Magnolia Oil & Gas Corporation Announces 2022 Fourth Quarter and Year-End Results
HOUSTON–(BUSINESS WIRE)–Magnolia Oil & Gas Corporation (“Magnolia,” “we,” “our,” or the “Company”) (NYSE: MGY) today announced its financial and operational results for the fourth quarter and full year 2022.
Fourth Quarter 2022 Summary Financial Results:
|
(In millions, except per share data) |
For the |
|
For the |
|
Percentage |
|||||
|
Average daily production (Mboe/d) |
|
73.8 |
|
|
69.4 |
|
6 |
% |
||
|
Net income |
$ |
254.8 |
|
|
$ |
192.1 |
|
|
33 |
% |
|
Earnings per share – diluted |
|
1.20 |
|
|
|
0.82 |
|
|
46 |
% |
|
Adjusted EBITDAX(1) |
|
267.5 |
|
|
|
260.6 |
|
|
3 |
% |
|
Capital expenditures – D&C |
|
140.0 |
|
|
|
72.1 |
|
|
94 |
% |
|
Cash balance |
$ |
675.4 |
|
|
$ |
367.0 |
|
|
84 |
% |
|
Diluted weighted average total shares outstanding(2) |
|
215.4 |
|
|
|
231.0 |
|
|
(7 |
)% |
Full Year 2022 Summary Financial Results:
|
(In millions, except per share data) |
For the |
|
For the |
|
Percentage |
|||||
|
Average daily production (Mboe/d) |
|
75.4 |
|
|
66.0 |
|
14 |
% |
||
|
Net income |
$ |
1,050.2 |
|
|
$ |
559.7 |
|
|
88 |
% |
|
Earnings per share – diluted |
|
4.71 |
|
|
|
2.36 |
|
|
100 |
% |
|
Adjusted EBITDAX(1) |
|
1,345.3 |
|
|
|
828.9 |
|
|
62 |
% |
|
Capital expenditures – D&C |
|
459.8 |
|
|
|
231.9 |
|
|
98 |
% |
|
Cash balance |
$ |
675.4 |
|
|
$ |
367.0 |
|
|
84 |
% |
|
Diluted weighted average total shares outstanding(2) |
|
220.7 |
|
|
|
239.3 |
|
|
(8 |
)% |
Fourth Quarter and Full Year 2022 Highlights:
- Magnolia reported fourth quarter and full-year 2022 net income attributable to Class A Common Stock of $231.7 million, or $1.20 per diluted share, and $893.8 million or $4.71 per diluted share, respectively. Fourth quarter and full-year 2022 total net income was $254.8 million and $1,050.2 million, respectively. Total net income adjusted(1) for the non-cash deferred income tax benefit was $189.0 million and $978.2 million, respectively.
- Adjusted EBITDAX(1) was $267.5 million during the fourth quarter of 2022, with drilling and completions (“D&C”) capital of $140.0 million, representing 52% of quarterly adjusted EBITDAX. Adjusted EBITDAX for the full-year 2022 was $1,345.3 million with total D&C capital of $459.8 million, representing 34% of adjusted EBITDAX.
- Net cash provided by operating activities was $268.0 million during the fourth quarter 2022 and $1,296.7 million during full-year 2022. The Company generated free cash flow(1) of $141.0 million during the fourth quarter 2022 and $823.5 million during full-year 2022.
- Total production in the fourth quarter of 2022 grew 6% from the fourth quarter of 2021 to 73.8 thousand barrels of oil equivalent per day (“Mboe/d”). Production for full-year 2022 averaged 75.4 Mboe/d representing year-over-year volume growth of more than 14%.
- Production at Giddings and Other in the fourth quarter of 2022 grew 20% compared to the prior year fourth quarter to 43.1 Mboe/d including oil production growth of 26%. Production here represented nearly 60% of overall Magnolia volumes in 2022, a significant increase compared to 2019 levels of 33%. Last year’s growth at Giddings was supported by operating efficiency gains such as fewer drilling days per well, an improvement in stimulation stages per day, and longer laterals.
- Magnolia repurchased 2.4 million shares during the fourth quarter for $57.8 million. Total share repurchases during 2022 amounted to 15.5 million shares, driving the reduction in the Company’s diluted weighted average share count(3) by 8% compared to the prior year. Magnolia has 8.9 million Class A Common shares remaining as part of the current share repurchase authorization. This authorization is specifically allocated toward open market share repurchases.
