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Magnolia (MGY) Q2 Earnings Lag Estimates, Revenues Beat
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Magnolia Oil & Gas Corp (MGY - Free Report) reported a second-quarter adjusted net income of $1.10 per share, lagging the Zacks Consensus Estimate of $1.18 but improving from the year-ago quarter’s bottom line of 56 cents.
This year-over-year improvement in the bottom line can be primarily attributed to a surge in commodity prices and a healthy increase in year-over-year production volumes by about 14%. South Texas-focused Magnolia’s average daily total output of 74,200 barrels of oil equivalent per day (boe/d) was up from the year-ago quarter’s figure of 64,946 boe/d. Moreover, it beat the Zacks Consensus Estimate of 73,081 boe/d.
Total revenues came in at $484.65 million, ahead of the Zacks Consensus Estimate of $459 million. Moreover, the top line rose 92.3% from the year-ago level of $252 million.
In good news for investors, Magnolia declared a cash dividend of 10 cents per share of the Class A common stock and a cash distribution of 10 cents per Class B unit, payable on Sep 1, 2022 to shareholders of record as of Aug 12, 2022. The announcement represents a 40-cent-per-share annualized rate, which is a 43% increase in Magnolia’s dividend compared to the 28-cent-per-share distribution for full-year 2021. Moreover, beginning with this distribution, MGY will move to a quarterly dividend payout from a semi-annual distribution schedule.
Production & Prices
As mentioned earlier, Magnolia’s oil and gas production reported a year-over-year increase of a little more than 14% to 74,200 boe/d (comprising 69% of liquids). Oil volumes at 33,178 barrels per day (bpd) were up 4% from the level achieved in the second quarter of 2021. Moreover, the same outperformed the Zacks Consensus Estimate of 31,823 bpd.
The average realized crude oil price in the second quarter was $110.22 per barrel, reflecting a 69.5% rise from the year-ago period’s realization of $65.01. The average realized natural gas liquid price was $40.17 per barrel, up 80.5% from the year-ago period’s tally, while natural gas prices surged by about 104.5% year over year to $6.85 per thousand cubic feet. Overall, MGY fetched $71.78 per barrel of oil equivalent compared with $42.64 a year ago.
Magnolia Oil & Gas Corp Price, Consensus and EPS Surprise
As of Jun 30, Magnolia had $501.9 million of cash and cash equivalents. The oil explorer has long-term debt of $389.2 million. In the reported quarter, Magnolia spent $122 million on its capital program.
The company had property, plant and equipment worth $1.3 billion on its books.
Guidance
Magnolia plans to spend somewhere around $105 to $115 million on drilling and completion activities in the third quarter of 2022.
The total output in the third quarter of 2022 is expected in the 74,000-76,000 boe/d range.
Based on continued strong well performances and additional non-operated activities in the Eagle Ford contributing to higher production and capital, MGY now anticipates full-year 2022 production to grow by 12%-14% compared with 2021.
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Magnolia (MGY) Q2 Earnings Lag Estimates, Revenues Beat
Magnolia Oil & Gas Corp (MGY - Free Report) reported a second-quarter adjusted net income of $1.10 per share, lagging the Zacks Consensus Estimate of $1.18 but improving from the year-ago quarter’s bottom line of 56 cents.
This year-over-year improvement in the bottom line can be primarily attributed to a surge in commodity prices and a healthy increase in year-over-year production volumes by about 14%. South Texas-focused Magnolia’s average daily total output of 74,200 barrels of oil equivalent per day (boe/d) was up from the year-ago quarter’s figure of 64,946 boe/d. Moreover, it beat the Zacks Consensus Estimate of 73,081 boe/d.
Total revenues came in at $484.65 million, ahead of the Zacks Consensus Estimate of $459 million. Moreover, the top line rose 92.3% from the year-ago level of $252 million.
In good news for investors, Magnolia declared a cash dividend of 10 cents per share of the Class A common stock and a cash distribution of 10 cents per Class B unit, payable on Sep 1, 2022 to shareholders of record as of Aug 12, 2022. The announcement represents a 40-cent-per-share annualized rate, which is a 43% increase in Magnolia’s dividend compared to the 28-cent-per-share distribution for full-year 2021. Moreover, beginning with this distribution, MGY will move to a quarterly dividend payout from a semi-annual distribution schedule.
Production & Prices
As mentioned earlier, Magnolia’s oil and gas production reported a year-over-year increase of a little more than 14% to 74,200 boe/d (comprising 69% of liquids). Oil volumes at 33,178 barrels per day (bpd) were up 4% from the level achieved in the second quarter of 2021. Moreover, the same outperformed the Zacks Consensus Estimate of 31,823 bpd.
The average realized crude oil price in the second quarter was $110.22 per barrel, reflecting a 69.5% rise from the year-ago period’s realization of $65.01. The average realized natural gas liquid price was $40.17 per barrel, up 80.5% from the year-ago period’s tally, while natural gas prices surged by about 104.5% year over year to $6.85 per thousand cubic feet. Overall, MGY fetched $71.78 per barrel of oil equivalent compared with $42.64 a year ago.
Magnolia Oil & Gas Corp Price, Consensus and EPS Surprise
Magnolia Oil & Gas Corp price-consensus-eps-surprise-chart | Magnolia Oil & Gas Corp Quote
Balance Sheet & Capital Expenditure
As of Jun 30, Magnolia had $501.9 million of cash and cash equivalents. The oil explorer has long-term debt of $389.2 million. In the reported quarter, Magnolia spent $122 million on its capital program.
The company had property, plant and equipment worth $1.3 billion on its books.
Guidance
Magnolia plans to spend somewhere around $105 to $115 million on drilling and completion activities in the third quarter of 2022.
The total output in the third quarter of 2022 is expected in the 74,000-76,000 boe/d range.
Based on continued strong well performances and additional non-operated activities in the Eagle Ford contributing to higher production and capital, MGY now anticipates full-year 2022 production to grow by 12%-14% compared with 2021.
Zacks Rank & Other Key Picks
Magnolia currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the energy space that warrant a look include Earthstone Energy , TotalEnergies (TTE - Free Report) and RPC (RES - Free Report) , 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 Earthstone’s 2022 earnings stands at $4.79 per share, up about 283.2% from the year-ago earnings of $1.25.
ESTE beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 35%.
The Zacks Consensus Estimate for TotalEnergies’ 2022 earnings is pegged at $13.83 per share, up about 107% from the year-ago earnings of $6.68.
TTE beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 14.6%.
The Zacks Consensus Estimate for RPC’s 2022 earnings is pegged at 63 cents per share, up 2000% from the year-ago earnings of 3 cents.
RES beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 80%.