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Magnolia Oil & Gas' (MGY) Q4 Earnings Beat, Revenues Miss
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Magnolia Oil & Gas Corp (MGY - Free Report) reported fourth-quarter adjusted net income of 86 cents per share, beating the Zacks Consensus Estimate of 76 cents and improving from the year-ago quarter’s bottom line of 82 cents.
The outperformance in the bottom line can be primarily attributed to higher oil prices.
Total revenues came in at $349 million, underperforming the Zacks Consensus Estimate of $352 million on lower-than-expected production. However, the top line increased 5.1% from the year-ago level of $332.2 million.
Magnolia declared a regular quarterly cash dividend of 11.5 cents per share, payable on Mar 1.
Magnolia Oil & Gas Corp Price, Consensus and EPS Surprise
South Texas-focused Magnolia’s oil and gas production reported a year-over-year increase of a little more than 6.3% to 73,785 barrels of oil equivalent per day (boe/d), but missed the Zacks Consensus Estimate of 77,089 boe/d. Oil volumes at 32,307 barrels per day (bpd) were up 4.5% from the 2021 fourth-quarter level. But the same underperformed the Zacks Consensus Estimate of 34,431 bpd. Daily natural gas volumes increased 5.4% from the year-ago period to 135,380 thousand cubic feet, while natural gas liquids output was up 10.7%.
The average realized crude oil price in the fourth quarter was $82.53 per barrel, indicating an 8.4% increase from the year-ago period’s figure of $76.16. On the other hand, the average realized natural gas liquid price was $25.45 per barrel, down 28.1% from the year-ago period’s tally.
Meanwhile, natural gas prices dropped 5.9% year over year to $4.77 per thousand cubic feet. Overall, MGY fetched $51.42 per barrel of oil equivalent compared with $52.01 a year ago.
Balance Sheet & Capital Expenditure
As of Dec 31, Magnolia had $675.4 million of cash and cash equivalents. The oil explorer had a long-term debt of $390.4 million. In the reported quarter, Magnolia spent $460 million on its capital program.
The company had property, plant and equipment worth $1.53 billion on its books.
Guidance
Magnolia Oil and Gas Corporation expects drilling and completion capital to be in the range of $140 million-$150 million for the first quarter of 2023 and $490 million-$520 million for full-year 2023.
The total output in the first quarter of 2023 is expected in the range of 80,000- 82,000 boe/d range.
Zacks Rank and Key Picks
Currently, Magnolia carries a Zacks Rank #5 (Strong Sell).
PUMP currently has a forward P/E ratio of 4.49. In comparison, its industry has an average forward P/E of 25.60, which means PUMP is trading at a discount to the group.
ProPetro Holding is worth approximately $1.14 billion. Its shares have declined 19.9% in the past year.
Energy Transfer LP is valued at around $39.66 billion. ET delivered an average earnings surprise of 28.7% for the last four quarters, and its current dividend yield is 9.50%.
Energy Transfer LP currently has a forward P/E ratio of 8.95. In comparison, its industry has an average forward P/E of 14.20, which means Energy Transfer LP is trading at a discount to the group.
Helmerich & Payne is valued at around $4.78 billion. Helmerich & Payne, headquartered in Tulsa, OK, has a trailing four-quarter earnings surprise of roughly 130.98% on average.
Over the past 60 days, the Zacks Consensus Estimate for HP's fiscal 2023 earnings has been revised by 18.8%. In the past year, HP stock has increased by 34.7%.
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Magnolia Oil & Gas' (MGY) Q4 Earnings Beat, Revenues Miss
Magnolia Oil & Gas Corp (MGY - Free Report) reported fourth-quarter adjusted net income of 86 cents per share, beating the Zacks Consensus Estimate of 76 cents and improving from the year-ago quarter’s bottom line of 82 cents.
The outperformance in the bottom line can be primarily attributed to higher oil prices.
Total revenues came in at $349 million, underperforming the Zacks Consensus Estimate of $352 million on lower-than-expected production. However, the top line increased 5.1% from the year-ago level of $332.2 million.
Magnolia declared a regular quarterly cash dividend of 11.5 cents per share, payable on Mar 1.
Magnolia Oil & Gas Corp Price, Consensus and EPS Surprise
Magnolia Oil & Gas Corp price-consensus-eps-surprise-chart | Magnolia Oil & Gas Corp Quote
Production & Prices
South Texas-focused Magnolia’s oil and gas production reported a year-over-year increase of a little more than 6.3% to 73,785 barrels of oil equivalent per day (boe/d), but missed the Zacks Consensus Estimate of 77,089 boe/d. Oil volumes at 32,307 barrels per day (bpd) were up 4.5% from the 2021 fourth-quarter level. But the same underperformed the Zacks Consensus Estimate of 34,431 bpd. Daily natural gas volumes increased 5.4% from the year-ago period to 135,380 thousand cubic feet, while natural gas liquids output was up 10.7%.
The average realized crude oil price in the fourth quarter was $82.53 per barrel, indicating an 8.4% increase from the year-ago period’s figure of $76.16. On the other hand, the average realized natural gas liquid price was $25.45 per barrel, down 28.1% from the year-ago period’s tally.
Meanwhile, natural gas prices dropped 5.9% year over year to $4.77 per thousand cubic feet. Overall, MGY fetched $51.42 per barrel of oil equivalent compared with $52.01 a year ago.
Balance Sheet & Capital Expenditure
As of Dec 31, Magnolia had $675.4 million of cash and cash equivalents. The oil explorer had a long-term debt of $390.4 million. In the reported quarter, Magnolia spent $460 million on its capital program.
The company had property, plant and equipment worth $1.53 billion on its books.
Guidance
Magnolia Oil and Gas Corporation expects drilling and completion capital to be in the range of $140 million-$150 million for the first quarter of 2023 and $490 million-$520 million for full-year 2023.
The total output in the first quarter of 2023 is expected in the range of 80,000- 82,000 boe/d range.
Zacks Rank and Key Picks
Currently, Magnolia carries a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector might look at some better-ranking stocks like ProPetro Holding (PUMP - Free Report) and Energy Transfer (ET - Free Report) both sporting a Zacks Rank #1 (Strong Buy) and Helmerich & Payne (HP - Free Report) holding a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
PUMP currently has a forward P/E ratio of 4.49. In comparison, its industry has an average forward P/E of 25.60, which means PUMP is trading at a discount to the group.
ProPetro Holding is worth approximately $1.14 billion. Its shares have declined 19.9% in the past year.
Energy Transfer LP is valued at around $39.66 billion. ET delivered an average earnings surprise of 28.7% for the last four quarters, and its current dividend yield is 9.50%.
Energy Transfer LP currently has a forward P/E ratio of 8.95. In comparison, its industry has an average forward P/E of 14.20, which means Energy Transfer LP is trading at a discount to the group.
Helmerich & Payne is valued at around $4.78 billion. Helmerich & Payne, headquartered in Tulsa, OK, has a trailing four-quarter earnings surprise of roughly 130.98% on average.
Over the past 60 days, the Zacks Consensus Estimate for HP's fiscal 2023 earnings has been revised by 18.8%. In the past year, HP stock has increased by 34.7%.