(Exact name of registrant as specified in its charter) | ||||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices, including zip code) | ||||||||
( | ||||||||
Registrant’s telephone number, including area code |
Securities registered pursuant to section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit | |||||
Number | Description | ||||
99.1 | |||||
99.2 | |||||
104 | Cover Page Interactive Data File (formatted as inline XBRL) |
MAGNOLIA OIL & GAS CORPORATION | |||||
Date: November 1, 2023 | By: /s/ Timothy D. Yang | ||||
Name: Timothy D. Yang | |||||
Title: Executive Vice President, General Counsel, Corporate Secretary and Land |
(In millions, except per share data) | For the Quarter Ended September 30, 2023 | For the Quarter Ended September 30, 2022 | Percentage increase (decrease) | ||||||||
Net income | $ | 117.5 | $ | 287.0 | (59) | % | |||||
Earnings per share - diluted | $ | 0.54 | $ | 1.29 | (58) | % | |||||
Adjusted EBITDAX(1) | $ | 239.0 | $ | 386.0 | (38) | % | |||||
Capital expenditures - D&C | $ | 104.3 | $ | 114.5 | (9) | % | |||||
Average daily production (Mboe/d) | 82.7 | 81.5 | 1 | % | |||||||
Cash balance as of period end | $ | 618.5 | $ | 689.5 | (10) | % | |||||
Diluted weighted average total shares outstanding(2) | 209.1 | 217.8 | (4) | % |
Investors | Media | |||||||||||||
Jim Johnson | Art Pike | |||||||||||||
(713) 842-9033 | (713) 842-9057 | |||||||||||||
jjohnson@mgyoil.com | apike@mgyoil.com | |||||||||||||
Tom Fitter | ||||||||||||||
(713) 331-4802 | ||||||||||||||
tfitter@mgyoil.com |
Magnolia Oil & Gas Corporation | ||||||||||||||||||||||||||
Operating Highlights | ||||||||||||||||||||||||||
For the Quarters Ended | For the Nine Months Ended | |||||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | |||||||||||||||||||||||
Production: | ||||||||||||||||||||||||||
Oil (MBbls) | 3,024 | 3,381 | 9,345 | 9,216 | ||||||||||||||||||||||
Natural gas (MMcf) | 14,406 | 13,364 | 40,839 | 38,205 | ||||||||||||||||||||||
Natural gas liquids (MBbls) | 2,179 | 1,892 | 6,045 | 5,134 | ||||||||||||||||||||||
Total (Mboe) | 7,604 | 7,500 | 22,196 | 20,718 | ||||||||||||||||||||||
Average daily production: | ||||||||||||||||||||||||||
Oil (Bbls/d) | 32,867 | 36,751 | 34,229 | 33,760 | ||||||||||||||||||||||
Natural gas (Mcf/d) | 156,585 | 145,257 | 149,594 | 139,947 | ||||||||||||||||||||||
Natural gas liquids (Bbls/d) | 23,686 | 20,568 | 22,142 | 18,806 | ||||||||||||||||||||||
Total (boe/d) | 82,651 | 81,529 | 81,303 | 75,890 | ||||||||||||||||||||||
Revenues (in thousands): | ||||||||||||||||||||||||||
Oil revenues | $ | 243,588 | $ | 317,243 | $ | 705,857 | $ | 912,702 | ||||||||||||||||||
Natural gas revenues | 27,069 | 100,124 | 75,687 | 242,049 | ||||||||||||||||||||||
Natural gas liquids revenues | 45,021 | 65,596 | 122,807 | 190,700 | ||||||||||||||||||||||
Total Revenues | $ | 315,678 | $ | 482,963 | $ | 904,351 | $ | 1,345,451 | ||||||||||||||||||
Average sales price: | ||||||||||||||||||||||||||
Oil (per Bbl) | $ | 80.56 | $ | 93.83 | $ | 75.54 | $ | 99.03 | ||||||||||||||||||
Natural gas (per Mcf) | 1.88 | 7.49 | 1.85 | 6.34 | ||||||||||||||||||||||
Natural gas liquids (per Bbl) | 20.66 | 34.66 | 20.32 | 37.14 | ||||||||||||||||||||||
Total (per boe) | $ | 41.52 | $ | 64.40 | $ | 40.74 | $ | 64.94 | ||||||||||||||||||
NYMEX WTI (per Bbl) | $ | 82.18 | $ | 91.64 | $ | 77.37 | $ | 98.14 | ||||||||||||||||||
NYMEX Henry Hub (per MMBtu) | $ | 2.54 | $ | 8.19 | $ | 2.69 | $ | 6.77 | ||||||||||||||||||
