Magnolia Oil & Gas reports Q3 adjusted EPS 6c, consensus 9c
Reports Q3 revenue $244.8M, consensus $244.43M. The company's production averaged 71.3 thousand barrels of oil equivalent per day for Q3, a 9.5% increase compared to 65.1 Mboe/d in Q2. Q3 oil production averaged 53.7% of total volumes. "Both total production and total oil volumes were at the high end of our guidance, with the strong sequential increase in production driven almost entirely by our organic drilling program and primarily due to new wells in the Karnes area," the company said. It added, "We continue to focus on building a business which generates significant free cash flow and our third quarter results further demonstrate our ability to execute on our strategy. While our production grew nearly 10 percent sequentially our capital spending for drilling and completing wells declined to less than half of our operating cash flow during the third quarter. The quality of our assets and disciplined business model positions us to spend within 60 percent of our adjusted EBITDAX for 2019. Using our current methodology, we brought on two new wells in the Giddings Field late in the third quarter. Combined, these two wells produced more than 2,700 Boe per day during their first 30 days on line, which included approximately 1,700 barrels of oil per day and 6,400 Mcf per day of natural gas. These wells are currently producing about 2,900 Boe per day, including more than 1,800 barrels per day of oil and approximately 6,700 Mcf per day of gas. We plan to complete three additional wells in Giddings later in the fourth quarter as part of our ongoing appraisal program."