Magnolia Oil & Gas Corporation Investor Presentation May 2023
Magnolia Oil & Gas Overview High-quality, low-risk pure-play South Texas operator with a core 482,000 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 growth was 14% 1 growth Actual D&C capital spending since…
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…
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 and…
Cash Flow Allocation Matches Magnolias Business Model (Percentage of Operating Cash Flow (1) Since Inception - 7/31/18 thru 3/31/23) Cash Build + Dividend 20% Drilling & Completions 45% Share Repurchases 23%…
Share Repurchase Summary Through 1Q 2023 Since the initial repurchase authorization in 3Q19, Magnolia has reduced its dilutive share count by 27.8(1) million shares of Class A common stock as well as 26.9 million shares of Class B…
Magnolia Oil & Gas Differentiated Dividend Framework Dividend Principles 15% Increase Secure & Sustainable Dividend is safe, and supported by our strong balance sheet, prudent spending and 43% Increase consistent free cash flow…
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 10
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 (460,000 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…
Commitment to Sustainability ENVIRONMENTAL SOCIAL GOVERNANCE Air Emissions Workforce Health & Safety Board Independence Reduced our 2021 GHG intensity rate Have not recorded a fatal accident in 71% of board members are by 9.5%…
Magnolia Oil & Gas Summary Investment Highlights High Quality Assets Positioned for Success Coveted position in core of Karnes County with industry leading breakevens Emerging position in the Giddings Field with 70,000 acres now in…
Appendix
1Q 2023 Capital Structure and Liquidity Overview Capital Structure Overview Capitalization & Liquidity (MM) Maintaining low financial leverage profile Capitalization Summary As of 3/31/2023 Currently have a net cash position of 267…
Free Cash Flow Reconciliations For the Quarter Ended For the Quarter Ended (in thousands) March 31, 2023 March 31, 2022 Net cash provided by operating activities 219,823 238,869 Add back: Changes in operating assets and…
Magnolia Oil & Gas Margin and Cost Structure For the Quarter Ended For the Quarter Ended / Boe, unless otherwise noted March 31, 2023 March 31, 2022 Revenue 43.18 58.44 92% of the decrease in Total Cash Operating Costs: 15.26/Boe…
Adjusted EBITDAX Reconciliations For the Quarter Ended For the Quarter Ended (in thousands) March 31, 2023 March 31, 2022 Net income 106,677 208,620 Exploration expenses 11 5,538 Asset retirement obligation accretion 841 789…
Adjusted Net Income Reconciliation For the Quarter Ended For the Quarter Ended (in thousands) March 31, 2023 March 31, 2022 Net income 106,677 208,620 Adjustments: Impairment of oil and natural gas properties (1) 15,735 -…
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