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Magnolia's (MGY) Q4 Earnings Top Estimates on Stronger Prices
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Magnolia Oil & Gas Corp (MGY - Free Report) reported fourth-quarter adjusted net income per share of 82 cents, beating the Zacks Consensus Estimate of 74 cents and the year-ago quarter’s bottom line of 15 cents.
This outperformance can be primarily attributed to a surge in commodity prices and a healthy increase in year-over-year production volumes. South Texas-focused Magnolia’s average daily total output of 69,411 barrels of oil equivalent per day (boe/d) was up 14.5% from the year-ago quarter’s figure of 60,617 boe/d. However, it narrowly missed the Zacks Consensus Estimate of 69,419 boe/d.
Total revenues came in at $332.15 million, ahead of the Zacks Consensus Estimate of $326 million. Moreover, the top line rose 120.3% from the year-ago level of $150.79 million.
Production & Prices As mentioned earlier, Magnolia’s oil and gas production reported a year-over-year increase of 14.5% to 69,411 boe/d (comprising 69.2% of liquids). Oil volumes at 30,913 barrels per day (bpd) were up 7.5% from the level achieved in the fourth quarter of 2020. However, the same missed the Zacks Consensus Estimate of 31,197 bpd.
The average realized crude oil price during the fourth quarter was $76.16 per barrel, reflecting an 87.7% rise from the year-ago period’s realization of $40.58. The average realized natural gas liquids price was $35.41 per barrel, up 124.8% from the year-ago period’s tally, while natural gas prices increased 115.7% year over year to $5.07 per thousand cubic feet. Overall, MGY fetched $52.01 per barrel of oil equivalent (boe) compared with $27.04 a year ago.
Balance Sheet & Capital Expenditure
As of Dec 31, Magnolia had $366.98 million of cash and cash equivalents. The oil explorer has a long-term debt of $388.09 million. In the reported quarter, Magnolia spent $72.1 million on its capital program.
The company had property, plant and equipment worth $1.2 billion on its books.
Magnolia Oil & Gas Corp Price, Consensus and EPS Surprise
Guidance Magnolia plans to spend somewhere around $85 to $90 million on drilling and completion activities in the first quarter of 2022 and approximately $350 million for the full year based on the 2-rig drilling plan. MGY’s capital expenditure plans for this year reflect a more than 50% increase over the actual spending for 2021, which is likely to result in high-single-digit production growth. The total output in the first quarter of 2022 is expected in the 70,000-72,000 boe/d range.
As part of Magnolia’s shareholder return initiative, it is using excess cash from a supportive environment to reward shareholders with dividends and buybacks. As a result, the company lowered its share count by 10% in the past year through repurchases and introduced a semi-annual cash dividend in addition to bringing down net debt to zero. MGY is looking to buy back some 1% of its total shares outstanding each quarter. Finally, the firm will actively scout for accretive acquisitions in 2022.
The Zacks Consensus Estimate for Valero’s 2022 earnings is projected at $7.10 per share, up about 152.7% from the projected year-ago earnings of $2.81.
Valero beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 75.7%.
ExxonMobil beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 5.8%. ExxonMobil stock has increased around 40.8% in a year.
The Zacks Consensus Estimate for ExxonMobil’s 2022 earnings has been revised upward by about 15.1% over the past 60 days from $5.95 to $6.85 per share. XOM is valued at around $328 billion.
The Zacks Consensus Estimate for Centennial’s 2022 earnings is projected at $1.29 per share, which is an increase of approximately 98.4% from the projected year-ago earnings of 65 cents.
Centennial stock has rallied 98.2% in a year. The Zacks Consensus Estimate for CDEV’s 2022 earnings per share has been revised from $1.11 to $1.29, up about 16.2%, in the past 60 days.
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Magnolia's (MGY) Q4 Earnings Top Estimates on Stronger Prices
Magnolia Oil & Gas Corp (MGY - Free Report) reported fourth-quarter adjusted net income per share of 82 cents, beating the Zacks Consensus Estimate of 74 cents and the year-ago quarter’s bottom line of 15 cents.