Realization to benchmark: | ||||||||||||||||||||||||||
Oil (% of WTI) | 98 | % | 102 | % | 98 | % | 101 | % | ||||||||||||||||||
Natural Gas (% of Henry Hub) | 74 | % | 91 | % | 69 | % | 94 | % | ||||||||||||||||||
Operating expenses (in thousands): | ||||||||||||||||||||||||||
Lease operating expenses | $ | 35,893 | $ | 34,709 | $ | 115,060 | $ | 96,057 | ||||||||||||||||||
Gathering, transportation and processing | 10,297 | 19,297 | 33,419 | 51,518 | ||||||||||||||||||||||
Taxes other than income | 14,823 | 26,623 | 49,331 | 74,917 | ||||||||||||||||||||||
Depreciation, depletion and amortization | 81,158 | 68,972 | 228,868 | 179,331 | ||||||||||||||||||||||
Operating costs per boe: | ||||||||||||||||||||||||||
Lease operating expenses | $ | 4.72 | $ | 4.63 | $ | 5.18 | $ | 4.64 | ||||||||||||||||||
Gathering, transportation and processing | 1.35 | 2.57 | 1.51 | 2.49 | ||||||||||||||||||||||
Taxes other than income | 1.95 | 3.55 | 2.22 | 3.62 | ||||||||||||||||||||||
Depreciation, depletion and amortization | 10.67 | 9.20 | 10.31 | 8.66 |
For the Quarters Ended | For the Nine Months Ended | |||||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | |||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||
Oil revenues | $ | 243,588 | $ | 317,243 | $ | 705,857 | $ | 912,702 | ||||||||||||||||||
Natural gas revenues | 27,069 | 100,124 | 75,687 | 242,049 | ||||||||||||||||||||||
Natural gas liquids revenues | 45,021 | 65,596 | 122,807 | 190,700 | ||||||||||||||||||||||
Total revenues | 315,678 | 482,963 | 904,351 | 1,345,451 | ||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||
Lease operating expenses | 35,893 | 34,709 | 115,060 | 96,057 | ||||||||||||||||||||||
Gathering, transportation and processing | 10,297 | 19,297 | 33,419 | 51,518 | ||||||||||||||||||||||
Taxes other than income | 14,823 | 26,623 | 49,331 | 74,917 | ||||||||||||||||||||||
Exploration expenses | 5,128 | 1,173 | 5,139 | 10,119 | ||||||||||||||||||||||
Asset retirement obligations accretion | 875 | 814 | 2,539 | 2,404 | ||||||||||||||||||||||
Depreciation, depletion and amortization | 81,158 | 68,972 | 228,868 | 179,331 | ||||||||||||||||||||||
Impairment of oil and natural gas properties | — | — | 15,735 | — | ||||||||||||||||||||||
General and administrative expenses | 19,371 | 19,625 | 57,863 | 55,226 | ||||||||||||||||||||||
Total operating expenses | 167,545 | 171,213 | 507,954 | 469,572 | ||||||||||||||||||||||
OPERATING INCOME | 148,133 | 311,750 | 396,397 | 875,879 | ||||||||||||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||||||||||||
Interest income (expense), net | 1,034 | (5,263) | 372 | (21,637) | ||||||||||||||||||||||
Other income (expense), net | (479) | (166) | 7,643 | 6,579 | ||||||||||||||||||||||
Total other expense, net | 555 | (5,429) | 8,015 | (15,058) | ||||||||||||||||||||||
INCOME BEFORE INCOME TAXES | 148,688 | 306,321 | 404,412 | 860,821 | ||||||||||||||||||||||
Current income tax expense | 19,262 | 19,358 | 27,450 | 65,333 | ||||||||||||||||||||||
Deferred income tax expense | 11,949 | — | 48,213 | — | ||||||||||||||||||||||
Total income tax expense | 31,211 | 19,358 | 75,663 | 65,333 | ||||||||||||||||||||||
NET INCOME | 117,477 | 286,963 | 328,749 | 795,488 | ||||||||||||||||||||||
LESS: Net income attributable to noncontrolling interest | 15,447 | 41,486 | 38,893 | 133,389 | ||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK | $ | 102,030 | $ | 245,477 | $ | 289,856 | $ | 662,099 | ||||||||||||||||||
