Magnolia Oil & Gas Corporation Investor Presentation December 2020
Magnolia Oil & Gas Overview High-quality, low-risk pure-play South Texas operator with a core 460,000 Net Acre Position Targeting Two of the Top Eagle Ford and Austin Chalk position acquired at an attractive entry Oil Plays in the U.S.…
Magnolia Oil & Gas Financial Policy Conservative Financial Statements with Capital Spending Plan Targeted Low Financial Leverage at 60% of annual EBITDAX (Plan expected to deliver modest production…
Corporate Business Model and Strategy Magnolia Value Creation Strategy Objectives & Execution Modest production growth based on current 1 Consistent organic production growth commodity prices 2 High full-cycle operating margins…
4th Quarter 2020 Guidance Total Company Production Giddings Production 7% - 10% Sequential 20% Sequential Growth Growth D&C Capex Oil Differential Activity 55% of adj. EBITDAX 3/Bbl discount to 8 Giddings TILs MEH 6
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…
Cash Flow Allocation Matches Magnolias Business Model (1) (Percentage of Operating Cash Flow since inception - 7/31/18 thru 9/30/20) Cash Share Build Repurchases 3% 8% Acquisitions 26% Capital Spending for Drilling &…
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…
Giddings Field Redeveloping as an Emerging Play Giddings Asset Overview Lease Map Emerging, high-growth asset with extensive inventory potential and significant development flexibility 440,000 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
3Q20 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity (MM) Maintaining low financial leverage profile Capitalization Summary As of 9/30/20 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 16
Magnolia 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…
Appendix
Free Cash Flow Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Free Cash Flow Reconciliation September 30, 2020 September 30, 2019 Net cash provided by operating activities 65,156 179,220 Changes in…
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, 2020 September 30, 2019 Net income 13,695 17,357 Exploration…
Adjusted Net Income Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Adjusted Net Income September 30, 2020 September 30, 2019 Net income 13,695 17,357 Income tax expense (benefit) (339) 3,529 Income Before…
Adjusted Earnings Reconciliation (in thousands) For the Quarter Ended Per Share For the Quarter Ended Per Share September 30, 2020 Diluted EPS September 30, 2019 Diluted EPS Net income attributable to Class A Common Stock 9,147 0.05…
3Q 20 Cash Flow Summary ( In Millions) 200 2 180 1 4 7 160 27 69 140 120 100 80 149 60 117 40 20 0 Cash Cash Flow Changes in Other (3) Acquisitions Common D&C and Cash 6/30/20 from WC (2) Stock Facilities 9/30/20 (1)…
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…
Magnolia Oil & Gas Share Count Summary A summary of Magnolias overall share count is shown in the graph below: Class A Share Breakdown (169.6 MM Shares) (1) Since the companys inception, we have repurchased 9 million shares,…
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