- Magnolia returned 58%(4) and 54%(5) of the free cash flow generated during the fourth quarter and the full year 2022, respectively, to its shareholders through a combination of share repurchases and dividends. Along with the significant return of cash to shareholders, Magnolia ended the year with $675.4 million of cash on its balance sheet. The Company remains undrawn on its $450.0 million revolving credit facility, with no debt maturities until 2026 and does not plan to increase bonded indebtedness.
- As previously announced, the Board of Directors declared a cash dividend of $0.115 per share of Class A common stock, and a cash distribution of $0.115 per Class B unit, payable on March 1, 2023 to shareholders of record as of February 10, 2023. Our ongoing efforts toward reducing our outstanding shares and delivering moderate annual production growth are expected to support annual dividend growth of approximately 10 percent over time.
|
(1) Adjusted EBITDAX, adjusted net income, 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) 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. |
|
(4) Fourth quarter 2022 return to shareholders includes $60.3 million of share repurchases, $19.0 million of dividends to Class A shareholders, and $2.9 million of distributions to Class B shareholders, divided by the quarterly free cash flow (reconciled on page 12). |
|
(5) Full year 2022 return to shareholders includes $352.2 million of share repurchases, $75.2 million of dividends to Class A shareholders, and $14.3 million of distributions to Class B shareholders, divided by the annual free cash flow (reconciled on page 12). |
“I want to commend our teams for their efforts and recognize their strong contributions which helped support the exceptional financial and operational results for Magnolia in 2022,” said President and CEO Chris Stavros. “We achieved new company records in most financial and operational categories including production, operating income margins and earnings per share, while continuing to gain efficiencies at Giddings without sacrificing productivity. We achieved this by executing on our strategy of disciplined capital spending, moderate production growth, generating high pre-tax margins, and improving our per share metrics while maintaining a strong balance sheet. During 2022 we grew our total production volumes by more than 14 percent while spending just 34 percent of our EBITDAX drilling and completing wells.
“Our teams continued focus on managing costs and generating efficiencies in an inflationary service cost environment further enhanced our margins in Giddings and provided significant free cash flow. During the year, we returned 54 percent of our free cash flow to our shareholders in the form of share repurchases and our cash dividend. We repurchased more than 15 million shares in 2022, reducing our diluted share count by 8 percent. In addition, we were able to acquire some acreage, minerals and additional working interests in our Giddings area, primarily outside of our core development area. This further builds on our strong position in the play and is in line with our strategy of incrementally improving our opportunity set and the value of the business. After all our activities, including capital expenditures, bolt-on acquisitions and the significant return of cash to shareholders, we ended the year with a considerable cash balance of $675 million.
“While Magnolia’s unhedged business captured the benefit of much higher product prices last year, this year’s plan will focus on improved execution and generating further efficiencies in order to offset the impact of higher oil field service costs. Operationally, we expect our 2023 plan to be similar to last year. We expect to continue to operate a two-rig drilling program, which we estimate will generate full-year production growth of approximately 10 percent. We will remain disciplined on our D&C capital, continuing to limit our spending to approximately 55 percent of EBITDAX, allowing for significant free cash flow. Our efforts will continue to focus on improving the overall business while taking actions to increase our dividend per share payout capacity. These activities include moderate growth in our total production, repurchasing at least 1 percent of our outstanding shares per quarter, and the pursuit of small, accretive bolt-on oil and gas property acquisitions. These efforts are expected to support annual dividend growth of approximately 10 percent over time, which is an important component of Magnolia’s total shareholder return proposition.”
Operational Update
Fourth quarter 2022 total company production averaged 73.8 Mboe/d, representing a 6% increase over the prior year period. Giddings and Other production increased 20% and oil production increased 26% over the prior year’s fourth quarter. As we previously communicated, fourth quarter 2022 production volumes were negatively affected by freezing temperatures, which impacted both our Karnes and Giddings assets during late December and a single large pad that was brought online later than expected. Operations have fully resumed to expected levels and performance at the large 8-well pad is better than expected. We added a mix of acreage, mineral and working interests to the Giddings area during the fourth quarter, most of which was outside of our core development area. These targeted acreage acquisitions were partly a result of our ongoing appraisal work with a goal of identifying new and promising areas throughout the Giddings field. Our appraisal efforts should enhance our development opportunities over time. Magnolia plans to continue to pursue small bolt-on oil and gas property opportunities in and around our operated assets that we expect will add future value to the enterprise.
