MGY - Earnings call 3 2023 | Magnolia Oil & Gas Corporation

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Operator

Good morning, everyone, and thank you for participating in Magnolia Oil & Gas Corporation's Third Quarter 2023 Earnings Conference Call. My name is Marliese, and I will be your moderator for today's call. At this time, all participants will be placed in a listen-only mode as our call is being recorded. I will now turn the call over to Magnolia's management for their prepared remarks, which will be followed by a brief question-and-answer session. Please go ahead.

Jim Johnson

Marliese. you, Thank everyone. Good morning, Magnolia call. Oil quarter to Gas' & conference earnings Welcome third Participating Stavros, within President are Chief today and laws. today's on call the certain contains Chris of Officer.As reminder and projections the Corales, conference securities call Financial forward-looking Executive Brian Magnolia's meaning Senior Chief Vice statements and other a today, the Officer; and President federal in to actual those are subject risks statements. implied results expressed differ statements that cause and These may from to materially or these uncertainties

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

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

Christopher Stavros

while program. Magnolia's financial before capital take to our and oil free everyone. and gas plan allocated assets operating the questions.As primary also last Thanks, benefited additional the efficient increase and return the noting of results.I for some team's capital have for quarter from completing year review operating will returns. Jim, be and and consistently and associated operator then are in wells. around and broad least good latest best-in-class with to and X XXXX up XXXX strong financial quarter, most drilling our our on accomplishments how and cash cash flow We of capital assets reducing appreciate we comments costs generating guidance profile our discussion and greater results discuss those then I'll our highest employing amount objectives our we've on we've a review some years joining free to the detail the providing some briefly how third Brian We'll operating our provide over finish your our through cash third speak quarter outlined, shareholders flow today to previously by of us plan. Magnolia's you this morning,

gas that of has business per the overall share acquisitions to strive dividend.Finally, of not our oil utilize principles of shareholders flow already our that goals. also simply sustainability to operating and return our and quarter results solid and the a to model, We but overall replace free importantly, third enhance we secure share The payout the business, acquisitions. cash plan attractive to growing and us consistent opportunity portion excess to been of the targeted our and substantial our help business execute bolt-on in and increase a gas the our returns are some the financial pursue during to delivering continued and the produced, to generated oil repurchases achieve by high cash the of its dividend form capacity.Magnolia property improve set with

volumes. approximately quarter greater quarterly and year-over-year at growth production a Giddings volumes our the company established comprising barrels record to sequentially. day per of of new continues third XX% overall of both our Our with XX.XXXX represent equivalent driving asset now company production total a Giddings for total oil proportion

our cost year efforts operating allowed toward early EBIT costs and income of was during XX% overall us capture leading only or Our total EBITDAX, our overall reduction capital our our of this were around website, indicative solid million this on approximately capital spending found adjusted taken flow well proactive free cash presentation of the of spending $XXX margins $XXX have significant and earnings quarter of to lower D&C and reducing oil in the in XX% X million materials Slide our year. elevated to generation at focus our service per costs.Looking

flow flexibility chain well since of continuity flow consistency $X.X guidance with approximately free high-quality complete expect XXXX. greater growth represents levels to organic another program costs provides $XX savings point, XX% ultimately our our us cash around period, cost through costs more are year how capital Over capital expected cash the while materials of of X%. of Magnolia million, our this to this cost last flow, year-over-year the more XXXX and partners cost repurchased D&C approximately which repurchase and accrued full in repurchases. teams shareholders Giddings returning allocated into cash and share supply during and original to capital cash production to help to improved worked crews net D&C These cash $XXX achieved XX% our sheet lower result delivering reductions growth capital D&C balance by and drilling outlook a reduce original while end maintaining and share to F&D This Our compared this free margins services. of program. supply called our next higher for initiation this during time to the still down outstanding are this service year flow.Turning production generated XXXX. the we've the XX% about at shows and position. to Slide during to leading putting X. and or to free our our for the drilling approximately has to wells $XXX free after way, Roughly spending vendors capital spending and of XX% collaboratively year. outlook. X% to dividends in year in Magnolia business said million years. of now the Both XXXX of spending our generated of the And reduce Point to our approximately us reductions and Magnolia $XXX with costs has million We a our of lower operating capital be The X million lower of allows drill a than Magnolia's also currently billion effectively similar cost its reduction compared shares the well

