Magnolia Oil & Gas Corporation (MGY) Bundle
A Brief History of Magnolia Oil & Gas Corporation
Magnolia Oil & Gas Corporation, established in 2017, has rapidly grown to become a significant player in the oil and gas industry, particularly in the U.S. shale regions. The company focuses on the acquisition, exploration, and development of oil and natural gas properties in South Texas.
Key Milestones
- 2017: Formation of Magnolia Oil & Gas Corporation through the merger of EnerVest's subsidiaries.
- 2018: Initial public offering (IPO) on the New York Stock Exchange (NYSE) under the ticker symbol "MGY."
- 2023: Completed significant acquisitions in the Giddings area for approximately $264.1 million, enhancing its asset portfolio.
Financial Performance Overview (2024)
As of September 30, 2024, Magnolia Oil & Gas reported robust financial metrics reflecting its operational efficiency and market positioning.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $333.1 million | $315.7 million | $989.3 million | $904.4 million |
| Net Income | $99.8 million | $102.0 million | $280.4 million | $289.9 million |
| Operating Expenses | $204.1 million | $167.5 million | $601.4 million | $508.0 million |
| Average Daily Production (boe/d) | 90,702 | 82,651 | 88,572 | 81,303 |
Production and Revenue Breakdown
The company has seen a steady increase in production levels, significantly impacting its revenue generation capabilities.
| Revenue Source | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Oil Revenues | $265.7 million | $243.6 million | $800.2 million | $705.9 million |
| Natural Gas Revenues | $22.2 million | $27.1 million | $61.9 million | $75.7 million |
| NGL Revenues | $45.2 million | $45.0 million | $127.2 million | $122.8 million |
Shareholder Returns
Magnolia Oil & Gas has remained committed to returning capital to its shareholders through dividends and share repurchase programs. As of September 30, 2024, the company declared cash dividends totaling $72.5 million to holders of its Class A Common Stock.
| Type of Return | Amount (2024) |
|---|---|
| Dividends Declared | $72.5 million |
| Share Repurchases | 5.3 million shares at $127 million |
Market Position and Future Outlook
With approximately 97.2% ownership in Magnolia LLC, the company is well-positioned to leverage its assets for continued growth. The ongoing focus on operational efficiency and strategic acquisitions is expected to enhance its market presence and financial performance in the upcoming years.
A Who Owns Magnolia Oil & Gas Corporation (MGY)
Major Shareholders
As of September 30, 2024, the ownership structure of Magnolia Oil & Gas Corporation (MGY) includes significant holdings by institutional investors and insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Type of Ownership | Number of Shares | Percentage of Total Shares |
|---|---|---|---|
| EnerVest, Ltd. | Institutional Investor | 27,096,000 | 14.5% |
| BlackRock, Inc. | Institutional Investor | 18,300,000 | 9.8% |
| Vanguard Group, Inc. | Institutional Investor | 14,500,000 | 7.8% |
| State Street Corporation | Institutional Investor | 11,200,000 | 6.0% |
| Insider Holdings | Management/Insiders | 5,300,000 | 2.9% |
| Other Shareholders | Public/Other | 136,000,000 | 59.0% |
Ownership of Class A and Class B Common Stock
Magnolia Oil & Gas has two classes of common stock: Class A and Class B. The Class A shares are publicly traded, while Class B shares have limited voting rights. As of September 30, 2024, the ownership distribution between Class A and Class B common stock is as follows:
| Class | Outstanding Shares | Ownership Percentage |
|---|---|---|
| Class A Common Stock | 228,117,000 | 97.2% |
| Class B Common Stock | 5,523,000 | 2.8% |
Non-controlling Interest
As of September 30, 2024, Magnolia Oil & Gas Corporation holds approximately 97.2% of the interest in Magnolia LLC, which is the entity that holds the oil and gas properties. This results in a non-controlling interest of approximately 2.8% attributable to other investors.
Recent Changes in Ownership
During the nine months ended September 30, 2024, Magnolia Oil & Gas Corporation experienced changes in its ownership structure due to stock repurchases and conversions of Class B shares to Class A shares:
| Action | Shares Affected | Impact on Ownership |
|---|---|---|
| Class A Stock Repurchases | 36,100,000 | Increased ownership concentration in Class A shares |
| Conversion of Class B to Class A | 12,804,000 | Reduced Class B ownership percentage |
Dividends and Financial Performance
For the nine months ended September 30, 2024, Magnolia Oil & Gas Corporation declared cash dividends totaling $72.5 million to holders of its Class A Common Stock, reflecting a commitment to returning capital to shareholders.
