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Magnolia Oil & Gas

NYSE:MGY
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MGY
NYSE
$3B
Imp Market Cap
  1. Home
  2. US
  3. Energy
Company description

Magnolia Oil & Gas Corporation engages in the business of acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves in the United States. The last earnings update was 9 days ago. More info.


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MGY Share Price and Events
7 Day Returns
-3.5%
NYSE:MGY
-1.6%
US Oil and Gas
-3.9%
US Market
1 Year Returns
15.1%
NYSE:MGY
-16.8%
US Oil and Gas
1.4%
US Market
MGY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Magnolia Oil & Gas (MGY) -3.5% -7.1% -2.7% 15.1% - -
US Oil and Gas -1.6% -6.5% -1.2% -16.8% -2.4% -33.6%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • MGY outperformed the Oil and Gas industry which returned -16.8% over the past year.
  • MGY outperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Magnolia Oil & Gas undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Magnolia Oil & Gas to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Magnolia Oil & Gas.

NYSE:MGY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MGY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.902 (1 + (1- 21%) (12.73%))
0.995
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.995 * 5.96%)
8.66%

Discounted Cash Flow Calculation for NYSE:MGY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Magnolia Oil & Gas is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MGY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.66%)
2019 245.00 Analyst x3 225.48
2020 307.50 Analyst x4 260.44
2021 340.00 Analyst x1 265.02
2022 276.19 Est @ -18.77% 198.13
2023 242.17 Est @ -12.32% 159.88
2024 223.28 Est @ -7.8% 135.66
2025 212.91 Est @ -4.64% 119.05
2026 207.73 Est @ -2.43% 106.90
2027 205.90 Est @ -0.88% 97.51
2028 206.31 Est @ 0.2% 89.92
Present value of next 10 years cash flows $1,657.99
NYSE:MGY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $206.31 × (1 + 2.73%) ÷ (8.66% – 2.73%)
$3,574.61
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,574.61 ÷ (1 + 8.66%)10
$1,557.98
NYSE:MGY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,657.99 + $1,557.98
$3,215.97
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,215.97 / 247.63
$12.99
NYSE:MGY Discount to Share Price
Calculation Result
Value per share (USD) From above. $12.99
Current discount Discount to share price of $12.39
= -1 x ($12.39 - $12.99) / $12.99
4.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Magnolia Oil & Gas is available for.
Intrinsic value
5%
Share price is $12.39 vs Future cash flow value of $12.99
Current Discount Checks
For Magnolia Oil & Gas to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Magnolia Oil & Gas's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Magnolia Oil & Gas's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Magnolia Oil & Gas's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Magnolia Oil & Gas's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MGY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.12
NYSE:MGY Share Price ** NYSE (2019-05-15) in USD $12.39
United States of America Oil and Gas Industry PE Ratio Median Figure of 104 Publicly-Listed Oil and Gas Companies 12.46x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Magnolia Oil & Gas.

NYSE:MGY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MGY Share Price ÷ EPS (both in USD)

= 12.39 ÷ 0.12

99.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magnolia Oil & Gas is overvalued based on earnings compared to the US Oil and Gas industry average.
  • Magnolia Oil & Gas is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Magnolia Oil & Gas's expected growth come at a high price?
Raw Data
NYSE:MGY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 99.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
32.4%per year
United States of America Oil and Gas Industry PEG Ratio Median Figure of 76 Publicly-Listed Oil and Gas Companies 0.52x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:MGY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 99.92x ÷ 32.4%

3.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magnolia Oil & Gas is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Magnolia Oil & Gas's assets?
Raw Data
NYSE:MGY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $10.81
NYSE:MGY Share Price * NYSE (2019-05-15) in USD $12.39
United States of America Oil and Gas Industry PB Ratio Median Figure of 194 Publicly-Listed Oil and Gas Companies 1.01x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:MGY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MGY Share Price ÷ Book Value per Share (both in USD)

