MGY - Earnings call 4 2023 | Magnolia Oil & Gas Corporation

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Operator

Good morning, everyone, and thank you for participating in Magnolia Oil & Gas Corporation Fourth Quarter 2023 Earnings Conference Call. My name is Andrea, and I will be your moderator for today's call. [Operator Instructions].

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. ahead. go Please

Tom Fitter

Chief and & Andrea, on everyone. to Chief President Welcome call Senior Brian Thank President Vice Fourth good Quarter Oil and and Magnolia's Stavros, Gas' are Officer. Participating Officer; Earnings Magnolia and today Corales, you, Financial Chris morning, Executive Conference the Call.

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

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

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

Christopher Stavros

speak some several our we E&P stacks took of operating We plan and you, for year during full you good and and other several year's note model metrics. last key and business I discuss XXXX compared corporates actions financial overall our in companies up also our many how morning, to appreciate Tom, Magnolia context our to and of closed improve accomplishments will to also the discussion which out on everyone. business. quarter a financial Magnolia and of joining a us briefly our Thank to results, for fourth year today results. I strong which

per XX% gas balance the roughly the free enterprise programs, and free generation property helps continues the our XX% which attractive area at follows this quarter with per oil principles of well overall review and $XXX our note repurchase quarter, days volumes stages day. financial quarter to in year and represented our production field, of on some of in per production Magnolia XXXX compared full represented stimulation than day, drilling to we included founded of of to oil the an value. as year dividend of capital investor XX, per reaching BOE presentation of Magnolia's Magnolia year-over-year day significant per detail, shareholders our provide years of on barrels to operating and production questions. Starting a high or fourth XX% year first oil bolt-on guidance BOE X capital ago. on geared plan, will ended fewer then XXX the last with equivalent sheet, which looking business. gains such XX%. which XX,XXX for allocated for company overall XXXX Slide at bringing quarter flow $XXX support will of million XX% and X and along XX% the asset XX% totaled leading highlights. the share with volume This efficiency fourth and additional full XXXX of fourth production our which full remaining improving for EBITDAX nearly I year volumes XX,XXX quarter year on prior was growth more Brian to and returned flow million the greater before of toward XXXX see Giddings approximately your realizing Giddings fourth year update We for same day. D&C $XX adjusted through the the the and million operating the representing cash to current in X%. Production acquisitions quarter some the results cash growth take grew growth production improvements year, Lastly, Giddings at

Turning to absolute create on attractive but to term. highly was it the Slide over value E&P in investable XXXX, since per Magnolia's share long model objective focused unique enduring a generating and devised the remains business business X. that is

have to wells. be oil of capital assets drilling on Magnolia's are the returns we amount the least those while best-in-class primary and expressed, most often objectives operator assets the As employing highest generating gas efficient for and completing of

flow of low growing Our over high-quality the asset share time. base to moderate growth This rate this free providing we for safe, dividend. results to while and a portion significant of return strive repurchases our business and in sustainable a the allows cash reinvestment form for generation, a and in significant still shareholders

the may of bolt-on dividend pursue sheet, excess acquisitions which bolt-on business, returns oil and opportunistically per and sustain the the to improve property capacity. us helping cash gas to attractive balance Some accrue enhance that the payout helped our to share --

like terms one model this this to reinvestment over to rates flow past has reviewing We our believe us the moment free generation. for asset. Slide Giddings to X spend X production the more and a other to allowing shareholder our our continue as years. a shows for to lowest to that long-term how compared adhere maximize most a several us capital per has achieve core goals is is over achieving program or while cash value Magnolia operating of share combination principles growth our of superior our shifted has past sound shareholders. I'd powerful rate and creating our helped E&P annual of had compound the years in formula This a companies,