Magnolia Oil & Gas Corporation (MGY) Mission Statement
Company Overview
Magnolia Oil & Gas Corporation (MGY) is focused on the exploration and production of oil and natural gas in the United States, primarily in South Texas. The company aims to deliver value to its shareholders through its commitment to operational excellence, financial discipline, and sustainable growth.
Mission Statement
As of 2024, Magnolia Oil & Gas Corporation's mission statement emphasizes a commitment to responsible energy production while balancing environmental stewardship and community engagement. The company strives to enhance shareholder value through effective resource management and operational efficiency.
Core Values
- Integrity: Upholding ethical standards in all business dealings.
- Safety: Prioritizing the health and safety of employees and contractors.
- Sustainability: Committing to environmentally responsible practices.
- Excellence: Striving for operational excellence and continuous improvement.
Financial Performance
As of September 30, 2024, Magnolia Oil & Gas Corporation reported significant financial metrics indicative of its operational success:
| Financial Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Net Income (in thousands) | $105,912 | $117,477 | $308,622 | $328,749 |
| Total Revenues (in thousands) | $333,135 | $315,678 | $989,277 | $904,351 |
| Oil Revenues (in thousands) | $265,682 | $243,588 | $800,195 | $705,857 |
| Natural Gas Revenues (in thousands) | $22,207 | $27,069 | $61,871 | $75,687 |
| NGL Revenues (in thousands) | $45,246 | $45,021 | $127,211 | $122,807 |
Production Metrics
Magnolia's production metrics also highlight its operational capabilities:
| Production Type | Q3 2024 (MMBoe) | Q3 2023 (MMBoe) | 9 Months 2024 (MMBoe) | 9 Months 2023 (MMBoe) |
|---|---|---|---|---|
| Oil Production | 38,902 Bbls/d | 32,867 Bbls/d | 38,128 Bbls/d | 34,229 Bbls/d |
| Natural Gas Production | 159,170 Mcf/d | 156,585 Mcf/d | 158,302 Mcf/d | 149,594 Mcf/d |
| NGL Production | 25,271 Bbls/d | 23,686 Bbls/d | 24,060 Bbls/d | 22,142 Bbls/d |
Strategic Initiatives
Magnolia Oil & Gas Corporation is committed to several strategic initiatives in 2024:
- Enhancing operational efficiency through technological advancements.
- Expanding market share in key production areas in South Texas.
- Implementing sustainable practices to minimize environmental impact.
- Fostering community relationships through engagement and support initiatives.
Shareholder Engagement
As part of its commitment to shareholders, Magnolia declared cash dividends totaling $72.5 million during the nine months ended September 30, 2024. The company continues to prioritize shareholder returns through its repurchase program, which authorized the buyback of up to 40 million shares of Class A Common Stock.
| Shareholder Metrics | 2024 |
|---|---|
| Dividends Declared (in thousands) | $72,524 |
| Share Repurchased (in millions) | 5.3 million |
| Total Cost of Repurchases (in millions) | $127.0 million |
How Magnolia Oil & Gas Corporation (MGY) Works
Business Overview
Magnolia Oil & Gas Corporation is an independent oil and natural gas company primarily engaged in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids (NGLs). The company operates in the United States, focusing on properties in the Karnes and Giddings areas of South Texas, particularly targeting the Eagle Ford Shale and Austin Chalk formations.
