Magnolia Oil & Gas Corporation Investor Presentation November 2018
Magnolia Oil & Gas Overview High-quality, low-risk pure-play South Texas operator with a core 474,000 Net Acre Position Targeting Two of the Top Eagle Ford and Austin Chalk position acquired at an attractive entry Oil Plays in the…
Corporate Execution of Business Model and Strategy Magnolia Value Creation Strategy YTD and Q3 Achievements Organic production growth of 7% Q/Q and 1 Consistent organic production growth 59% YoY (excludes Harvest acquisition) 2…
Magnolia Oil & Gas Q3 2018 Key Metrics Q3 2018 Earnings Q3 2018 Pro Forma Total Production Q4 2018 Estimated Production 6.7 Million (GAAP) 55.2 Mboe/d 59 Mboe/d 58 Million (Pro Forma) Adjusted Operating Margin (/Boe, %) (1) Q3…
Revised Guidance Original 2018 Production Guidance Revised 2018 Guidance Further Revised 2018 Guidance 45.6 Mboe/d 50.0 Mboe/d 53.0 Mboe/d Transaction Announcement 3/20/2018 Q2 Earnings Release 8/14/2018 Q3 Earnings Release…
Asset Overview
Karnes County Core Eagle Ford and Austin Chalk Key Asset Highlights Premier Position in the Core of the Eagle Ford World-class acreage footprint located in the core of the Eagle Ford, substantially de-risked 14,609 net acres…
Located in an Attractive Neighborhood Core position in Karnes County Oil Window adjacent to EOG and Marathon with 28 to 32/barrel breakevens(1) and less than 1-year new well paybacks (1) Source: RSEG 10
Karnes County Results Show Superior Economics Results in Karnes County are some the best in North America Karnes Eagle Ford and Austin Chalk type curves produce 216,000 and 332,000 barrels of oil, respectively, in their first 12…
Giddings Field Redeveloping as an Emerging Play Giddings Asset Overview Lease Map Emerging, high-growth asset with extensive inventory potential and significant development flexibility 458,989 net acres, 99%+ HBP and 87% operated,…
Harvest Acquisition Overview On August 31st, closed acquisition of substantially all of the South Texas Assets of Harvest Oil & Gas Corporation for 193 million in cash and stock Transaction consideration of 133 million cash and 4.2MM…
Financial Overview
Magnolia Oil & Gas Financial Policy Capital Spending Plan Targeted at 50 - Conservative Financial Statements with 60% of annual EBITDA Low Financial Leverage (Plan expected to deliver 10%+ of annual…
Business Risks Adequately Managed Level of Risk Generally Acceptable to Magnolia Risk Factor Low Moderate Fully Exposed Geologic/Exploratory Political Cost Risk Reinvestment Commodity Financial 16
Magnolia Oil & Gas Focus on High Margins Successor / Boe, unless otherwise noted July 31, 2018 through September 30, 2018 Revenue (MM) 179 Revenue 50.93 Less: Lease Operating Expenses (3.14) Less: Gathering, Transportation &…
Cash Flow Priorities to Maximize Shareholder Returns Accretive Bolt-On Acquisitions Debt Share Reduction Repurchases Return- focused Value Creation With a targeted goal of always being free cash flow positive, Magnolia…
Summary Investment Highlights High Quality Assets Positioned for Success Coveted position in core of Karnes County with industry leading breakevens between 28 - 32 per barrel(1) Emerging position in the Giddings Field with results…
Appendix
Q3 2018 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity (MM) Maintaining low financial leverage profile Capitalization Summary As of 9/30/2018 Net Debt / Total Book Capitalization of…
Q3 2018 Operating Highlights Successor Predecessor Pro Forma July 31, 2018 through July 1, 2018 through Three Months Ended September 30, 2018 July 30, 2018 September 30, 2018 Production: Oil (MBbls) 2,023 897 3,018 Natural Gas…
Magnolia Oil & Gas Summary Balance Sheet (in thousands) Successor Predecessor September 30, 2018 December 31, 2017 Cash 36,715 - Other current assets 174,998 114,536 Property, plant and equipment, net 3,016,671 1,565,537…
Reconciliation of Net Income to EBITDAX (in thousands) Pro Forma Three Months Ended Nine Months Ended EBITDAX reconciliation to net income: September 30, 2018 September 30, 2018 (1) Net income attributable to Class A Common Stock…
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