Magnolia Oil & Gas Corp (MGY) Reports Q3 2023 Earnings: Net Income Drops by 59%
Net income for Q3 2023 was $117.5 million, a decrease of 59% from Q3 2022
Earnings per share diluted was $0.54, a decrease of 58% from Q3 2022
Average daily production increased by 1% to 82.7 thousand barrels of oil equivalent per day
Capital expenditures decreased by 9% to $104.3 million
On November 1, 2023, Magnolia Oil & Gas Corp (NYSE:MGY) announced its financial and operational results for the third quarter of 2023. Despite a decrease in net income and earnings per share, the company saw an increase in average daily production and a decrease in capital expenditures.
Financial Highlights
The company reported a net income of $117.5 million for Q3 2023, a significant decrease of 59% from the same period in 2022. Earnings per share diluted also decreased by 58% to $0.54. Despite these decreases, the company's average daily production increased by 1% to 82.7 thousand barrels of oil equivalent per day. Furthermore, capital expenditures decreased by 9% to $104.3 million.
Operational Highlights
Magnolia's operating income as a percentage of revenue improved to 47% during the third quarter of 2023, up from 43% in the second quarter. This improvement was attributed to higher product price realizations and lower field operating costs. The company also reported that total production in the third quarter of 2023 grew 1% sequentially to 82.7 thousand barrels of oil equivalent per day.
Future Outlook
Magnolia is increasing its full-year 2023 organic production growth to 8%, which is the high-end of its previous guidance range. Including production for the recently announced bolt-on acquisition in Giddings, total 2023 production is expected to grow 9% compared to last year.
Commentary
President and CEO Chris Stavros commented on the results, stating,
Magnolia continues to execute on its business model as evidenced by our third quarter financial and operating results. Production trended above our expectations due to strong well performance in Giddings. Our operating results are further supported by realizing ongoing efficiencies in the field."
Summary
Despite the decrease in net income and earnings per share, Magnolia Oil & Gas Corp (NYSE:MGY) has shown resilience with an increase in average daily production and a decrease in capital expenditures. The company's strategic initiatives and operational efficiencies have positioned it for future growth.
Explore the complete 8-K earnings release (here) from Magnolia Oil & Gas Corp for further details.
This article first appeared on GuruFocus.
