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Sep 30, 2024
Magnolia Q3 2024 Earnings Report
Magnolia announced its Q3 2024 financial and operational results, showcasing a steady performance.
Key Takeaways
Magnolia Oil & Gas Corporation reported a net income of $105.9 million and adjusted net income of $100.3 million for Q3 2024. The company's total production volumes grew by 10% year-over-year to 90.7 Mboe/d, with oil production at 38.9 Mbbls/d. Magnolia generated free cash flow of $126.1 million, returning approximately 70% to shareholders through share repurchases and dividends.
Magnolia reported a net income attributable to Class A Common Stock of $99.8 million, or $0.52 per diluted share.
Adjusted EBITDAX was $243.6 million, with D&C capital at $103.1 million, representing approximately 42% of adjusted EBITDAX.
Lease operating expenses decreased to $5.33 per barrel oil equivalent, an 11% decline from Q1 2024.
Total production volumes grew by 10% year-over-year to 90.7 Mboe/d, including 38.9 Mbbls/d of oil, despite midstream facility outages.
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 expects fourth quarter D&C capital to be approximately $125 million, bringing the total capital spending for the year to approximately $470 million. Fourth quarter total production volumes are expected to be approximately 93 Mboe/d.
Positive Outlook
- Expects fourth quarter D&C capital to be approximately $125 million.
- Total capital spending for the year is expected to be approximately $470 million.
- Fourth quarter total production volumes are expected to be approximately 93 Mboe/d.
- High single digit total year-over-year production growth during 2024 is expected.
- This year’s growth in oil production is now expected to surpass that rate.
Challenges Ahead
- Oil price differentials are anticipated to be approximately a $3.00 per barrel discount to Magellan East Houston.
- Magnolia remains completely unhedged for all its oil and natural gas production.
- Unspecified risks associated with forward-looking statements.
- Potential impacts from supply and demand for oil, natural gas, and NGLs.
- Geopolitical and business conditions in key regions of the world may adversely affect Magnolia.
Revenue & Expenses
Visualization of income flow from segment revenue to net income