Magnolia Oil & Gas Corp


MGY

reported first-quarter adjusted net income of 90 cents per share, meeting the Zacks Consensus Estimate but improving from the year-ago quarter’s bottom line of 37 cents.

This year-over-year improvement in the top line can be primarily attributed to a surge in commodity prices and a healthy increase in year-over-year production volumes by about 15%. South Texas-focused Magnolia’s average daily total output of 71,835 barrels of oil equivalent per day (boe/d) was up from the year-ago quarter’s figure of 62,262 boe/d. Moreover, it narrowly beat the Zacks Consensus Estimate of 70,785 boe/d.

Total revenues came in at $377.84 million, ahead of the Zacks Consensus Estimate of $362 million. Moreover, the top line rose 80.7% from the year-ago level of $209.1 million.

Production & Prices

As mentioned earlier, Magnolia’s oil and gas production reported a year-over-year increase of a little more than 15% to 71,835 boe/d (comprising 68% of liquids). Oil volumes at 31,289 barrels per day (bpd) were up 8.6% from the level achieved in the first quarter of 2021. However, the same missed the Zacks Consensus Estimate of 31,816 bpd.

The average realized crude oil price in the first quarter was $93.28 per barrel, reflecting a 64.6% rise from the year-ago period’s realization of $56.68. The average realized natural gas liquids price was $36.94 per barrel, up 81.9% from the year-ago period’s tally, while natural gas prices increased 31.3% year over year to $4.57 per thousand cubic feet. Overall, MGY fetched $58.44 per barrel of oil equivalent (boe) compared with $37.32 a year ago.

Balance Sheet & Capital Expenditure

As of Mar 31, Magnolia had $346.4 million of cash and cash equivalents. The oil explorer has long-term debt of $388.65 million. In the reported quarter, Magnolia spent $83.4 million on its capital program.

The company had property, plant, and equipment worth $1.25 billion on its books.

Guidance

Magnolia plans to spend somewhere around $100 to $110 million on drilling and completion activities in the second quarter of 2022 and approximately $400 million for the full year.

The total output in the second quarter of 2022 is expected in the 72,000-74,000 boe/d range.

Based on the continued strong well performance, faster drilling times and other operational efficiencies seen at Giddings, MGY anticipates the total production growth to surpass 10% for the full year of 2022 compared with the earlier guidance of high single-digit growth.

Zacks Rank & Other Key Picks

Magnolia currently sports a Zacks Rank #1 (Strong buy). Some other similar-ranked players from the energy space are

Centennial Resource Development


CDEV

,

Earthstone Energy


ESTE

and

Civitas Resources


CIVI

. You can see


the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Centennial’s 2022 earnings is projected at $2.16 per share, which is an increase of approximately 213% from the projected year-ago earnings of 69 cents.

Centennial’s stock has increased 58.3% in a year. The Zacks Consensus Estimate for CDEV’s 2022 earnings per share (EPS) has been revised from $1.34 to $2.16, up about 62%, in the past 60 days.

The Zacks Consensus Estimate for Civitas’ 2022 earnings is projected at $14.15 per share, up about 383% from the projected year-ago earnings of $2.93.

The Zacks Consensus Estimate for Civitas’ 2022 EPS has been revised from $13.53 to $14.15, up about 4.6%, in the past 60 days.

Earthstone beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 35%. Earthstone’s stock has increased around 32.3% in a year.

The Zacks Consensus Estimate for ESTE’s 2022 earnings is projected at $3.37 per share, which is an increase of approximately 169.6% from the projected year-ago earnings of $1.25.

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