Magnolia continues to operate two drilling rigs and one completion crew and expects to maintain this level of activity throughout the year. One rig will continue to drill multi-well development pads in our Giddings area. The second rig will drill a mix of wells in both the Karnes and Giddings areas, including some appraisal wells at Giddings. For 2023 in Giddings, we currently expect to average approximately 4 wells per pad with average lateral lengths of approximately 8,000 feet.
2022 Oil and Gas Reserves
Total 2022 proved reserves increased 16% to 157.0 MMboe from 135.4 MMboe at year end 2021 and replaced 179%(6) of 2022 production. Magnolia books only one year of proved undeveloped reserves and as a result 80% of its 2022 proved reserves were developed. The proved undeveloped reserves represent what we plan to convert to proved developed during 2023.
|
(6) Calculated as the sum of the 2022 change in total proved reserves of 21.6 MMboe and 2022 production of 27.5 MMboe divided by 2022 production. |
Additional Guidance
Based on our operated activity of a 2-rig drilling plan for full-year 2023, we estimate our total D&C capital to be between $490 to $520 million, which includes an estimate of non-operated capital that we currently expect to be similar to 2022 levels. With this level of activity, we expect to deliver full-year 2023 production growth of 10 percent, with most of the growth expected to come from our development program at our Giddings field asset.
We expect the first quarter of 2023 to be our heaviest period of D&C capital expenditures during the year, and in the range of $140 to $150 million. Total production for the first quarter is estimated to be approximately 80 to 82 Mboe/d. Oil price differentials are anticipated to be approximately a $3 per barrel discount to Magellan East Houston and Magnolia remains completely unhedged for all its oil and natural gas production. The fully diluted share count for the first quarter of 2023 is expected to be approximately 214 million shares, which is 6 percent lower than first quarter 2022 levels.
Annual Report on Form 10-K
Magnolia’s financial statements and related footnotes will be available in its Annual Report on Form 10-K for the year ended December 31, 2022, which is expected to be filed with the U.S. Securities and Exchange Commission (“SEC”) on February 16, 2023.
Conference Call and Webcast
Magnolia will host an investor conference call on Wednesday, February 15, 2023 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 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.
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 economic effects of the COVID-19 pandemic and actions taken by federal, state and local governments and other third parties in response to the pandemic; (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, 2022, which is expected to be filed with the SEC on February 16, 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 Years Ended |
||||||||||||
|
|
|
December 31, 2022 |
|
December 31, 2021 |
|
December 31, 2022 |
|
December 31, 2021 |
||||||||
|
Production: |
|
|
|
|
|
|
|
|
||||||||
|
Oil (MBbls) |
|
|
2,972 |
|
|
|
2,844 |
|
|
|
12,189 |
|
|
|
11,190 |
|
|
Natural gas (MMcf) |
|
|
12,455 |
|
|
|
11,820 |
|
|
|
50,660 |
|
|
|
43,436 |
|
|
Natural gas liquids (MBbls) |
