Magnolia targets 5% production growth in 2026 while maintaining disciplined capital spending
View original at seekingalpha.comMagnolia targets 5% production growth in 2026 while maintaining disciplined capital spending Earnings Call Insights: Magnolia Oil & Gas Corporation (MGY) Q4 2025 MANAGEMENT VIEW * Chris Stavros, President, CEO & Chairman, emphasized "another year of strong, consistent performance and execution showing the beneficial ch…
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The competition for acreage has risen over the last year
80% confidenceMagnolia achieved another year of strong, consistent performance and execution showing the beneficial characteristics and merits of our differentiated business model during a year of elevated product price volatility
80% confidenceMagnolia achieved an 11% increase in total company production for 2025, with oil production up 4% and averaging nearly 40,000 barrels per day
80% confidenceMagnolia achieved a new company record for production in Q4, averaging nearly 104,000 barrels of oil equivalent per day, with 40,700 barrels of oil per day, representing a 3% sequential increase
80% confidenceWe repurchased approximately 8.9 million shares throughout the course of 2025, reducing our diluted share count by roughly 4.5%
80% confidenceThe 3 to 4 wells per pad is about still about right, with lateral lengths typically 8,000 to 8,500 feet
80% confidenceOperationally, we continue to make strides in reducing our field level cash operating expenses, which declined by 7% to $5.12 per BOE during 2025
80% confidenceWorking interest in Giddings is something in the low 80s today, and 28 gross wells per rig per year may be slightly aggressive, but it's not far off
80% confidenceTotal full year 2026 production growth is expected to be approximately 5%
80% confidenceFirst quarter 2026 production is estimated at approximately 102,000 barrels of oil equivalent per day, including a 1,500 BOE/d winter weather impact
80% confidence2026 production will show gradual steady progress through the year on the volumes
80% confidenceThe programmatic portion of share buybacks is the sort of 1% that we're minimally committed to, with tactical flexibility to lean in or not depending on market conditions
80% confidenceWe ended the year with $267 million of cash. Our $400 million of senior note does not mature until 2032. Including our fourth quarter ending cash balance of $267 million and our undrawn $450 million revolving credit facility, our total liquidity is approximately $717 million
80% confidenceCurrent Giddings well costs are maybe down towards $1,000 a foot, and service costs are flat to slightly down into this year
80% confidenceQ4 well performance is included in the 240,000 acre area but that's not to say that we're not looking elsewhere and have plans to go outside the 240,000 with additional appraisal this year
80% confidenceWe plan to remain fiscally prudent and disciplined with our capital spending
80% confidenceI'm confident that you're sort of in the middle part of that range or lower for 2026 capital spending
80% confidenceGiddings well outperformance is simply the outcome of drilling into some very good rock, with no specific operational changes, just getting better at it with time
80% confidenceOur fourth quarter adjusted net income was approximately $71 million or $0.38 per diluted share with adjusted EBITDAX coming in at $216 million
80% confidence