Magnolia Oil & Gas Corporation reported a strong financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $1.32 billion, a 7.2% increase from $1.23 billion in 2023. The company achieved a net income attributable to Class A Common Stock of $366 million, or $1.94 per diluted share, compared to $388 million, or $2.04 per diluted share, in the previous year. This decline in earnings per share was primarily due to lower natural gas prices and increased operating expenses, which rose to $803.9 million from $692.5 million in 2023.
In terms of operational metrics, Magnolia's total production increased to 89.7 thousand barrels of oil equivalent per day (Mboe/d), up from 82.3 Mboe/d in 2023. The company produced 14 million barrels of oil, 58.7 billion cubic feet of natural gas, and 9 million barrels of natural gas liquids (NGLs) during the year. The increase in production was attributed to the successful drilling of new wells and improved operational efficiencies, particularly in the Giddings and Karnes areas of South Texas.
Strategically, Magnolia made significant acquisitions, including oil and gas properties in the Giddings area for approximately $120.4 million in April 2024, and various bolt-on acquisitions totaling $45 million. The company also completed a major acquisition in November 2023 for $264.1 million, which included contingent cash consideration based on future commodity prices. These acquisitions are expected to enhance Magnolia's production capabilities and reserve base.
The company maintained a disciplined approach to capital allocation, with capital expenditures totaling $486.7 million, primarily focused on drilling and completion activities. Magnolia's board of directors authorized a share repurchase program of up to 50 million shares, reflecting its commitment to returning capital to shareholders. In 2024, the company repurchased 38.3 million shares at a cost of $707.8 million and declared cash dividends totaling $97.6 million.
Looking ahead, Magnolia anticipates continued production growth and operational improvements, although it remains cautious due to the volatility of commodity prices and potential regulatory changes. The company plans to maintain its focus on generating free cash flow and returning capital to shareholders while navigating the challenges posed by market conditions and environmental regulations.
About Magnolia Oil & Gas Corp
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