,356 |
|
|
|
507,954 |
|
|
|
|
|
|
|
|
|
|||||||
OPERATING INCOME |
|
|
129,012 |
|
|
|
148,133 |
|
|
|
387,921 |
|
|
|
396,397 |
|
|
|
|
|
|
|
|
|
|||||||
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|||||||
Interest income (expense), net |
|
|
(3,856 |
) |
|
|
1,034 |
|
|
|
(9,683 |
) |
|
|
372 |
Other income (expense), net |
|
|
7,286 |
|
|
|
(479 |
) |
|
|
4,018 |
|
|
|
7,643 |
Total other income (expense), net |
|
|
3,430 |
|
|
|
555 |
|
|
|
(5,665 |
) |
|
|
8,015 |
|
|
|
|
|
|
|
|
|
|||||||
INCOME BEFORE INCOME TAXES |
|
|
132,442 |
|
|
|
148,688 |
|
|
|
382,256 |
|
|
|
404,412 |
|
|
|
|
|
|
|
|
|
|||||||
Current income tax expense (benefit) |
|
|
(480 |
) |
|
|
19,262 |
|
|
|
21,676 |
|
|
|
27,450 |
Deferred income tax expense |
|
|
27,010 |
|
|
|
11,949 |
|
|
|
51,958 |
|
|
|
48,213 |
Total income tax expense |
|
|
26,530 |
|
|
|
31,211 |
|
|
|
73,634 |
|
|
|
75,663 |
|
|
|
|
|
|
|
|
|
|||||||
NET INCOME |
|
|
105,912 |
|
|
|
117,477 |
|
|
|
308,622 |
|
|
|
328,749 |
LESS: Net income attributable to noncontrolling interest |
|
|
6,128 |
|
|
|
15,447 |
|
|
|
28,193 |
|
|
|
38,893 |
NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK |
|
$ |
99,784 |
|
|
$ |
102,030 |
|
|
$ |
280,429 |
|
|
$ |
289,856 |
|
|
|
|
|
|
|
|
|
|||||||
NET INCOME PER COMMON SHARE |
|
|
|
|
|||||||||||
Basic |
|
$ |
0.52 |
|
|
$ |
0.54 |
|
|
$ |
1.50 |
|
|
$ |
1.51 |
Diluted |
|
$ |
0.52 |
|
|
$ |
0.54 |
|
|
$ |
1.50 |
|
|
$ |
1.51 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
|
|
|
|
|||||||||||
Basic |
|
|
187,859 |
|
|
|
187,093 |
|
|
|
185,065 |
|
|
|
189,408 |
Diluted |
|
|
187,871 |
|
|
|
187,265 |
|
|
|
185,096 |
|
|
|
189,612 |
WEIGHTED AVERAGE NUMBER OF CLASS B SHARES OUTSTANDING (1) |
|
|
10,544 |
|
|
|
21,827 |
|
|
|
16,174 |
|
|
|
21,827 |
DILUTED WEIGHTED AVERAGE TOTAL SHARES OUTSTANDING (1) |
|
|
198,415 |
|
|
|
209,092 |
|
|
|
201,270 |
|
|
|
211,439 |
(1) |
Shares of Class B Common Stock, and corresponding Magnolia LLC Units, are anti-dilutive in the calculation of weighted average number of common shares outstanding. |
Magnolia Oil & Gas Corporation |
||||||||||||||||
Summary Cash Flow Data |
||||||||||||||||
(In thousands) |
||||||||||||||||
|
|
For the Quarters Ended |
|
For the Nine Months Ended |
||||||||||||
|
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
||||||||||||
NET INCOME |
|
$ |
105,912 |
|
|
$ |
117,477 |
|
|
$ |
308,622 |
|
|
$ |
328,749 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depreciation, depletion and amortization |
|
|
107,336 |
|
|
|
81,158 |
|
|
|
309,155 |
|
|
|
228,868 |
|
Exploration expenses, non-cash |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
9 |
|
Impairment of oil and natural gas properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,735 |
|
Asset retirement obligations accretion |
|
|
1,749 |
|
|
|
875 |
|
|
|
5,112 |
|
|
|
2,539 |
|
Amortization of deferred financing costs |
|
|
1,116 |
|
|
|
1,073 |
|
|
|
3,305 |
|
|
|
3,173 |
|
Gain on sale of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,946 |
) |
Deferred income tax expense |
|
|
27,010 |
|
|
|
11,949 |
|
|
|
51,958 |
|
|
|
48,213 |
|
Gain on revaluation of contingent consideration |
|
|
(7,009 |
) |
|
|
— |
|
|
|
(3,808 |
) |
|
|
— |
|
Stock based compensation |
|
|
4,707 |
|
|
|
4,197 |
|
|
|
14,161 |
|
|
|
12,060 |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
2,921 |
|
|
|
— |
|
Net change in operating assets and liabilities |
|
|
(22,928 |
) |
|
|
(29,419 |
) |
|
|
6,796 |
|
|
|
(26,493 |
) |
Net cash provided by operating activities |
|
|
217,893 |
|
|
|