net in the share hold and of drive Chalk than the improves bolt-on X.X than a to gains, enhancing our plan to the addition part We strategy gained XXXX our flow initiatives, completing full and X execute adding crew during estimated development remain which of total a within efficient free per in expect development, is our example a our to should XXXX formations. X our our the while our used field part significant the improve our spoke prices. of to through fully opportunity is development growth. business we operating transaction next approximately current XXX,XXX Giddings in acreage accretive and the month. this to shareholders year Giddings asset with for dividends.A brings close to asset. of We're an of enhance in adding in activity in will year the business.As allowing high-return the acres. which efficiency have million XXXX, to end small plan bolt-on Giddings production property The around increase Austin larger the XXXX September This on I by of structure most overall with cash development our significantly oil oil-weighted overall example as We expected high-margin towards return which to in area wells and position several to and operate year and as we We and unchanged. transaction One more excellent by acquisitions, more while we both unhedged depth portion strategy to small costs provide recent expected in Giddings existing is Lower continue knowledge drilling of Eagle Ford high-quality our included to primarily pursue to our these cash production XX% plan. includes remain balance This our field repurchases which sheet, footprint was net flexibility D&C to of earlier, well our rigs our into of drilling also leveraging gas form metrics the to past for into and Giddings program. allowing and moderate assets, assets share this a acres accumulated the announced look will and be largely positioned completion product currently cost for strong improved bench to locations

strong moderate total Brian half expected quarter current deliver to completing high financially prices, which operating production will details framework expect growth plan the to to flow moderate our now our debt, for be continue steady turn third spend cash operating to and note, share of our expected will to to of increase our confident of free growing our and in single-digit with growth total the an more call year-over-year high high founding And our cash in for Assuming provide to we base year and significant business a allows production capital the per less XXXX. shareholders. to should a with a XXXX, margins, asset annual improved return over Magnolia and achieve by at this product similar strategy on this grow an Utilizing believe oil principles drilling results. rate.Magnolia's time. I'll to growth providing but on is discipline, and wells than continue provide financial guided while sizable value We EBITDAX exit model to low our over generation.

Brian Corales

for on delivered some will slides also our excellent quarter as to closed Chris, our items we fourth model. refer results presentation found a Thanks, year an guidance we the quarter provide strong from everyone.I as quarter to from and our continue out I'll and business additional website. morning, Magnolia.Beginning Slide on Magnolia X. XXXX execute good some with third of review the

GAAP or income During net $X.XX per stock third total of we A of net million diluted income total $XXX.X with the common million share. generated attributable to $XXX quarter, Class

capital Our or drilling, adjusted just XX% completions $XXX of million EBITDAX of million associated with for EBITDAX. and $XXX the quarter total our with was facilities adjusted associated

Third equivalent grew sequentially XX.XXXX X% oil to quarter volumes production barrels day. per of

third and million, quarter fell by X% We cash started million. changes before cash year-over-year.Looking During X.X repurchased with capital operations working share of and $XXX in X. shares $XXX count small from changes with by cash. diluted Slide the on capital working the million at Cash impacting the chart waterfall other million flow flow was third our items quarter, quarterly we $XX

shares X. and During added $XXX September, This in chart approximately announced by diluted half we million total million our and $XX the Slide declined dividends $XX million diluted reducing paid share deposit we program with that the XXX.X our began the repurchase share quarter time, a we in have repurchases progress XX%. sequentially, bolt-on acquisition ended XX.X included quarter. of the we our count acquisitions, million of allocated shares outstanding we averaging or than of count million since shares second Since XXXX. illustrates in of quarter, million weighted $XX which toward share million. Magnolia's more the X $XX We average fully cash.Looking third by on during total million at the reduced

X. XX.X million towards to open current shares authorization, directed Slide which our have A are shares remaining Class in repurchasing We repurchase the specifically under market.Turning

Our a grown share years, announced basis. quarterly year on including a earlier past increase few this per to has $X.XXX over dividend the substantially XX%

rate and December payout provides our Our year our plan $X.XX is current early an results. per of dividend annualized next share. rate next quarterly X annual XXXX dividend dividend on based reevaluate financial We on to payable

of strong is overall plan outstanding our XX% and least least at by of for dividend we quarter.Magnolia of balance and important moderate sheet, growth net proposition $XXX growth supported strategy an at of very X% annual the reducing annualized benefit quarter has a our investment production per cash by Magnolia's the of with part position and ended achieving shares Our a million.

