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Mar 31
Magnolia Q1 2025 Earnings Report
Magnolia Oil & Gas Corporation announced its financial and operational results for the first quarter of 2025, reporting increased net income, adjusted net income, and earnings per share compared to the prior year.
Key Takeaways
Magnolia Oil & Gas Corporation reported a strong first quarter in 2025 with net income of $106.6 million and diluted EPS of $0.54. The company saw a 14% increase in total average daily production and generated $110.5 million in free cash flow. Capital expenditures for drilling and completions were $130.4 million, and the company ended the quarter with a cash balance of $247.6 million.
Net income for Q1 2025 was $106.6 million, a 9% increase from Q1 2024.
Diluted earnings per share increased by 17% to $0.54 in Q1 2025.
Total average daily production grew by 14% year-over-year to 96.5 Mboe/d.
The company repurchased 2.2 million shares of Class A Common Stock for $52.0 million during the quarter.
Magnolia
Magnolia
Magnolia Revenue by Segment
Revenue by Segment
Oil Revenues Revenue
CapyFin.comNatural Gas Revenues Revenue
CapyFin.comNatural Gas Liquids Revenues Revenue
CapyFin.com Forward Guidance
Magnolia is increasing its full-year 2025 production growth guidance to 7-9% and reducing its capital spending program to $430-$470 million, reflecting strong Q1 performance and improved capital efficiencies.
Positive Outlook
- Full-year 2025 production growth guidance increased to 7-9% from 5-7% previously.
- Capital spending program for 2025 reduced to $430-$470 million, a decrease of over 5% from the initial plan.
- Second quarter 2025 D&C capital spending estimated at approximately $110 million.
- Total production for Q2 2025 estimated to be roughly flat sequentially at approximately 97 Mboe/d.
- Fully diluted share count for Q2 2025 expected to be approximately 193 million shares, 4% lower than Q2 2024 levels.
Challenges Ahead
- Oil price differentials are anticipated to be approximately a $3 per barrel discount to Magellan East Houston.
- The company remains completely unhedged for all its oil and natural gas production.
- Recent volatility in financial markets and product prices suggest a period of elevated uncertainty for the global economy.
- Potential for weaker product prices or market instability.
- The company's cost structure has been reduced, but future price weakening could still impact results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income