MGY - Earnings call transcript Q1 2021 | Magnolia Oil & Gas Corporation

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Operator

Good day, and welcome to the Magnolia Oil & Gas First Quarter 2021 Earnings Release and Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Brian Corales of Investor Relations. ahead. go Please

Brian Corales

President and Officer. & Tom, Participating everyone. to President Magnolia's Welcome the Chris Officer; Thank Executive Stavros, first good quarter Oil Vice Chairman, Chazen, Steve Gas' today Chief call. Chief XXXX Magnolia Executive call and Financial you, and are morning, and earnings on conference

may These statements meaning of that the As a contains actual call and the conference cause subject certain projections risks securities differ within those laws. statements to reminder, today's and are to other in materially forward-looking or expressed results federal these uncertainties from statements. implied

information can the could on cause company's be X of found Additional A call filed results in on factors report SEC. available XX-K on presentation data Form Slide is the supplemental on conference with the annual with our the risk Harbor to slide Safe that website. the differ full

You Investors website can as the quarter call well first now Chazen. will to conference slides call earnings of as release turn over section Mr. XXXX press download www.magnoliaoilgas.com. I Magnolia's Steve from the the the at company

Steve Chazen

guidance morning Giddings Good Brian. model will provide joining business plans we more some you on our additional details will on take thank the provide review also comments will this you, Thank the morning us today. focus your for update an and asset. our for I for our My before and Chris and of some provide will our questions. year. remainder first results quarter

mid-single-digit is disciplined to generate production XX% flow. limit spending We business to capital approximately and cash free which EBITDAX, our model spending growth. Our centers generating around significant of capital intended

production somewhat capital result The going as X% than between higher $XXX to of needed high-single-digit. Karnes we lower growth year-over-year the the Giddings. to efficiencies The growth while greater generate shareholder generate million As to amount free at a contrast, flow cash some provides is debt. We allocate improved In peers improve don't levels provides this flow to to spend share reduced in to also free that growth plan value. for cash optionality production to of We of X% of flow the their our and production Magnolia leveraged per need Giddings, to have less with that balance cash we're capital more business, for returns. of Magnolia clearly shift level free its reducing enhancing do improve their its to of that. allows

of First We benefit XX%, quarters can the of short one quarter of EBIT of oil no XX%, $XXX company's and cash free our margins just best our in shy of the improved Magnolia was oil Further, prices. record hedges, goal earnings, history. had from with million. fully flow

first our Giddings' same quarter. Giddings volumes. grew prior-year production for from XX% was XX% year. sequentially XX% increased to and quarter, XX% are wells a growth. sequential spent EBITDAX we production production Record million drilling X% During sequentially, adjusted XX% on was production the production completing just at the quarter of Giddings up or better-than-expected and last $XX at deliver the driver Oil up the

well summer capital have Our Giddings current at quarter. was Well are previous averaging rig production million now $XX Giddings quarters, rate $X significant are four about by eight at about quarter first add activity area, on The online the acreage. this initial XX costs added of in to D&C rig online. We horizontal In bring can over to growth in XX million like only plan the drill in reported focus in continues our per wells be wells core with the to at XXXX. an spending wells a the impact this be year, wells rig, XX one quality accomplished demonstrating Giddings of somewhat for the total per month. year. initial The year. operated of Even last impact $XXX reflected area average not rig two with costs and our biggest we asset drill million Giddings, the we less Production online to till wells the areas. second production the to is our than and later realized will to drilling to completion where add core at the expect both operated additional a

has of our last the into a Over bolt-on of years, flow gone small adding free couple portion large cash acquisitions.

we scale understanding, any large need generated returns our have we not have better that a Now M&A. do any for in Giddings devolvement,

free more Despite quarter reduction a and the while but million count. levels goal in shares expect the we still from during on We share share summary, our share to able the with annual quarter quarter quarter. to used share quarter count to our great second diluted reduced accomplish to back our alone, cash first for about spending XXX X% shares. our be flow million in $XXX quarter the fourth $XX cash. So count In had share of plan our about million exited we average were to we each We it's reducing our business buy X% the of in repurchases, still XXXX. by

value Plus production, less, to low-cost share large to at capital with and flow able our more structure free our sheet. better efficiencies needed we and With bolt-on productivity flow business. cash acquisitions. resulting strong do balance while Giddings, all activity, no of free grow is cash our combined scale with on need any focused more the M&A in With maintaining were small to is repurchases for improve the

we quarter. over in call Chris. third I'll first to Finally, the dividend the our turn semi-annual to now plan pay

