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Shares of Magnolia Oil & Gasoline Company MGY have dropped 8.5% for the reason that third-quarter 2021 earnings announcement on Nov 1.

– Zacks

The inventory declined regardless of spectacular bottom-line and top-line performances in addition to an upbeat fourth-quarter manufacturing steering, which signifies development from the sequential quarter’s reported determine. This downtrend could possibly be attributed to MGY’s greater capital program bills and weaker-than-anticipated oil manufacturing.

Delving Deeper

Magnolia reported third-quarter adjusted internet revenue per share of 67 cents, beating the Zacks Consensus Estimate of 60 cents and the year-ago quarter’s backside line of 6 cents.

This outperformance might be primarily attributed to better-than-anticipated manufacturing volumes. South Texas-focused MGY’s common each day whole output of 67,385 barrels of oil equal per day (boe/d) surpassed the Zacks Consensus Estimate of 66,418boe/d.

Whole revenues got here in at $283.58 million, forward of the Zacks Consensus Estimate of $277 million. Furthermore, the highest line rose 134.2% from the year-ago degree of $121.07 million.

Manufacturing & Costs

Magnolia’s oil and gasoline manufacturing reported a year-over-year improve of 24.1% to 67,385boe/d (comprising 69.3% liquids). Oil volumes at 30,989 barrels per day have been up14.7% from the extent achieved in third-quarter 2020. Nevertheless, the identical missed the Zacks Consensus Estimate of 31,678 barrels per day.

The common realized crude oil value throughout the third quarter was $68.44 per barrel, reflecting a 77.8% rise from the year-ago interval’s realization of $38.5. The common realized pure gasoline liquids value was $31.6 per barrel, up 182.1% from the year-ago interval’s tally whereas pure gasoline costs elevated 137.3% 12 months over 12 months to $3.75 per thousand cubic ft. General, MGY fetched $45.74 per boe in contrast with $24.23 a 12 months in the past.

Stability Sheet & Capital Expenditure

As of Sep 30, Magnolia had $245.02 million of money and money equivalents. The oil explorer’s long-term debt of $387.5 million represented a debt-to-capitalization of 30%. Within the reported quarter, MGY spent $67.2 million on its capital program.

Steering

Magnolia plans to spend round $80 million on drilling and completion actions within the fourth quarter of this 12 months.

Whole output within the fourth quarter of 2021 is anticipated within the 68,000-70,000 boe/d vary.

Zacks Rank & Different Key Picks

Magnolia presently sports activities a Zacks Rank #1 (Robust Purchase). Different top-ranked gamers within the energy  house embody EOG Assets EOG, Diamondback Vitality FANG and ConocoPhillips COP, every presently flaunting a Zacks Rank of 1. You possibly can see the complete list of today’s Zacks #1 Rank stocks here.

EOG Assets reported third-quarter 2021 adjusted earnings per share of $2.16, beating the Zacks Consensus Estimate of $2.01. Robust earnings have been pushed by elevated manufacturing volumes and the next realization of commodity costs.

EOG introduced a quarterly dividend of 75 cents per share, indicating an 82% improve from the earlier degree. The dividend will likely be paid out on Jan 28, 2022, to its shareholders of document as of Jan 14, 2022. EOG Assets additionally declared a particular dividend of $2 per share. Furthermore, the board of administrators up to date its share repurchase authorization to $5 billion.

Diamondback Vitality reported third-quarter 2021 adjusted earnings of $2.94 per share, which surpassed the Zacks Consensus Estimate of $2.81 and the year-ago quarter’s earnings of 62 cents. FANG’s backside line was aided by better-than-expected manufacturing.

The board of administrators declared a dividend of fifty cents per share for the third quarter, representing an 11.1% hike in its quarterly payout from the earlier studying of 45 cents. The quantity will likely be paid out on Nov 18, 2021, to its shareholders of document as of Nov 11. FANG additionally generated a free money stream of $740 million within the third quarter.

ConocoPhillips reported third-quarter 2021 adjusted earnings per share of $1.77, comfortably beating the Zacks Consensus Estimate of $1.53. This outperformance is led by elevated manufacturing volumes owing to the Concho acquisition and the rising realized commodity costs.

Primarily based in Houston, TX, this one of many world’s largest impartial oil and gasoline producers’ capital expenditures and investments totaled $1.3 billion, and dividend funds grossed $579 million. ConocoPhillips’ internet money offered by working actions was recorded at $4.8 billion, up from the year-ago determine of $868 million. COP generated a free money stream of $2.8 billion within the third quarter.

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ConocoPhillips (COP): Free Stock Analysis Report
 
EOG Resources, Inc. (EOG): Free Stock Analysis Report
 
Diamondback Energy, Inc. (FANG): Free Stock Analysis Report
 
Magnolia Oil & Gas Corp (MGY): Free Stock Analysis Report
 
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