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 and EPS Surprise
Magnolia Oil & Gas Corp Price, Consensus and EPS Surprise
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.)
MGY’s Production & Prices
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.
MGY’s Balance Sheet & Capital Expenditure
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.
MGY’s Q2 & 2025 Guidance
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.
Magnolia’s Zacks Rank
MGY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
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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