Magnolia Oil & Gas (MGY) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 production of 89.7 Mboe/d, up 9% year-over-year, with oil production up 11% and Giddings field production up 16%.

• Adjusted net income for 2024 was $401 million, adjusted EBITDAX reached $953 million, and free cash flow totaled $430 million.

• Returned 88% of free cash flow (~$378 million) to shareholders via dividends and share repurchases, increasing the quarterly dividend by 15% to $0.15/share and expanding share repurchase authorization by 10 million shares.

• Ended 2024 with $260 million in cash and total liquidity of $710 million, including an undrawn $450 million revolver.

• Maintained a differentiated business model focused on per share value, low leverage, and disciplined capital spending.

Financial highlights

• 2024 total revenues were $1.32 billion, up 7% year-over-year; Q4 revenue was $327 million.

• Q4 adjusted net income was $95 million; Q4 adjusted EBITDAX was $236 million.

• D&C capital spending for 2024 was $477 million, representing a 50% reinvestment rate.

• Repurchased 11 million shares in 2024, reducing diluted share count by 5% year-over-year.

• Earnings per diluted share for 2024 were $1.94.

Outlook and guidance

• 2025 D&C capital spending expected between $460 million and $490 million, flat versus 2024.

• Anticipates 2025 production growth of 5%-7%, with Q1 2025 production estimated at ~94 Mboe/d.

• Fully diluted share count for Q1 2025 expected at 195 million, 5% lower year-over-year.

• Most oilfield service and materials costs are contracted through mid-2025, supporting cost stability.

• Oil price differentials anticipated at ~$3/bbl below Magellan East Houston; company remains unhedged.