Earnings call transcript Q4 2022

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Operator

Good morning and welcome to the Magnolia Oil & Gas Fourth Quarter and Full Year 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Jim Johnson. Please go ahead.

Jim Johnson

Gary. you, Thank everyone. Good morning, Magnolia call. Oil quarter to Gas' & conference earnings Welcome fourth Participating Stavros President are Chief today on call the Chris Officer. and Corales, Financial Executive Brian Magnolia's Senior Chief Vice and Officer; and President

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

Additional the on cause SEC. available filed information that to results could the on risk Company’s factors differ is with Form in Report Annual XX-K

A full the the of presentation Safe X with can Harbor supplemental data on website. Slide call our slide found conference on be

as Investors conference slides You can download of Magnolia’s section fourth at release as from call well quarter www.magnoliaoilgas.com. the Company’s press XXXX website the the earnings

the Mr. I over will Stavros. call now turn to Chris

Chris Stavros

us during on XXXX Thanks, for for Thanks Jim we flow provide our joining our your on provide then accomplishments XXXX, full additional during XXXX I'll and to good year. Brian and outlook our and comments morning, allocate quarter free year results cash then and and questions. and an update results we before plan take guidance today. some some give will everyone. fourth will our how review the

with investors. our our employees interest of in the and We said Throughout model As out run changes stand on my best we my that every significant what business beginning investors. my the core the at is personal established enter is will shareholders in the be to objective continue. previously and halls of shareholder for Magnolia's office our not sixth of the always to I've year expected as put is the one in a public Magnolia. and our here, plan principles Magnolia company, a or Magnolia our make are do aligned is to field,

while while production keeping operating flow And low continue around of record annual cash capital amounts expect margins. to significant to track our maintain spending our growth we debt. generating levels strong moderate plan We discipline with free of achieving of

record and Magnolia's for We recognize contributions, results. of to want that achieved strong financial strength some support exceptional, and which marking solidify goals XXXX Magnolia milestones. business and year operational important helped our Magnolia's while the strategy was a I model also team's further

expand the than our our to at this of our financial development year, for operating XXXX higher and and pre-tax and now prices in managing is we program Giddings asset is our production half positive represents Giddings Last on performance. Record focus results. to contributor product to production and team's executed the more combined XX% company. proved our in successfully income net year margins with costs all record strong reserves continued leading overall performance full a significant Magnolia's of to financial reflected contributed

levels. million by to was driving quarterly. and paid production shares We $XXX of our which dividend EBITDAX XX XXXX, overall million flow We form count repurchased of than for regular a while compared company free XX% Magnolia shareholders of our spending XX% X% returned and to total and base the reducing XXXX, amount development Giddings associated more than repurchases share is on Our share diluted this responsible a more of in during generated during year growth XXXX XX% our D&C last capital. only facilities of cash production record –

outlook announcement our dividend builds base and dividend. the achieved of operating demonstrates our confidence to during increase of increase share demonstrated reflects reducing deliver The strong our annual ongoing outstanding XX% growth XXXX, production by Our performance production over in a per and dividend our the and the our ability quarterly payout capacity our volumes business. as greater shares time to to financial moderate in and recent

Inclusive XXXX, bolt-on acquisitions doubled and at small million on the and after some cash $XXX cash approximately balance $XX ending shareholders property returned nearly gas year during to during the million. oil spending of the year, our

business prices service plan last product the the of unhedged efficiencies, captured and this on partially of benefit to much our further focus higher Magnolia's operating will generating While order higher year's in and improving cost execution impact year, oilfield offset costs.

expect be our to year. XXXX last plan Operationally, quite to similar we

year operate approximately, We of a which XX%. continue should estimate two-rig full to drilling to expect program, production we generate growth

is the steadily expected starting quarter. throughout climb year to production in the and Our first

