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- **Record Production & Growth**: Q3 2025 total production up 11% YoY to 100,500 BOE/day, with full-year growth expected to exceed 10%.
- **Exceptional Cash Flow**: Generated $134M free cash flow, returning $80M to shareholders via buybacks and dividends.
- **Disciplined Capital Allocation**: 2025 capital spending at $450M (~55% of EBITDAX), with flexibility to adjust 2026 budget based on oil prices.
- **Dividend Growth**: Q3 dividend increased 15%, annualized payout rate $0.60/share, supported by moderate production growth and buybacks.
- **Operational Efficiency**: Deferred completions saved $5M in Q3, with ongoing improvements in D&C efficiency and field-level costs.

**【CEO Summary Section】**
- **Record Production Growth**: Q3 2025 total production reached 100,500 BOE/day, up 11% YoY, with oil production at Giddings growing nearly 5% YoY. Full-year 2025 production growth expected to exceed 10%, surpassing initial guidance of 5-7%.
- **Operational Efficiency**: Deferred completion of 6 wells in Q3, saving ~5% of 2025 capital, improving free cash flow and flexibility. 2025 capital spending projected at $110M for Q4, totaling ~$450M for the year.
- **Financial Performance**: Adjusted EBITDAX of $219M, operating margin 31%, and free cash flow of $134M. Returned 60% of FCF ($80M) to shareholders via dividends and share buybacks.
- **2026 Outlook**: Plan to maintain 2-rig, 1-completion crew program with capital spending at ~55% of EBITDAX. Expect mid-single-digit production growth, focusing on Giddings and Karnes appraisal activities.

**【CFO Financial Commentary】**
- **Q3 Financials**: Adjusted net income $78M ($0.41 EPS), EBITDAX $219M. Free cash flow $134M, with $280M cash balance at quarter-end (highest since Q1 2024).
- **Capital Allocation**: $118M capital spending (54% of EBITDAX), $29M dividends, $51M share buybacks. Repurchased 2.1M shares, reducing diluted share count by 26% since 2019.
- **Dividend Growth**: Q3 dividend increased 15% to $0.15/share, annualized payout rate $0.60/share. 2026 dividend growth supported by moderate production growth and share buybacks.
- **Balance Sheet Strength**: $280M cash, $450M undrawn revolver, total liquidity $730M. No debt maturities until 2032.

**【Q&A Highlights】**
- **Efficiency & Capital Flexibility**: CEO emphasized ability to adjust 2026 budget (~$450M) based on oil prices, with 55% reinvestment cap. Deferred completions and operational improvements (e.g., water handling) driving cost savings.
- **M&A Strategy**: Focused on small, accretive bolt-ons in Giddings and Karnes. 2025 bolt-on acquisitions added $65M of value, maintaining 10%+ production growth without M&A.
- **Karnes Appraisal**: Testing new concepts in Karnes to extend field life, with focus on economic viability. Giddings appraisal program expected to continue generating incremental volumes.
- **Gas Realizations**: Strong natural gas pricing in Q3 (31% of revenue), with ongoing efforts to optimize basis differentials without hedging.
- **Share Buybacks**: 5.2M shares remaining under repurchase authorization, targeting $0.05/share accretion through buybacks.

Magnolia Oil & Gas Corporation (MGY) Q3 2025 Earnings Call Transcript

- **Record Production & Growth**: Q2 oil production at 40,000 bbl/d (new high), full-year guidance raised to 10% growth. Free cash flow of $107 million returned 72% to shareholders.
- **Capital Efficiency**: Reinvestment rate of 43%, 2025 capex below initial guidance, 6 completions deferred to 2026. Giddings development acreage expanded 20% to 240,000 net acres.
- **M&A & Acquisitions**: $40 million spent on bolt-on deals, adding 18,000 net acres and 500 BOE/d. Minimal cash taxes in 2025-26 due to legislative changes.
- **Dividend Growth**: 15% dividend increase to $0.15/quarter, with 7.4 million shares remaining under buyback authorization.
- **Operational Excellence**: LOE of $4.88/BOE (down 4% YoY), annualized ROCE of 18%, and 18% return on capital employed.

**【CEO Summary Section】**
- **Q2 2025 Financial Highlights**: Adjusted net income of $81 million, EBITDAX of $223 million, and free cash flow of $107 million. Reinvestment rate of 43%, with $78 million returned to shareholders via dividends and buybacks.
- **Production Growth**: Total volumes reached 98.2 MBOE/d (9% YoY growth), with oil production hitting a record 40,000 bbl/d (+5% YoY). Full-year production guidance raised to 10% growth.
- **Bolt-On Acquisitions**: $40 million spent on 18,000 net acres in Giddings, adding 500 BOE/d of production and extending development acreage by 20% to 240,000 net acres.
- **Capital Efficiency**: 2025 D&C capex expected to remain below initial guidance ($430-470 million), with wells outperforming expectations, enabling deferral of 6 completions to 2026.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP net income of $81 million, with LOE of $4.88/BOE (down 4% YoY). Annualized ROCE of 18%, and free cash flow return of 72%.
- **Liquidity & Dividends**: $252 million cash on hand, $450 million undrawn revolver. Dividend increased 15% to $0.15/quarter, with 7.4 million shares remaining under buyback authorization.
- **Tax Impact**: Minimal cash taxes in 2025 due to new legislation; similar outlook for 2026 at current oil prices.
- **Q3 Guidance**: Production of 99,000 BOE/d, D&C capex of $115 million, and oil price differential of $3/Magellan.

