Magnolia Oil & Gas Corporation Investor Presentation May 2019
Magnolia Oil & Gas Overview High-quality, low-risk pure-play South Texas operator with a core 461,000 Net Acre Position Targeting Two of the Top Eagle Ford and Austin Chalk position acquired at an attractive entry Oil Plays in the…
Corporate Business Model and Strategy Magnolia Value Creation Strategy 2019 Expectations 1 Consistent organic production growth Organic production growth of 10% 4Q/4Q 2 High full-cycle operating margins Targeting full cycle…
Magnolia Oil & Gas Q1 2019 Key Metrics Earnings and EPS (GAAP) (1) Total Production Oil Realizations (2) 13.0 Million 62.4 Mboe/d 59.07/bbl (108% of WTI) 0.08/sh Adjusted Net Income & Total Shares (3)(4) Adjusted EBITDAX (3)…
Q1 2019 Cash Flow Reconciliation ( in millions) 350 4 300 38 250 52 154 200 150 128 100 136 50 76 0 (2) (3) Cash Cash Flow Other Changes in Acquisitions D&C and Cash (1) 12/31/18 from Operations Working…
Cash Flow Reconciliation Since Magnolias Inception ( in millions) 700 600 23 34 500 198 400 485 300 200 270 100 116 76 0 Opening Cash Cash Flow from Other (2) Changes in Acquisitions (3) D&C and Cash at Inception…
Achieving Key Objectives Through Steady Growth Production Growth (1) Karnes Net Acreage Additions Since Inception (1) 70 Mboe/d 3-5% Q/Q Growth 62.4 61.9 58.9 After completing the acquisitions expected to close in Q2…
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 21,460 net acres, 64%…
Located in an Attractive Neighborhood Eagle Ford Karnes Trough Area Magnolia Fluid Windows BP Oil EOG Wet Gas MRO Dry Gas COP Core position in Karnes County Oil Window adjacent to EOG and Marathon with 28 to 32/barrel…
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 439,342 net acres, 98% HBP and 87% operated,…
Financial Overview
Magnolia Oil & Gas Financial Policy Capital Spending Plan Targeted Conservative Financial Statements with at 50 - 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 16
Q1 2019 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity (MM) Maintaining low financial leverage profile Capitalization Summary As of 3/31/2019 Net Debt / Total Book Capitalization of…
Magnolia Oil & Gas Summary Balance Sheet (in thousands) March 31, 2019 December 31, 2018 Cash 76,307 135,758 Current assets 126,938 156,601 Property, plant and equipment, net 3,168,544 3,073,204 Other assets 66,184 67,960…
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
Magnolia Oil & Gas Operating Highlights For the Quarter Ended For the Quarter Ended March 31, 2019 December 31, 2018 Production: Oil (MBbls) 2,906 3,054 Natural Gas (MMcf) 9,763 8,795 NGLs (MBbls) 1,084 1,179 Total (Mboe) 5,617…
Reconciliation of Net Income to EBITDAX & Adjusted EBITDAX (in thousands) For the Quarter Ended For the Quarter Ended Adjusted EBITDAX reconciliation to net income: March 31, 2019 December 31, 2018 Net income (1) 22,713 57,808…
Adjusted Net Income Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Adjusted Net Income March 31, 2019 December 31, 2018 Net income (1) 22,713 57,808 Adjustments for certain items affecting comparability:…
Magnolia Oil & Gas Margins For the Quarter Ended For the Quarter Ended / Boe, unless otherwise noted March 31, 2019 December 31, 2018 Revenue 38.93 44.75 Less: Lease Operating Expenses (3.83) (3.46) Less: Gathering, Transportation…
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