Magnolia Oil & Gas Corp-A 2024年度报告
FROM THE CEO Steady, reliable, and consistent were the watchwords for Magnolia in 2024. Since our inception as a publiccompany, we’ve remained true to our business model, focusing on efficient operations, financial discipline,and long-term value creation for our stockholders. I’m pleased to say that thanks to our team’s efforts, weextended our record of predictable, strong performance in 2024. 2024 HIGHLIGHTSFollowing our 2023 success in reducing our capital spending and well costs by nearly 20percent, we launched a field-level optimization and cost reduction program in early 2024. We expected thisinitiative would reduce our lease operating expenses per boe by 5 to 10 percent by the second half of 2024. Ourasset teams and field employees successfully captured improvements well ahead of schedule, achieving thehigh end of that range by midyear. Combined with our continuing efforts to lower our finding and developmentcosts, we achieved a return on capital employed of 22 percent1last year. While enhancing our cost structure, we also grew our annual total company production by 9 percent for asecond consecutive year and achieved full year oil production growth of 11 percent which exceeded our originalexpectations. Our Giddings asset was the primary driver of this growth. Supported by a prior year acquisition,strong well productivity, and continued expansion of our development area in the field, total production atGiddings grew 16 percent, while oil production grew 21 percent. Consistent with our focus on delivering long-term value, we returned 88 percent of the $430 million of free cashflow2we generated – about $378 million3– to our stockholders through our growing base dividend and ongoingshare repurchase program. After capital expenditures, several small bolt-on acquisitions, and the return ofsignificant cash to stockholders, we ended the year with a cash balance of $260 million and just $400 million oflong-term debt. 2025 OUTLOOKOperational execution and financial discipline will continue as our guiding principles in 2025.We plan to operate two drilling rigs and one completion crew during 2025, keeping capital spending and activitylevels roughly flat with last year. We expect total annual production growth of 5 percent to 7 percent. With mostof our oilfield service and materials costs under contract through at least mid-2025 in addition to ongoing field-level efficiency improvements, we expect to drill, complete, and turn in line more wells, supporting Magnolia’shigh margin growth. We entered 2025 in a strong financial position with an improved cost structure and a balance sheet thatremains best in class. This provides the financial flexibility we need to opportunistically pursue attractive bolt-onoil and gas property acquisitions that can improve our business. As we have in the past, we also plan to return asignificant portion of the free cash flow we generate to our stockholders through ongoing share repurchasesand a secure and growing base dividend. FOCUS ON SUSTAINABILITYWe continue to deliver results for all stakeholders in the areas of environmentalenhanced the disclosures in our 2024 Sustainability Report to include new board refreshment and total energyconsumption metrics as well as Scope 2 emissions shown by operating area. We are committed totransparency in these areas as we continue to develop oil and natural gas resources safely and responsibly.stewardship, safety and workforceand corporate governance. Consistent with that focus, wedevelopment, At Magnolia, we believe the consistent execution of our unique and durable business model has proven to be asuccessful recipe for maximizing per-share value over time. Every Magnolia employee is a stockholder. Asowners, we are fully aligned on our objective to be the most efficient operator with best-in-class oil and gasassets, generating the highest returns on those assets while employing the least amount of capital for drillingand completing our wells. We appreciate your trust in us as we continue to operate a highly investable, enduring E&P business focused onlong-term value creation for our stockholders. Chris StavrosPresident and Chief Executive Officer 1Return on capital employed is operating income divided by the average capital employed. Capital employed is the sum of debt and stockholders’equity.2A reconciliation of free cash flow to the nearest GAAP measure is set forth in Annex A.3Full year 2024 return to stockholders includes $272.5 million of share repurchases, $97.6 million of dividends to Class A stockholders, and $7.8million of distributions to Class B stockholders. )" ('(('')& ( '", "#!! '' #"+' "(#" "")&$#&($)&')"((#'( #"#& 2#( ')& ( ', "(# =@B63G3/@3<232313;03@ #& !/5<=:7/#7:/A=@>=@/B7=< F/1B"/;3=4&357AB@/<B/A'>31747327<7BA6/@B3@ ! * + ?B>AK7D!67@F;8;53F;A@&A "7<3@33<E/G$:/H/'C7B3 !@6;53F7 4K 5:75= ?3D= ;8