NET INCOME PER COMMON SHARE | ||||||||||||||||||||||||||
Basic | $ | 0.54 | $ | 1.29 | $ | 1.51 | $ | 3.52 | ||||||||||||||||||
Diluted | $ | 0.54 | $ | 1.29 | $ | 1.51 | $ | 3.51 | ||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | ||||||||||||||||||||||||||
Basic | 187,093 | 188,635 | 189,408 | 186,475 | ||||||||||||||||||||||
Diluted | 187,265 | 189,074 | 189,612 | 186,967 | ||||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF CLASS B SHARES OUTSTANDING (1) | 21,827 | 28,710 | 21,827 | 35,528 | ||||||||||||||||||||||
DILUTED WEIGHTED AVERAGE TOTAL SHARES OUTSTANDING (1) | 209,092 | 217,784 | 211,439 | 222,495 |
For the Quarters Ended | For the Nine Months Ended | |||||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | |||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||||||||
NET INCOME | $ | 117,477 | $ | 286,963 | $ | 328,749 | $ | 795,488 | ||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||
Depreciation, depletion and amortization | 81,158 | 68,972 | 228,868 | 179,331 | ||||||||||||||||||||||
Exploration expenses, non-cash | — | — | 9 | — | ||||||||||||||||||||||
Impairment of oil and natural gas properties | — | — | 15,735 | — | ||||||||||||||||||||||
Asset retirement obligations accretion | 875 | 814 | 2,539 | 2,404 | ||||||||||||||||||||||
Amortization of deferred financing costs | 1,073 | 1,032 | 3,173 | 4,812 | ||||||||||||||||||||||
(Gain) on sale of assets | — | — | (3,946) | — | ||||||||||||||||||||||
Deferred income tax expense | 11,949 | — | 48,213 | — | ||||||||||||||||||||||
Stock based compensation | 4,197 | 3,462 | 12,060 | 9,864 | ||||||||||||||||||||||
Net change in operating assets and liabilities | (29,419) | 49,438 | (26,493) | 36,786 | ||||||||||||||||||||||
Net cash provided by operating activities | 187,310 | 410,681 | 608,907 | 1,028,685 | ||||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||||||||
Acquisitions | (50,456) | (7,402) | (53,812) | (11,749) | ||||||||||||||||||||||
Deposits for acquisitions of oil and natural gas properties (1) | (22,503) | — | (22,503) | — | ||||||||||||||||||||||
Additions to oil and natural gas properties | (106,668) | (116,050) | (332,055) | (323,510) | ||||||||||||||||||||||
Changes in working capital associated with additions to oil and natural gas properties | 17,735 | (11,342) | (21,688) | 14,152 | ||||||||||||||||||||||
Other investing | (498) | (169) | (590) | (1,187) | ||||||||||||||||||||||
Net cash used in investing activities | (162,390) | (134,963) | (430,648) | (322,294) | ||||||||||||||||||||||
CASH FLOW FROM FINANCING ACTIVITIES | ||||||||||||||||||||||||||
Class A Common Stock repurchases | (56,754) | (60,983) | (151,696) | (153,138) | ||||||||||||||||||||||
Class B Common Stock purchase and cancellation | — | — | — | (138,753) | ||||||||||||||||||||||
Dividends paid | (21,796) | (19,043) | (66,480) | (56,220) | ||||||||||||||||||||||
Cash paid for debt modification | — | (221) | — | (5,494) | ||||||||||||||||||||||
Distributions to noncontrolling interest owners | (4,347) | (7,608) | (9,946) | (23,852) | ||||||||||||||||||||||
Other financing activities | (125) | (215) | (7,112) | (6,377) | ||||||||||||||||||||||
Net cash used in financing activities | (83,022) | (88,070) | (235,234) | (383,834) | ||||||||||||||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (58,102) | 187,648 | (56,975) | 322,557 | ||||||||||||||||||||||