XX% $XXX capital flow. As million, significant I We part the to which approximately would heaviest the approximately with expenditures our outlays year's noted be and provide earlier, we spending disciplined us current year's around in D&C the occurring earlier estimate EBITDAX, limit capital our with cash XXXX. of of will stay capital free

helped oilfield chain supply of key and some environment superb through have the service increased with mitigate XXXX. occurred These our in that flatten with even inflation service recent efforts partnerships or modestly of well decline products team vendors, starting managing certain Our the costs, valued some and did that rising indicating the inflationary services. a operations costs, to job strengthening to signs cost throughout as of of the as and

business, quarter. free cash share existing our We metrics. each share of enhancing toward improving value sizable we to shares to repurchase ongoing least our expect per of continue where allocate flow plan portion program, a and outstanding X% of our to includes at the repurchase This the our

assets, some expect from in our and small gas Giddings. our accretive and comparable property experience acquisition bolt-on, We would These around oil the operating areas. in acquisitions, match learnings our characteristics of and current pursue and have opportunities skills also to to existing

economics. minerals builds we outside late in strategy drilling our working primarily to well area. is and additional opportunity Giddings, line were in with play, XXXX, This our improving and an in our of interest acquire our the example as development on some able position core strong As of our acreage as in incrementally and set further

enhance share payout our actions, per dividend strengthen expand cash and XX% average proposition Allocating the providing growth over of through time. capacity flow dividend the to business, free value investment our our is annual of intended these underlying

quarter to results. over review will and who our financial fourth I'll the Brian, year now call full turn

Brian Corales

and good before will year of questions. our I found Chris morning, and to provide website. and full remainder additional for results presentation guidance the XXXX, some Thanks, on I refer our some over review fourth the slides, quarter also items and quarter year, the from first for it of turning everyone.

demonstrated production, year cash most X. free to income key margins operating metrics financial of by operating operating Magnolia on model, results. Beginning our full continued fourth notably for We XX% with net year. XXXX, our the during our financial many and Slide year records and flow, business and quarter established as execute including income during the and of

efforts realizations, price management The overall were results supported supply by chain around very strong and stronger containment cost for XXXX, overall production and product our growth.

million, non-cash the During tax of earnings benefit included $XXX generated a fourth of to $XX quarter, income which total net we million.

generated or non-cash income $X.XX diluted tax item, for per net this Excluding total share. of $XXX we adjusted million the quarter

the was our million Our the associated EBITDAX. with $X.X was quarter year and quarter for facilities -- or was and million the $XXX adjusted billion. fourth drilling, XX% $XXX associated for million $XXX of EBITDAX for completions Total capital

just XX% to X% for capital million, day. grew of barrels our year-on-year quarter oil XX.XXXX $XXX production was of per D&C volumes the or EBITDAX. Fourth equivalent year

to day. barrels the of XX.XXXX oil equivalent For year, per grew volumes XX% company production

XX.X share our repurchased by noted shares earlier, reducing X% count million Chris we during diluted As XXXX, year-over-year.

million. working the was cash. changes cash with We benefiting at $XX partially on capital $X.XX working Looking of before chart with by XXXX flow year X. started flow from billion, $XXX Slide capital operations waterfall the by million items, in offset other Cash changes cash

capital including land acquisitions. million D&C several spent million oil small $XX and gas property bolt-on was incurred Our on $XXX acquisitions, and

share XX% paid cash and of We During on million ended the in XXXX million. and $XXX our the approximately the million $XXX an of flow $XX year, our more repurchases we with million of during allocated $XXX to form share dividends. free year of sheet, after cash of balance shareholders returning repurchases than dividends increase and towards

sequentially illustrates the count progress directed toward of weighted shares we that quarter. second slide total repurchase count have reduction of Magnolia's on we by currently XXX.X share million Since at diluted share have X.X half A since is our or shares by X.X XX.X approximately million Class fully in XXXX. the our million specifically fourth We chart remaining program X. the averaging Looking the in total diluted which during market. shares XX%. began repurchasing average authorization, in our outstanding reduced our shares declined This time the shares repurchase current million open

dividend March and annualized our achieved per year-over-year of production dividend quarterly to $X.XXX in is a payable dividend increase increase share share. as per which is $X.XX providing discussed rate in Chris in Xst XX% per announced recently the The increase X our and we supported slide we by that share, earlier, to an XX% payout on XXXX. Turning during our

results growth least our at annual growth assessing We $XX a at payout X% dividend XX% year achieving annualized Magnolia's part price to per recast overall for and of moderate our plan oil is by proposition dividend our at supported least quarter. of after reducing investment shares least and production full strategy our by outstanding plan Our examine environment. of annually rate and

balance $XXX with Magnolia quarter a we million. net has of the sheet benefit cash strong and position very of the a ended

