Magnolia Oil & Gas Corp. Files 2023 Annual Report (10-K)

TL;DR

<b>Magnolia Oil & Gas Corp. has filed its 2023 10-K report detailing its financial performance and operational data.</b>

AI Summary

Magnolia Oil & Gas Corp (MGY) filed a Annual Report (10-K) with the SEC on February 15, 2024. Magnolia Oil & Gas Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The company is engaged in the crude petroleum and natural gas industry. The filing includes data for oil and condensate, natural gas reserves, and natural gas liquids reserves for 2023, 2022, and 2021. Key financial data points such as common stock, additional paid-in capital, retained earnings, and noncontrolling interest are detailed for multiple fiscal years. The company's principal business address is located at Nine Greenway Plaza, Suite 1300, Houston, TX 77046.

Why It Matters

For investors and stakeholders tracking Magnolia Oil & Gas Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Magnolia Oil & Gas Corp.'s financial health, operational activities, and reserves for the fiscal year 2023, which is crucial for investors to assess the company's performance and future prospects. The detailed breakdown of oil, natural gas, and natural gas liquids reserves, along with financial data, allows stakeholders to understand the company's resource base and its financial structure, including equity and debt components.

Risk Assessment

Risk Level: medium — Magnolia Oil & Gas Corp shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. While it contains detailed financial and operational data, it does not inherently signal significant positive or negative developments beyond what is typical for such a filing.

Analyst Insight

Investors should review the detailed financial statements and operational data within the 10-K to assess Magnolia Oil & Gas Corp.'s performance in 2023 and its outlook for the coming year.

Key Numbers

• 2023-12-31 — Fiscal Year End (The report covers the fiscal year ending on this date.)
• 2024-02-15 — Filing Date (The date the 10-K was filed with the SEC.)
• 1311 — SIC Code (Standard Industrial Classification for Crude Petroleum & Natural Gas.)
• DE — State of Incorporation (The state where Magnolia Oil & Gas Corp. is incorporated.)

Key Players & Entities

• Magnolia Oil & Gas Corp. (company) — Filer of the 10-K report.
• 2023-12-31 (date) — Fiscal year end date for the report.
• 2024-02-15 (date) — Filing date of the report.
• Nine Greenway Plaza, Suite 1300, Houston, TX 77046 (address) — Business and mailing address of the company.
• TPG Pace Energy Holdings Corp. (company) — Former company name.

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-15: Filing Date — The date the 10-K was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (Provides a detailed overview of the company's financial condition and operations for the fiscal year.)

Crude Petroleum & Natural Gas

Industry classification for companies involved in the exploration, extraction, and production of oil and natural gas. (Identifies the core business sector of Magnolia Oil & Gas Corp.)

Key Financial Figures

• $0.0001 M — stered Class A Common Stock, par value $0.0001 MGY New York Stock Exchange Indicate by
• $0.0001 — 450,146 shares of Class A Common Stock, $0.0001 par value per share, and 21,826,805 sha

Filing Documents

• mgy-20231231.htm (10-K) — 1717KB
• ex1022-indemnityagreementx.htm (EX-10.22) — 117KB
• ex1023-2024rsusxye23.htm (EX-10.23) — 59KB
• ex1024-2024psusxye23.htm (EX-10.24) — 102KB
• ex211-subsidiariesxye23.htm (EX-21.1) — 9KB
• ex231-kpmgconsentxye23.htm (EX-23.1) — 2KB
• exhibit232mlye2310-kcons.htm (EX-23.2) — 2KB
• ex241-poaxye23.htm (EX-24.1) — 17KB
• ex311-ceocertxye23.htm (EX-31.1) — 10KB
• ex312-cfocertxye23.htm (EX-31.2) — 10KB
• ex321-906certxye23.htm (EX-32.1) — 7KB
• ex971-clawbackpolicy.htm (EX-97.1) — 32KB
• exhibit991mlsummarylette.htm (EX-99.1) — 12KB
• exhibit232mlye2310-kcons001.jpg (GRAPHIC) — 134KB
• exhibit991mlsummarylette001.jpg (GRAPHIC) — 173KB
• exhibit991mlsummarylette002.jpg (GRAPHIC) — 292KB
• exhibit991mlsummarylette003.jpg (GRAPHIC) — 285KB
• exhibit991mlsummarylette004.jpg (GRAPHIC) — 106KB
• mgy-20231231_g1.jpg (GRAPHIC) — 192KB
• 0001698990-24-000011.txt (&nbsp;) — 10145KB
• mgy-20231231.xsd (EX-101.SCH) — 57KB
• mgy-20231231_cal.xml (EX-101.CAL) — 98KB
• mgy-20231231_def.xml (EX-101.DEF) — 295KB
• mgy-20231231_lab.xml (EX-101.LAB) — 768KB
• mgy-20231231_pre.xml (EX-101.PRE) — 498KB
• mgy-20231231_htm.xml (XML) — 908KB

Risk Factors

Item 1A. Risk Factors 16

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 29

Cybersecurity

Item 1C. Cybersecurity 29

Legal Proceedings

Item 3. Legal Proceedings 30

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 30 Information About Magnolia's Executive Officers and Directors 31 PART II.

