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Dec 31, 2023
Magnolia Q4 2023 Earnings Report
Magnolia's Q4 2023 financial results were announced, showcasing a decrease in net income but growth in production.
Key Takeaways
Magnolia Oil & Gas Corporation reported a decrease in net income for Q4 2023 compared to the previous year, but experienced a 16% increase in total production. The company focused on disciplined capital spending and returning cash to shareholders through share repurchases and dividends.
Net income attributable to Class A Common Stock was $98.4 million, or $0.53 per diluted share.
Adjusted EBITDAX was $240.0 million, with D&C capital at $91.5 million, representing 38% of quarterly adjusted EBITDAX.
Total production averaged 85.4 thousand barrels of oil equivalent per day (Mboe/d), a 16% increase year-over-year.
Magnolia repurchased 2.5 million Class A Common shares for $54.2 million.
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 high single-digit production growth in 2024, with oil volumes growing at similar rates. The company anticipates a reinvestment rate of less than 55 percent of adjusted EBITDAX and plans to return a significant portion of free cash flow to shareholders.
Positive Outlook
- Total company production growth to be in the high single digits.
- Oil volumes growing at similar rates and remaining fairly steady through the year.
- Capital plan will continue to be disciplined.
- Reinvestment rate of less than 55 percent of adjusted EBITDAX at current product prices.
- Well costs in Giddings have declined by more than 20 percent from year-ago levels leading to lower F&D costs.
Challenges Ahead
- First quarter D&C capital expenditures to be approximately $130 million and anticipate this to be the highest quarterly rate of spending for the year.
- Total production for the first quarter is estimated to be approximately 84 to 85 Mboe/d which incorporates several days of production and facilities downtime caused by severe winter weather conditions in mid-January.
- 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.
- Annual Report on Form 10-K for the year ended December 31, 2023, which is expected to be filed with the SEC on February 15, 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income