$XXX notes. is which our until is ending fourth our liquidity total mature of Our balance more billion. senior of $X.X undrawn our debt quarter Including revolving million million than and $XXX our credit million $XXX cash gross reflected in do XXXX. not facility,

as and balance condensed shown December of slides on Our X. sheet and XXst are X liquidity

and X slide and Turning operating to at margins. our costs unit per income cash looking

increase of levels. activity. adjusted an due year oilfield BOE quarter workover $X.XX due cash the XXXX. total production operating $XX.XX in year-over-year higher G&A prices increased ago and was service product and BOE costs taxes It's higher of primarily higher to to per The compared fourth higher as of result a related Our costs LOE to including increase was per

margin DD&A had revenue. program very rate the per drilling for per $X.XX BOE income total quarter of our of operating BOE, successful XX% $XX.XX fourth was our year. last about organic Magnolia or a during Including our

to of reserves XXX to proved XXX% barrels reserves result, million proved of of only year convert our reserves. we And Our XXXX of plan during undeveloped to one production. what were developed and XXXX XXXX The proved our increased XXXX. represent XX% replaced equivalent proved proved books developed. oil reserves as Magnolia we XX% a undeveloped

end guidance pads of plan rigs One for Turning activity development through to the in and level to for two multi-well operating Giddings asset. drill rig quarter this XXXX, our of the year. continue to continue currently remainder we the are the drilling will of and first

will Giddings of some wells appraisal both drill rig in Giddings. second including wells a Karnes areas, and mix The in

increases. materials compared signs the our in field flattening drilling are improve and We is be XXXX last be estimate efficiencies our year Giddings levels. capital non-operated our completion expected to million steep to that D&C includes some operating and $XXX the for between inflation to $XXX million continue of We cost seeing which to for year's to full and capital some XXXX, is that similar

spending most of At growth program of deliver this full year the and Giddings. our come growth we of with level at from expect development production XX% to activity, approximately to expected

full deferred. this being be the we expect For effective with rate approximately our to tax of year XX% XXXX, most

Our be rate to to X% expected for cash X% XXXX. tax is

boe is Looking of be $XXX the D&C in total and we boe capital to our be XX,XXX between day. production of million first at And to per per the and expect $XXX quarter volumes million. range XXXX, day estimated XX,XXX

level be to in for We in our expenditures expect capital at the quarterly year, quarters. reductions the spending with quarter subsequent highest modest first

anticipated price barrel per differentials to MEH. be a discount to are $X Our

share which million levels. shares, X% approximately estimated diluted be below is ago for the to is quarter fully count Our XXX first year

questions. take to your ready now We're

Operator

question-and-answer [Operator will We will the Instructions] our roster. we to momentarily session. this now pause begin time, assemble At

comes Our Leo ahead. from ROTH with Please MKM. first question go Mariani

Leo Mariani

in some acquisitions hoping Hi. a about I bit could you was the fourth more little quarter. talk of the

program. said like that it the in I stuff was the Giddings. the preponderance core sounds that certainly You outside guess appraisal in implies the of confidence some

these of late could about, year how just in talk say ago? program opportunities a So a than more appraisal are went bit you And seeing maybe XXXX? bolt-on the had more of you maybe little you

Chris Stavros

well. Sure. a for active pretty appraisal fairly Yeah. Thanks Good went did morning, the question. program Leo. last We year have things and

We acres. have gross hands that in this into to expect XXX,XXX there's that than we acreage more sort continue large a of year remember to swath our Giddings somewhat on of

