Magnolia Oil & Gas Corporation Investor Presentation September 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…
Magnolia Oil & Gas Cost Structure Quarter Ended / Boe June 30, 2020 Lease Operating Expenses 3.14 Gathering, Transportation & Processing 1.16 Taxes Other Than Income 0.95 Exploration Expense (1) - General &…
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 23,500 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 MGY has identified some contiguous acreage blocks which have produced consistent results to date One of these areas comprises 70,000 acres which we have 14 wells with 180 days of…
Financial Overview
2Q20 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity (MM) Maintaining low financial leverage profile Capitalization Summary As of 6/30/2020 Net Debt / Total Book Capitalization of 24%…
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
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 Cash Cost Reconciliation Quarter Ended Quarter Ended Quarter Ended / Boe June 30, 2020 March 31, 2020 June 30, 2019 Lease Operating Expenses 3.14 3.88 4.20 Gathering, Transportation & Processing 1.16 1.29…
Reconciliation of Net Income (Loss) to Adjusted EBITDAX (in thousands) Quarter Ended Quarter Ended Adjusted EBITDAX reconciliation to net income: June 30, 2020 June 30, 2019 NET INCOME (LOSS) (29,391) 31,303 Exploration expense…
Magnolia Oil & Gas Share Count Summary A summary of Magnolias overall share count is shown in the graph below: Class A Share Breakdown (170.6 MM Shares) (1) Since the companys inception, we have repurchased 8 million shares,…
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