Magnolia Oil & Gas : Q4 and Full Year 2024 Magnolia Oil & Gas Earnings Presentation

Published: 2025-02-18 16:22:29 ET MGY

Fourth Quarter & Full Year 2024 Earnings Presentation

February 18, 2025

Christopher Stavros - President & CEO Brian Corales - Senior Vice President & CFO Tom Fitter - Director, Investor Relations

Fourth Quarter & Full Year 2024 Earnings Presentation

Highlights & Announcements

Financial

2024 total adjusted net income of $401

million and operating income margin of 39%

2024 adjusted EBITDAX of $953 million with

a 50% reinvestment rate

D&C capital of $477 million and free cash flow of $430 million

2024 Return on

Capital Employed (ROCE) of 22%

Operations

Corporate

2024 production of 89.7 Mboe/d (9% annual

Returned ~$378 million to

growth) and oil production of 38.3 Mbbls/d

shareholders (88% of free cash flow)

(11% annual growth)

during 2024, including: ~$273 million

of share repurchases and dividends of

Giddings annual production growth of 16%

~$105 million

and annual oil production growth of 21% YoY

Increased dividend 15% to $0.60

Successful 2024 field-level optimization & cost

annualized per share

reduction program - Q424 LOE of $5.36 per boe,

down 10% vs. Q124

Increased open market share

repurchase authorization in February

2025 by 10 million shares

Continuing to execute a differentiated business model focused on enhancing per share value

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Fourth Quarter & Full Year 2024 Earnings Presentation

Magnolia's Consistent Business Model

High Quality Assets Drive Low Capital Reinvestment

Rate that Grows the Business

Limit Capital Spending to 55% of

Annual Adjusted EBITDAX

Return Substantial Portion of Our Free Cash Flow to

Shareholders and Allocate Some Excess Cash Toward Small, Bolt-on Acquisitions that Improve the Business

Long-term dividend per share compound annual growth rate of ~10% and share repurchases of at least 1% per quarter

Deliver Mid-Single Digit Long-Term Production

Growth with Significant Free Cash Flow

2025 BOE Growth of 5%-7%

Maintain Conservative Financial Leverage to Provide Financial Flexibility Through Cycle

Strong balance sheet, with minimal net debt, provides ability for counter cyclical investing to increase per share value

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Fourth Quarter & Full Year 2024 Earnings Presentation

Low Reinvestment Rate with Strong Production Growth

4-Year Average Reinvestment Rate1

Production Growth Per Share1 (4-Year CAGR)

58%

56% 56%

50% 51% 52% 52%

45% 45% 45% 46% 47%

40% 41% 42%

60%

80%

62% 63%

25%

16%

13%

12%

8% 8% 8% 8%

5%

3% 3%

1% 1% 1% 1%

0% -1% -3%

Magnolia's Giddings Focused Development has Provided a More Capital Efficient Program Compared to Peers

-7%

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Fourth Quarter & Full Year 2024 Earnings Presentation

High Pre-tax Operating Margins

Operating Margin (1) (4-Year Average)

55%

51%

49%

46% 45%

42% 40% 40% 40% 39%

37%

35% 34% 33%

31%

29% 29% 29%

27% 26%

(1) Source: FactSet (2021 - 2024E) as of 2/6/2025. Operating margin is EBIT divided by revenue by year. Peers include: APA, AR, CHRD, CIVI, COP, CTRA, DVN, EOG, EQT, EXE, FANG, HES, MTDR, MUR, OVV, OXY, PR, RRC, and SM.

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Fourth Quarter & Full Year 2024 Earnings Presentation

Low Leverage Drives Financial Flexibility

Net Debt / EBITDA (2025E)

(1)

2.6

Magnolia has one of the strongest

balance sheets in the industry

1.7

1.5

1.5

1.3

1.3

1.4

1.2

1.2

1.1

1.1

1.1

1.1

0.9

1.0

0.8

0.3

0.4

0.4

0.1

-0.2

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Fourth Quarter & Full Year 2024 Earnings Presentation

History of Top-Tier Return on Capital Employed

Historical ROCE

26%

22%

2019 - 2024

2024

6-Year Average

Annual

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Fourth Quarter & Full Year 2024 Earnings Presentation

Consistent & Sizable Cash Return to Shareholders

~$1.6 Billion Returned to Shareholders

Cumulative Return of Capital ($MM)

$1,591

$1,213

$908

Inception

$467

$79

$108

2018

2019

2020

2021

2022

2023

2024

Share Repurchases

Dividends

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Fourth Quarter & Full Year 2024 Earnings Presentation

Key Fourth Quarter & Full Year 2024 Financial Metrics

Metric

Q4 2024

YoY % Change

2024

YoY % Change

Total Production (Mboe/d)

93.1

9%

89.7

9%

Oil Production (Mbbls/d)

38.8

9%

38.3

11%

Giddings Production as a % of total

77%

3%

76%

5%

Revenue ($ MM)

$327

1%

$1,316

7%

Adjusted EBITDAX ($ MM)

$236

(2%)

$953

6%

Adjusted Net Income ($ MM)

$95

(11%)

$401

(9%)

D&C Capex ($ MM)

$132

44%

$477

13%

D&C Capital % of Adjusted EBITDAX

56%

18%

50%

3%

Return on Capital Employed (ROCE) (1)

21%

(3%)

22%

(3%)

Free Cash Flow ($ MM)

$90

(31%)

$430

4%

Cash Balance ($ MM)

$260

(35%)

$260

(35%)

Diluted weighted average shares outstanding (MM) (2)

196.2

(5%)

200.0

(5%)

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Fourth Quarter & Full Year 2024 Earnings Presentation

2024 Cash Flow Reconciliation

1,400

11

17

1,200

107

165

Millions

1,000

919

800

600

$ In

400

200

401

0

Cash Flow (1)

Changes in (2)

Debt (3)

Dividends and(4) Acquisitions

Cash

12/31/2023

from

Working

Refinancing

Distributions

Operations

Capital and

Other

273

487

260

Share (5)

DC&F Capital (6)

Cash

Repurchases

& Leasehold

12/31/2024

11

Disclaimer

Magnolia Oil & Gas Corporation published this content on February 18, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 18, 2025 at 21:21:14.964.