Chris Stavros

and morning, Steve, Thanks, good everyone.

income results quarter review before delivered and to reported quarter of our of questions. items from the for first $XX on share, net guidance both the plan million provide XXXX, total quarter over Slide I million first mentioned, some of it Steve turning estimates. diluted Starting operating the strong well full-year As X website, ahead $XX per and share second on or results. $X.XX some for income presentation and Magnolia diluted net per generated very or of consensus The XXXX $X.XX and adjusted financial company

Our was the first of adjusted quarter. and total capital completion the represented adjusted drilling $XXX of in EBITDAX EBITDAX spending approximately during just D&C our quarter, million. $XX XX% capital million with

this As our better higher our is higher to guidance. thousand oil mainly production non-operated a earlier day, of capital. quarter earlier per grew first barrels guidance, production percentage, also lower than equivalent than higher XX.X and due prices, X% sequentially to Total product

grew from the newer some exceeded wells guidance in our our Our oil strong with from quarter growing production Giddings to the continued of period. Giddings. performance Total production in year-ago from production Giddings prior-year XX% XX% at due

during quarter the flow Looking flow with was million. cash of Slide on was million operations and XXXX at from changes waterfall $XXX the $XXX $XXX quarterly million flow cash before in capital chart began X, Cash from operating activities working cash. we

the authorization. of strategy gross leasehold We reduced began liquidity do $XXX the repurchase by by total with do revolving our $XXX is We we capital quarter diluted $XXX and ended debt. shares roughly of costs, senior and until share credit our our million on shares first notes, shares. our of is remaining the the million during the than quarter. mature which business repurchase reflected of diluted approximately third cash million X cash about toward Magnolia Since have under and repurchase any period $XX quarter in efforts, first by quarter million issue not was We D&C XXXX we $XXX million million undrawn XX.X million not or share million reducing outlays, balance of free facility $XX Our the including sheet. authorization during in to ample count XXXX, million have fully debt more and execute million expect plan. allocated our our generated new XX.X has currently X%. to share our an in $XXX count share flow the we

and cash for to relative interest indebted sheet generation flow consumed for of cash more per free the costs many flow is balance free our or allocate improve strong to Our metrics, us flow is by Magnolia, leverage. consistent need companies the allowing whereas to cash share heavily reduce a advantage

balance and Slides as condensed liquidity on are X shown XXXX and Our of sheet year-end X.

XXXX. income F&D or with unit generally adjusted Including our G&A, revenue our fourth boe in costs, income XX% to for operating first DD&A looking our operating including quarter. first the per in our the of rate quarter Slide the of XX% our of costs, Turning per quarter boe for and line at X total is operating total per to which margins were and $XX.XX compared our $XX.XX boe, were costs XXXX margins, $X.XX

product prices of our to due some adjusted year the to be for efficiency additional mainly improved full our XXXX, EBITDAX, to of than below we expect capital higher expected to XX% program. Turning XX% capital our normal range of and guidance

the with full small operated appraisal second further boe Overall, drilling still is for activity the expected the spending additional second portion second with and Only half our production the with we million to a expected most The during is to Giddings. run While at mix and Giddings impact day. quarter and a plan be for drilling until activity be from during thousand a than of less of and deliver in expected to to increase rig year, Karnes the of increase this the in late in activity. second per rig the X% XXXX. production with our second $XXX seen and rig somewhat X% year, full will some both compared see coinciding cadence the add capital year. the of XXXX year summer, XX.X rig and Giddings the the to to of a XXXX development one completion production full spending of benefit not modest we capital levels is growth rig of reflected to capital expect year drilling total at

the per second the of at to we day, increase first XX,XXX expect a Looking X% average production to sequential barrels XXXX, compared quarter quarter. of

quarter As diluted sequential are first quarter, and matter we XXXX volume be running anticipated growth half one will completions of expected a the lower completed of quarter second of timing to per between DUCs price approximately Karnes discount a second is than approximately and of the count during X% barrel for XXXX the the year from to drilling several Oil Giddings. quarter of shares, is MEH late differentials XXX fully second is levels. the area during the first and $X This function which somewhat be to the in company's quarter. The Karnes. the share rig come most fourth million of in Karnes

should efforts expect of X% be about helpful wanted We our further of share that to year earnings year. outstanding I for the some reduction part modeling and shares to those ongoing outstanding as through our quarter. this repurchase our for our expect line additional as shares to provide we information per