|
|
1,740 |
|
|
|
1,572 |
|
|
|
6,874 |
|
|
|
5,669 |
|
|
Total (Mboe) |
|
|
6,788 |
|
|
|
6,386 |
|
|
|
27,506 |
|
|
|
24,099 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average daily production: |
|
|
|
|
|
|
|
|
||||||||
|
Oil (Bbls/d) |
|
|
32,307 |
|
|
|
30,913 |
|
|
|
33,394 |
|
|
|
30,659 |
|
|
Natural gas (Mcf/d) |
|
|
135,380 |
|
|
|
128,475 |
|
|
|
138,796 |
|
|
|
119,003 |
|
|
Natural gas liquids (Bbls/d) |
|
|
18,914 |
|
|
|
17,085 |
|
|
|
18,833 |
|
|
|
15,532 |
|
|
Total (boe/d) |
|
|
73,785 |
|
|
|
69,411 |
|
|
|
75,360 |
|
|
|
66,025 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Revenues (in thousands): |
|
|
|
|
|
|
|
|
||||||||
|
Oil revenues |
|
$ |
245,305 |
|
|
$ |
216,596 |
|
|
$ |
1,158,006 |
|
|
$ |
747,896 |
|
|
Natural gas revenues |
|
|
59,445 |
|
|
|
59,890 |
|
|
|
301,494 |
|
|
|
172,648 |
|
|
Natural gas liquids revenues |
|
|
44,292 |
|
|
|
55,667 |
|
|
|
234,993 |
|
|
|
157,807 |
|
|
Total revenues |
|
$ |
349,042 |
|
|
$ |
332,153 |
|
|
$ |
1,694,493 |
|
|
$ |
1,078,351 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average sales price: |
|
|
|
|
|
|
|
|
||||||||
|
Oil (per Bbl) |
|
$ |
82.53 |
|
|
$ |
76.16 |
|
|
$ |
95.01 |
|
|
$ |
66.83 |
|
|
Natural gas (per Mcf) |
|
|
4.77 |
|
|
|
5.07 |
|
|
|
5.95 |
|
|
|
3.97 |
|
|
Natural gas liquids (per Bbl) |
|
|
25.45 |
|
|
|
35.41 |
|
|
|
34.18 |
|
|
|
27.84 |
|
|
Total (per boe) |
|
$ |
51.42 |
|
|
$ |
52.01 |
|
|
$ |
61.60 |
|
|
$ |
44.75 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
NYMEX WTI (per Bbl) |
|
$ |
82.63 |
|
|
$ |
77.17 |
|
|
$ |
94.23 |
|
|
$ |
67.96 |
|
|
NYMEX Henry Hub (per Mcf) |
|
$ |
6.27 |
|
|
$ |
5.84 |
|
|
$ |
6.65 |
|
|
$ |
3.86 |
|
|
Realization to benchmark: |
|
|
|
|
|
|
|
|
||||||||
|
Oil (% of WTI) |
|
|
100 |
% |
|
|
99 |
% |
|
|
101 |
% |
|
|
98 |
% |
|
Natural gas (% of Henry Hub) |
|
|
76 |
% |
|
|
87 |
% |
|
|
89 |
% |
|
|
103 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating expenses (in thousands): |
|
|
|
|
|
|
|
|
||||||||
|
Lease operating expenses |
|
$ |
35,457 |
|
|
$ |
28,064 |
|
|
$ |
131,513 |
|
|
$ |
93,021 |
|
|
Gathering, transportation, and processing |
|
|
13,236 |
|
|
|
13,466 |
|
|
|
64,754 |
|
|
|
45,535 |
|
|
Taxes other than income |
|
|
19,114 |
|
|
|
17,177 |
|
|
|
94,031 |
|
|
|
55,834 |
|
|
Depreciation, depletion and amortization |
|
|
63,820 |
|
|
|
53,420 |
|
|
|
243,152 |
|
|
|
187,688 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating costs per boe: |
|
|
|
|
|
|
|
|
||||||||
|
Lease operating expenses |
|
$ |
5.22 |
|
|
$ |
4.39 |
|
|
$ |
4.78 |
|
|
$ |
3.86 |
|
|
Gathering, transportation, and processing |
|
|
1.95 |
|
|
|
2.11 |
|
|
|
2.35 |
|
|
|
1.89 |
|
|
Taxes other than income |
|
|
2.82 |
|
|
|
2.69 |
|
|
|
3.42 |
|
|
|
2.32 |
|
|
Depreciation, depletion and amortization |
|
|
9.40 |
|
|
|
8.37 |
|
|
|
8.84 |
|
|
|
7.79 |
|
|
Magnolia Oil & Gas Corporation Consolidated Statements of Operations (In thousands, except per share data)
|
||||||||||||||||
|
|
|
For the Quarters Ended |
|
For the Years Ended |
||||||||||||
|
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||
|
REVENUES |
|
|
|
|
|
|
|
|
||||||||
|
Oil revenues |
|
$ |
245,305 |
|
|
$ |
216,596 |
|
|
$ |
1,158,006 |
|
|
$ |
747,896 |
|
|
Natural gas revenues |
|
|
59,445 |
|
|
|
59,890 |
