Magnolia Oil & Gas Corporation Investor Presentation January 2019
Magnolia Oil & Gas Overview Highquality, lowrisk pureplay South Texas operator with a core 475,000 Net Acre Position Targeting Two of the Top Eagle Ford and Austin Chalk position acquired at an attractive entry Oil Plays in the U.S.…
Corporate Execution of Business Model and Strategy Magnolia Value Creation Strategy YTD and Q3 Achievements (1) Organic production growth of 7% Q/Q and 1 Consistent organic production growth 59% YoY (excludes Harvest…
Magnolia Oil & Gas Free Cash Flow Model Our objective is to manage the business to generate meaningful free cash flow while providing moderate production growth D&C capex spend is planned within 60% of EBITDAX, irrespective of…
Q3 Financials Adjusted for Current Price Environment Q3 2018 Pro Forma Actuals Q3 2018 Current Pricing Adjusting only the commodity prices Net Production from the Q3 2018 Pro Forma Actuals to Oil (Mbopd) 32.8 32.8 reflect the…
Asset Overview
Karnes County Core Eagle Ford and Austin Chalk Key Asset Highlights Premier Position in the Core of the Eagle Ford Worldclass acreage footprint located in the core of the Eagle Ford, substantially derisked 16,454 net acres (31,043…
Located in an Attractive Neighborhood BP Core position in Karnes County Oil Window adjacent to EOG and Marathon with 28 to 32/barrel breakevens(1) and less than 1year new well paybacks (1) Source: RSEG 9
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, highgrowth asset with extensive inventory potential and significant development flexibility 458,989 net acres, 99%+ HBP and 87% operated,…
Financial Overview
Magnolia Oil & Gas Financial Policy Capital Spending Plan Targeted at 50 Conservative Financial Statements with 60% of annual EBITDAX 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 14
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 &…
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…
Cash Flow Priorities to Maximize Shareholder Returns Accretive BoltOn 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
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 Production Guidance Original 2018 Production Guidance Revised 2018 Production Guidance 45.6 Mboe/d 50.0 Mboe/d Transaction Announcement 3/20/2018 Q2 Earnings Release 8/14/2018 10% Increase over Original Further…
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…
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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