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Magnolia Oil & Gas Corporation MGY reported a first-quarter 2025 net profit of 55 cents per share, which beat the Zacks Consensus Estimate of 53 cents. The bottom line also increased from the year-ago quarter’s 49 cents. This outperformance can be attributed to a healthy increase in production volumes driven by strong well productivity in the company’s Giddings asset.
The oil and gas exploration and production company’s total revenues were $350.3 million, which beat the Zacks Consensus Estimate of $342 million. The top line also increased 9.7% from $319.4 million recorded in the year-ago period, driven by higher-than-expected revenues from natural gas and natural gas liquids. The natural gas revenues of $51.4 million more than doubled from the year-ago quarter’s $21.1 million, surpassing the consensus estimate of $45.2 million. The natural gas liquids revenues of $53.4 million also increased from the year-ago quarter’s $39.1 million, surpassing the consensus estimate of $47.6 million.
Magnolia Oil & Gas Corp price-consensus-eps-surprise-chart | Magnolia Oil & Gas Corp Quote
In the quarter under review, the company recorded $224.5 million in net cash from operating activities and achieved a free cash flow of $110.5 million.
On April 29, South Texas-focused Magnolia declared a cash dividend of 15 cents per share of Class A Common stock and a cash distribution of 15 cents of Class B unit, payable on June 2, 2025, to its shareholders of record as of May 12, 2025.
In the first quarter, Magnolia repurchased 2.2 million Class A Common shares for $52 million and the company has 9.6 million Class A Common shares still available under its current repurchase authorization, specifically allocated for open market share buybacks. During the quarter, Magnolia returned 74% of its free cash flow to its shareholders through a combination of share repurchases and dividends.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Magnolia reported the average daily total output of 96,549 barrels of oil equivalent per day (boe/d) increasing 13.9% from the year-ago quarter’s 84,784 boe/d. The figure also surpassed the Zacks Consensus Estimate of 93,975 boe/d.
Oil volumes totaled 39,078 barrels per day (bpd), up 4.1% from the year-ago quarter’s level. Moreover, the figure slightly exceeded our estimate of 39,045 bpd.
Natural gas volumes reached 183,248 thousand cubic feet per day (Mcf/d), up 21.3% from the first quarter of 2024. The figure also surpassed our expectation of 170,196 Mcf/d.
Natural Gas Liquids volumes totaled 26,930 barrels per day (bpd), up 22% from the year-ago quarter’s level. Moreover, the figure slightly exceeded our estimate of 26,538 bpd.
The average realized crude oil price was $69.81 per barrel, indicating an 8% decrease from the year-ago period’s $75.89. The figure was almost at par with our expectation of $70 per barrel.
The average realized natural gas price of $3.11 per Mcf increased significantly from the year-ago period’s $1.53. The figure exceeded our expectation of $2.71 per Mcf. Additionally, the average realized natural gas liquids price was $22.03 per barrel, implying a 13% increase from the year-ago period’s figure.
MGY recorded an average sales price of $40.31 per boe compared with $41.40 a year ago.
As of March 31, 2025, Magnolia had cash and cash equivalents of $247.6 million. The company had long-term debt of $392.7 million, reflecting a debt-to-capitalization of 16.5%.
MGY spent $130.4 million on its capital program in the reported quarter. Operating expenses increased to $214.5 million from $194.9 million in the year-ago period.
During 2025, Magnolia raised its year-over-year production growth guidance from its initial 5%-7% to a range between 7% and 9%, driven by better well performance and improved capital efficiency. The company decreased its drilling and completion (D&C) 2025 capital spending midpoint to a range between $430 and $470 million from its initial outlook of $460 to $490 million.
For the second quarter of 2025, Magnolia anticipates its D&C capital spending to be about $110 million. The production volume for the upcoming quarter is anticipated to be flat on a sequential basis, around 97 Mboe/d.
MGY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While we have discussed MGY’s first-quarter results in detail, let us take a look at three other key reports in this space.
The leading U.S.-based natural gas producer, Expand Energy Corporation EXE, reported first-quarter 2025 adjusted earnings per share of $2.02, which beat the Zacks Consensus Estimate of $1.85. The company’s bottom line also outperformed the year-ago adjusted profit of 56 cents, fueled by strong production and higher sales price realization.
Expand Energy’s ‘natural gas, oil and NGL’ revenues of $2.3 billion beat the Zacks Consensus Estimate of $2.2 billion and were outstandingly higher than the year-ago figure of $589 million.
As of March 31, 2025, the company had $349 million in cash and cash equivalents. Expand Energy had a long-term debt of $5.2 billion, reflecting a debt-to-capitalization of 23.4%.
Oil and gas equipment and services provider TechnipFMC plc FTI reported first-quarter 2025 adjusted earnings of 33 cents per share, which missed the Zacks Consensus Estimate of 36 cents, primarily due to a 4.8% year-over-year increase in costs and expenses. However, the bottom line increased from the year-ago quarter’s reported profit of 22 cents, driven by improved performance in the Subsea segment.
The company’s revenues of $2.2 billion missed the Zacks Consensus Estimate by 1.1%. However, the top line increased from the year-ago quarter’s reported figure of $2 billion.
As of March 31, FTI had cash and cash equivalents worth $1.2 billion and long-term debt of $410.8 million, with a debt-to-capitalization of 11.8%.
Another oil and gas equipment and services provider, Core Laboratories Inc. CLB, reported first-quarter 2025 adjusted earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 15 cents. The bottom line also underperformed the year-ago quarter’s reported figure of 13 cents. This can be attributed to the underperformance of the Reservoir Description segment.
The company reported operating revenues of $124 million, in line with the Zacks Consensus Estimate. However, the top line decreased 4.6% from the year-ago quarter’s $130 million. This can be attributed to the recent imposition of sanctions and operational inefficiencies.
As of March 31, 2025, the company had cash and cash equivalents of $22.1 million and long-term debt of $124.4 million. CLB’s debt-to-capitalization was 32.4%.
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This article originally published on Zacks Investment Research (zacks.com).
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