NYSE:MGY

Stock Analysis Report

Executive Summary

Magnolia Oil & Gas Corporation engages in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves in the United States.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Magnolia Oil & Gas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MGY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.3%

MGY

9.5%

US Oil and Gas

2.4%

US Market


1 Year Return

-70.6%

MGY

-52.6%

US Oil and Gas

-10.0%

US Market

Return vs Industry: MGY underperformed the US Oil and Gas industry which returned -53.7% over the past year.

Return vs Market: MGY underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

MGYIndustryMarket
7 Day-2.3%9.5%2.4%
30 Day-37.5%-18.5%-11.0%
90 Day-68.5%-46.8%-19.4%
1 Year-70.6%-70.6%-50.7%-52.6%-8.1%-10.0%
3 Yearn/a-47.6%-52.7%17.3%9.6%
5 Yearn/a-52.0%-59.4%36.1%21.1%

Price Volatility Vs. Market

How volatile is Magnolia Oil & Gas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Magnolia Oil & Gas undervalued compared to its fair value and its price relative to the market?

13.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGY ($3.91) is trading above our estimate of fair value ($3.7)

Significantly Below Fair Value: MGY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MGY is poor value based on its PE Ratio (13.3x) compared to the Oil and Gas industry average (7.6x).

PE vs Market: MGY is poor value based on its PE Ratio (13.3x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: MGY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MGY is good value based on its PB Ratio (0.4x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is Magnolia Oil & Gas forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-67.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGY's earnings are forecast to decline over the next 3 years (-67.1% per year).

Earnings vs Market: MGY's earnings are forecast to decline over the next 3 years (-67.1% per year).

High Growth Earnings: MGY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MGY's revenue is expected to decline over the next 3 years (-25.9% per year).

High Growth Revenue: MGY's revenue is forecast to decline over the next 3 years (-25.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGY is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Magnolia Oil & Gas performed over the past 5 years?

-49.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: MGY has high quality earnings.

Growing Profit Margin: MGY's current net profit margins (5.1%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if MGY's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: MGY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MGY had negative earnings growth (-49.4%) over the past year, making it difficult to compare to the Oil and Gas industry average (-11.9%).


Return on Equity

High ROE: MGY's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is Magnolia Oil & Gas's financial position?


Financial Position Analysis

Short Term Liabilities: MGY's short term assets ($293.2M) exceed its short term liabilities ($175.2M).

Long Term Liabilities: MGY's short term assets ($293.2M) do not cover its long term liabilities ($562.7M).


Debt to Equity History and Analysis

Debt Level: MGY's debt to equity ratio (14.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MGY's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MGY's debt is well covered by operating cash flow (166.1%).

Interest Coverage: MGY's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Magnolia Oil & Gas's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MGY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MGY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MGY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MGY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MGY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Steve Chazen (72yo)

3.17s

Tenure

US$270,000

Compensation

Mr. Stephen I. Chazen, also known as Steve, serves as Independent Chairman and Director of Occidental Petroleum Corporation since 2020. He has been the Chief Executive Officer and President of Magnolia Oil ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD270.00K) is below average for companies of similar size in the US market ($USD3.25M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Chazen
President3.17yrsUS$270.00k4.06% $40.3m
Christopher Stavros
CFO & Executive VP1.75yrsUS$2.47m0.14% $1.4m
Steve F. Millican
Senior Vice President of Operations1.42yrsUS$1.26m0.015% $146.2k
Timothy Yang
Executive VP1.58yrsUS$2.15m0.12% $1.2m
Brian Corales
Vice President of Investor Relationsno datano datano data

1.7yrs

Average Tenure

51.5yo

Average Age

Experienced Management: MGY's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Chazen
President3.17yrsUS$270.00k4.06% $40.3m
James Larson
Independent Director1.75yrsUS$192.92k0.014% $138.8k
Dan Smith
Independent Director2.92yrsUS$192.92k0.037% $365.7k
Edward Djerejian
Lead Independent Directorno dataUS$187.92k0.037% $365.7k
John Walker
Director1.75yrsUS$177.92k0.10% $1.0m
Michael MacDougall
Director2.92yrsUS$177.92k1.11% $11.0m
Arcilia Acosta
Independent Director2.92yrsUS$184.45k0.034% $342.0k
Angela Busch
Independent Director1.75yrsUS$182.92k0.020% $197.5k

2.9yrs

Average Tenure

70.5yo

Average Age

Experienced Board: MGY's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MGY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.


Top Shareholders

Company Information

Magnolia Oil & Gas Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Magnolia Oil & Gas Corporation
  • Ticker: MGY
  • Exchange: NYSE
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$993.958m
  • Market Cap: US$658.520m
  • Shares outstanding: 254.21m
  • Website: https://www.magnoliaoilgas.com

Number of Employees


Location

  • Magnolia Oil & Gas Corporation
  • Nine Greenway Plaza
  • Suite 1300
  • Houston
  • Texas
  • 77046
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGYNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 2017

Biography

Magnolia Oil & Gas Corporation engages in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves in the United States. The company’s properties are located primarily in Karnes County and the Giddings Field in South Texas principally comprising the Eagle Ford Shale and the Austin Chalk formation. As of December 31, 2019, its assets consisted of a total leasehold position of 450,854 net acres, including 22,088 net acres in Karnes, Gonzales, DeWitt, and Atascosa counties, Texas; 428,766 net acres in the Giddings Field; and approximately 1,141 net wells with a total production capacity of 66.8 thousand barrels of oil equivalent per day. The company is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 04:00
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.