Magnolia Oil & Gas (NYSE:MGY) Posts Earnings Results, Beats Estimates By $0.13 EPS

Key Points

• Magnolia Oil & Gas beat quarterly estimates: EPS was $0.71 versus $0.58 expected, while revenue of $513.89 million exceeded forecasts and rose 58.2% year over year.
• Shares fell 5.4% to $23.32 on Wednesday despite the strong results.
• The company declared a quarterly dividend of $0.18 per share, equivalent to a 3.1% annualized yield; analysts’ consensus rating was “Moderate Buy,” with a $31.53 average price target.

Magnolia Oil & Gas (NYSE:MGY - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $0.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.58 by $0.13, FiscalAI reports. Magnolia Oil & Gas had a net margin of 28.77% and a return on equity of 21.04%. The company had revenue of $513.89 million during the quarter, compared to analyst estimates of $474.39 million. During the same quarter in the previous year, the business earned $0.42 EPS. The firm's revenue was up 58.2% on a year-over-year basis.

Magnolia Oil & Gas Stock Down 5.4%

NYSE MGY traded down $1.34 on Wednesday, reaching $23.32. The company had a trading volume of 3,185,450 shares, compared to its average volume of 2,964,634. The firm has a market capitalization of $5.53 billion, a price-to-earnings ratio of 10.68 and a beta of 0.72. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.58 and a current ratio of 1.58. Magnolia Oil & Gas has a 1-year low of $21.07 and a 1-year high of $32.76. The company's fifty day moving average is $25.55 and its 200-day moving average is $27.03.

Magnolia Oil & Gas Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Tuesday, November 10th will be given a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Tuesday, November 10th. Magnolia Oil & Gas's payout ratio is currently 31.58%.

Insider Transactions at Magnolia Oil & Gas

In other news, Director David Khani purchased 8,000 shares of the company's stock in a transaction on Friday, August 7th. The shares were purchased at an average price of $25.00 per share, with a total value of $200,000.00. Following the purchase, the director directly owned 30,622 shares of the company's stock, valued at $765,550. This trade represents a 35.36% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 0.92% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently commented on MGY shares. Siebert Williams Shank raised Magnolia Oil & Gas from a "hold" rating to a "buy" rating and raised their price objective for the stock from $30.00 to $32.00 in a research note on Wednesday, September 23rd. Wall Street Zen raised Magnolia Oil & Gas from a "hold" rating to a "buy" rating in a research note on Saturday. Zacks Research cut Magnolia Oil & Gas from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, October 13th. Truist Financial increased their price target on Magnolia Oil & Gas from $34.00 to $35.00 and gave the stock a "buy" rating in a report on Friday, October 2nd. Finally, Seaport Research Partners began coverage on Magnolia Oil & Gas in a research report on Thursday, September 3rd. They set a "neutral" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Magnolia Oil & Gas has a consensus rating of "Moderate Buy" and a consensus target price of $31.53.

Magnolia Oil & Gas Company Profile

Magnolia Oil & Gas Corporation NYSE: MGY is an independent oil and natural gas exploration and production company focused on developing assets in South Texas. Its operations are concentrated in the Eagle Ford Shale and Austin Chalk formations, where it owns and operates a substantial acreage position.

The company produces crude oil, condensate, natural gas liquids and natural gas. Magnolia uses horizontal drilling and hydraulic fracturing technologies to develop unconventional reserves, with activity primarily centered in the Karnes and Giddings areas of South Texas.

Magnolia Oil & Gas was formed in 2017 through a business combination involving Silver Run Acquisition Corporation II and certain oil and gas assets previously associated with TGP Investments.

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