187,310 |
|
|
|
698,223 |
|
|
|
608,907 |
|
|
|
|
|
|
|
|
|
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
||||||||||||
Acquisitions |
|
|
(14,823 |
) |
|
|
(50,456 |
) |
|
|
(164,995 |
) |
|
|
(53,812 |
) |
Deposits for acquisitions of oil and natural gas properties (1) |
|
|
— |
|
|
|
(22,503 |
) |
|
|
— |
|
|
|
(22,503 |
) |
Additions to oil and natural gas properties |
|
|
(104,872 |
) |
|
|
(106,668 |
) |
|
|
(351,935 |
) |
|
|
(332,055 |
) |
Changes in working capital associated with additions to oil and natural gas properties |
|
|
(9,832 |
) |
|
|
17,735 |
|
|
|
455 |
|
|
|
(21,688 |
) |
Other investing |
|
|
(40 |
) |
|
|
(498 |
) |
|
|
(539 |
) |
|
|
(590 |
) |
Net cash used in investing activities |
|
|
(129,567 |
) |
|
|
(162,390 |
) |
|
|
(517,014 |
) |
|
|
(430,648 |
) |
|
|
|
|
|
|
|
|
|
||||||||
CASH FLOW FROM FINANCING ACTIVITIES |
|
|
|
|
||||||||||||
Class A Common Stock repurchases |
|
|
(48,115 |
) |
|
|
(56,754 |
) |
|
|
(128,133 |
) |
|
|
(151,696 |
) |
Class B Common Stock purchase and cancellation |
|
|
(12,930 |
) |
|
|
— |
|
|
|
(89,670 |
) |
|
|
— |
|
Dividends paid |
|
|
(24,694 |
) |
|
|
(21,796 |
) |
|
|
(72,524 |
) |
|
|
(66,480 |
) |
Distributions to noncontrolling interest owners |
|
|
(1,984 |
) |
|
|
(4,347 |
) |
|
|
(8,190 |
) |
|
|
(9,946 |
) |
Other financing activities |
|
|
(147 |
) |
|
|
(125 |
) |
|
|
(7,674 |
) |
|
|
(7,112 |
) |
Net cash used in financing activities |
|
|
(87,870 |
) |
|
|
(83,022 |
) |
|
|
(306,191 |
) |
|
|
(235,234 |
) |
|
|
|
|
|
|
|
|
|
||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
|
456 |
|
|
|
(58,102 |
) |
|
|
(124,982 |
) |
|
|
(56,975 |
) |
Cash and cash equivalents – Beginning of period |
|
|
275,683 |
|
|
|
676,568 |
|
|
|
401,121 |
|
|
|
675,441 |
|
Cash and cash equivalents – End of period |
|
$ |
276,139 |
|
|
$ |
618,466 |
|
|
$ |
276,139 |
|
|
$ |
618,466 |
|
(1) |
Associated with the acquisition of certain oil and gas producing properties including leasehold and mineral interests in the |
Magnolia Oil & Gas Corporation |
||||||||
Summary Balance Sheet Data |
||||||||
(In thousands) |
||||||||
|
|
September 30, 2024 |
|
December 31, 2023 |
||||
Cash and cash equivalents |
|
$ |
276,139 |
|
|
$ |
401,121 |
|
Other current assets |
|
|
139,059 |
|
|
|
190,152 |
|
Property, plant and equipment, net |
|
|
2,273,676 |
|
|
|
2,052,021 |
|
Other assets |
|
|
122,083 |
|
|
|
112,922 |
|
Total assets |
|
$ |
2,810,957 |
|
|
$ |
2,756,216 |
|
|
|
|
|
|
||||
Current liabilities |
|
$ |
281,523 |
|
|
$ |
314,887 |
|
Long-term debt, net |
|
|
394,793 |
|
|
|
392,839 |
|
Other long-term liabilities |
|
|
174,069 |
|
|
|
165,822 |
|
Common stock |
|
|
24 |
|
|
|
23 |
|
Additional paid in capital |
|
|
1,879,447 |
|
|
|
1,743,930 |
|
Treasury stock |
|
|
(665,472 |
) |
|
|
(538,445 |
) |
Retained earnings |
|
|
694,090 |
|
|
|
486,162 |
|
Noncontrolling interest |
|
|
52,483 |
|
|
|
190,998 |
|
Total liabilities and equity |
|
$ |
2,810,957 |
|
|
$ |
2,756,216 |
|
Magnolia Oil & Gas Corporation
Non-GAAP Financial Measures
Reconciliation of net income to adjusted EBITDAX
In this press release, we refer to adjusted EBITDAX, a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, and rating agencies. We define adjusted EBITDAX as net income before interest (income) expense, income taxes, depreciation, depletion and amortization, exploration expenses, and accretion of asset retirement obligations, adjusted to exclude the effect of certain items included in net income. Adjusted EBITDAX is not a measure of net income in accordance with GAAP.