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

compared and Our revenue substantial Boe decrease looking XX prices are third condensed and quarter natural liquidity gas by income approximately product of the when Slides cash to our margins. balance XX% shown XX and sheet and per operating on Total and especially the unit in XXXX. due XX.Turning declined Slide XX per as of at costs September prices to to

decrease compared was the per to GP&T Our total levels. year-over-year of year-ago a BOE production costs, G&A. XX% cash taxes, were including $XX.XX The primarily adjusted operating G&A, per decrease third in or quarter lower Boe of due XXXX, $X.XX to and

XX% The commodity Our guidance quarter of year-over-year operating Boe in our $XX.XX pretax quarter. by revenue. was our the fourth per or the margin income decrease prices.Turning driven the operating total significant to in was third margin decrease for for

are plan to We operating drilling rigs level year. of X of continue the through the currently activity and this end

XXXX for spending, year this capital guidance which represents $XX production or our capital D&C or full XXXX expect original organic we the be to XX% $XXX We our increasing growth approximately including acquired million from lower year. volumes. Despite X% when are guidance to X% reduction million,

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

help XXXX.Looking volumes. to and expect tax between XXXX, the be cash rate at close announced November contribute fourth to and Our we X% recently X% fourth transaction for our the of is quarter quarter expected to in

approximately capital are a be be Oil $XXX price a be to to anticipated Mboe to estimated discount approximately volumes to barrel MEH. XX,XXX our production total is and expect $X per differentials D&C day, million. We

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

ready questions. are now to take We your

Operator

Thank you.

will first comes Our from question Instructions] We question-and-answer [ session. Dingmann ]. [Operator Neal SunTrust the begin now from

Neal Dingmann

my quarter. on 'XX your question Chris, on just good first is Congrats another expectations.

year. that the all you the same, to will suggest similar assuming Specifically, price the about again, this operating 'XX be plan, is

So behind actually assuming and to wondering, speak potential as kind BO production just maybe the could just type of similar generalities plan, you X? for a the Boe of those the I'm growth,

Christopher Stavros

done also shouldn't of of operating magnitude plan similar, shifts around I broadly as as to activity The lot crew. of it's production seen, of Sure. of that completion things terms to any on or to quite to These rigs, we've how rigs with, more here at year into only fully see go And some that, next Thanks, as with capital that fine. terms in production some which that sort more and I done be out, continue plan have around the how an the into the in will we that if issue. to well in climb but Neal. issues rate to confidence a the overall sort the been to our we begin acquisitions. it to that's said, you X we'll I go, terms we not and based oil of look around expect going expect edges. expect we've X year of purposefully about But as lot some optimistic see Boes, I to the time. arrest fold largely or of running a Boe in whatnot. want growth. for But I'm fold Yes. we of relative pointed things you've as activity the our oil we'll much sort a similar But And are go talked

Boe expect to something growth, digits sort volume said high I we on too. for oil see production similar total single if So of would

Neal Dingmann

quick be And was all continues second Great your it's continue you about how industry-leading just going maintain it a wondering you able well question. if notable, forward, I'm all going be. under obviously, bit very little to I given just maybe XX%. curious forward, well rate a could which to talk can just details, reinvestment that Chris. spend to

Christopher Stavros

a PDP acquisitions. necessarily of mean growth around the with the get trick necessarily time There's part can. I or the we with is down spending or money to adds it or yourself not think vis-a-vis weigh this. aggressive large over I overly

the capability business do organization our enhances to and over the to that things is focus So of time. actually the try

within kick us last sort the XX%, I of can moderately years, of around reinvestment ceiling over and out should why going that type the sort creating see grow don't several providing them. different here you've our of or of the rate us reinvestment meaningfully anticipate that and be capital forward. still seen a So I we

see of sort outcome. So I the same

Operator

from Our question comes Umang next Choudhary.

Umang Choudhary

thoughts your should dividend compares doubled in plans beyond how you've with legacy acquired wanted we around a longer-term question, on of First, longer the next I we think years? rates area second that X how core? that And growth. development around my assets get how for and And recent Giddings, double-digit your that now growth to your your then think Can time? you period the should about sustain about your

Christopher Stavros

Yes.