GAAP of Had not as been Following allowance last we the the have tax for material approximate to the for oil our total expense would the approximate Simply a federal million associated remainder expense rules, quarter during our to we last been expect year. taxes the this not to income. first tax do valuation have of net not a gas XXXX. put, expect year impairments during result and property pay quarter material with year, for our the net net do taken income any $XX remainder the should non-cash total valuation the created allowance pre-tax of of federal year. our first cash Further point, on any income

Magnolia our the last previously, taken our to operational EnerVest of transition out filled should EnerVest original company. over contract provided we out its summer organization, complete the were now the and built provided operating and has are Magnolia As as services announced notice this cost the into employees process once nearly us that second is we've EnerVest employees agreement control with open ending complete is process half most of reduce agreement. structure workers year. with The provides That services Magnolia the part we from better with and that roles to

anticipated for costs We to in take expect IT results including with be the second charge systems software. termination and with of costs one-time our contract associated EnerVest, a of our some the services reflected to to modernizing quarter related

G&A, and your EnerVest generate of starting per around to flow, In capital second to second free summary, We the and continued strong to as this expect assets quarter to half allowing continue questions. cash high-quality of end execute Magnolia's contract with details business. margins sizable take us should and share the strategy now value see to in our of result the the a meaningful results. our a in provide plan efficiency We're and the of operating more our year, decline ready cash improve

Operator

the comes first JPMorgan. begin And go session. ahead. now question question-and-answer Please Zach from the with will Parham We

Zach Parham

somewhat which of capital to less guiding being than now less You're talked spending XX% XXXX, million in about than you of $XXX EBITDA.

strip Given the Is that And we year spending reasonable a balance $XX, that I cash how the for at program is think two-rig just you around should expectation flow between about and how guess, in free XXXX about more full generally, generation? point? growth think this currently the production do XXXX?

Steve Chazen

view I think the have the your spending is not you should of view you amount growth and uncorrelated. in capital

the of in think significantly be you million. the thing think upper than same less the we'll year. capital going we're single $XXX should will the the if of if true million. so, single-digit, next to of grow low digits And grow to high be then end closer going end have we're to And at it, you And $XXX we -

the rate third two. quarter. the roughly second for what and first we're running we'll be in So year first then of in rig annualized the mostly one go running And second we in capital, the half as in quarter fourth we're which into run quarter, think running rig we one quarter, I the would spent twice the because be

So all out we're growth rigs. you proximate things that to rate, should generate, see be, whatever for because would more than running this year. next equal, showing year it we're basically That being will more turns what

since actually many and still really don't wells non-operated development our wells drill how turn as the So lot. to generate style know the picked would reflects activities range, out. in a in some And the it's style how X% that. not what but we X% to exploration up It's Giddings wells differences range, recently, versus guess we exploration

around probably because the variance built is So somewhat variance, high end The variance. into of the that's really this. we And the greater.

Zach Parham

follow-up. And one just

no taxes for paying about XXXX. the of cash talked You remainder

becoming Just when taxpayer? do given flow, you consistently a Magnolia free that cash anticipate profitable is and generates cash

Steve Chazen

XX% a It's have, with units guess. probably question right physical we partnership they're voting you a that complicated the attached shares, actually to would total of actually them. about B are than more shares are The those - which

up provides shelter they're and to We own matter bought tax they way basis so, converted when get a have their And the sold, And shares. pay sell, A taxes. by more to only which. they the to It's be doesn't step forward. in us, that going

outstanding. on to ability number our this So, the B shares predict depends of

is the and enjoy it eventually sure person, nation's a I've taxpayer. of - - and true that always - So dream of level as I it's being while given paying And largest our for pay business, of given spending the dreamed of the taxes, don't taxes. profitability I we'll

of sort it's thing. So, a good

Operator

Leo comes Mariani with KeyBanc. go The from Please next ahead. question

Leo Mariani

the in performance. came also that you give you additionally, to strong little here that. then about in of your that alluded wells Giddings, maybe reason to ones is bit down. - to at I before Chalk looking sometimes over folks question held you long-term. Really historically longer well things year in up think term Austin know, you well just of XXXX great some the that at the as also early around just on could wanted maybe fact You the us the color some well prepared the around Giddings performance particularly that was saw hoping how a the Giddings? ask remarks haven't is And shut some I

of better I permeability. think a are targeting of better guys obviously kind you section here

two could of to So speak just maybe you kind those things?