|
|
|
301,494 |
|
|
|
172,648 |
|
|
Natural gas liquids revenues |
|
|
44,292 |
|
|
|
55,667 |
|
|
|
234,993 |
|
|
|
157,807 |
|
|
Total revenues |
|
|
349,042 |
|
|
|
332,153 |
|
|
|
1,694,493 |
|
|
|
1,078,351 |
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
||||||||
|
Lease operating expenses |
|
|
35,457 |
|
|
|
28,064 |
|
|
|
131,513 |
|
|
|
93,021 |
|
|
Gathering, transportation and processing |
|
|
13,236 |
|
|
|
13,466 |
|
|
|
64,754 |
|
|
|
45,535 |
|
|
Taxes other than income |
|
|
19,114 |
|
|
|
17,177 |
|
|
|
94,031 |
|
|
|
55,834 |
|
|
Exploration expenses |
|
|
1,467 |
|
|
|
1,685 |
|
|
|
11,586 |
|
|
|
4,125 |
|
|
Asset retirement obligations accretion |
|
|
841 |
|
|
|
864 |
|
|
|
3,245 |
|
|
|
4,929 |
|
|
Depreciation, depletion and amortization |
|
|
63,820 |
|
|
|
53,420 |
|
|
|
243,152 |
|
|
|
187,688 |
|
|
Amortization of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,346 |
|
|
General and administrative expenses |
|
|
17,200 |
|
|
|
15,463 |
|
|
|
72,426 |
|
|
|
75,279 |
|
|
Total operating costs and expenses |
|
|
151,135 |
|
|
|
130,139 |
|
|
|
620,707 |
|
|
|
475,757 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
OPERATING INCOME (LOSS) |
|
|
197,907 |
|
|
|
202,014 |
|
|
|
1,073,786 |
|
|
|
602,594 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
||||||||
|
Interest expense, net |
|
|
(1,805 |
) |
|
|
(7,483 |
) |
|
|
(23,442 |
) |
|
|
(31,002 |
) |
|
Loss on derivatives, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,110 |
) |
|
Other income (expense), net |
|
|
(35 |
) |
|
|
37 |
|
|
|
6,543 |
|
|
|
85 |
|
|
Total other expense, net |
|
|
(1,840 |
) |
|
|
(7,446 |
) |
|
|
(16,899 |
) |
|
|
(34,027 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
INCOME BEFORE INCOME TAXES |
|
|
196,067 |
|
|
|
194,568 |
|
|
|
1,056,887 |
|
|
|
568,567 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
INCOME TAX EXPENSE (BENEFIT) |
|
|
|
|
|
|
|
|
||||||||
|
Current income tax expense |
|
|
7,025 |
|
|
|
2,423 |
|
|
|
72,358 |
|
|
|
8,851 |
|
|
Deferred income tax benefit |
|
|
(65,720 |
) |
|
|
— |
|
|
|
(65,720 |
) |
|
|
— |
|
|
Total income tax expense (benefit) |
|
|
(58,695 |
) |
|
|
2,423 |
|
|
|
6,638 |
|
|
|
8,851 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
NET INCOME |
|
|
254,762 |
|
|
|
192,145 |
|
|
|
1,050,249 |
|
|
|
559,716 |
|
|
LESS: Net income attributable to noncontrolling interest |
|
|
23,023 |
|
|
|
41,916 |
|
|
|
156,412 |
|
|
|
142,434 |
|
|
NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK |
|
$ |
231,739 |
|
|
$ |
150,229 |
|
|
$ |
893,837 |
|
|
$ |
417,282 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
NET INCOME PER SHARE OF CLASS A COMMON STOCK |
|
|
|
|
||||||||||||
|
Basic |
|
$ |
1.21 |
|
|
$ |
0.83 |
|
|
$ |
4.73 |
|
|
$ |
2.38 |
|
|
Diluted |
|
$ |
1.20 |
|
|
$ |
0.82 |
|
|
$ |
4.71 |
|
|
$ |
2.36 |
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
|
|
|
|
||||||||||||
|
Basic |
|
|
190,274 |
|
|
|
180,655 |
|
|
|
187,433 |
|
|
|
174,364 |
|
|
Diluted |
|
|
190,659 |
|
|
|
181,411 |
|
|
|
187,901 |
|
|
|
175,360 |
|
|
WEIGHTED AVERAGE NUMBER OF CLASS B SHARES OUTSTANDING(1) |
|
|
24,745 |
|
|
|
49,568 |
|
|
|
32,810 |
|
|
|
63,973 |
|
|
(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 Years Ended |
||||||||||||
|