This outperformance can be primarily attributed to a surge in commodity prices and a healthy increase in year-over-year production volumes. South Texas-focused Magnolia’s average daily total output of 69,411 barrels of oil equivalent per day (boe/d) was up 14.5% from the year-ago quarter’s figure of 60,617 boe/d. However, it narrowly missed the Zacks Consensus Estimate of 69,419 boe/d.
Total revenues came in at $332.15 million, ahead of the Zacks Consensus Estimate of $326 million. Moreover, the top line rose 120.3% from the year-ago level of $150.79 million.
Production & Prices
As mentioned earlier, Magnolia’s oil and gas production reported a year-over-year increase of 14.5% to 69,411 boe/d (comprising 69.2% of liquids). Oil volumes at 30,913 barrels per day (bpd) were up 7.5% from the level achieved in the fourth quarter of 2020. However, the same missed the Zacks Consensus Estimate of 31,197 bpd.
The average realized crude oil price during the fourth quarter was $76.16 per barrel, reflecting an 87.7% rise from the year-ago period’s realization of $40.58. The average realized natural gas liquids price was $35.41 per barrel, up 124.8% from the year-ago period’s tally, while natural gas prices increased 115.7% year over year to $5.07 per thousand cubic feet. Overall, MGY fetched $52.01 per barrel of oil equivalent (boe) compared with $27.04 a year ago.
Balance Sheet & Capital Expenditure
As of Dec 31, Magnolia had $366.98 million of cash and cash equivalents. The oil explorer has a long-term debt of $388.09 million. In the reported quarter, Magnolia spent $72.1 million on its capital program.
The company had property, plant and equipment worth $1.2 billion on its books.
Magnolia Oil & Gas Corp Price, Consensus and EPS Surprise
Magnolia Oil & Gas Corp price-consensus-eps-surprise-chart | Magnolia Oil & Gas Corp Quote
Guidance
Magnolia plans to spend somewhere around $85 to $90 million on drilling and completion activities in the first quarter of 2022 and approximately $350 million for the full year based on the 2-rig drilling plan. MGY’s capital expenditure plans for this year reflect a more than 50% increase over the actual spending for 2021, which is likely to result in high-single-digit production growth. The total output in the first quarter of 2022 is expected in the 70,000-72,000 boe/d range.
As part of Magnolia’s shareholder return initiative, it is using excess cash from a supportive environment to reward shareholders with dividends and buybacks. As a result, the company lowered its share count by 10% in the past year through repurchases and introduced a semi-annual cash dividend in addition to bringing down net debt to zero. MGY is looking to buy back some 1% of its total shares outstanding each quarter. Finally, the firm will actively scout for accretive acquisitions in 2022.
Zacks Rank & Key Picks
Magnolia currently has a Zacks Rank #3 (Hold). Some better-ranked players from the energy space are Valero Energy (VLO - Free Report) , ExxonMobil (XOM - Free Report) and Centennial Resource Development , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Valero’s 2022 earnings is projected at $7.10 per share, up about 152.7% from the projected year-ago earnings of $2.81.
Valero beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 75.7%.
ExxonMobil beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 5.8%. ExxonMobil stock has increased around 40.8% in a year.
The Zacks Consensus Estimate for ExxonMobil’s 2022 earnings has been revised upward by about 15.1% over the past 60 days from $5.95 to $6.85 per share. XOM is valued at around $328 billion.
The Zacks Consensus Estimate for Centennial’s 2022 earnings is projected at $1.29 per share, which is an increase of approximately 98.4% from the projected year-ago earnings of 65 cents.
Centennial stock has rallied 98.2% in a year. The Zacks Consensus Estimate for CDEV’s 2022 earnings per share has been revised from $1.11 to $1.29, up about 16.2%, in the past 60 days.