Loading...
01/11 11:50
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals a strong financial performance with increased production and operational efficiencies. Despite a slight decline in revenue per BOE, effective cost management and a significant dividend increase reflect a commitment to shareholder returns. The Q&A section highlights flexibility in operations and a positive outlook on development opportunities. The increased dividend and share repurchase program further support a positive sentiment. Considering the market cap, the stock price is likely to experience a positive movement of 2% to 8% over the next two weeks.
Total Production 96,500 barrels of oil equivalent per day, up 14% year-over-year due to strong operational execution and higher natural gas prices.
Adjusted Net Income $106 million, up 9% year-over-year, driven by increased production and operational efficiencies.
Adjusted EBITDAX $248 million, up 9% year-over-year, reflecting higher production and effective cost management.
Operating Income Margin 39%, consistent with the previous year, supported by reduced lease operating expenses.
D&C Capital Spending $130 million, representing 53% of adjusted EBITDAX, expected to be the highest quarterly spending for the year.
Free Cash Flow $111 million, with 74% returned to shareholders, approximately $82 million through dividends and share repurchases.
Dividend $0.15 per share, a 15% increase year-over-year, reflecting the company's commitment to returning value to shareholders.
Cash Balance $248 million at the end of the quarter, contributing to total liquidity of approximately $700 million.
Revenue per BOE Declined approximately 3% year-over-year due to lower oil prices, partially offset by higher natural gas and NGL prices.
Total Adjusted Cash Operating Costs $11.74 per BOE, reflecting effective cost management despite lower revenue per BOE.
Quarterly Production Rate: Achieved a record quarterly production rate of 96,500 barrels of oil equivalent per day, exceeding earlier guidance.
Production Growth: Year-over-year total production growth of 14% and oil production growth of 4%.
New Multi-Well Pads: Brought online multi-well pads in a gassier portion of Giddings to capitalize on higher natural gas prices.
Production Guidance: Increased full year 2025 production growth guidance range to 7% to 9% from 5% to 7%.
Capital Spending: Lowered 2025 capital spending range to $430 million to $470 million, a reduction of approximately $25 million.
Operational Efficiency: Achieved lower-than-expected declines in well performance and reduced overall well costs.
Free Cash Flow: Generated free cash flow of $111 million, returning 74% to shareholders.
Capital Discipline: Maintained a reinvestment rate of 55% of gross cash flow, focusing on shareholder returns.
Acquisition Strategy: Opportunistically pursuing bolt-on oil and gas property acquisitions to enhance business model durability.
Product Price Volatility: Magnolia is navigating through current product price volatility and macroeconomic uncertainty, which poses risks to revenue and operational planning.
Regulatory Risks: The company acknowledges that forward-looking statements are subject to risks and uncertainties, including regulatory issues that could impact operations.
Capital Spending Adjustments: Magnolia has reduced its capital spending guidance for 2025 by approximately $25 million, indicating a cautious approach due to market conditions.
Supply Chain Challenges: The company has proactively worked with oilfield service providers and material vendors to lower overall well costs, highlighting potential supply chain challenges.
Economic Factors: The overall economic environment remains uncertain, which could affect product prices and operational decisions.
Debt Management: While Magnolia maintains a low level of debt, any economic downturn could impact its financial flexibility and operational strategies.
Market Instability: The company is prepared to manage through periods of weaker product prices or potential market instability, which could affect profitability.
Production Growth Guidance: Magnolia has increased its full year 2025 production growth guidance range to 7% to 9% from a previous range of 5% to 7% due to stronger-than-expected well performance.
Capital Spending Guidance: The company has lowered its 2025 capital spending guidance to a range of $430 million to $470 million, a reduction of approximately $25 million or more than 5% from the midpoint of the original plan.
Free Cash Flow: Magnolia generated free cash flow of $111 million in Q1 2025 and returned 74% of this free cash, approximately $82 million, to shareholders through dividends and share repurchases.
Dividend Growth: The company announced a 15% increase in its quarterly dividend to $0.15 per share, with an annualized payout rate of $0.60 per share.
Operational Efficiency: Magnolia's operational efficiencies and modern completion designs have led to lower decline rates and improved financial returns from wells.
Production: Total production for Q2 2025 is expected to be approximately 97,000 barrels of oil equivalent per day, similar to Q1 levels.
Capital Expenditures: Second quarter D&C capital expenditures are expected to be approximately $110 million.
Effective Tax Rate: The effective tax rate is expected to be approximately 21% for the full year 2025.
Cash Tax Rate: Cash tax is expected to be between 7% to 9% for the full year 2025.
Quarterly Dividend: $0.15 per share, a 15% increase announced earlier this year.
Annualized Dividend Payout Rate: $0.60 per share.
Share Repurchase Program: $52 million allocated towards share repurchases in Q1 2025.
Total Shares Repurchased: 75 million shares since the program began in the second half of 2019.
Remaining Shares Under Repurchase Authorization: 9.6 million shares.
Weighted Average Diluted Shares Outstanding: 194.2 million shares during Q1 2025.
The earnings call summary indicates a positive sentiment with increased production growth guidance, stable capital spending, and a reduction in share count. The Q&A section highlights management's cautious optimism, flexibility, and focus on efficiency and cost management. Despite some uncertainties, the overall tone is positive with potential for increased shareholder returns and stable financial health. The market cap suggests moderate volatility, supporting a positive stock price movement prediction over the next two weeks.
The earnings call reveals strong financial performance with increased production guidance and reduced capital spending. Shareholder returns are robust, with dividend hikes and share repurchases. The Q&A section highlights efficient capital allocation and positive well performance. Although management refrains from detailed 2026 guidance, current trends are favorable. The market cap suggests moderate sensitivity, leading to a positive stock price prediction of 2% to 8%.
The earnings call reveals a strong financial performance with increased production and operational efficiencies. Despite a slight decline in revenue per BOE, effective cost management and a significant dividend increase reflect a commitment to shareholder returns. The Q&A section highlights flexibility in operations and a positive outlook on development opportunities. The increased dividend and share repurchase program further support a positive sentiment. Considering the market cap, the stock price is likely to experience a positive movement of 2% to 8% over the next two weeks.
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.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