= 12.39 ÷ 10.81

1.15x

* Primary Listing of Magnolia Oil & Gas.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magnolia Oil & Gas is overvalued based on assets compared to the US Oil and Gas industry average.
X
Value checks
We assess Magnolia Oil & Gas's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Magnolia Oil & Gas has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
32.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Magnolia Oil & Gas expected to grow at an attractive rate?
  • Magnolia Oil & Gas's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Magnolia Oil & Gas's earnings growth is expected to exceed the United States of America market average.
  • Magnolia Oil & Gas's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MGY Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MGY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 32.4%
NYSE:MGY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 7%
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 12.4%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MGY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MGY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,171 907 193 3
2020-12-31 1,110 795 185 9
2019-12-31 994 706 149 8
NYSE:MGY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,086 745 21
2018-12-31 1,040 733 94
2018-09-30 351 196 89
2018-06-30 172 104 83
2018-03-31 172 105 87
2017-12-31 0 2

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Magnolia Oil & Gas's earnings are expected to grow significantly at over 20% yearly.
  • Magnolia Oil & Gas's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MGY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Magnolia Oil & Gas Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MGY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.96 1.35 0.73 3.00
2020-12-31 0.85 1.08 0.57 6.00
2019-12-31 0.75 0.85 0.66 4.00
NYSE:MGY Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.12
2018-12-31 0.61
2018-09-30 0.90
2018-06-30 0.99
2018-03-31 1.07
2017-12-31 0.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Magnolia Oil & Gas is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Magnolia Oil & Gas's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Magnolia Oil & Gas has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Magnolia Oil & Gas's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Unable to establish if Magnolia Oil & Gas's year on year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.
  • Unable to compare Magnolia Oil & Gas's 1-year earnings growth to the 5-year average as it has been trading publicly for less than 3 years.
  • Magnolia Oil & Gas's 1-year earnings growth is negative, it can't be compared to the US Oil and Gas industry average.
Earnings and Revenue History
Magnolia Oil & Gas's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Magnolia Oil & Gas Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MGY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,086.09 21.49 110.50
2018-12-31 1,039.72 93.83 97.64
2018-09-30 350.87 89.47 34.57
2018-06-30 172.31 83.43 13.38
2018-03-31 172.31 87.08 6.73
2017-12-31 1.67 0.98

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Magnolia Oil & Gas has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Magnolia Oil & Gas used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.
  • Unable to establish if Magnolia Oil & Gas improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Magnolia Oil & Gas's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Magnolia Oil & Gas has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Magnolia Oil & Gas's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Magnolia Oil & Gas's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Magnolia Oil & Gas is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Magnolia Oil & Gas's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Magnolia Oil & Gas's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Magnolia Oil & Gas Company Filings, last reported 1 month ago.

NYSE:MGY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,716.58 390.96 76.31
2018-12-31 2,707.96 388.64 135.76
2018-09-30 2,643.01 388.34 36.72
2018-06-30 5.00 1.00 0.24
2018-03-31 5.00 0.00 0.57
2017-12-31 5.00 0.00 0.85
  • Magnolia Oil & Gas's level of debt (14.4%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Magnolia Oil & Gas's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (190.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).
X
Financial health checks
We assess Magnolia Oil & Gas's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Magnolia Oil & Gas has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Magnolia Oil & Gas dividends. Estimated to be 0% next year.
If you bought $2,000 of Magnolia Oil & Gas shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Magnolia Oil & Gas's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Magnolia Oil & Gas's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MGY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 66 Stocks 3.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MGY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Magnolia Oil & Gas has not reported any payouts.
  • Unable to verify if Magnolia Oil & Gas's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Magnolia Oil & Gas's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Magnolia Oil & Gas has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Magnolia Oil & Gas's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Magnolia Oil & Gas's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Magnolia Oil & Gas afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Magnolia Oil & Gas has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Magnolia Oil & Gas's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Chazen
AGE 71
TENURE AS CEO 2.3 years
CEO Bio