Market for the Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for the Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 33

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 42

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 43

Changes in Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in Disagreements with Accountants on Accounting and Financial Disclosure 71

Controls and Procedures

Item 9A. Controls and Procedures 71

Other Information

Item 9B. Other Information 72

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 72 PART III.

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 72

Executive Compensation

Item 11. Executive Compensation 72

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 72

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 72

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 72 PART IV.

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 73

Form 10-K Summary

Item 16. Form 10-K Summary 76

Signatures

Signatures 77 GLOSSARY OF OIL AND NATURAL GAS TERMS The following are abbreviations and definitions of certain terms used in this document, some of which are commonly used in the oil and gas industry: " Bbl ." One stock tank barrel, of 42 U.S. gallons liquid volume, used herein in reference to crude oil, condensate, natural gas liquids, or water. "Bbls/d." Stock tank barrels per day. "Bcf." Billion cubic feet of natural gas. "boe ." Barrels of oil equivalent. One boe is equal to one Bbl, six thousand cubic feet of natural gas, or 42 gallons of natural gas liquids. Based on approximate energy equivalency. "boe/d ." Barrels of oil equivalent per day. "British Thermal Unit or Btu ." The quantity of heat required to raise the temperature of a one-pound mass of water by one degree Fahrenheit. " Completion. " The installation of permanent equipment for production of oil or natural gas, or, in the case of a dry well, the reporting to the appropriate authority that the well has been abandoned. " DD&A ." Depletion, depreciation, and amortization. " Developed acreage ." The number of acres that are allocated or assignable to productive wells or wells capable of production. " Development well ." A well drilled within the proved area of an oil or natural gas reservoir to the depth of a stratigraphic horizon known to be productive. " Dry well ." A well that is determined to be incapable of producing either oil or natural gas in sufficient quantities to justify completion as an oil and natural gas well. " Exploratory well ." A well drilled to find a new field or to find a new reservoir in a field previously found to be productive of oil or natural gas in another reservoir. " Extension well. " An extension well is a well drilled to extend the limits of a known reservoir. " Field ." An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological structural feature and/or stratigraphic condition. Th

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts included or incorporated by reference in this report, including, without limitation, statements regarding the Company's future financial position, business strategy, budgets, projected revenues, projected costs, and plans and objectives of management for future operations, are forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company's management. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "could," "expect," "intend," "project," "estimate," "anticipate," "plan," "believe," or "continue" or similar terminology. Although Magnolia believes that the expectations reflected in such forward-looking statements are reasonable, the Company can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to: legislative, regulatory, or policy changes, including those following the change in presidential administrations; the market prices of oil, natural gas, natural gas liquids ("NGLs"), and other products or services; the supply and demand for oil, natural gas, NGLs, and other products or services, including impacts of actions taken by OPEC and other state-controlled oil companies; production and reserve levels; the timing and extent of the Company's success in discovering, developing, producing and estimating reserves; geopolitical and business conditions in key regions of the world; drilling risks; economic

Properties

Properties As of December 31, 2023, Magnolia's assets consisted of a total leasehold position of 789,719 gross (576,504 net) acres, including 72,503 gross (50,681 net) acres in the Karnes area and 717,216 gross (525,823 net) acres in the Giddings area. As of December 31, 2023, Magnolia had 2,483 gross (1,680 net) wells with total production of 82.3 Mboe/d for the year ended December 31, 2023. During 2023, Magnolia operated two rigs. Approximately 42%, 31%, and 27% of production from Magnolia's assets was attributable to oil, natural gas, and NGLs, respectively, for the year ended December 31, 2023. The Karnes area is comprised of oil and natural gas assets primarily located in Karnes, Dimmit, Gonzales, and Zavala Counties, Texas, in the core of the Eagle Ford Shale. The acreage comprising the Karnes area also includes the Austin Chalk formation overlying the Eagle Ford Shale. The Austin Chalk formation has shown itself to be an independent reservoir from the Eagle Ford Shale and represents a very attractive development target. The Karnes area includes a well-known, low-risk acreage position that has been developed with a focus on maximizing returns and improving operational efficiencies. The Giddings area is comprised of oil and natural gas assets primarily located in Brazos, Burleson, Fayette, Grimes, Lee, Milam, Robertson, and Washington Counties, Texas. The Austin Chalk formation produces along a northeast-to-southwest trend that is approximately parallel to the Texas Gulf Coast. There are several notable producing areas along the Austin Chalk trend, the largest of which is the Giddings area. The Giddings area has seen two major drilling cycles. The first cycle began in the late 1970s and into the early 1980s and consisted primarily of vertical well drilling. The second cycle ran through much of the 1990s and involved primarily horizontal well drilling. Recent improvements in drilling and completion technologies have unlocked new development opportunities i

View Full Filing

View this 10-K filing on SEC EDGAR