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||||||||||
|
NET INCOME |
|
$ |
254,762 |
|
|
$ |
192,145 |
|
|
$ |
1,050,249 |
|
|
$ |
559,716 |
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
|
Depreciation, depletion and amortization |
|
|
63,820 |
|
|
|
53,420 |
|
|
|
243,152 |
|
|
|
187,688 |
|
|
Amortization of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,346 |
|
|
Exploration expenses, non-cash |
|
|
554 |
|
|
|
888 |
|
|
|
554 |
|
|
|
888 |
|
|
Asset retirement obligations accretion |
|
|
841 |
|
|
|
864 |
|
|
|
3,245 |
|
|
|
4,929 |
|
|
Amortization of deferred financing costs |
|
|
1,042 |
|
|
|
1,140 |
|
|
|
5,854 |
|
|
|
4,290 |
|
|
Unrealized loss on derivatives, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
277 |
|
|
Deferred income tax benefit |
|
|
(65,720 |
) |
|
|
— |
|
|
|
(65,720 |
) |
|
|
— |
|
|
Stock based compensation |
|
|
3,450 |
|
|
|
2,593 |
|
|
|
13,314 |
|
|
|
11,736 |
|
|
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(84 |
) |
|
Net change in operating assets and liabilities |
|
|
9,253 |
|
|
|
9,492 |
|
|
|
46,039 |
|
|
|
9,691 |
|
|
Net cash provided by operating activities |
|
|
268,002 |
|
|
|
260,542 |
|
|
|
1,296,687 |
|
|
|
788,477 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
|
Acquisitions |
|
|
(78,377 |
) |
|
|
(7,529 |
) |
|
|
(90,126 |
) |
|
|
(18,345 |
) |
|
Additions to oil and natural gas properties |
|
|
(141,629 |
) |
|
|
(73,682 |
) |
|
|
(465,139 |
) |
|
|
(236,426 |
) |
|
Changes in working capital associated with additions to oil and natural gas properties |
|
|
23,835 |
|
|
|
1,133 |
|
|
|
37,987 |
|
|
|
13,568 |
|
|
Other investing |
|
|
(422 |
) |
|
|
78 |
|
|
|
(1,609 |
) |
|
|
(2,239 |
) |
|
Net cash used in investing activities |
|
|
(196,593 |
) |
|
|
(80,000 |
) |
|
|
(518,887 |
) |
|
|
(243,442 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
CASH FLOW FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
||||||||
|
Class A Common Stock repurchases |
|
|
(11,776 |
) |
|
|
(55,325 |
) |
|
|
(164,913 |
) |
|
|
(125,641 |
) |
|
Class B Common Stock purchases and cancellations |
|
|
(48,520 |
) |
|
|
— |
|
|
|
(187,273 |
) |
|
|
(171,671 |
) |
|
Non-compete settlement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(42,073 |
) |
|
Dividends paid |
|
|
(18,978 |
) |
|
|
(27 |
) |
|
|
(75,198 |
) |
|
|
(14,131 |
) |
|
Distributions to noncontrolling interest owners |
|
|
(5,510 |
) |
|
|
(1,501 |
) |
|
|
(29,362 |
) |
|
|
(7,207 |
) |
|
Cash paid for debt modification |
|
|
— |
|
|
|
— |
|
|
|
(5,494 |
) |
|
|
(4,976 |
) |
|
Other financing activities |
|
|
(723 |
) |
|
|
(1,730 |
) |
|
|
(7,101 |
) |
|
|
(4,915 |
) |
|
Net cash used in financing activities |
|
|
(85,507 |
) |
|
|
(58,583 |
) |
|
|
(469,341 |
) |
|
|
(370,614 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
|
(14,098 |
) |
|
|
121,959 |
|
|
|
308,459 |
|
|
|
174,421 |
|
|
Cash and cash equivalents – Beginning of period |
|
|
689,539 |
|
|
|
245,023 |
|
|
|
366,982 |
|
|
|
192,561 |
|
|
Cash and cash equivalents – End of period |
|
$ |
675,441 |
|
|
$ |
366,982 |
|
|
$ |
675,441 |
|
|
$ |
366,982 |
|
Contacts
Contacts for Magnolia Oil & Gas Corporation
Investors
Brian Corales
(713) 842-9036
bcorales@mgyoil.com
Jim Johnson
(713) 842-9033
jjohnson@mgyoil.com
Media
Art Pike
(713) 842-9057
apike@mgyoil.com