So there's we've gradually. a go through. And been that doing to lot

a lot and our work acquisitions. Frankly, that frankly provided us around that and continue to led appraisal This plan Giddings. confidence several and to of in with to improve of has recent our really led us more understanding. We some one some new time identifying that our activity of work over and it's appraisal with promising that in areas acreage acreage clearly to larger which and

more some add to us continue learnings time. we'll could over It is little yeah, it, of So around and years. even I steer some think of extending some the acreage propping be -- may of will continue to had going direction we've that may the lead do maybe, acquisitions that. infill to adjacent to but doing learnings say sort bit utilizing in other a It that to to Giddings best last supplement supplement way the we sustaining of of further what are it's and up several it an over

if the to frankly see a that. allocate know It to going what money huge to we there. that have well. depend. side, you good that's And I this. yeah, it's feeling go on so help But -- -- So of drill we continues you're We'll will it of sort amount mineral where a actual think obviously around

to that's better appraisal even clearly. days, it's X%, helps. So bad And so though but a sitting the economics, money than than these X% that not on our boost better that's earning

Leo Mariani

Was plans get in And we maybe bit appreciate thorough guys that. around a any sort that of I here that pad? little performance provide the X-well of color around that? answer, I of nature the large than better other maybe pads in Very details Giddings you you was core? more XXXX? Can the expected. Okay. know Could it said for are more little a all there

Chris Stavros

bit. -- we quarter were a be mean delayed as fourth when the is offset about of items X-well to couple the we I was around certainly upfront weather-related little and in our things frankly possible early experienced tried the little had back as This pad year, that bit. a which volumes the expectations a it for Yeah. large And that

one days you of can number about count that talking You're on hand.

bulk proportion slip a But not before, the banking of bit other your period by out in when and it hadn't activity because large, X-well on issue. and stands namely you're done a particular one reason things of because in really of particular large for most late especially period, pad it that the and of little you any that and was

So, since difference. performing had on online expectations. we December and reliance the pad is actually pad one and that than really been better greater now The this our made has

that. So, no issues around

here was that. cut doing had had is circumstance, joking We're We anytime don't be unique we just beyond Will an eight-well day and I sort not other in any I planning more I I just we -- a on eight-well more if so. it. the pads half maybe. soon? said think we But it nothing and a of this pad, -- chainsaw

Leo Mariani

Thanks Okay. guys.

Operator

next go Your with is Daniel from Please question Energy Geoff Partners. ahead. Jay

Geoff Jay

Good morning guys.

Chris Stavros

Jeff. morning Good

Brian Corales

Hi Jeff.

Geoff Jay

XXXX. a for simply annualizing for in D&C me it XX% looks at just So, guide your looking QX like that reduction

of sort sort getting your are see of actually the or pricing is where lose to trying kind what I wondering either are Just of of of you of in seeing where deflation guess flattening really where sort greatest sort service get and costs, and that the it? to you components it see

Chris Stavros

what it in capital weighted you're of seeing this quarter the the quarter the of see year in just you'll the Yes, just right that's scheduling. as now talked more the And our last front guidance, and in which the fourth end plan is back viewing going be about we we of heavily that terms and or really talked to forecasting end year. for of about well we're and first

first of evolve and develop And front-end see and really and year year. volumes in somewhat of so half production in some the it's the the that you'll this that loaded

So, from growth stem clearly that. you'll some see

XQ. will then into as the And move decline capital XQ, to we start XQ,

So, it will come down a bit.

to either one annualizing those overall probably way So, sort of outcome -- not is the XXXX. for of frankly numbers either the view best

seeing or flattening As cost seeing maybe maybe showing some far or where softening. decline not out, the is or as you're up inflation showing up some

to items, some clearly maybe in probably you're sort Softening it, is what drilling put of steel better maybe fluids. flattening way OCTG seeing. a That's fuel,

frankly are would relative months we've to and for disconnect of in where where costs still But given in to materials rigs three well-supported. especially product natural the and gas, come think there's some that here terms I six of I last a bit a in in months prices around we are current cycle. services think the

highs This things as to bit best try that I sort for I it event. well a is are our going folks out And think. then This can as of of the and will they'll and to do. is a they soften lag as up take do

Geoff Jay

about it's interested of thinking forward? Will at on have and Yes, get that ability that's any little in you may to a helpful. or your And guys looking then now bolt-on going be soft. current environment the of some the super deals pricing obviously impact kind

Chris Stavros

I that why it can see that sure not don't frankly. think at so. see would. I don't I Nothing all. I'm

Geoff Jay

Well, right. for thanks it. that Appreciate guys. All

Chris Stavros

Yes, you See soon. sure.