Turning X. to Slide

the sector including well repurchases. our spending, returns corporate capital strategy capital success best our of our energy some share ongoing return disciplined be of beneficial year's in impact Our and the to reducing last or level employed cost on highlighting in continue the of upstream

year our able are full XXXX was below leverage efforts reduction of had our per model and and beginning as capital what meaningfully cost less generating returns elements Our key than maintaining these low high support XXXX levels. Two helped with we of X expected asset share and of similar strategy in at our year operating some grow with production that as further margins. Slide coupling well XX% we demonstrate to as the the to Magnolia one X% were margins. best-in-class philosophy. companies highest is the and the size of Magnolia X operating much testament lowest a to to our in the and of when companies underlying that overall the compared larger industry leverage of E&P is quality and is This profiles our characteristics business

XXXX on guidance X. Turning shown to our Slide

day, transitory pricing quarter high the downtime be the month, and we BOE are for our strong basis weather fully estimated to is of $XXX recovered year We per of strip to growth operating budget on X% approximately $XXX deliver last of million year. plan in first below year in conditions current this by portion to the January. would caused similarly results prices. facilities BOE our a X% XXXX, and result product percentage our is single-digit for a production XX,XXX of to current and impact estimated Despite is production confident guidance Magnolia's for approximately severe to level running or includes expected plan products. Total expect full XX,XXX production million. plan growth this single-digit during at the capital which on year's production the deliver both an of a is weather EBITDAX capital and assuming the winter range in for XX% to oil This with normally, spending high and

come capital X spending quarter to XX% year our of we our approximately this crew growth be will expect expected to XXXX area Giddings the anticipate main rate and production is and overall assets. We of highest development in expect this recently of operate throughout activity and We drilling million first approximately to during full -- expect to the include year. X and this maintain as the some plan program D&C XXXX rigs from and capital receive our the Most driver to expenditures year. be $XXX level quarterly for the activity acquired completion on our

activity in level will multi-well to Magnolia's be more us pads combined net appraisal of consist line, development of amount in efficiencies, to similar development this last high-margin plan, area improved operating Giddings support wells. and of turned planned growth. Most a with allow Karnes addition with overall well activity smaller wells the development completed While in helping to drilled, some the for lower costs, year's operating is in

development we with currently pads Giddings, longer multi-well to feet. For X,XXX in somewhat this drill expect approximately activity lateral year's lengths of

rates. growth additional free improve business a industry took cash and high last in and total capital Together execution where company our strengthened have discipline margins are significantly growth, our acquisitions volumes our our expect generate with operating these single-digit an We to position year, oil accomplishments completed and helped focused financial run high high-margin actions margin production with similar and XXXX, The at continue the operational our well growing reduce costs and into year -- we to last reduce we essential. flow. to

results strong our and financial expect to time. I'll quarter the a on results. fourth to X-year XXXX call demonstrated have over more our We over turn history model operating enhance now Brian and to value per operating provide share financial details of business

Brian Corales

guidance Thanks, items also I'll some fourth Chris, and our the for on year a first know good questions. I remainder from results and our as we year XXXX high full website, our it on additional closed some to on and everyone. quarter of model. before out note of turning execute morning, the provide XXXX to found and review the for presentation you quarter over the business continue refer

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

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

production adjusted year-over-year EBITDAX. million, barrels volumes of XX% capital equivalent per day. year, EBITDAX $XXX Fourth quarter D&C representing oil XX% full the with of XX,XXX grew was to For

day. grew barrels per full equivalent to year, volumes the of For production X% oil XX,XXX

total million by year-over-year. diluted During the share count of a we repurchased shares, X% our fell and year, X.X

from we cash items working Looking working was $XX impacting million. at million waterfall with flow XX, chart changes year of flow $XXX before other annual on Slide $XXX cash. Cash in started and by changes cash million, the the capital capital operations with small

and year million year, D&C and share of paid million and and We added facilities on the in repurchases. $XXX million capital, Giddings, cash. we $XXX dividends During the of million $XXX spent ended towards of million $XXX with acquisitions, we bolt-on primarily allocated $XXX

total sequentially, that This repurchase of XX. XX.X our repurchased This chart net leading diluted the time, issuances. increasing second one half years. Magnolia's X averaging past outstanding XXX.X of our we XX% declined progress is weighted the to over majority of company shares by space, fourth XXXX. largest reducing count quarter. we program energy than in Slide in is the in during illustrates their the fully over since shares the average diluted upstream of share million at shares, the the million of change shares outstanding in Looking X but the began decreases a more have shares shares Since million diluted

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

Turning to Slide XX.

