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Shares of Magnolia Oil & Gas Corporation (MGY - Free Report) stock has shown no substantial movement since second-quarter 2021 earnings announcement on Aug 2. In fact, the firm’s shares failed to display an uptrend despite impressive bottom-line and top-line performances as well as an upbeat third-quarter production guidance, which indicates growth from the sequential quarter’s reported figure.
Delving Deeper
The company reported second-quarter adjusted net income per share of 56 cents, beating the Zacks Consensus Estimate of 37 cents. The bottom line reversed the year-ago quarter’s loss of 8 cents per share.
This outperformance can be primarily attributed to better-than-anticipated production volumes. The South Texas-focused company’s average daily oil output of 31,897 barrels per day surpassed the Zacks Consensus Estimate of 30,734 barrels.
Total revenues came in at $250.73 million, ahead of the Zacks Consensus Estimate of $229 million. Moreover, the top line rose 202.7% from the year-ago level of $82.84 million.
Production & Prices
Magnolia’s oil and gas production reported a year-over-year increase of 1.25% to 64,946 boe per day (comprising 72% liquids). Oil volumes at 31,897 barrels per day were down 6% from the level achieved in second-quarter 2020.
The average realized crude oil price during the second quarter was $64.80 per barrel, reflecting a 229.2% rise from the year-ago period’s realization of $19.68. The average realized natural gas liquids price was $22.26 per barrel, up 181.1% from the year-ago period’s tally while natural gas prices increased 142.9% year over year to $3.28 per thousand cubic feet. Overall, the company fetched $42.42 per boe compared with $14.19 a year ago.
Magnolia Oil & Gas Corp Price, Consensus and EPS Surprise
As of Jun 30, Magnolia had $190.3 million in cash and cash equivalents. The oil explorer’s long-term debt of $387 million represented a debt-to-capitalization of 31.5%. In the reported quarter, the company spent around $54 million on its capital program.
Guidance
Magnolia plans to spend around $150-$175 million on drilling and completion activities for the latter half of the year.
Total output in the third quarter of 2021 is expected to be around 67,000 boe/d, implying a 3% rise from the second-quarter reported level.
Image: Bigstock
Magnolia (MGY) Stock Faintly Moves Despite Q2 Earnings Beat
Shares of Magnolia Oil & Gas Corporation (MGY - Free Report) stock has shown no substantial movement since second-quarter 2021 earnings announcement on Aug 2. In fact, the firm’s shares failed to display an uptrend despite impressive bottom-line and top-line performances as well as an upbeat third-quarter production guidance, which indicates growth from the sequential quarter’s reported figure.
Delving Deeper
The company reported second-quarter adjusted net income per share of 56 cents, beating the Zacks Consensus Estimate of 37 cents. The bottom line reversed the year-ago quarter’s loss of 8 cents per share.
This outperformance can be primarily attributed to better-than-anticipated production volumes. The South Texas-focused company’s average daily oil output of 31,897 barrels per day surpassed the Zacks Consensus Estimate of 30,734 barrels.
Total revenues came in at $250.73 million, ahead of the Zacks Consensus Estimate of $229 million. Moreover, the top line rose 202.7% from the year-ago level of $82.84 million.
Production & Prices
Magnolia’s oil and gas production reported a year-over-year increase of 1.25% to 64,946 boe per day (comprising 72% liquids). Oil volumes at 31,897 barrels per day were down 6% from the level achieved in second-quarter 2020.
The average realized crude oil price during the second quarter was $64.80 per barrel, reflecting a 229.2% rise from the year-ago period’s realization of $19.68. The average realized natural gas liquids price was $22.26 per barrel, up 181.1% from the year-ago period’s tally while natural gas prices increased 142.9% year over year to $3.28 per thousand cubic feet. Overall, the company fetched $42.42 per boe compared with $14.19 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 $190.3 million in cash and cash equivalents. The oil explorer’s long-term debt of $387 million represented a debt-to-capitalization of 31.5%. In the reported quarter, the company spent around $54 million on its capital program.
Guidance
Magnolia plans to spend around $150-$175 million on drilling and completion activities for the latter half of the year.
Total output in the third quarter of 2021 is expected to be around 67,000 boe/d, implying a 3% rise from the second-quarter reported level.
Zacks Rank & Other Key Picks
Magnolia currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked players in the energy space include Devon Energy Corporation (DVN - Free Report) , Matador Resources Company (MTDR - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.