Operator

is ahead. Seaport next go Nicholas from Please question with Pope Research. The

Nicholas Pope

morning guys. Good

Chris Stavros

Hi Nick.

Brian Corales

Nick. Hey

Nicholas Pope

I what a bit in about about how obviously the non-operated and side was the if you asset. It's side guys Karnes a have there you could of side and along hoping context operated versus of kind you the Maybe available inventory on further of things? kind on development. little could little talk thinking a you're provide the Karnes little

Chris Stavros

some of mean more we're do. on part, a mean returns us the around devoted we're of around basis, that of and to suppose declines our mean ultimate pace I we're floats on in I -- or second so at look more Giddings of but capital sure. more performance and Giddings us It's rapidly -- to to clearly to in led and wells, for be a of Yes, a has IPs little utilizing and Giddings going production decision just Karnes simple if of Karnes, one frankly could, sort to it us the like a bit -- little Karnes typically drill I the the a little and little --proportionately from bit on out then that initially sort of there's yes, seeing the it sharp and we rig we as said opposed that rig I some more wanted steered we lot bit flush away allocating that tends than sort a bit it's -- Giddings. and of

longer productivity really of so seeing doing efficiency you're And just and Giddings we're it. why some typically, program, that's and the out more

Nicholas Pope

That's that it. just as cost some of then all long about these of of you -- a I of follow-up up out contracts How of curious And mentioned of the consumables kind of like Got I'm little in kind kind think helpful. a you timing the the some on that those is rig how costs, some and discussion. you set and timing? the do moderate contracts guess, kind what bit do planning? of

Chris Stavros

Yes. many chunky getting six Without without call mean months, let's too three time specifics, it. you're into -- periods to I mean, I at of looking of

So, much there's in around can environment that that. do we not more this

sure month, in part much any we their we far scheduling, be just or out going We as of to in as trying the our rug with and fine next them also planning, the -- as it's keep going with things. We're it in -- run talk with do the supply be always, that just time. under of us. service face think don't we them. We They I them it's this for as efficient So issues -- vendors now, not We as months the getting working okay -- problems into sort in as knowing done them. -- plan and to we've next providers, very to it's and with far what provide making touch schedules. all from we're we're they're there three to confident week, from to pull chain

both useful And relationship and so in it really that's very a that -- developing ways. cuts

Nicholas Pope

I I Thanks, all appreciate That's it. time. Chris. That's got. the Got helpful.

Chris Stavros

Sure.

Operator

from is question Please next KeyBanc. ahead. The Rezvan Tim with go

Tim Rezvan

taking Thanks guys. my start I for repurchase Hey question. to the good front. on want morning

X.X million that. been had authorization. on You've shares on steady our Brian mentioned left very

director or this your program extended So hat run increased that that, should on, probably Chris, that XQ since if we just through of you XQ would year? be assume kind the authorization you could or put could

Chris Stavros

Yes.

and to the private said, trade that's the the share owns Brian only owner As equity that small related on the A of amount so shares repurchase some shares, approved is really the million authorization Class shares the amount A larger a not Board the Bs. some share X.X B by market. Class related the Remember, of and repurchase shares is of program, authorization to

-- And fully why for capacity this anticipate additional get or said, on, my and is hat I share investment not want mean dividend director that. been that. point the we're of trying an from do to to authorize wouldn't. see create it's the try payout I on look, they of and enhancement. my they'll I authorize try this, for per part not that mean, I If Magnolia repurchase to I the from proposition view, we as beginning. my down Board has to this Putting really don't double to the issue. to I Board shares this

value And so think shares repurchasing are just capability by at good that, we time. over a our that enhance we continually

