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EX - 99.1 2 q22021pressrelease.htm EX - 99.1 Exhibit 99.1 Magnolia Oil & Gas Corporation Announces Second Quarter 2021 Results HOUSTON , TX , August 2 , 2021 - Magnolia Oil & Gas Corporation ( “ Magnolia , ” “ we , ” “ our , ” or the “ Company ” ) ( NYSE : MGY ) today announced its financial and operational results for the second quarter of 2021 . Second Quarter 2021 Highlights : ( In millions , except per share data ) Net income Earnings per share - diluted Adjusted net income ( 1 ) Adjusted earnings per share ( 1 ) Adjusted EBITDAX ( 1 ) Capital expenditures - D & C Cash balance as of June 30 , 2021 Average daily production ( Mboe / d ) For the Quarter Ended June 30 , 2021 $ 116.2 0.48 135.0 0.56 195.1 53.8 $ 190.3 64.9 242.2 Diluted weighted average total shares outstanding ( 2 ) • • • Magnolia reported second quarter 2021 net income attributable to Class A Common Stock of $ 84.4 million , or $ 0.48 per diluted share . Second quarter 2021 total net income was $ 116.2 million and adjusted net income was $ 135.0 million , or $ 0.56 per diluted share . The adjustments to net income primarily reflect the positive impact of one - time cash and non - cash items associated with the termination of the Services Agreement with EnerVest Operating L.L.C. Adjusted EBITDAX for the second quarter of 2021 was $ 195.1 million a 29 % sequential quarterly increase driven by both higher overall production and stronger product prices . Total capital allocated to drilling and completions ( “ D & C ” ) during the second quarter was $ 53.8 million , or 28 % of adjusted EBITDAX . Net cash provided by operating activities was $ 187.9 million during the second quarter and the Company generated free cash flow of $ 134.0 million . During the second quarter of 2021 , Magnolia generated operating income as a percent of total revenue of 52 % . Total production in the second quarter of 2021 increased 4 % sequentially to 64.9 thousand barrels of oil equivalent per day ( " Mboe / d " ) . Oil production increased 11 % sequentially to 31.9 thousand barrels per day ( " MBbls / d " ) , with both our Karnes and Giddings assets contributing to the increase . Total production in Giddings increased by 55 % compared to last year's second quarter . Magnolia spent $ 120.7 million reducing its diluted shares during the second quarter of 2021. As a result , the fully diluted share count is expected to decline to 237 million shares in the third quarter of 2021. During the first half of 2021 , Magnolia has reduced its fully diluted share count by 17.6 million shares or 7 % compared to the fourth quarter 2020 levels . Magnolia ended the second quarter with 10.5 million Class A Common shares remaining under the current share repurchase authorization . Magnolia had $ 190.3 million of cash on its balance sheet at the end of the second quarter and remains undrawn on its $ 450.0 million revolving credit facility . The Company has no debt maturities until 2026 and has no plans to increase its debt levels . Magnolia declared its first partial semi - annual dividend of $ 0.08 per share payable on September 1 , 2021 . ( 1 ) Adjusted net income , adjusted earnings per share , adjusted EBITDAX , and free cash flow are non - GAAP financial measures . For reconciliations to the most comparable GAAP measures , please see " Non - GAAP Financial Measures " at the end of this press release . ( 2 ) Weighted average total shares outstanding include diluted weighted average shares of Class A Common Stock outstanding during the period and shares of Class B Common Stock , which are anti - dilutive in the calculation of weighted average number of common shares outstanding . 1