Cash and cash equivalents – Beginning of period | 676,568 | 501,891 | 675,441 | 366,982 | ||||||||||||||||||||||
Cash and cash equivalents – End of period | $ | 618,466 | $ | 689,539 | $ | 618,466 | $ | 689,539 |
September 30, 2023 | December 31, 2022 | |||||||||||||
Cash and cash equivalents | $ | 618,466 | $ | 675,441 | ||||||||||
Other current assets | 187,282 | 175,306 | ||||||||||||
Property, plant and equipment, net | 1,682,456 | 1,533,029 | ||||||||||||
Other assets | 164,289 | 188,809 | ||||||||||||
Total assets | $ | 2,652,493 | $ | 2,572,585 | ||||||||||
Current liabilities | $ | 303,705 | $ | 340,273 | ||||||||||
Long-term debt, net | 392,209 | 390,383 | ||||||||||||
Other long-term liabilities | 109,422 | 101,738 | ||||||||||||
Common stock | 23 | 23 | ||||||||||||
Additional paid in capital | 1,738,668 | 1,719,875 | ||||||||||||
Treasury stock | (483,745) | (329,512) | ||||||||||||
Retained earnings | 409,230 | 185,669 | ||||||||||||
Noncontrolling interest | 182,981 | 164,136 | ||||||||||||
Total liabilities and equity | $ | 2,652,493 | $ | 2,572,585 |
For the Quarters Ended | ||||||||||||||
(In thousands) | September 30, 2023 | September 30, 2022 | ||||||||||||
NET INCOME | $ | 117,477 | $ | 286,963 | ||||||||||
Exploration expenses | 5,128 | 1,173 | ||||||||||||
Asset retirement obligations accretion | 875 | 814 | ||||||||||||
Depreciation, depletion and amortization | 81,158 | 68,972 | ||||||||||||
Interest (income) expense, net | (1,034) | 5,263 | ||||||||||||
Income tax expense | 31,211 | 19,358 | ||||||||||||
EBITDAX | 234,815 | 382,543 | ||||||||||||
Non-cash stock based compensation expense | 4,197 | 3,462 | ||||||||||||
Adjusted EBITDAX | $ | 239,012 | $ | 386,005 |
For the Quarters Ended | ||||||||||||||
(in $/boe) | September 30, 2023 | September 30, 2022 | ||||||||||||
Revenue | $ | 41.52 | $ | 64.40 | ||||||||||
Total cash operating costs: | ||||||||||||||
Lease operating expenses (1) | (4.65) | (4.59) | ||||||||||||
Gathering, transportation and processing | (1.35) | (2.57) | ||||||||||||
Taxes other than income | (1.95) | (3.55) | ||||||||||||
Exploration expenses | (0.67) | (0.16) | ||||||||||||
General and administrative expenses (2) | (2.06) | (2.20) | ||||||||||||
Total adjusted cash operating costs | (10.68) | (13.07) | ||||||||||||
Adjusted cash operating margin | $ | 30.84 | $ | 51.33 | ||||||||||
Margin (%) | 74 | % | 80 | % | ||||||||||
Non-cash costs: | ||||||||||||||
Depreciation, depletion and amortization | $ | (10.67) | $ | (9.20) | ||||||||||
Asset retirement obligations accretion | (0.12) | (0.11) | ||||||||||||
Non-cash stock based compensation | (0.56) | (0.46) | ||||||||||||
Total non-cash costs | (11.35) | (9.77) | ||||||||||||
Operating income margin | $ | 19.49 | $ | 41.56 | ||||||||||
Margin (%) | 47 | % | 65 | % |
For the Quarters Ended | ||||||||||||||
(In thousands) | September 30, 2023 | September 30, 2022 | ||||||||||||
Net cash provided by operating activities | $ | 187,310 | $ | 410,681 | ||||||||||
Add back: net change in operating assets and liabilities | 29,419 | (49,438) | ||||||||||||
Cash flows from operations before net change in operating assets and liabilities | 216,729 | 361,243 | ||||||||||||
Additions to oil and natural gas properties | (106,668) | (116,050) | ||||||||||||
Changes in working capital associated with additions to oil and natural gas properties | 17,735 | (11,342) | ||||||||||||
Free cash flow | $ | 127,796 | $ | 233,851 |
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