Magnolia Oil & Gas Corporation Investor Presentation June 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 Plan modest growth when prices improve 2 High full-cycle operating margins Targeting full cycle…
Q1 2020 Cash Flow Summary ( In Millions) 350 300 15 7 69 250 118 200 94 150 100 183 146 50 0 (3) Cash Cash Flow (1) Changes in (2) Common Stock Acquisitions D&C and Cash 12/31/19 from Operations Working Capital…
Achieving Key Objectives Through Steady Growth Production Growth Karnes Net Acreage Additions Since Inception Magnolia has added 9,065 net acres to its Karnes position since inception, or an increase of 60%. (1) (1)…
Magnolia Oil & Gas Cash Operating Margin Reconciliation For the Quarter Ended For the Quarter Ended / Boe March 31, 2020 March 31, 2019 Revenue 29.15 38.93 Direct Operating Expenses Lease Operating Expenses (3.88) (3.83)…
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 23,535 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
1Q20 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity (MM) Maintaining low financial leverage profile Capitalization Summary As of 3/31/2020 Net Debt / Total Book Capitalization of 21%…
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 18
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, 2020 March 31, 2019 Production: Oil (MBbls) 3,391 2,906 Natural Gas (MMcf) 10,053 9,763 NGLs (MBbls) 1,155 1,084 Total (Mboe) 6,222…
Reconciliation of Free Cash Flow (In thousands) For the Quarter Ended For the Quarter Ended Free Cash Flow Reconciliation March 31, 2020 March 31, 2019 Net Cash provided by operating activities 134,878 116,562 Changes in…
Reconciliation of Net Income (Loss) to Adjusted EBITDAX (In thousands) For the Quarter Ended For the Quarter Ended Adjusted EBITDAX reconciliation to net income (loss): March 31, 2020 March 31, 2019 Net income (loss)(1)…
Magnolia Oil & Gas Share Count Summary A summary of Magnolias overall share count is shown in the graph below: Class A Share Breakdown (170.5 MM Shares) (1) Since the companys inception, we have repurchased 8 million shares,…
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