Tim Rezvan

Thanks. Okay.

of sounds like that plan Just be medium is? wanted would it that to make it the part long-term sure

Chris Stavros

be. Yeah that will

Tim Rezvan

on in $XX XQ, And acquisitions Great. Great. then Okay. big the million. front number a

related So kind of that. two to questions

is go a a How right with you $XXX came forward understand kind appetite Would there big you of that how Just of your to you get could million front? big kind sitting trying for million, year? was on cash secondly, be or $XXX the – million, those Thanks. could this $XXX here. what opportunities that lot what First, acquisitions? as of And production on opportunistically? that look then you're

Chris Stavros

some don't mean, the for in million maybe frankly, a It's mean, large that the than million just Sure. the quarter larger fairly $XX Yeah. recently. view $XX done or I the number. as I I that things year, we've

thereabouts walked million sort with all cash. you we this ended size any going stand out. is we of anything of of through or We $XXX so and did probably And and to

probably of bit so bit cash some now a at not the economy terrible more more around such all almost uncertainty interest a having And a and business said stronger of generates right thing, not better for little to interest Having getting of America, money use expense. and of we're goal the returns time. the especially little is it the over Bank given it offsetting helps cash the the we're a least find that, and

So we'll – And and continue we'll execute on and with to we've growing to about dividend. our that. moderate we model pay growth the talk over-shopped frankly continue safe on and that a continue to repurchase shares a

know, you that will sales equity around over if but As sizable I to help process I say can't continue through very but I accommodate owner, that say purchases have we can be our supportive can't to this say, them. their we'll private happen, own time. when –

way to of we well to sort a do at – a and The that. minerals this do that don't we mix the We COVID, do we right found burn yeah We lot could to business but need hard interest money found opportunity, all. acreage sure of much need as M&A, I go of out need continue the didn't and included we larger, said where the in really working could we execution-wise. during if cash run doesn't what

free cash year sort And cash XX% so of if we of you only out. flow flow in generate gross year our spend

around compensated around So we're that pretty that. and focused

– any business not improves yeah. where we're would looking the you, of running provides room, I the more But that additional would tell So we'll if the we're right opportunity outside do enhances you sustainability not we require and to deal a financing. find us right the business deal find

around also cash hand of So terms on we it's our to sort of skill set. around have capabilities limited and what in our

Tim Rezvan

can detail. the that for Thanks production acquisitions loop, with that any you close in disclose the came the quarter? Okay. just And fourth

Chris Stavros

So, yeah. No.

production I it consequential was material amount a So a of not amount volumes. very mean, small.

Tim Rezvan

Thanks Okay. All much. right. so

Operator

[Operator Noel ahead. Please next The from Parks go question Instructions] is Tuohy. with

Noel Parks

Good morning.

Chris Stavros

morning. Good

Noel Parks

couple just things. a So of

And if staff You see various this all I time. of cost of operations just could around some tackle you year talked a efficiencies functions little it? Most wonder, service more just to different particular I before? field about haven't about that of mean, working projects inflation. wondering, help are talk staff there to expecting that bit the some shifts? resource on in types are the offset the could you any particular kind was projects shifting I or any efficiency

Chris Stavros

No, staff COVID we're to generating you remember just now, at I say staff in said we're with so, new this would maybe work we entering got I so especially. late-XXXX, tell if you a year any and sixth wouldn't I this the public our over really shifting on gap, Giddings, company or skip XXXX. as more

we're middle what get so, And and in earlier better. Giddings understand to the evolution of at innings trying of is the it

I there's be it. so squeezed And more of out think, to

and frac per We efficiencies and most operational our usual days the a So stages day completion speak per feet -- or day a record in pad time. improving. to terms reducing of talk that or drilling new recently the to on in terms set improving our of drilling

this So, be and done year. there's of still some captured to that

we'll think see I so that. And of some benefit

Noel Parks

difference? first -- quarter cash quarter see like certainly one-time I third decline and that from on not to was good that I for think there complaining, made between I did And in that it involved Great. was G&A in direction the quarter, a there in particular always sequential anything cost. I But to fourth was noticed looked wondering,