So approximately, around that and came acreage be equivalent year. It the the to as XX,XXX acquisition, the the interspersed wells the into end assets the some the included drill net that production to of acquired X,XXX with around month. day that I plan program a was as mentioned, oil. I close mentioned, about throughout on The we we Giddings fold transaction XX% acres. expect by to of will And of

been And out we that it? and exactly little Where it of so of But terms the we viewed different nature something It's is would field bit sort was it, about the as is what it is Giddings attractive. of lot a Giddings not. broadly, to expect exactly we've than the quite of think to get a in it. it's oilier in what it as an and field. Giddings doing in I because it

of there's so it. a lot to And similarities

prices been. the capability better to we've that to seeing see different gas very So early we've what it in could bit are I terms anything weak they've as I don't to that the of be terms what a little liquids outcome that been our with it doing. been very, has margin than approach as just more enhance in volumes think of expect with

Umang Choudhary

believe longer-term Giddings. the And then helpful. core. question, Got we doubled can your very your legacy terms comparable in you. you you for should have area in any also assets development are provide That's growth how And color you rates second about my these to then given think of

we should rates how it longer-term the about think X years next thinking high-level a about So perspective? growth beyond from the

Christopher Stavros

say on our of been level, previous. really question the seek out part business of wouldn't I answered Yes, high plan it's out there double-digit and as not go of growth sort sort I because to

out work to is quicker. goal much and not ourselves of Our faster that grow that much grove the

capable I X% per plan growth think it that period a X% our asset long mid-single-digit delivering of over consider sort of moderate of year. base time to of that I the is

have our capital. We on ceiling the

way, of amount is a levels over a to to what little be the thing flow small do of business we our grow a and try best it's that rate, spend to more? and with I which more portion cash over us just lot a a M&A seek good to the will, not we extra answer you So if we balanced around balanced and not. a The and to cash, to want, necessarily to in opportunities that bit think Probably more shareholders, those term? But time. yes. than optionality Do I only this what of up reasonable out of do providing reasonable is to free is other achieve could sufficient approach disciplined consider at a generate return right while the they improve that long think vis-a-vis growth.

Operator

Meade comes Our Charles from next from question Rice. Johnson

Charles Meade

around think haven't to work to there's that simple fair inference I guys your you still X but think acquisition maybe ask, haven't really front it a told Giddings? details what's given Chris, Since since these on do recent us on question. it's M&A, the you wanted us acquisitions, is you more a I

Christopher Stavros

way or M&A M&A do risk. of competitive engage smaller M&A in things. that in can we in M&A extending that's yes. The the believe focused short on and of that convinced the corner answer yes. time M&A this, your business we time is this of the maybe this And our than an of upstream that you fix of Magnolia more limiting been response of to the where to investment a the out and advantage usually situation do. benefit they either price is gas or types assets there's type variety, or a expanded what seen, The which the question, wasn't upside have by Boards where this to type M&A know that of then engages or With may we've thing and the The that different seller, companies My also improve a or approaches this the right participate or into by area run need around. that type need that several This lot either oil that describe towards type is not to companies bankers in obviously is the acquire in type buyer bold in. they're of of there's something can big purchase more in, know factored the has the answer the somehow have and look other expanding asset the to or in that managements transformational of order and to This price. they riskier. commodity companies best be a change you could

where are think of different that to that into simply buying entry with and run basically feel to I've or And then do The cost. buy I hopefully figure some out diversification, large this is of your out operate that's best that's then transferable you compatible meaning And the get currently this cost. to done. less acquisitions and is that of what I terms do do want new the bigger can hopefully by to to a stuff it. your in or very way to free recently with here skills low the acquirers out M&A area moving And expensive is area seek some it's how there's risk workforce or for either optionality and the sort at fine. extent, they've So

Magnolia bolder requires M&A a other to we're in currently smaller and us that bolt-on because in pursue situation As not said, to engage the of variety mainly big prefers of I types and the M&A.

smaller that competitive advantage. a and M&A advantage seek ways to in I currently through believe we the have Giddings, So expand we

to longer-winded version respond of question. my how of sort to the that's So

Charles Meade

follow-up, a that think, for to not mix my got then you simple one-word little I recent gas really been the little down another than ticking take and answer NGLs which more up. run giving is a actually my ticking thank you And earlier, getting slowly, question the this oil maybe Absent percentage Well, and was guys question. at where is just most you natural acquisition, had was a earlier.

