Magnolia Oil & Gas Corporation Investor Presentation March 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…
Magnolia Oil & Gas Financial Policy Capital Spending Plan Targeted Conservative Financial Statements with at 60% of annual EBITDAX Low Financial Leverage (Plan expected to deliver modest production…
Corporate Business Model and Strategy Magnolia Value Creation Strategy Annual Objectives 1 Consistent organic production growth Modest production growth 2 High full-cycle operating margins Targeting full cycle margins of 50%…
2019 Cash Flow Summary ( In Millions) 900 11 800 79 700 86 600 500 658 400 435 300 200 100 183 136 0 Cash Operating Changes in Common Stock Acquisitions DC&F Cash (1) (2) 1/1/2019 Cash Flow Working Capital Repurchases…
Achieving Key Objectives Through Steady Growth Production Growth Karnes Net Acreage Additions Since Inception Magnolia has added 7,600 net acres to its Karnes position since inception, including 5,200 net acres during 2019…
Peer Leading Margins and Credit Metrics Net Debt / 2020E EBITDA (x) Net Debt / Total Enterprise Value (%) 2020E EBITDA Margin (/boe) Source: Company filings, S&P Capital IQ consensus projections as of 2/24/2020. Peers include…
Magnolia Oil & Gas Share Count 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…
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 22,088 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,…
Giddings Field Appraisal to Early Stage Development While appraisal activities and science programs are ongoing, we have identified some contiguous acreage blocks which have produced consistent results to date One of these areas…
Financial Overview
2019 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity (MM) Maintaining low financial leverage profile Capitalization Summary As of 12/31/2019 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 19
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 For the Year Ended December 31, 2019 December 31, 2018 December 31, 2019 Production: Oil (MBbls) 3,251 3,054 12,867 Natural Gas (MMcf) 10,689 8,795…
Reconciliation of Free Cash Flow (in thousands) For the Quarter Ended For the Quarter Ended For the Year Ended Free Cash Flow Reconciliation December 31, 2019 December 31, 2018 December 31, 2019 Net Cash provided by operating…
Magnolia Oil & Gas Margins For the Quarter Ended For the Quarter Ended For the Year Ended / Boe, unless otherwise noted December 31, 2019 December 31, 2018 December 31, 2019 Revenue 36.54 44.75 38.38 Less: Lease Operating Expenses…
Reconciliation of Net Income to Adjusted EBITDAX (in thousands) For the Quarter Ended For the Quarter Ended For the Year Ended Adjusted EBITDAX reconciliation to net income: December 31, 2019 December 31, 2018 December 31, 2019…
Cash Flow Summary from Inception ( In Millions) 1,200 5 28 79 1,000 59% of 233 OCF 800 600 979 577 400 58% Increase 200 183 116 0 (2) Opening Cash Operating Cash Changes in Other Common Stock Acquisitions DC&F…
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