Magnolia Oil & Gas (MGY) Financials

Magnolia Oil & Gas (NYSE: MGY) Financial Analysis - Last Four Years Overview

Examining Magnolia Oil & Gas' financials from Q3 2022 through Q1 2025 reveals several important trends and insights relevant to retail investors.

• Net income attributable to common shareholders has shown a gradual upward trend, increasing from approximately $91 million in early 2023 (Q1) to around $103 million in Q1 2025, indicating improved profitability over time.
• Total revenue (driven primarily by "Other Non-Interest Income") has grown moderately from about $315 million in Q3 2023 to $350 million in Q1 2025, suggesting stable or improving operating performance.
• Operating cash flow remains strong, with net cash from continuing operating activities consistently above $180 million per quarter, peaking near $270 million in Q2 2024, supporting business operations and capital expenditures.
• Capital expenditures (purchase of property, leasehold improvements, and equipment) are significant but controlled, typically ranging from $89 million to $154 million per quarter, aligned with operating cash flows to sustain asset base.
• Magnolia maintains a strong equity position, with shareholders' equity increasing from approximately $1.27 billion in Q3 2022 to about $1.93 billion in Q1 2025, reflecting retained earnings growth and effective capital management.
• The company's debt levels (short-term and long-term combined) have fluctuated but remain generally stable, around $800 million to $900 million, indicating manageable leverage relative to assets and equity.
• Weighted average shares outstanding have remained fairly stable around 185 to 190 million, with repurchases ongoing each quarter, indicating consistent shareholder return policies.
• Dividend payments have slightly increased from approximately $0.10 per share in late 2022 to $0.15 per share by Q1 2025, showing commitment to returning cash to shareholders while balancing reinvestment.
• Intangible assets have a large negative balance (around -$2.2 billion by Q1 2025), which could indicate impairment factors or valuation adjustments warranting attention.
• Net cash used in investing activities is significant and often exceeds $120 million quarterly, primarily driven by investments in PP&E and investment securities, which may pressure short-term liquidity despite healthy operational cash flow.

Summary: Magnolia Oil & Gas has demonstrated steady profitability growth, robust cash flow generation, and disciplined capital deployment over the last four years. The company effectively balances reinvestment and shareholder returns through dividends and share repurchases. However, retail investors should monitor the significant intangible asset adjustments and ongoing high investment cash outflows that could pose risks to liquidity if business conditions weaken.