**【Q&A Key Highlights】**
- **Free Cash Flow & Growth**: CEO emphasizes capital efficiency and reinvestment below 55% threshold, with Giddings' durability driving mid-single-digit production growth. 2026 focus on balancing growth and efficiency.
- **M&A Strategy**: Small, contiguous bolt-ons ($40 million Q2) to expand Giddings acreage, with ongoing opportunities in private operator deals.
- **Operating Costs**: LOE expected to moderate to $5.25/BOE in H2, supported by field-level cost improvements (e.g., chemical utilization, water hauling).
- **Service Costs**: OFS deflation in Q3, but potential steel inflation in Q4. Service companies under pressure due to commodity price volatility.
- **Gas Strategy**: Tactical drilling in gassier areas (e.g., Q4 2024 completions) to capitalize on gas price rallies, with durable well performance.


Magnolia Oil & Gas (MGY)-31 Jul 25-2025 Q2 Earnings call transcript

- **Production Surge**: Q1 2025 record 96,500 BOE/d (+14% YoY), with Giddings up 25%, driving 7-9% full-year growth guidance.
- **Capital Efficiency**: $430-470M capex (5% reduction) enables higher growth with 53% reinvestment rate, returning 74% of free cash to shareholders.
- **Profitability**: 39% operating margin, 23% ROCE, and $106M adjusted net income highlight strong execution.
- **New Well Success**: 12 outperforming wells in Giddings with <10$/boe F&D, setting up 2026 deferred completions for future growth.
- **Dividend Growth**: 15% hike to $0.15Q, supporting long-term shareholder returns amid macro uncertainty.


**【CEO Summary Section】**
- **Record Production Growth**: Q1 2025 production reached 96,500 BOE/d, up 14% YoY, driven by Giddings outperformance with 25% growth in the region.
- **Capital Efficiency**: Full-year 2025 production guidance raised to 7-9% growth vs. 5-7% prior, with capital spending reduced to $430-470M (down 5% midpoint) due to well outperformance.
- **Cost Discipline**: Reinvestment rate maintained at 53% of EBITDAX, with free cash flow of $111M and 74% returned to shareholders via dividends and buybacks.
- **Strategic Flexibility**: Deferred completions of ~6 wells to 2026, enabling lower capital intensity while maintaining production growth.

**【CFO Financial Commentary】**
- **Q1 Financial Highlights**: Adjusted net income $106M, EBITDAX $248M, operating margin 39%, and ROCE 23%.
- **Liquidity & Dividends**: Ended Q1 with $248M cash, $700M total liquidity, and dividend increased 15% to $0.15Q, supporting annualized payout of $0.60.
- **Cost Management**: LOE per BOE at $11.74, with year-over-year margin resilience despite lower oil prices.
- **Acquisition Activity**: $24M spent on non-producing bolt-ons, enhancing long-term opportunity set.

**【Q&A Key Themes】**
- **New Well Performance**: 12 wells in gassier Giddings area exceeded expectations, with F&D costs <$10/boe and shallower decline rates.
- **Capital Allocation**: Prioritize Giddings development, with no plans to shift focus to oilier vs. gassier plays despite macro uncertainty.
- **Service Costs**: Q2 pricing flat vs. Q1, with potential softness in back half of 2025; diesel cost savings offset minor OCTG price increases.
- **M&A Outlook**: Evaluate small, accretive bolt-ons in core Chalk/Eagle Ford areas, though market bid-ask spread limits activity.
- **Risk Management**: No rig reduction plans; maintain flexibility to defer completions further if commodity prices weaken.


Magnolia Oil & Gas (MGY)-1 May 25-2025 Q1 Earnings call transcript

- **Production Record**: Q4 2024 at 93,100 BOE/day, full-year growth 9% (11% oil). 
- **Cost Efficiency**: 10% LOE reduction, ROCE 22%. 
- **Free Cash Flow**: $430M generated, 88% returned to shareholders. 
- **2025 Growth**: 5-7% production growth with $460-490M capital spend. 
- **Dividend Strength**: 15% hike to $0.15/share, stress-tested at $60 oil. 
- **Giddings Expansion**: 550,000-acre position with appraisal wells underway.

**【CEO Summary Section】**
- **Record Production Growth**: Q4 2024 production reached 93,100 BOE/day, with full-year growth of 9% (11% oil growth). Giddings field production increased 16% (21% oil). 
- **Cost Efficiency**: Lease operating costs reduced 10% per BOE, driving ROCE of 22% in 2024. 
- **Free Cash Flow & Shareholder Returns**: Generated $430M free cash flow, returning 88% ($378M) via dividends and buybacks. Q1 2025 dividend increased 15% to $0.15/share. 
- **2025 Capital Plan**: $460-490M D&C spend (55% reinvestment rate), targeting 5-7% production growth. 75-80% of capital allocated to Giddings development. 

**【CFO Financial Commentary】**
- **Q4 2024 Results**: Adjusted net income $95M ($0.49/share), EBITDAX $236M. Full-year EBITDAX $953M. 
- **Cash Flow Performance**: $919M cash from operations, $378M returned to shareholders (dividends + buybacks). 
- **Balance Sheet Strength**: $260M cash, $710M total liquidity, no hedges. 
- **2025 Guidance**: 5-7% production growth, $195M diluted share count (5% lower YoY). 

**【Key Q&A Highlights】**
- **Well Cost Optimization**: Giddings wells now in pure development phase, with 7% improvement in drilling efficiency. 
- **Share Repurchase Strategy**: 72.9M shares repurchased since 2019, 23% reduction in diluted shares. 
- **Giddings Expansion**: 550,000-acre position with appraisal wells targeting field expansion. 
- **M&A Approach**: Focused on accretive bolt-ons in Eagle Ford oily window. 
- **Dividend Sustainability**: Stress-tested at $60 oil, with 10%+ annual growth target.

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