Magnolia Oil & Gas Corporation Investor Presentation August 2021
Magnolia Oil & Gas Overview High-quality, low-risk pure-play South Texas operator with a core 476,000 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 Business Model & Strategy Magnolia Value Creation Principles Objectives & Execution Generate moderate annual organic production 1 2021 production guidance of 6 - 9% YOY growth growth Limit D&C capital to 55%…
Magnolia Oil & Gas Prudent Financial Policy Conservative Financial Statements with Capital Spending Plan Limited Low Financial Leverage to 55% of Annual Adj. EBITDAX (Expected to deliver modest production…
A Fundamental Change To Our Business 2021 Cons. Est.(1) vs 2019 Total Net Production (Mboe/d) D&C Capex / Adjusted EBITDAX (MM) 66.8 65.5 696 752 45% 280 67% 484 55% 416 33% 268 (60%) (36%) 2019 Actual 2021E Consensus 2019…
Magnolia Oil & Gas Low-Cost Structure & High Margins For the Quarter Ended For the Quarter Ended / boe, unless otherwise noted June 30, 2021 March 31, 2021 Revenue 42.42 37.06 Total Cash Operating Costs: Lease Operating Expenses…
Cash Flow Allocation Matches Magnolias Business Model (Percentage of Operating Cash Flow (1) Since Inception - 7/31/18 thru 6/30/21) Cash Build 5% Share Repurchases 20% Drilling & Completions 55% Acquisitions 20% (1)…
Magnolia Oil & Gas Prudent Deployment of Free Cash Flow Accretive Share Bolt-On Repurchases Acquisitions Return- focused Value Creation Debt Dividend Reduction Consistent free cash flow generation allows for prudent…
Magnolia Oil & Gas Share Repurchase Summary Magnolia received initial authorization to repurchase up to 10 million shares of Class A common stock in Q3 2019. The Board of Directors increased the share repurchase authorization by an…
Magnolia Oil & Gas Differentiated Dividend Framework Second remaining Dividend Principles dividend payment based on the prior Secure & Sustainable Dividend is safe, and years results & our supported by our strong balance sheet,…
Asset Overview
Giddings Field Development & Appraisal Opportunities Giddings Asset Overview Lease Map Emerging, high-growth asset with extensive inventory potential and significant development flexibility 650,000 gross acres (450,000 net acres)…
Giddings Field Development MGY has identified some contiguous acreage blocks which have produced consistent results to date. One of these areas comprises 70,000 acres. Operating one full-time rig in this area Have greater than 30…
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…
Magnolia Oil & Gas 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 Oil & Gas Commitment to Sustainability ENVIRONMENTAL SOCIAL GOVERNANCE Flaring Workforce Health & Safety Board Independence Flare less than 1% of our total net Both employee total recordable 71% of board members are production…
Magnolia Oil & Gas 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…
Appendix
2Q 2021 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity (MM) Maintaining low financial leverage profile Capitalization Summary As of 6/30/2021 Net Debt / Total Book Capitalization of…
2Q 2021 Cash Flow Summary (In Millions) 400 9 21 350 54 300 175 250 121 200 150 100 190 178 50 0 Cash Cash Flow Changes in Acquisitions D&C and Share Cash 3/31/21 from Working Capital Facilities Capital (3)…
Free Cash Flow Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended June 30, 2021 March 31, 2021 Net cash provided by operating activities 187,879 118,153 Add back: Changes in operating assets and…
Reconciliation of Net Income (Loss) to Adjusted EBITDAX (in thousands) For the Quarter Ended For the Quarter Ended June 30, 2021 June 30, 2020 Net income (loss) 116,172 (29,391) Exploration expense 62 6,462 Asset retirement…
Adjusted Net Income (Loss) Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended June 30, 2021 June 30, 2020 Net income 116,172 (29,391) Income tax expense (benefit) 2,398 (3,176) Income Before Income Taxes…
Adjusted Earnings Reconciliation (in thousands) For the Quarter Ended Per Share For the Quarter Ended Per Share June 30, 2021 Diluted EPS June 30, 2020 Diluted EPS Net income (loss) attributable to Class A Common Stock 84,445 0.48…
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…
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