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Magnolia (MGY) Stock Rallies 6.8% Since Q1 Earnings Beat
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Shares of Magnolia Oil & Gas Corporation (MGY - Free Report) have gained 6.8% since first-quarter 2021 earnings announcement on May 4. Investors were buoyed by its better-than-expected bottom-line and top-line performances. This uptrend was also driven by an upbeat second-quarter production guidance, which indicates growth from the sequential quarter’s reported figure.
Delving Deeper
Magnolia reported first-quarter 2021 adjusted net income per share of 38 cents, beating the Zacks Consensus Estimate of 28 cents. The bottom line also reversed the year-ago quarter’s loss of 11 cents per share.
This outperformance can be primarily attributed to better-than-anticipated production volumes. Precisely, the South Texas-focused company’s average daily output of 62,262 barrels of oil equivalent (boe) surpassed the Zacks Consensus Estimate of 60,566 boe.
Total revenues came in at $207.66 million, ahead of the Zacks Consensus Estimate of $194 million. Moreover, the top line rose 14.7% from the year-ago level of $181 million.
Production & Prices
Magnolia’s oil and gas production reported a year-over-year decrease of 8.9% to 62,262 boe per day (comprising 70% liquids). Particularly, oil volumes at 28,808 barrels per day were down 22.7% from the level achieved in first-quarter 2020.
The average realized crude oil price during the first quarter was $56.47 per barrel, reflecting a 23.8% rise from the year-ago realization of $45.62. However, the average realized natural gas liquids price was $20.31 per barrel, up 123.4% from the year-ago period while natural gas prices increased 110.6% year over year to $3.39 per thousand cubic feet. Overall, the company fetched $37.06 per boe compared with $29.15 a year ago.
Magnolia Oil & Gas Corp Price, Consensus and EPS Surprise
As of Mar 31, Magnolia had $178.2 million in cash and cash equivalents. The oil explorer’s long-term debt of $391.4 million represented a debt-to-capitalization of 31.7%. In the reported quarter, the company spent around $39 million on its capital program.
Guidance
Magnolia plans to spend a little below $300 million on drilling and completion activities in 2021. The company also projected 6-9% annual production growth this year.
Total output in the second quarter of 2021 is expected to be around 66,000 boe/d, implying a 6% rise from the first-quarter reported level.
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Magnolia (MGY) Stock Rallies 6.8% Since Q1 Earnings Beat
Shares of Magnolia Oil & Gas Corporation (MGY - Free Report) have gained 6.8% since first-quarter 2021 earnings announcement on May 4. Investors were buoyed by its better-than-expected bottom-line and top-line performances. This uptrend was also driven by an upbeat second-quarter production guidance, which indicates growth from the sequential quarter’s reported figure.
Delving Deeper
Magnolia reported first-quarter 2021 adjusted net income per share of 38 cents, beating the Zacks Consensus Estimate of 28 cents. The bottom line also reversed the year-ago quarter’s loss of 11 cents per share.
This outperformance can be primarily attributed to better-than-anticipated production volumes. Precisely, the South Texas-focused company’s average daily output of 62,262 barrels of oil equivalent (boe) surpassed the Zacks Consensus Estimate of 60,566 boe.
Total revenues came in at $207.66 million, ahead of the Zacks Consensus Estimate of $194 million. Moreover, the top line rose 14.7% from the year-ago level of $181 million.
Production & Prices
Magnolia’s oil and gas production reported a year-over-year decrease of 8.9% to 62,262 boe per day (comprising 70% liquids). Particularly, oil volumes at 28,808 barrels per day were down 22.7% from the level achieved in first-quarter 2020.
The average realized crude oil price during the first quarter was $56.47 per barrel, reflecting a 23.8% rise from the year-ago realization of $45.62. However, the average realized natural gas liquids price was $20.31 per barrel, up 123.4% from the year-ago period while natural gas prices increased 110.6% year over year to $3.39 per thousand cubic feet. Overall, the company fetched $37.06 per boe compared with $29.15 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 Mar 31, Magnolia had $178.2 million in cash and cash equivalents. The oil explorer’s long-term debt of $391.4 million represented a debt-to-capitalization of 31.7%. In the reported quarter, the company spent around $39 million on its capital program.
Guidance
Magnolia plans to spend a little below $300 million on drilling and completion activities in 2021. The company also projected 6-9% annual production growth this year.
Total output in the second quarter of 2021 is expected to be around 66,000 boe/d, implying a 6% rise from the first-quarter reported level.
Zacks Rank & Key Picks
Magnolia currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are SilverBow Resources Inc. (SBOW - Free Report) , Matador Resources Company (MTDR - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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