you're If going portfolio? towards that or grow that product that activity equally more each areas? to To more to categories if those does that 'XX, into mean oilier guys shifting of oily the an you're in asset extent, less looking you a are shift reflection bringing this or is that's true, of

Christopher Stavros

that I exactly. and Not this what's mentioned that it and the before, some Karnes is Giddings activity as talked the Giddings way well full necessarily, Charles. there's wouldn't because read purposefully oil, in better capital from mean, us Giddings about in in already, shift and been I've cycle returns several away results are a better. are with we've in I happened times of

money. that's so the to how prefer we allocate And

some money so And proportionately effort Karnes on non-op of that. more oil see operating the go occasionally Giddings, been basis for little in But level bit. the volumes seen a part back activity has do that our to spend on our we you've or and broadly, Karnes to we'll up an from bump might

is to the the asset, best with for the I good us in best goal will yes, provide of immediately. So a and drill more drilling the into oil. the occur mean, drill The what's occurred. wells to the at goal the And here, bit for a acquisition us plan that's the little business bring little cost the been going oil does to really at wells operator highest What's lowest and more is injected return. bit any

our on that. the oil, commodity focus a program gas of some is will necessarily and So sort I broadly, timing some bit continue to going of think full mix on is a there. of to It a be is natural

play sort consistently that game. We wells. So best the not I'm look going to drill to of

Operator

next comes from Our JPMorgan. Parham Zach question from

Zachary Parham

Giddings higher of well is the in mentioned release, In volume driver the productivity you guidance. a strong

Just well. productivity state lower has forward? looking Giddings down productivity the us trended just years in you but and in well its oil Giddings like going give trend thoughts particularly own as productivity at productivity, and data, your seems it prior it's issues, which has oil versus year-over-year on how Can

Christopher Stavros

forward. a it we've or It be way it but expect don't little or bit think much. will mean, to done I year. the compared I worse other, what materially different very don't be change I going this better. very one into to could I some a don't think bit one-offs year going program our that. There that not anticipate be nuances would that. been year may this it of if similar, I have some would in drove next But and or forward. better

Zachary Parham

Got follow-up over and in specifically, into then XXXX? on I down quarter, trend it consecutive it. the Boe for OpEx. it's LOE had And second versus $X one should color per and down LOE was XQ. Any on XQ how

Christopher Stavros

part difference. current similar. element could it product here our that a where continue relentless of push to recently, should to be costs sort There's But effort that on relative a further prices, at if lower. oil vary prices workover of very would to Yes. I sort to is think it a this they've been Look, rise make

a lumpiness. for think might price generally. there be be I sort place Again, the we're of But is occasional good at current this see to sort in. area an things us sort generally, similar of that of product I

Operator

from Oliver Pickering, a from Holt. have question Huang Now Tudor, we

Hsu-Lei Huang

couple be from eye As an I some, might that we've on we into anything out should for? out year, be that projects we new that next different might design kind with eye of or the whether in respect it's we want appraisal well or to last to increased keep set years, spacing any guess, activity what of seen acreage, beyond keeping tweaks, the on an look

Christopher Stavros

the Boe program XX,XXX a Not cash think company at And flow. development very a we'll development lot Giddings, think smaller of that's day be understanding It continue the asset. much. continues with it. for We've I of excess capital and producing larger Giddings. focus growth cited XXX,XXX very It's we're acre developed to of we development I an of that, provides This good got the now. per I in for and people the efficient. thorough area now area, aboard mean, the a delivered lot free sort

And it's it get continue still go produced a that expanse into large has So that results, will through will of with already to have sort program bigger And positive time I extend at bigger very time, appraisal year. it. over efforts and and we next we'll believe have now. get to over that some we

And hope really. I I that, into additional we'll terms areas some around that of additional In or be we'll get to and XXXX, mean of nuances some is not to whole lot, a focus an we new on. that the upside tackle there learn or what some changes learn to more. may completion continue data

some that us terms things. maybe approach upside provides learning how to in of So and with

Hsu-Lei Huang

from that near or how any half program, flattish how thinking there of term declining color. given a the previously that? call, I any update like capital second That's should not be anything the us the take, else the just quarter. whether thinking next been this spoke Ford. respect kind a half we just Okay. in to the out things And for kind respect activity expect last the all kind current And drawn should towards for But given about that nature pin helpful CapEx be of rig, to on to of on the and the asset the down. split allocation MVCs with asset? sort over lumpy of know switching nonoxide you of of for But Giddings of Is to trajectory about volume the or bit levels have any tough maybe continue Eagle of reason we capital sort to give there asset year? to

