Magnolia Oil & Gas Corporation Investor Presentation June 2022
Magnolia Oil & Gas Overview High-quality, low-risk pure-play South Texas operator with a core 471,000 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 2022 production guidance 10% 1 growth Limit D&C capital to 55% of annual…
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 vs 2019 Total Net Production (Mboe/d) D&C Capex / Adjusted EBITDAX (MM) 66.8 66.0 829 696 46% 67% 280 597 54% 416 33% 232 (28%) (60%) 2019 2021 2019 2021 Giddings Karnes D&C Capex…
Magnolia Oil & Gas Margin and Cost Structure For the Quarter Ended For the Quarter Ended / Boe, unless otherwise noted March 31, 2022 March 31, 2021 Revenue 58.44 21.12/boe 37.32 Increase Total Cash Operating Costs: Lease…
Cash Flow Allocation Matches Magnolias Business Model (Percentage of Operating Cash Flow (1) Since Inception - 7/31/18 thru 3/31/22) Cash Build + Dividend 13% Drilling & Share Completions Repurchases 50% 23%…
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 1Q 2022 Since the initial repurchase authorization in 3Q19, Magnolia has reduced its dilutive share count by 19.9(1) million shares of Class A common stock as well as 22.9 million shares of Class B…
Increasing Production Per Share Since 3Q20, our production has increased 32% and our share count has declined by 11%. The lower share count improves our prospective per share metric EPS, CFPS, and production per share. Production per…
Magnolia Oil & Gas Differentiated Dividend Framework Dividend Principles Second dividend payment based on the prior years results & Secure & Sustainable Dividend is safe, and our view of long-term supported by our strong balance…
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 17
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 incident rate…
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
1Q 2022 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity (MM) Maintaining low financial leverage profile Capitalization Summary As of 3/31/2022 Net Debt / Total Book Capitalization of…
1Q 2022 QTD Cash Flow Reconciliation (In millions) 700 28 600 49 84 500 268 400 128 300 200 367 346 100 0 (1) (2) (3) (4) (5) Cash Cash Flow Changes in Dividends D&C and Common Cash 12/31/21 from WC and Other…
Free Cash Flow Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended March 31, 2022 March 31, 2021 Net cash provided by operating activities 238,869 118,153 Add back: net changes in operating assets and…
Adjusted EBITDAX Reconciliation (in thousands) For the Quarter Ended For the Quarter Ended March 31, 2022 March 31, 2021 Net income 208,620 91,492 Exploration expenses 5,538 2,062 Asset retirement obligations accretion 789…
Proved Developed Reserves Detail For the Year Ended For the Year Ended (In thousands) December 31, 2021 December 31, 2020 Costs incurred: Proved property acquisition costs 12,354 49,246 Unproved properties acquisition costs 10,483…
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