Magnolia Oil & Gas: Continued Improvements In Capital Efficiency

Summary

• Magnolia's Q3 2024 total production was in-line with expectations despite some third-party midstream issues.
• Magnolia's oil production has been tracking a bit above expectations, and it now should finish 2024 with low-double digits growth compared to 2023.
• Magnolia's recent note offering pushes its note maturity to 2032, and it has no credit facility debt and more than $250 million in cash on hand.
• Magnolia is projected to generate more than $400 million in 2025 free cash flow at $67 WTI oil, along with mid-single digits production growth compared to 2024.