Chris Stavros

G&A cash number pretty for a Yes. The small is us.

could bonuses up be mean comes lot or there's a one-off it whatnot the be payment an And or of insurance whatever could some sort it's item commonly evenly it or is. period-to-period, precision predict can be I always that items with of for executives it so that up quarter-to-quarter. pop to more hard

It's nothing make costs things sales, my mind. there's I some some and of it. with -- I some that. or anything So, in wouldn't associated it's mean -- the share jumps that with even associated out

small very items generally. a So,

Noel Parks

about And wondering Did I engineers? revisions with you. one improvements year reserves. Got was tight curve you thing of the see upward any this reserves just or in

Chris Stavros

very did. be we you'll shortly. which more that able here the specifically will soon once out And to see We XX-K, did. put be We

positive did speak in of revisions. some we -- terms So directly to performance there performance

Noel Parks

That’s for me. Terrific. all

Chris Stavros

Thanks.

Operator

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

Neal Dingmann

morning. on I anything just you allocation? just plan? answer about Brian. or just that to had I capital divs Chris, you But days, to Good that think these When versus talk -- always could think this caused buybacks change about guys you for you

Chris Stavros

and the they've done as you at I last share out And X% years at But that. least repurchases, we double quarter changing look rate. I probably the EnerVest to talk Yes. nothing help regularly two that sold this if around we've mean doing about been mean every that's down. there's largely

we've of shares a purchased from lot So them.

that or to a some committing see see repurchases move to away you little and cash but share dividends that's my that's the off could you -- sort allocated more we're of thought. go bit towards excess As that here, X%, peels to of starts been could

this But into said it. the repeatedly you dividend, on again, I've to want prudently grow

want to out to don't rush of it. grow You

And you safety want steady so just and the security dividend. and of maintain be to that

that dividend just And I of that's sort grow want actually growth what We so, And do. steadily. dividend in wouldn't on see companies to some dividend sort variable of leaning us good process.

Neal Dingmann

great your leader can up I like wife bring was wondering once that like but… said if your you dividends

Chris Stavros

consult with before, I her always yes.

Neal Dingmann

that very that I the on with out follow-up that amount with you could can that about in just or have talk books that the significant? have immense with you cash And is on have, of you cash just all the that EnerVest, there a case

Chris Stavros

I we'll we imminent go see M&A don't with bolt-ons that and can mean, with some mind that's how at. I we'll have anything in go it see now. things things opportunities right or how Yes is. EnerVest, look

bit okay And of sloppy extra to in so like it's I said, little this environment. a have money

here [indiscernible] up today day But it's report thing bad ends. not not not and variability, bit on the obviously it's a of days. macro these hand day to a always little the a the results where have a the great with more It's in general given here market some volatility cash uncertainty to

it for you'd it's to feel to someone very may it's look business. or -- you make just doing safe again, it So better lot want the at secure. to point we feel better, work is there not actually put feel and just that but the improve But us sit to a

Neal Dingmann

Great remain in will -- last on that acres point. more to over or piece? you Will XX,XXX just development the one could be that if I adding Giddings. And on one program are largely there that then

Chris Stavros

quarter. Well, we fourth we that's in did. the did -- what We

And work over development or area. continue development Giddings maybe already of around just -- area through we will that but is active have want just so options. to on of be that other not will in that we outside acreage, that things of the that up or but terms where things allow may appraisal bolt-ons, within our time sort existing may us it Core core activities filled footprint just to looking that some great, that in can be come some at expanding we on look of of path at

Neal Dingmann

Great quarter. Thanks point. guys. Great

Chris Stavros

Thanks.

Brian Corales

All Thanks right. Neal.

Operator

session concludes and also the concluded. now for This our you Thank presentation. question-and-answer attending conference has today's

may disconnect. now You

Magnolia Oil & Gas (MGY) 15 Feb 232022 Q4 Earnings call transcript