MGY Earnings Prediction
The chart below shows how MGY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MGY sees a -0.22% change in stock price 10 days leading up to the earnings, and a +0.81% change 10 days following the report. On the earnings day itself, the stock moves by +0.45%. This data can give you a slight idea of what to expect for the next quarter's release.
MGY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
333.13M
5.53%
-1.07%
Gross Margin
51.23%
-14.13%
-3.72%
Operating Margin
39.25%
-16.84%
-2.89%
Net Margin
31.79%
-14.57%
1.83%
EPS
0.53
-1.85%
3.92%
No Data Available
MGY Earnings Analysis
Magnolia Oil & Gas Corporation Class A Common Stock Corporation (MGY.N) Earnings Conference Call
Positive
Production Increase Report: 1. Strong Production Growth: Magnolia Oil & Gas reported total company oil production of nearly 39,000 barrels per day, reflecting an 18% increase from year-ago levels, with Giddings area production growing 24% year-over-year.
Free Cash Flow Generation: 2. Improved Free Cash Flow: The company generated $126 million in free cash flow during Q3 2024, with 70% of this amount, or $88 million, returned to shareholders through dividends and share repurchases.
Cost Reduction Success: 3. Cost Efficiency Achievements: Magnolia successfully reduced its field level operating costs to $5.33 per BOE, an 11% decline compared to the first quarter of 2024, exceeding their target of a 5% to 10% reduction.
Shareholder Dividend Increase: 4. Increased Shareholder Returns: The company announced a 13% increase in its quarterly dividend to $0.13 per share, supported by a strong cash flow generation strategy and a commitment to return capital to shareholders.
Solid Financial Position: 5. Strong Balance Sheet and Liquidity: Magnolia ended the quarter with $276 million in cash and total liquidity of $726 million, providing a solid foundation for future growth and investment opportunities.
Negative
Production Impact from Outages: 1. Production Disruption: Unplanned third-party midstream facility outages impacted natural gas and NGL production by approximately 1,000 BOE per day during the quarter.
Rising Operating Costs: 2. Increased Operating Costs: Total adjusted cash operating costs, including G&A, rose to $10.83 per BOE, an increase of $0.15 per BOE or 1% compared to year-ago levels.
Unhedged Price Volatility: 3. Unhedged Exposure: Magnolia remains completely unhedged for all of its oil and natural gas production, exposing the company to potential price volatility without any protective measures.
Revenue Decline per BOE: 4. Lower Revenue per BOE: Total revenue per BOE decreased year-over-year due to a decline in oil prices compared to the third quarter of 2023.
Capital Spending Shortfall: 5. Capital Spending Below Guidance: The company spent $103 million on drilling and completing wells, which was well below the capital guidance of $120 million, indicating potential inefficiencies in capital allocation.
MGY FAQs
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MGY Earning Call Sentiment
Magnolia Oil & Gas Corporation (MGY) Q3 2024 Earnings Call Transcript
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00:00
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MGY.N
-2.28%Positive
The earnings call indicates strong financial performance with increased net income, effective cost management, and significant production growth. The Q&A section highlights management's confidence in asset performance and operational flexibility, despite some concerns about infrastructure reliability. The positive aspects outweigh the minor uncertainties, suggesting a positive stock price movement in the short term, especially given the company's market cap.
