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MGY

Magnolia Oil & GasNYSE:MGY Stock Report

Market Cap

US$4.7b

7D

2.4%

1Y

303.6%

Updated

16 Oct, 2021

Data

Company Financials +
MGY fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends2/6

MGY Overview

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.

Magnolia Oil & Gas Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Magnolia Oil & Gas
Historical stock prices
Current Share PriceUS$20.26
52 Week HighUS$4.09
52 Week LowUS$21.39
Beta2.47
1 Month Change17.86%
3 Month Change47.03%
1 Year Change303.59%
3 Year Change45.03%
5 Year Changen/a
Change since IPO102.60%

Recent News & Updates

Sep 18

Magnolia Oil & Gas: Plenty Of Cash Flow For Dividends And Share Repurchases

Magnolia may generate around $500 million in positive cash flow in 2021 at current strip prices. It initiated a conservative $0.08 per share semi-annual dividend that it can sustain at $40 WTI oil. At longer-term $55 WTI oil, Magnolia may be able to easily support a $0.35 per share semi-annual dividend while leaving funds for share repurchases. Share repurchases are bringing its share count down quickly, with a 7% expected decrease from Q4 2020 to Q3 2021.

Sep 01
Magnolia Oil & Gas (NYSE:MGY) Is Aiming To Keep Up Its Impressive Returns

Magnolia Oil & Gas (NYSE:MGY) Is Aiming To Keep Up Its Impressive Returns

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Aug 11
Magnolia Oil & Gas (NYSE:MGY) Has A Pretty Healthy Balance Sheet

Magnolia Oil & Gas (NYSE:MGY) Has A Pretty Healthy Balance Sheet

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

MGYUS Oil and GasUS Market
7D2.4%1.0%2.0%
1Y303.6%87.9%27.6%

Return vs Industry: MGY exceeded the US Oil and Gas industry which returned 88% over the past year.

Return vs Market: MGY exceeded the US Market which returned 27.6% over the past year.

Price Volatility

Is MGY's price volatile compared to industry and market?
MGY volatility
MGY Beta2.47
Industry Beta1.74
Market Beta1

Stable Share Price: MGY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MGY's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a136Steve Chazenhttps://www.magnoliaoilgas.com

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, 2020, its assets consisted of a total leasehold position of 460,398 net acres, including 23,513 net acres in Karnes, Gonzales, DeWitt, and Atascosa counties, Texas; 436,885 net acres in the Giddings Field located in Austin, Brazos, Burleson, Fayette, Lee, Grimes, Montgomery, and Washington Counties, Texas; and approximately 1,160 net wells with a total production capacity of 61.8 thousand barrels of oil equivalent per day.

Magnolia Oil & Gas Fundamentals Summary

How do Magnolia Oil & Gas's earnings and revenue compare to its market cap?
MGY fundamental statistics
Market CapUS$4.69b
Earnings (TTM)US$183.76m
Revenue (TTM)US$728.69m

25.5x

P/E Ratio

6.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MGY income statement (TTM)
RevenueUS$728.69m
Cost of RevenueUS$111.08m
Gross ProfitUS$617.61m
ExpensesUS$433.85m
EarningsUS$183.76m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 02, 2021

Earnings per share (EPS)0.79
Gross Margin84.76%
Net Profit Margin25.22%
Debt/Equity Ratio45.9%

How did MGY perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

7%

Payout Ratio

Valuation

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

25.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGY ($20.26) is trading above our estimate of fair value ($15.66)

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 (25.5x) compared to the US Oil and Gas industry average (19.8x).

PE vs Market: MGY is poor value based on its PE Ratio (25.5x) compared to the US market (18.2x).


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 overvalued based on its PB Ratio (7.5x) compared to the US Oil and Gas industry average (2.1x).


Future Growth

How is Magnolia Oil & Gas forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-8.8%

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 (-8.8% per year).

Earnings vs Market: MGY's earnings are forecast to decline over the next 3 years (-8.8% per year).

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

Revenue vs Market: MGY's revenue (0.9% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: MGY's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MGY's Return on Equity is forecast to be high in 3 years time


Past Performance

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

-64.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGY has high quality earnings.

Growing Profit Margin: MGY became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MGY has become profitable over the past 5 years, growing earnings by -64.9% per year.

Accelerating Growth: MGY has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MGY has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-18.6%).


Return on Equity

High ROE: MGY's Return on Equity (31.3%) is considered high.


Financial Health

How is Magnolia Oil & Gas's financial position?


Financial Position Analysis

Short Term Liabilities: MGY's short term assets ($312.9M) exceed its short term liabilities ($167.9M).

Long Term Liabilities: MGY's short term assets ($312.9M) do not cover its long term liabilities ($487.7M).


Debt to Equity History and Analysis

Debt Level: MGY's debt to equity ratio (45.9%) is considered high.

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 (116.4%).

Interest Coverage: MGY's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet


Dividend

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

0.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MGY's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: MGY's dividend (0.79%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether MGY's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MGY's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.3%), MGY's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGY's dividends in 3 years are forecast to be well covered by earnings (20.8% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Steve Chazen (74 yo)

4.67yrs

Tenure

US$255,461

Compensation

Mr. Stephen I. Chazen, also known as Steve, has been Director of National Park Foundation since 2019. He serves as Independent Chairman and Director of Occidental Petroleum Corporation since March 18, 2020...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD255.46K) is below average for companies of similar size in the US market ($USD5.19M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MGY's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: MGY's board of directors are considered experienced (3.3 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Magnolia Oil & Gas Corporation
  • Ticker: MGY
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$4.690b
  • Market Cap: US$3.618b
  • Shares outstanding: 231.51m
  • Website: https://www.magnoliaoilgas.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 22:20
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.