Mr. Stephen I. Chazen, also known as Steve, has been the Chief Executive Officer and President at Magnolia Oil & Gas Corporation (formerly, TPG Pace Energy Holdings Corp.) since February 2017 and has been its Chairman of the Board since May 2017. He served as Chief Executive Officer of Occidental Petroleum Corporation from May 5, 2011 to April 29, 2016. Mr. Chazen was responsible for all operations, the financial management of Occidental Petroleum, creating and implementing its strategy, assisting the Board with succession planning and working with the Board on corporate strategy, executive succession planning, executive compensation and talent development. He served as President of Occidental Petroleum Corporation from December 2007 to December 10, 2015. He served as the Chief Operating Officer of Occidental Petroleum Corporation from August 2010 to 2011 and Chief Financial Officer from 1999 to 2010. He served as Director of Project Evaluation and Reservoir Engineering at Columbia Gas Development Corporation from 1977 to 1982. Mr. Chazen began his career at Northrop Corporation in 1973 as Laboratory Manager at the Johnson Space Center, where he worked until 1977. He served as Senior Executive Vice President of Occidental Petroleum Corp. from August 9, 2004 to December 2007, Executive Vice President of Corporate Development from May 1994 to August 9, 2004 and also served as its Head of Corporate Development since 1994. From 1982 to 1994, Mr. Chazen served as an Investment Banker at Merrill Lynch & Co., Inc. He served in a number of roles, including Managing Director and Head of corporate finance, Managing Director of mergers and acquisitions and Managing Director in the Natural resources group at Merrill Lynch. He has been a successful executive in the financial services industry. This financial and management expertise, coupled with his more than thirty years of experience in the oil and gas industry. He serves as the Chairman of the American Petroleum Institute's Board of Directors and and serves on the Boards of Aquarium of the Pacific and Catalina Island Conservancy. He has been a Director of Lyondell Chemical Company since August 22, 2002. He served as a Chairman of TPG Capital, L.P. He was an Independent Director of Ecolab Inc., since May 2013 until 2019. He has been an Independent Director of The Williams Companies, Inc. since September 26, 2016. He has been a Director of American Petroleum Institute Inc. since January 2011. He serves as a Director of Port Arthur Finance Corp. He serves as a Director of Sabine River Holding Corp. at Port Arthur Coker Company L.P. He also serves on the Board of Advisors of Rice University's Baker Institute for Public Policy and is a member of the Senior Cabinet of the President's Leadership Council at Houston Methodist Hospital. He served as a Director of WMIH Corp. from March 2008 to March 1, 2009. He was previously a Member of the Board of Directors of Washington Mutual, Inc. He served as a Director of WMI Holdings Corp. from March 2008 to March 1, 2009. He served as a Director of Occidental Petroleum Corporation since May 2010 until May 12, 2017. He served as a Director of Premcor Inc. since April 1999. He served as a Director of the predecessor of Premcor Inc. from 1995 to April 1999. He serves on the Governance Committees of Equistar Chemicals, LP and OxyVinyls L.P. Mr. Chazen serves as an Independent Director at Williams Partners L.P. Mr. Chazen holds a Ph.D. in Geology from Michigan State University, a Master's degree in Finance from the University of Houston and a Bachelor's degree in Geology from Rutgers College.

CEO Compensation
  • Insufficient data for Steve to compare compensation growth.
  • Insufficient data for Steve to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Magnolia Oil & Gas management team in years:

0.8
Average Tenure
50.5
Average Age
  • The average tenure for the Magnolia Oil & Gas management team is less than 2 years, this suggests a new team.
Management Team

Steve Chazen

TITLE
President
AGE
71
TENURE
2.3 yrs

Chris Stavros

TITLE
CFO & Executive VP
AGE
55
TENURE
0.8 yrs

Steve F. Millican

TITLE
Senior Vice President of Operations
AGE
42
TENURE
0.5 yrs

Brian Corales

TITLE
Vice President of Investor Relations

Tim Yang

TITLE
Executive VP
AGE
46
TENURE
0.7 yrs
Board of Directors Tenure

Average tenure and age of the Magnolia Oil & Gas board of directors in years:

