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Magnolia Oil & Gas Corp’s (MGY - Free Report) stock has gone up 7.6% since its third-quarter earnings announcement on Nov 1.
This rise in the stock price could be attributed to the Houston, TX-based independent upstream operator’s third-quarter earnings and sales outperforming the consensus mark.
Behind the Earnings Headlines
Magnolia reported a third-quarter adjusted net income of $1.29 per share, beating the Zacks Consensus Estimate of $1.18 and also improving from the year-ago quarter’s bottom line of 67 cents.
The outperformance and the year-over-year improvement in the bottom line can be primarily attributed to a surge in commodity prices and a healthy increase in year-over-year production volumes by about 21%.
South Texas-focused Magnolia’s total average daily output of 81,529 barrels of oil equivalent per day (boe/d) was up from the year-ago quarter’s figure of 67,385 boe/d. Moreover, the same beat the Zacks Consensus Estimate of 75,180 boe/d.
Total revenues came in at $482.96 million, ahead of the Zacks Consensus Estimate of $455 million. Moreover, the top line rose 69.4% from the year-ago level of $285 million.
Magnolia declared a regular quarterly cash dividend of 10 cents per share of the Class A common stock and a cash distribution of 10 cents per Class B unit, payable on Dec 1, 2022, to shareholders of record as of Nov 7, 2022.
Magnolia Oil & Gas Corp Price, Consensus and EPS Surprise
As mentioned earlier, Magnolia’s oil and gas production reported a year-over-year increase of a little more than 21% to 81,529 boe/d (comprising 70.3% of liquids). Oil volumes at 36,751 barrels per day (bpd) were up 18.6% from the level achieved in the third quarter of 2021. Moreover, the same outperformed the Zacks Consensus Estimate of 34,270 bpd.
The average realized crude oil price in the third quarter was $93.83 per barrel, reflecting a 36.7% rise from the year-ago period’s realization of $68.62. The average realized natural gas liquid price was $34.66 per barrel, up 9.7% from the year-ago period’s tally.
Meanwhile, natural gas prices surged by about 95.6% year over year to $7.49 per thousand cubic feet. Overall, MGY fetched $64.4 per barrel of oil equivalent compared with $45.97 a year ago.
Balance Sheet & Capital Expenditure
As of Sep 30, Magnolia had $689.5 million of cash and cash equivalents. The oil explorer had long-term debt of $389.8 million. In the reported quarter, Magnolia spent $114.5 million on its capital program.
The company had property, plant and equipment worth $1.37 billion on its books.
Guidance
Magnolia plans to spend around $125 to $140 million on drilling and completion activities in the fourth quarter of 2022.
The total output in the fourth quarter of 2022 is expected in the 77,000-79,000 boe/d range.
MGY expects its production volumes to exit the year at a higher rate than seen in the third quarter, including the high level of activity.
Zacks Rank & Stocks to Consider
Magnolia currently carries a Zacks Rank #3 (Hold).
Being a midstream energy player, Magellan Midstream’s business model is less exposed to volatility in oil and gas prices. Contributions from core fee-based transportation and terminals activities aided MMP’s results in the third quarter of 2022.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. A leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of 369.6%.
Liberty Energy (previously Liberty Oilfield Services) is a premier provider of hydraulic fracturing and other auxiliary services to onshore exploration and production companies in North America. For 2022, LBRT is likely to witness earnings growth of 298%.
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Magnolia (MGY) Shares Rise 8% Since Q3 Earnings & Sales Beat
Magnolia Oil & Gas Corp’s (MGY - Free Report) stock has gone up 7.6% since its third-quarter earnings announcement on Nov 1.
This rise in the stock price could be attributed to the Houston, TX-based independent upstream operator’s third-quarter earnings and sales outperforming the consensus mark.
Behind the Earnings Headlines
Magnolia reported a third-quarter adjusted net income of $1.29 per share, beating the Zacks Consensus Estimate of $1.18 and also improving from the year-ago quarter’s bottom line of 67 cents.
The outperformance and the year-over-year improvement in the bottom line can be primarily attributed to a surge in commodity prices and a healthy increase in year-over-year production volumes by about 21%.
South Texas-focused Magnolia’s total average daily output of 81,529 barrels of oil equivalent per day (boe/d) was up from the year-ago quarter’s figure of 67,385 boe/d. Moreover, the same beat the Zacks Consensus Estimate of 75,180 boe/d.
Total revenues came in at $482.96 million, ahead of the Zacks Consensus Estimate of $455 million. Moreover, the top line rose 69.4% from the year-ago level of $285 million.
Magnolia declared a regular quarterly cash dividend of 10 cents per share of the Class A common stock and a cash distribution of 10 cents per Class B unit, payable on Dec 1, 2022, to shareholders of record as of Nov 7, 2022.
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
As mentioned earlier, Magnolia’s oil and gas production reported a year-over-year increase of a little more than 21% to 81,529 boe/d (comprising 70.3% of liquids). Oil volumes at 36,751 barrels per day (bpd) were up 18.6% from the level achieved in the third quarter of 2021. Moreover, the same outperformed the Zacks Consensus Estimate of 34,270 bpd.
The average realized crude oil price in the third quarter was $93.83 per barrel, reflecting a 36.7% rise from the year-ago period’s realization of $68.62. The average realized natural gas liquid price was $34.66 per barrel, up 9.7% from the year-ago period’s tally.
Meanwhile, natural gas prices surged by about 95.6% year over year to $7.49 per thousand cubic feet. Overall, MGY fetched $64.4 per barrel of oil equivalent compared with $45.97 a year ago.
Balance Sheet & Capital Expenditure
As of Sep 30, Magnolia had $689.5 million of cash and cash equivalents. The oil explorer had long-term debt of $389.8 million. In the reported quarter, Magnolia spent $114.5 million on its capital program.
The company had property, plant and equipment worth $1.37 billion on its books.
Guidance
Magnolia plans to spend around $125 to $140 million on drilling and completion activities in the fourth quarter of 2022.
The total output in the fourth quarter of 2022 is expected in the 77,000-79,000 boe/d range.
MGY expects its production volumes to exit the year at a higher rate than seen in the third quarter, including the high level of activity.
Zacks Rank & Stocks to Consider
Magnolia currently carries a Zacks Rank #3 (Hold).
Some better-ranked players from the same space include Magellan Midstream Partners , EQT Corporation (EQT - Free Report) and Liberty Energy (LBRT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Being a midstream energy player, Magellan Midstream’s business model is less exposed to volatility in oil and gas prices. Contributions from core fee-based transportation and terminals activities aided MMP’s results in the third quarter of 2022.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. A leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of 369.6%.
Liberty Energy (previously Liberty Oilfield Services) is a premier provider of hydraulic fracturing and other auxiliary services to onshore exploration and production companies in North America. For 2022, LBRT is likely to witness earnings growth of 298%.