Steve Chazen

drilling ties said to rate. we on eight during which the wells so put basically quarter, Well, we the

for Virtually that's on none days. them XX have is. what of So that been

really out little reporting a although build time, the and wells over useful we tend isn't this a XX-day up start very for so noisy it's lately. - to better because And little been production don't

actually see this how putting production You can the older what because clearly and doing we're sharply. we're - not is wells is the declining wells on are many

better wells. wells So the strong question rate And period. decline quite answer your that the to than much Karnes say, less, the is are in really is

but XX% see the with production faced wells - actually if the we're because can in grow it were declines to the you it's wells. not drilling other in make we So enough production

So just Austin think it's Chalk, fractures. remarkable. if historical fracking think I against you it, about fracked existing basically Again, pretty in been the chalk physically the pretty, formation not

we're from existing doing also - what old opening creating frac the fracture process, we're is Here we're some but zones.

And non-frac so you the more, get it, call going mix. type into production

is... finding So - I in it's mean your to cost the think our extent, cost. some finding the answer that question is to I

Chris Stavros

Less than $X.

Steve Chazen

of Less as for data. than more and to go boe we the that wells $X get continues down

out putting you royalty taken the give So that, is are that'll - the a in an what there of producing. and because royalty give idea wells

them think at talk oil wells then ones a lot mystery that great probably about that Karnes the the is don't we but little for showed been more eight the the none on reason - have didn't above its have and over life. a than you. I average of lower the a XX days, it's it's So we significantly average, above But are in produces a

So no hyped in like numbers to reason that. really put

Leo Mariani

helpful XXXX. to get in sure. here terms buyback. very as you've indicated That's aggressive you're to And capital for obviously the that Clearly, been returning start just into bring later guys to of we shareholders, with dividend in play color variable a have Okay. going you in year the

also maybe heard cash just the free that allocate to right. flow, mentioned buyback? philosophically opportunities free you M&A you So, the flow can versus dividend you about I if how cash talk variable with of you guys some And

and pretty think small type stuff not bolt-on really available. chunky Sounds anything like you mostly it's

Steve Chazen

our But sure. yourself, it but stumble go Not do stuff That's And buy, would I shouldn't compete. be the available to would deliberately that you issue. that. there's diluting might to out for you dilutive anything results. to chunky into mean

large That's the - people alternatives. of roughly there other why that's who different have this. set of the So, are deals principle

the As we long are as as as sort far we look as as shares the are shares - - of as buying valuable concerned, concerned, information. buying earnings actually far the at

Our same, are pointed as our finding the and approximately DD&A Chris rate out. costs

is improving So things. for available the we earnings have

And so, that is reducing or the shares whatever.

I if first say so, let's we the And earn, just we're quarter. what know don't going to annualized -

$X.XX, strike going we're does expensive. in as earn us to $XX $X.XX, $XX, if not So, stock buying

will the the a share divided shares of sort sum, as view that that will the we be reduce So as of share amount as dividends lump long can the Over count, it's of time, up focus. we dividend as and because do principal the number I by go outstanding. just

So while than we its little in that's really just share. pay more less share more we per might otherwise pay goal. year, a are year count might or declines pay maybe the money to this And dividends next

Anybody as long As the don't million are to shares own people inexpensive, is who don't us. priority there those hand. oil be the own up Stavros glad Mr. will stocks has their there. call And off to take clearly to got want or or we'll arrange who and stock to shares can X want be

Operator

from ahead. The with Please comes Securities. next go Dingmann question Neal Truist

Neal Dingmann

just you or look Steve, be agree up had. just shares guess comment on that the following again returns I all. comment my Giddings Morning phenomenal. do I are is question so your the mean but would cheap, I

Chris stock incremental that money wondering buybacks you think about - versus delineation ops just for. the do finances debate Giddings the and versus behind the I'm when sort you So using that of how when you

Steve Chazen

The Occasions don't Giddings away. is go there forever.

argument always now will since as stock, range. have the people objective could in cheaply objective stock as opportunity to for My shares in buy time. do and shares is it's wisely do we'll world. at to still over that the don't a we some drilling. reasonable could watered grow And keep I can that. the the we a our of and plans the There's view is and the there and segment no accelerate the extent, spend the Yes, shares But locations sort more. some because is bunch about that money most company popular the to something spend we of be buy buy can sell money we So to now, the - more no to once

nicely so business grow cost finding that And pushing will the and without stay our will low.