Our management believes that adjusted EBITDAX is useful because it allows them to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to our financing methods or capital structure. We also believe that securities analysts, investors, and other interested parties may use adjusted EBITDAX in the evaluation of our Company. We exclude the items listed above from net income in arriving at adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Certain items excluded from adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of adjusted EBITDAX. Our presentation of adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Our computations of adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
The following table presents a reconciliation of net income to adjusted EBITDAX, our most directly comparable financial measure, calculated and presented in accordance with GAAP:
|
|
For the Quarters Ended |
||||||
(In thousands) |
|
September 30, 2024 |
|
September 30, 2023 |
||||
NET INCOME |
|
$ |
105,912 |
|
|
$ |
117,477 |
|
Interest expense (income), net |
|
|
3,856 |
|
|
|
(1,034 |
) |
Income tax expense |
|
|
26,530 |
|
|
|
31,211 |
|
EBIT |
|
|
136,298 |
|
|
|
147,654 |
|
Depreciation, depletion and amortization |
|
|
107,336 |
|
|
|
81,158 |
|
Asset retirement obligations accretion |
|
|
1,749 |
|
|
|
875 |
|
EBITDA |
|
|
245,383 |
|
|
|
229,687 |
|
Exploration expenses |
|
|
491 |
|
|
|
5,128 |
|
EBITDAX |
|
|
245,874 |
|
|
|
234,815 |
|
Non-cash gain on revaluation of contingent consideration |
|
|
(7,009 |
) |
|
|
— |
|
Non-cash stock based compensation expense |
|
|
4,707 |
|
|
|
4,197 |
|
Adjusted EBITDAX |
|
$ |
243,572 |
|
|
$ |
239,012 |
|
Magnolia Oil & Gas Corporation
Non-GAAP Financial Measures
Reconciliation of net income to adjusted net income
Our presentation of adjusted net income is a non-GAAP measure because it excludes the effect of certain items included in net income. Management uses adjusted net income to evaluate our operating and financial performance because it eliminates the impact of certain items that management does not consider to be representative of the Company’s on-going business operations. As a performance measure, adjusted net income may be useful to investors in facilitating comparisons to others in the Company’s industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, and capital structure, among other factors. Management believes adjusting these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted net income may not be comparable to similar measures of other companies in our industry.
|
For the Quarters Ended |
|||||
(In thousands) |
September 30, 2024 |
|
September 30, 2023 |
|||
NET INCOME |
$ |
105,912 |
|
|
$ |
117,477 |
Adjustments: |
|
|
|
|||
Non-cash gain on revaluation of contingent consideration |
|
(7,009 |
) |
|
|
— |
Change in estimated income tax (1) |
|
1,353 |
|
|
|
— |
ADJUSTED NET INCOME |
$ |
100,256 |
|
|
$ |
117,477 |
|
|
|
|
|||
Diluted weighted average shares of Class A Common Stock outstanding during the period |
|
187,871 |
|
|
|
187,265 |
Weighted average shares of Class B Common Stock outstanding during the period (2) |
|
10,544 |
|
|
|
21,827 |
Total weighted average shares of Class A and B Common Stock, including dilutive impact of other securities (2) |
|
198,415 |
|
|
|
209,092 |
(1) |
Represents corporate income taxes using an estimated annual effective tax rate of |
(2) |
Shares of Class B Common Stock, and corresponding Magnolia LLC Units, are anti-dilutive in the calculation of weighted average number of common shares outstanding. |
Magnolia Oil & Gas Corporation
Non-GAAP Financial Measures
Reconciliation of revenue to adjusted cash operating margin and operating income margin
Our presentation of adjusted cash operating margin and total adjusted cash operating costs are supplemental non-GAAP financial measures that are used by management. Total adjusted cash operating costs exclude the impact of non-cash activity. We define adjusted cash operating margin per boe as total revenues per boe less cash operating costs per boe. Management believes that total adjusted cash operating costs per boe and adjusted cash operating margin per boe provide relevant and useful information, which is used by our management in assessing the Company’s profitability and comparability of results to our peers.