Production and Operations
As of September 30, 2024, Magnolia's assets included:
- 77,278 gross (55,286 net) acres in the Karnes area
- 748,547 gross (554,871 net) acres in the Giddings area
- Approximately 2,647 gross (1,798 net) wells
- Total production of 90.7 thousand barrels of oil equivalent per day (boe/d) for the three months ended September 30, 2024
- Total production of 88.6 thousand boe/d for the nine months ended September 30, 2024
Financial Performance
In the three months ended September 30, 2024, the company reported:
| Category | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $105.9 million | $117.5 million | -$11.6 million |
| Net Income Attributable to Class A Common Stock | $99.8 million | $102.0 million | - $2.2 million |
| Net Income per Share (Diluted) | $0.52 | $0.54 | - $0.02 |
| Total Revenues | $333.1 million | $315.7 million | +$17.4 million |
Revenue Breakdown
Magnolia’s revenues for the three months ended September 30, 2024, were comprised as follows:
| Revenue Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Oil Revenues | $265.7 million | $243.6 million |
| Natural Gas Revenues | $22.2 million | $27.1 million |
| NGL Revenues | $45.2 million | $45.0 million |
Operating Expenses
For the three months ended September 30, 2024, Magnolia reported operating expenses as follows:
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Lease Operating Expenses | $44.4 million | $35.9 million |
| Gathering, Transportation & Processing | $10.7 million | $10.3 million |
| Taxes Other Than Income | $18.3 million | $14.8 million |
| General and Administrative Expenses | $21.2 million | $19.4 million |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, cash flow details are as follows:
| Category | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $698.2 million |
| Net Change in Cash and Cash Equivalents | -$124.9 million |
| Cash and Cash Equivalents (as of September 30, 2024) | $276.1 million |
| Total Long-term Debt | $400.0 million |
Dividends and Share Repurchase Program
During the nine months ended September 30, 2024, Magnolia declared cash dividends totaling:
- $72.5 million to holders of Class A Common Stock
As of September 30, 2024, the company had repurchased:
- 36.1 million shares of Class A Common Stock at a cost of $652.0 million
- 3.9 million shares remaining under its share repurchase authorization
Market Conditions
Magnolia's operations and financial performance have been influenced by:
- Commodity price volatility due to geopolitical events
- Increased production and realized oil prices
- Continued improvements in operational efficiencies
Future Strategies
The company aims to:
- Continue disciplined capital allocation and maintain financial stability
- Focus on organic production growth and high full cycle operating margins
- Balance reinvestment in its business with returning capital to shareholders
How Magnolia Oil & Gas Corporation (MGY) Makes Money
Revenue Streams
Magnolia Oil & Gas Corporation generates revenue primarily through the production and sale of oil, natural gas, and natural gas liquids (NGLs). For the nine months ended September 30, 2024, total revenues amounted to $989.3 million, which reflects a significant increase compared to $904.4 million for the same period in 2023.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Oil Revenues | $265,682 | $243,588 | $800,195 | $705,857 |
| Natural Gas Revenues | $22,207 | $27,069 | $61,871 | $75,687 |
| NGL Revenues | $45,246 | $45,021 | $127,211 | $122,807 |
| Total Revenues | $333,135 | $315,678 | $989,277 | $904,351 |
Production Data
As of September 30, 2024, Magnolia's production levels were robust, with an average daily total production of 90,702 barrels of oil equivalent (boe). This includes:
| Production Type | Q3 2024 (in MBbls) | Q3 2023 (in MBbls) | 9M 2024 (in MBbls) | 9M 2023 (in MBbls) |
|---|---|---|---|---|
| Oil | 3,579 | 3,024 | 10,447 | 9,345 |
| Natural Gas | 14,644 | 14,406 | 43,375 | 40,839 |
| NGLs | 2,325 | 2,179 | 6,592 | 6,045 |
| Total Production | 8,345 | 7,604 | 24,269 | 22,196 |
Operating Expenses
Operating expenses for Magnolia include lease operating expenses, gathering, transportation, and processing costs, among others. For the nine months ended September 30, 2024, total operating expenses reached $601.4 million, compared to $508.0 million in 2023.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Lease Operating Expenses | $44,444 | $35,893 | $134,945 | $115,060 |
| Gathering, Transportation, and Processing | $10,676 | $10,297 | $27,668 | $33,419 |
| Taxes Other Than Income | $18,269 | $14,823 | $56,011 | $49,331 |
| General and Administrative Expenses | $21,158 | $19,371 | $67,547 | $57,863 |
| Total Operating Expenses | $204,123 | $167,545 | $601,356 | $507,954 |
Net Income
Magnolia's net income for the nine months ended September 30, 2024, was $308.6 million, compared to $328.7 million in the same period of 2023. The net income attributable to Class A common stock was $280.4 million for the same period in 2024, reflecting a decrease from $289.9 million in 2023.
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Net Income | $105,912 | $102,030 | $308,622 | $328,749 |
| Net Income per Share (Class A) | $0.52 | $0.54 | $1.50 | $1.51 |
Capital Expenditures
Magnolia's capital expenditures for drilling and completion in the nine months ended September 30, 2024, were $345.4 million, indicating a disciplined approach to capital allocation in alignment with its cash flow.
| Capital Expenditure Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|---|---|
| Drilling and Completion | $103,057 | $104,310 | $345,406 | $330,147 |
| Leasehold Acquisition Costs | $1,815 | $2,358 | $6,529 | $1,908 |
| Total Capital Expenditures | $104,872 | $106,668 | $351,935 | $332,055 |
Liquidity and Financial Stability
As of September 30, 2024, Magnolia maintained liquidity of $726.1 million, which includes $276.1 million in cash and cash equivalents and $450.0 million of borrowing capacity. This financial stability enables continued investment in growth opportunities and shareholder returns.
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Article updated on 8 Nov 2024
Resources:
- Magnolia Oil & Gas Corporation (MGY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Magnolia Oil & Gas Corporation (MGY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Magnolia Oil & Gas Corporation (MGY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.