If for generate I get know, guys. oil start you the end, don't to and of cash flow accelerating sloppy what just free just nature it's you will

anything our So is this And control costs. it we make want to we way the to growth be. can the

generating became think XX%, so stock now could we metrics right growth approach that's rational more we basis, a should that, per year, X% per probably if high share involved, XX% a investor. to metrics; says to the X% safe strike a to and do be in a buying on but attractive growth share and of XX%, XX% it's XX%, pretty And of X% generalist every

Neal Dingmann

No, growth. hit think your my I was on type I Stephen. so really, I'll growth, these mean you Giddings boost for take mentioned, seems Giddings. of And around your it would agree my it's days of follow-up. - taboo just comment, you so was thought obviously, as with I it And but you did any all, - you little mentioned capital and so to kind

else else around would to growth, that? how it growth, again, guys maybe you you about, anything great - I - Thank know what you, you mean in about just how anything grow I would cheap could Just but had Giddings, given is say how feel Steve. just investors so, think

Steve Chazen

on. Yes. some standards, probably is rig in the while second as American could it's will money still Karnes, Giddings. in of $XX We're good most Karnes - be that By And North a Giddings, still you in the some environment putting of as best isn't spend.

then bringing sort and sort to of thing. we're up of look drilling want what see in. to year needs And and them the balance we'll But the that be done. down ratcheting next I that's rigs, into don't so, And

line just better of banks reduce what to way. whatever, we sure to I whatever that credit just we course, think emergency, that try In only don't it. can we're managed reason we're is build we aren't locations and don't we slowly because have we I going care again, continue And of able the but would because be our misinterpret So, doing better manage do any don't thoughtfully. really - away people and the I if

So have needs. that we kind debt just that of don't

this right some I would - would or the double So triple the were change strategy in would strategy to what or more to And the share anymore a stock if is multi-year strategy wouldn't the would think same price for the that program. to environment, work strategy and dividends. we the ruin what repurchase go then have endure be

Operator

The Goldman from next Sachs. go Please ahead. question Umang Choudhary with comes

Umang Choudhary

My two - most asked, first sir. question you. have of my questions have been I for ones already quick

was Giddings appraisal program The the first program you rig and that from add your summer. question second as around this expectations

Steve Chazen

Yes.

So four some together will at We're putting areas work. know. drilling to for the with still some that spacing - be rig and petro of physical it of will and look pad I the used new second don't

areas I now advantage. and But want over So this the our that'll to because and lose think don't production core we've might be footprint our areas got we we plus figured a want areas way the four since out, if be can they'll to currently footprint it's look do of can are year four don't add, the - more we I enough we some about area basically on look is land years. can there where the spaced mover got other or where where number I then number, we've first to but - probably in areas lease be for three wells for see build the way there economically being be where to find the the some for by in to

Umang Choudhary

the focus to acreage expect more program gassier the around expectations appraisal color understand Just footprint? part terms you as Do as your of whether any in like And be area? of in the or to your oily trying gassier

Steve Chazen

gas looking about we're be And oil. over when a looking we a But are commodity. some that it's so, we $X we're where think had not good oilier are weak our XX% for for parts. that this Giddings that The for I parts There there - for prices - XX% be quarter, the - XX%. focus rather are through, might day basically last still might balance. we're or a oil. a get get some it's we gas And on I'd gassier regularly pretty until well

Umang Choudhary

my And in really question, build-out follow-up around infrastructure it. was question the second Giddings. Got

but located I to think the the you program demand your in pipeline itself infrastructure, of latest up just the trucking potential because develop successful, assets to wanted XXXX, get this the cost Giddings refining is centers. are pretty was to last you mentioned is consider is the close thoughts to I if that lower would reduce your road. around early cost building pipeline down infrastructure in

Steve Chazen

That's something working actively we're on.

to to So generally water that facilities. And but and money production oil same then, for a trunk it with very of as area. it efficiencies a this the lot disposal And significant carry through We And line would reduce to far, it's and for modern line it we what in the take - the generate a - it, probably number go us. probably that. makes can The not centralized enough principal down. it and not to facilities put them the the line as sense. in. to before business we sight of have But idea It's right do is very the the because we'll can able used and be the we you had line expensive. But production that speaking, It's issue like make do some people you our see years, next now, looks that over opportunities where out away. may probably of put the enough they you too. right line getting it's you that. locations line do three do is and two were had have to clear come to figure not generally want ship whether or we We in on sure not

bunch who River you in live have of have rich So a ranchettes there. people Oaks

pipeline in ranchette. wants nobody their a And so,

that's So the issue. fundamental

Operator

with Noel Please Parks Tuohy Brothers. comes next go The question ahead. from

Noel Parks

I to on sorry - ask I'm just touched want if you've this already.