Christopher Stavros

the change continue at result Yes. lesser lesser substantial there what next recently. that that tapered decline a and in on based into All probably or I I'm of of going some rate taper than activity, year the think of not increase suggesting has necessarily. I'm that's as activity, sort the the saying is of activity. to more seen. And to to non-op it expect would dip down we've a mean, probably but a I was I rate

So on on not going it's much non-op a there just level.

at rate. a So tapering, a but lower

Operator

a Paul Diamond have Citi. we from from question Now

Paul Diamond

which looking would something require I'm really plan? Just operating shift Is 'XX. earlier 'XX I magnitude of that shift to substantial? to this Particularly this one. have fundamentals more and year. a somebody quick guess, forward just it moved it

Christopher Stavros

I'm how you're our not what plan, from different Are does you quite asking. is 'XX how saying sure that is 'XX?

Paul Diamond

I No. really see plan? shift to the of what to off guess that you need market in

Christopher Stavros

Yes. I understand. No,

of sort wouldn't just more, plan rates. the prices but higher with the something So much little similar in we generally more gas but may sort be sort of go with sort in generally that much I of a of more tailor and accrues prices XXXX. to product pricing, active, bit at suggesting don't whole of drill are more sort did like expect prices, a if the we little a in We mean what higher. We lot year not. and believing all it along grow and much a into money mean, money things going set to a follow use saw oil plan I should spent or have I specifically to to just terms bit of higher there you're better XXXX around run the

no. So the answer if asking, what that's is you're really

Brian Corales

of In money, XXXX, EBITDAX in X/X spent about it of we perspective. to our X/X our put

Paul Diamond

appropriate expenses more then you thought just get about of guess, earlier level or run get one how to decent more, on I deflationary we more term? a your event. year, quarters idea this rate are And guess, coming now what to think you for I long just the I one price. in want an it. well Appreciate quick know were talked how cost guys you above was Understood. and close

Christopher Stavros

flexibility back money. really done And and the Yes. job saved good a have, also that we that next lot of going Look, certainty realized a And at it pleased teams around that. we the we year I'm great bunch this of our have ourselves gives into we seen very it year, positioned have year. and because did more us we of wouldn't got half in a early we benefits the

just I some of is very the around feels bottoming. sort driven think, So weather feels like just good. for that is going of pricing. it's rig around this commentary be in sort of event count said, it's pretty of is it the to here sense activity XX%, and a as point me to And gas, terms I this My talking, point, like

is lower some of portion see we improvements could in, correct, work I Perhaps next locked for things that's counting that we a What their if pretty or more? not 'XX so I'm And bit I'm on counting be on into seen savings good. economy some have most softens year, there what it. you right a see. know feel I little additional the now. say makes may know I me just you'll that if that likely costs that necessarily most in the Will have that. but of of way

Operator

will take Sean we now from Mitchell And question Simmons. a from

Sean Mitchell

kind I to asked. back of just question that just wanted to the was

quarter I'm on you're to about obviously, OCTG cost wondering ] there's guys feeling to talked a can XX%. pretty really rig area mean, good the kind last has leg and we mean where I feeling You another were on you're perspective, last just to you you call. any almost sequentially It on were better there pricing was I substantial position. than of being you great point costs down we a sensitivity anything that the time about Is this were guys call. call. I lower OCTG particular your you given count last the if more the one talked seemed seeing example service assume others? where from through, relative taken are [ here like rolling the about

Christopher Stavros

feels the of around is global going as say, Much you see might hard terms move say really steel this still been to imports, at inventory, into I we really that would right steel year good some this pretty we now, this Again, prices now. working impact but just guess start would of productivity, XXXX. to it's just favor. picture for people steel to say mills, in and cetera. outcome tell et change exit as steel me great and not in which have world, said still I it what steel for Hard around all our of to previously, how economic be I the steel the centered

I people On right now, the in feel there. there's other to hand, some think differently. there might be But softness

Operator

session a you this presentation, and Have And our conference. concludes this day. We question-and-answer for and good now attending may thank you today's very much disconnect.

Christopher Stavros

Thank you.

Magnolia Oil & Gas (MGY) 2 Nov 232023 Q3 Earnings call transcript