As a performance measure, total adjusted cash operating costs and adjusted cash operating margin may be useful to investors in facilitating comparisons to others in the Company’s industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, and capital structure, among other factors. Management believes excluding these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted cash operating margin may not be comparable to similar measures of other companies in our industry.
|
|
For the Quarters Ended |
||||||
(in $/boe) |
|
September 30, 2024 |
|
September 30, 2023 |
||||
Revenue |
|
$ |
39.92 |
|
|
$ |
41.52 |
|
Total cash operating costs: |
|
|
|
|
||||
Lease operating expenses (1) |
|
|
(5.26 |
) |
|
|
(4.65 |
) |
Gathering, transportation and processing |
|
|
(1.28 |
) |
|
|
(1.35 |
) |
Taxes other than income |
|
|
(2.19 |
) |
|
|
(1.95 |
) |
Exploration expenses |
|
|
(0.06 |
) |
|
|
(0.67 |
) |
General and administrative expenses (2) |
|
|
(2.04 |
) |
|
|
(2.06 |
) |
Total adjusted cash operating costs |
|
|
(10.83 |
) |
|
|
(10.68 |
) |
Adjusted cash operating margin |
|
$ |
29.09 |
|
|
$ |
30.84 |
|
Margin (%) |
|
|
73 |
% |
|
|
74 |
% |
Non-cash costs: |
|
|
|
|
||||
Depreciation, depletion and amortization |
|
$ |
(12.86 |
) |
|
$ |
(10.67 |
) |
Asset retirement obligations accretion |
|
|
(0.21 |
) |
|
|
(0.12 |
) |
Non-cash stock based compensation |
|
|
(0.57 |
) |
|
|
(0.56 |
) |
Total non-cash costs |
|
|
(13.64 |
) |
|
|
(11.35 |
) |
Operating income margin |
|
$ |
15.45 |
|
|
$ |
19.49 |
|
Margin (%) |
|
|
39 |
% |
|
|
47 |
% |
(1) |
Lease operating expenses exclude non-cash stock based compensation of |
(2) |
General and administrative expenses exclude non-cash stock based compensation of |
Magnolia Oil & Gas Corporation
Non-GAAP Financial Measures
Reconciliation of net cash provided by operating activities to free cash flow
Free cash flow is a non-GAAP financial measure. Free cash flow is defined as cash flows from operations before net change in operating assets and liabilities less additions to oil and natural gas properties and changes in working capital associated with additions to oil and natural gas properties. Management believes free cash flow is useful for investors and widely accepted by those following the oil and gas industry as financial indicators of a company’s ability to generate cash to internally fund drilling and completion activities, fund acquisitions, and service debt. It is also used by research analysts to value and compare oil and gas exploration and production companies and are frequently included in published research when providing investment recommendations. Free cash flow is used by management as an additional measure of liquidity. Free cash flow is not a measure of financial performance under GAAP and should not be considered an alternative to cash flows from operating, investing, or financing activities.
|
|
For the Quarters Ended |
||||||
(In thousands) |
|
September 30, 2024 |
|
September 30, 2023 |
||||
Net cash provided by operating activities |
|
$ |
217,893 |
|
|
$ |
187,310 |
|
Add back: net change in operating assets and liabilities |
|
|
22,928 |
|
|
|
29,419 |
|
Cash flows from operations before net change in operating assets and liabilities |
|
|
240,821 |
|
|
|
216,729 |
|
Additions to oil and natural gas properties |
|
|
(104,872 |
) |
|
|
(106,668 |
) |
Changes in working capital associated with additions to oil and natural gas properties |
|
|
(9,832 |
) |
|
|
17,735 |
|
Free cash flow |
|
$ |
126,117 |
|
|
$ |
127,796 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030234807/en/
Investors
Tom Fitter
(713) 331-4802
tfitter@mgyoil.com
Media
Art Pike
(713) 842-9057
apike@mgyoil.com
Source: Magnolia Oil & Gas Corporation
FAQ
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