Magnolia Oil & Gas Corporation Investor Presentation Jan 2022
Magnolia Oil & Gas Overview High-quality, low-risk pure-play South Texas operator with a core 478,000 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 2021 production guidance of 7% YOY growth 1 growth Limit D&C capital to 55% of…
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 65.8 813 696 45% 67% 280 545 55% 416 257 33% (60%) (32%) 2019 Actual 2021E Consensus 2019…
Magnolia Oil & Gas Margin and Cost Structure For the Quarter Ended For the Quarter Ended / Boe, unless otherwise noted September 30, 2021 June 30, 2021 Revenue 45.74 42.42 Total Cash Operating Costs: Lease Operating Expenses (1)…
Cash Flow Allocation Matches Magnolias Business Model (Percentage of Operating Cash Flow (1) Since Inception - 7/31/18 thru 9/30/21) Cash Build + Dividend 8% Share Repurchases 22% Drilling & Completions 52% Acquisitions…
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…
Share Repurchase Summary Through 3Q 2021 Since the initial repurchase authorization in 3Q19, Magnolia has reduced its dilutive share count by 15.1(1) million shares of Class A common stock as well as 19 million shares of Class B common…
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 drilling development wells in this…
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
3Q 2021 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity (MM) Maintaining low financial leverage profile Capitalization Summary As of 9/30/2021 Net Debt / Total Book Capitalization of…
Free Cash Flow Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Free Cash Flow Reconciliation September 30, 2021 September 30, 2020 Net cash provided by operating activities 221,904 65,156 Add back:…
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, 2021 September 30, 2020 Net income 159,907 13,695 Exploration…
Adjusted Net Income Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended Adjusted Net Income September 30, 2021 September 30, 2020 Net income 159,907 13,695 Income tax expense (benefit) 3,631 (339) Income Before…
Adjusted Earnings Reconciliation (in thousands) For the Quarter For the Quarter Per Share Per Share Ended Ended Diluted EPS Diluted EPS September 30, 2021 September 30, 2020 Net income attributable to Class A Common Stock…
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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