Magnolia Oil & Gas Corporation Investor Presentation January 2020
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 Summary from Inception ( In Millions) 1,000 9 10 900 27 800 233 62% of OCF 700 600 816 500 400 507 300 41% Increase 200 100 164 116 0 (2) (3) Opening Cash Cash Flow from Working Capital Common Stock…
Achieving Key Objectives Through Steady Growth Production Growth Karnes Net Acreage Additions Since Inception Magnolia has added 7,500 net acres to its Karnes position, representing a 52% increase over original amount (1)…
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 11/7/2019. Peers include…
Magnolia Oil & Gas Stockholders Equity Summary A summary of Magnolias overall share count is shown in the graph below: Class A Share Breakdown (171.3 MM Shares)(1) Since the companys inception, we have repurchased 7 million shares,…
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…
Magnolia Oil & Gas 3rd Quarter 2019 Highlights Grew total Company production nearly 10% sequentially to 71.3 Mboe/d (54% oil) Karnes production grew 12% sequentially due to new wells turned in-line Oil realizations averaged 105% of…
Magnolia Oil & Gas Q3 2019 Key Metrics Earnings and EPS (GAAP) (1) Total Production Oil Realizations (2) 7.8 Million 71.3 Mboe/d (54% oil) 59.05/Bbl 0.05 Per Share 10% Sequential Growth (105% of WTI) Adj. Net Income, Adj. EPS…
Q3 2019 Cash Flow Summary ( In Millions) 300 6 4 10 250 98 200 173 150 100 164 50 97 0 (2) Cash Cash Flow Working Capital Other Common Stock D&C and Cash 6/30/19 from Operations (1) Changes Repurchases Facilities…
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 21,946 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, 22…
Financial Overview
3Q19 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity (MM) Maintaining low financial leverage profile Capitalization Summary As of 9/30/2019 Net Debt / Total Book Capitalization of 7%…
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 21
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 September 30, 2019 June 30, 2019 Production: Oil (MBbls) 3,520 3,189 Natural Gas (MMcf) 10,763 10,057 NGLs (MBbls) 1,245 1,060 Total (Mboe) 6,559…
Magnolia Oil & Gas Margins For the Quarter Ended For the Quarter Ended / Boe, unless otherwise noted September 30, 2019 June 30, 2019 Revenue 37.32 41.01 Less: Lease Operating Expenses (3.71) (4.20) Less: Gathering, Transportation &…
Reconciliation of Net Income to Adjusted EBITDAX (in thousands) For the Quarter Ended For the Quarter Ended Adjusted EBITDAX reconciliation to net income: September 30, 2019 June 30, 2019 Net income (1) 17,357 31,303 Exploration…
Adjusted Net Income Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Adjusted Net Income September 30, 2019 June 30, 2019 Net income (1) 17,357 31,303 Income tax expense 3,529 5,145 Income before income taxes…
Adjusted Earnings Reconciliation (in thousands) For the Quarter Ended Per Share Diluted For the Quarter Ended Per Share Diluted September 30, 2019 EPS June 30, 2019 EPS Net income attributable to Class A Common Stock 7,784 0.05…
Magnolia Oil & Gas Summary Balance Sheet (in thousands) September 30, 2019 December 31, 2018 Cash 164,489 135,758 Current assets 127,766 156,601 Property, plant and equipment, net 3,180,166 3,073,204 Other assets 60,712 67,960…
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