Q2 2024 Magnolia Oil & Gas Corp Earnings Call Transcript
Key Points
- Magnolia Oil & Gas Corp (MGY) achieved a company record production of approximately 90,000 barrels of oil equivalent per day in Q2 2024, growing by 10% year-over-year and 6% sequentially.
- The company successfully integrated a recent bolt-on acquisition in Giddings, adding 27,000 net acres and enhancing development opportunities.
- Magnolia Oil & Gas Corp (MGY) returned approximately $130 million to shareholders in Q2 2024, including $103 million for the repurchase of 4 million shares.
- The company reported a significant reduction in field-level operating costs, lowering LOE to $5.40 per BOE, representing a 10% sequential quarterly decline.
- Magnolia Oil & Gas Corp (MGY) maintains a strong balance sheet with $276 million in cash and an undrawn $450 million revolving credit facility, totaling approximately $726 million in liquidity.
- Total adjusted cash operating costs, including G&A, increased by 7% year-over-year to $11.10 per BOE in Q2 2024.
- The company anticipates a $3 per barrel discount to Magellan East Houston for oil price differentials in Q3 2024.
- Magnolia Oil & Gas Corp (MGY) remains unhedged for all its oil and natural gas production, exposing it to market volatility.
- The company expects to be in the upper half of its full-year capital expenditure guidance range, indicating potential higher spending.
- Non-operating activity is expected to increase in the latter part of the year, which may impact capital and production volumes.
Good morning, everyone, and thank you for participating in Magnolia Oil & Gas Corporation's second quarter 2024 earnings conference call. My name is Megan, and I will be your moderator for today's call. (Operator Instructions) Our call is being recorded.
I will now turn the call over to Magnolia's management for their prepared remarks, which will be followed by a brief question-and-answer session.
Thank you, Megan, and good morning, everyone. Welcome to Magnolia Oil & Gas's second quarter earnings conference call. Participating on the call today are Chris Stavros, Magnolia's President; and Chief Executive Officer, and Brian Corales, Senior Vice President and Chief Financial Officer.
As a reminder, today's conference call contains certain projections and other forward-looking statements within the meaning of the federal securities laws. These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in
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