Magnolia Oil & Gas Corporation Investor Presentation October 2019
Magnolia Oil & Gas Overview High-quality, low-risk pure-play South Texas operator with a core 450,000 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 Production growth of 10% 4Q/4Q 2 High full-cycle operating margins Targeting full cycle margins of…
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…
Cash Flow Since Inception Delivering On Our Original Strategy (in millions) 900 800 24 17 700 Capital of 62% 232 of Cash Flow 600 500 663 400 300 409 200 100 116 97 0 Opening cash Cash flow from Other 2 Changes in…
Achieving Key Objectives Through Steady Growth Production Growth Karnes Net Acreage Additions Since Inception 70 Mboe/d 65.1 62.4 61.9 58.9 Magnolia has added over 7,000 net acres to its Karnes position,…
Magnolia Oil & Gas 2nd Quarter 2019 Highlights Grew total Company production 4% sequentially to 65.1 Mboe/d (54% oil) Karnes production grew 8% sequentially largely due to new operated & non-op wells turned in-line Oil realizations…
Magnolia Oil & Gas Q2 2019 Key Metrics Earnings and EPS (GAAP) (1) Total Production Oil Realizations (2) 18.5 Million 65.1 Mboe/d 64.13/bbl 0.12/sh (54% oil) (107% of WTI) Adjusted Net Income & Total Shares (3)(4) Adjusted…
Peer Leading Margins and Credit Metrics Net Debt / 2019E EBITDA (x) Net Debt / Total Enterprise Value (%) 2019E EBITDA Margin (/boe) Source: Company filings, S&P Capital IQ consensus projections as of 9/16/2019. Peers include…
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…
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 21,516 net acres, 65%…
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 430,000 net acres, 98% HBP and 87% operated,…
Financial Overview
2Q19 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity (MM) Maintaining low financial leverage profile Capitalization Summary 6/30/19 Net Debt / Total Book Capitalization of 10% Cash and…
Magnolia Oil & Gas Summary Balance Sheet (in thousands) June 30, 2019 December 31, 2018 Cash 96,709 135,758 Current assets 133,788 156,601 Property, plant and equipment, net 3,235,266 3,073,204 Other assets 65,369 67,960 Total…
Q2 2019 Cash Flow Reconciliation ( in millions) 300 15 250 39 200 178 133 150 100 50 97 76 0 (2) Cash Cash Flow Changes in Acquisitions D&C and Facilities Cash (1) 3/31/19 from Operations Working Capital Capital…
Magnolia Oil & Gas Margins For the Quarter Ended For the Quarter Ended / Boe, unless otherwise noted June 30, 2019 March 31, 2019 Revenue 41.01 38.93 Less: Lease Operating Expenses (4.20) (3.83) Less: Gathering, Transportation &…
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 22
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 June 30, 2019 March 31, 2019 Production: Oil (MBbls) 3,189 2,906 Natural Gas (MMcf) 10,057 9,763 NGLs (MBbls) 1,060 1,084 Total (Mboe) 5,925…
Reconciliation of Net Income to Adjusted EBITDAX (in thousands) For the Quarter Ended For the Quarter Ended Adjusted EBITDAX reconciliation to net income: June 30, 2019 March 31, 2019 Net income (1) 31,303 22,713 Exploration…
Adjusted Net Income Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Adjusted Net Income June 30, 2019 March 31, 2019 Net income (1) 31,303 22,713 Adjustments for certain items affecting comparability:…
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