What long-term trends can investors expect from MGY's EPS?

**Magnolia Oil & Gas (MGY) exhibits a volatile EPS trend with a significant decline in 2020, followed by a recovery and steady growth expectations over the long term.** Here's an analysis based on the past trends and future estimates: 1. **Recent Past Performance**: - Magnolia Oil & Gas' EPS has experienced a substantial drop to -$7.27 in 2020, primarily due to the impact of the COVID-19 pandemic on the oil and gas sector. - The EPS recovered to $2.36 by 2021 and increased to $4.71 by 2022, showing a strong rebound in the company's profitability. 2. **Current Estimates and Future Outlook**: - Analysts have lifted their Q1 2025 EPS estimates to $0.51, indicating a positive short-term outlook. - The consensus estimate for FY2025 EPS is $2.11, suggesting a steady growth expectation over the next year. - Long-term projections show a further increase to $2.35 EPS by FY2027, reflecting confidence in Magnolia's operational performance and capital program. 3. **Operational and Financial Strength**: - Magnolia has demonstrated strong operational performance with increased average daily production and adjusted EBITDAX. - The company's free cash flow and share repurchases indicate a healthy financial position, which supports its growth objectives. 4. **Insider Activity and Market Sentiment**: - Insider transactions, such as the recent sale by EnerVest Ltd., may influence investor perceptions but do not necessarily reflect the company's fundamentals. - The company's shares have shown a high gross margin of 55.16%, indicating effective cost control and strong profitability. In conclusion, while Magnolia Oil & Gas has experienced a challenging period in 2020, the company's subsequent recovery and positive growth projections suggest that investors can expect steady EPS growth over the long term, provided the prevailing market conditions support sustained oil and gas demand.