Magnolia Oil & Gas Corporation Investor Presentation March 2021
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 50% 60% of Annual EBITDAX (Expected to deliver modest production…
Corporate Business Model and Strategy Magnolia Value Creation Strategy Objectives & Execution Mid-single digit year-over-year organic production 1 Consistent organic production growth growth 2 High full-cycle operating margins…
Cash Flow Priorities to Maximize Shareholder Returns Accretive Bolt-On Dividend Acquisitions Return- focused Value Creation Debt Share Reduction Repurchases With a targeted goal of always being free cash flow positive,…
Cash Flow Allocation Matches Magnolias Business Model (Percentage of Operating Cash Flow (1) Since Inception - 7/31/18 thru 12/31/20) Cash Build Share 6% Repurchases 8% Acquisitions 26% Drilling & Completions 60% (1)…
Share Repurchase Summary Through YE 2020 Magnolia received initial authorization to repurchase up to 10 million shares of Class A common stock in Q3 2019 Through Q4 2020, Magnolia has repurchased 5.5 million shares of Class A common…
Magnolia Oil & Gas Margin and Cost Structure For the Quarter Ended For the Quarter Ended / Boe December 31, 2020 December 31, 2019 Revenue 26.76 36.54 Total Cash Costs: Lease Operating Expenses (1) (3.20) (3.66) Gathering,…
Asset Overview
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 96% operated,…
Giddings Field Appraisal to 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 20 wells with 90+ days of production…
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 Eagle Ford Karnes Trough the Eagle Ford, substantially de-risked…
Financial Overview
4Q20 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity (MM) Maintaining low financial leverage profile Capitalization Summary As of 12/31/2020 Net Debt / Total Book Capitalization of 17%…
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
Proved Developed Reserves Detail For the Year Ended (In thousands) December 31, 2020 Costs incurred: Proved property acquisition costs 49,246 Unproved properties acquisitions costs 25,966 Total acquisition costs 75,212…
Free Cash Flow Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Free Cash Flow Reconciliation December 31, 2020 December 31, 2019 Net cash provided by operating activities 79,122 159,007 Add back: net…
Reconciliation of Net Income to Adjusted EBITDAX (in thousands) For the Quarter Ended For the Quarter Ended Adjusted EBITDAX reconciliation to net income: December 31, 2020 December 31, 2019 Net income 42,012 13,631 Exploration…
Adjusted Net Income Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Adjusted Net Income December 31, 2020 December 31, 2019 Net income 42,012 13,631 Income tax expense - 2,311 Income Before Income Taxes…
Adjusted Earnings Reconciliation (in thousands) For the Quarter Ended Per Share For the Quarter Ended Per Share December 31, 2020 Diluted EPS December 31, 2019 Diluted EPS Net income attributable to Class A Common Stock 27,745…
4Q 2020 Cash Flow Summary ( In Millions) 16 27 16 41 90 193 149 Cash CFFO(1) Ironwood Sale Changes Common Stock DC&F Cash 9/30/20 in WC (2) Repurchases Capital 12/31/20 (1) Cash flow from operations before…
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