picking The looks the you're it on whether about periods? whether got for some to on, rate for in and or I was be you're that just curious going you market like second bringing locked rig pricing you've what the spot it that and

Steve Chazen

changed The have rig not much. rates very

to and same during to downturn. people the we run - and were forum so And we the there have for rig them first

here for us so, they're And now.

think don't built I we different. So - think I don't a it's lot

costs talking is steel field, things caused that, the by in which you're about everybody like transportation and If inflation in knows. inflation

be can about on it You so must as day, television talk every it see they it right.

So amount that of I price. there's the where add But a in would inflation that's is. inflation also modest oil

a driving or this guy in running, are margins a the so in a - few steel you back truck. producer a toss And pennies to

sand And the the costs change price sand of the of so more. doesn't example, but you see hauling for

mean thing I seeing. in that's you're We're that's sort of deliver industry not sand. UPS general. having American mean truly our So I the

Noel Parks

could And cycle your days, components now, time days drill a completion there's walk just just average and your if through Right. the rig on there. of you

typically? that like Just what's now

Steve Chazen

I mean we average two rigs...

Chris Stavros

wells, Two yes.

Steve Chazen

to Two less wells is thing changes time And have but single counts efficiency. every moving - more depending When or less little those on a it. take so-called a the of much. be that that drilling wells, sort In we than the rig and do don't you you might very don't many it wells a the month. think little got pad The of quarters how that, often. little a that are moves and some exploration actual so I

depends we four completion completion of the the So of that's as all we it that schedule. use just one you'll those. really do or Karnes - Giddings, and in rig we the development three the But see just on and and only in some there use depends then degradation drill

it months. So make well, a a it right we July. might quarter, March well From doesn't - somebody it's three again deal stock. take we months January or June if the it whether a or producing big could get studied lot start or couple well perspective, in our that to a a of difference, And or drill in away really the

program ours, So turn into big just Again but depends. with it really changes I - small just not. small deals, they're like

Operator

Please comes go question Nicholas from Global. Pope next The ahead. with Seaport

Nick Pope

to the was for guidance of the capital reconcile CapEx kind I trying bit year. little - a

and drill Giddings $X of on complete. were coming year, about to think I into the an you expecting talking million average wells

Just a in some area. year. the math, non-op the of and might count during be the a maybe in XX trying Karnes type more kind get back million if struggling that's expected that understand envelope Giddings I'm $XXX to with to activity well the of Eagleford there's to

with out you could bit little me Just the a math? help

Steve Chazen

Yes.

yes, sort is right. - your of So issue

than So, have do even more to you it don't that.

If you were sort spent some probably completion quarter, look expect well - And and any quarter. little quarter. that at activity a we the $XX first But million, you'd of non-op docks. in there eight some about of drilled in Giddings the included

rig if all Karnes sort Giddings right. in And for be drilled, get it fluctuate will so one quarter spend and well, $XX we million you a costs. the in a exploration that's would or you'd and it'll rest full answer. program But in some that's used and on on, a second rig did mismatch whatever. did, would the second the these It's that's area completing Karnes the So $XX to that's or another a rig When a... but the of be put we do cost non-op the then quarter little what of what the you wells some and quarter DUCs we - obviously with And that. million

Nick Pope

And all as on are and the you track - again?

Steve Chazen

the get to it's million. to - struggle a a yes, Yes. It's struggle get $XXX

Nick Pope

a It's a good good problem. problem. It's

Steve Chazen

Yes.

Nick Pope

and for pace entering $X million least about is talked that all for on I on year the of of are think all D&C you an you kind kind that? XXXX, at that's the or around expectation Giddings for And of...? average

Steve Chazen

Yes. That's right.

Nick Pope

it. Got

Steve Chazen

Yes. then wells the less are current And expensive.

Nick Pope

Got you. all I it. Thank had. That's Thanks.

Steve Chazen

Thanks.

Chris Stavros

Thanks.

Steve Chazen

Okay.

I done. think we're

Operator

This you also for question-and-answer attending conference call. today's which today's Thank concludes presentation. concludes session, our

You may disconnect. now

Magnolia Oil & Gas (MGY) 9 May 212021 Q1 Earnings call transcript