2
Average Tenure
69.5
Average Age
  • The average tenure for the Magnolia Oil & Gas board of directors is less than 3 years, this suggests a new board.
Board of Directors

Steve Chazen

TITLE
President
AGE
71
TENURE
2 yrs

Arcilia Acosta

TITLE
Independent Director
AGE
52
TENURE
2 yrs

Dan Smith

TITLE
Independent Director
AGE
72
TENURE
2 yrs

Jim Larson

TITLE
Independent Director
AGE
68
TENURE
0.8 yrs

Ed Djerejian

TITLE
Lead Independent Director
AGE
79

Michael MacDougall

TITLE
Director
AGE
47
TENURE
2 yrs

Angela Busch

TITLE
Independent Director
AGE
51
TENURE
0.8 yrs

John Walker

TITLE
Director
AGE
72
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Magnolia Oil & Gas insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
07. Mar 19 Buy Stephen Chazen Individual 06. Mar 19 06. Mar 19 25,000 $12.31 $307,738
07. Mar 19 Buy James Larson Individual 05. Mar 19 05. Mar 19 400 $12.77 $5,107
17. Dec 18 Buy Timothy Yang Individual 14. Dec 18 14. Dec 18 20,000 $11.17 $223,400
17. Sep 18 Buy Stephen Chazen Individual 13. Sep 18 13. Sep 18 10,000 $13.94 $139,400
12. Sep 18 Buy John Walker Individual 10. Sep 18 12. Sep 18 160,000 $14.00 $2,201,700
11. Sep 18 Buy Stephen Chazen Individual 10. Sep 18 10. Sep 18 47 $13.40 $630
10. Sep 18 Buy Christopher Stavros Individual 07. Sep 18 07. Sep 18 10,000 $13.59 $135,900
31. Aug 18 Buy Arcilia Acosta Individual 30. Aug 18 31. Aug 18 17,950 $13.91 $249,577
31. Aug 18 Buy Valerie Chase Individual 31. Aug 18 31. Aug 18 1,500 $13.79 $20,685
X
Management checks
We assess Magnolia Oil & Gas's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Magnolia Oil & Gas has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why We’re Not Keen On Magnolia Oil & Gas Corporation’s (NYSE:MGY) 1.7% Return On Capital

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … How Do You Calculate Return On Capital Employed

Simply Wall St -

What You Must Know About Magnolia Oil & Gas Corporation's (NYSE:MGY) Financial Health

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Magnolia Oil & Gas Corporation (NYSE:MGY) with a market-capitalization of US$2.9b, rarely draw their attention. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … Let’s take a look at MGY’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures.

Simply Wall St -

Why Magnolia Oil & Gas Corporation (NYSE:MGY) May Not Be As Efficient As Its Industry

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Knowing these components can change your views on MGY's below-average returns.

Simply Wall St -

Company Info

Description

Magnolia Oil & Gas Corporation engages in the business of acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves in the United States. The company has oil and natural gas properties located primarily in Karnes County and the Giddings Field in South Texas primarily comprising the Eagle Ford Shale and the Austin Chalk formation. As of December 31, 2018, its assets consisted of a total leasehold position of 455,964 net acres, including 16,841 net acres with 200 net producing wells in the Karnes County portion of the Eagle Ford Shale; and 439,123 net acres with 846 net producing wells in the Giddings Field of the Austin Chalk. The company is based in Houston, Texas.

Details
Name: Magnolia Oil & Gas Corporation
MGY
Exchange: NYSE
Founded:
$3,070,574,577
$1,930,822,511
247,626,982
Website: http://www.magnoliaoilgas.com
Address: Magnolia Oil & Gas Corporation
Nine Greenway Plaza,
Suite 1300,
Houston,
Texas, 77046,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MGY Class A Common Stock New York Stock Exchange US USD 27. Jun 2017
Number of employees
Current staff
Staff numbers
27
Magnolia Oil & Gas employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 02:51
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/05/12
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.