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

Our payout March payable rate next dividend per of $X.XX provides dividend is on annualized an and quarterly X share.

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

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

condensed XX of on balance shown Our XX. is as sheet December Slide

cash margins. when of XX decrease the quarter costs due natural product -- compared our income revenue BOE substantial declined gas fourth Total declined Turning looking at to per Slide unit prices to to prices in due per to substantial operating and XXXX. especially and and

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

the during was prices. On by commodity operating in The for per $XX.XX organic were margin equivalent. in XX% or decrease our reserves margins developed a at year. decrease significant income was oil total Magnolia had revenue. year-end XXX total very XX, year-over-year operating BOE quarter XXXX million program of The successful drilling driven barrels Slide pretax of Our the proved fourth last

year. equivalent BOE million oil resulting barrels and developed during in program. our organic and F&D reflective sales added revisions, of Total was of developed acquisitions, company cost $XXX the Excluding reserves of drilling $X.XX and price-related per drilling of XX proved capital in XXXX, the proved million completion

year Our cost of well organic and cost proved approximately as compared reduction by a result declined XX% strong efforts last developed to F&D results. well our

guidance. to Turning

We expect spending our million million, of capital XXXX which be $XXX to that capital $XXX nonoperating is in to includes same XXXX the about D&C the range an of levels. estimate as

to capital all this million development anticipated production spending unhedged quarter in highest $X be a for program expect in estimated shares, and the the and which weather January. We our fully growth XXXX. are first this for incorporates our our area. Oil be expected Despite approximately production caused the production. approximately natural single-digit and is from by East million rate is are Most to expect recovered, to this we first come XX,XXX a X% first Magellan of impact winter D&C to diluted Magnolia to Giddings for its of conditions downtime to XXX production quarter our to has barrels of discount equivalent and share facilities count approximately and maintaining oil be day, expected expenditures differentials high Houston which impact, be the quarter guidance per approximately for barrel production for the severe be growth remains lower first is of quarter quarterly XX,XXX to The of or year. Total $XXX completely in XXXX fully MEH, price than XXXX levels. is gas

We effective with rate being expect most this deferred. be our to XX%, approximately of tax

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

We ready take your are to now questions.

Operator

our question And of Instructions]. Neal Truist. first [Operator comes from Dingmann

Neal Dingmann

and another question Giddings. first and team and guide. guys, print Chris on nice My is

we there? realizing then Giddings Specifically, and Definitely And can maybe, be how the early development looking? days. on you about anything thinking these the all assets specifically should about talk are acquisitions recent it's Chris, plan,

Christopher Stavros

X old is sort better. of we've And obviously. fields borne with a better. of one X, keeps confidence able my results, fields, ago quite versus, of is the what years those Giddings now out And we've And what bit Thanks. is getting been of Yes. that the that to level learned a do certainly, of just field. lot say, it and

gone involved decades. that over the really subsurface it So modern the as -- frac phases you I through get its of to different techniques deals and where said, prior happen of one it's we life this going it's to several and latest And those utilizing design. last through phase and

producing it having XX,XXX and maybe is is Giddings, in than the proof we of headed was gassier some our terms is when got the that's the learn I out areas a think but asset oilier equivalent us this will help picked done areas or the the position, position think acres. and in where some so. sizable results some recent There's I of acquisitions, pudding and So some million day field we've X.X of more up the we've acquisition, improved borne been There's more. original with Giddings. And a

it's XX,XXX Giddings. a a continue to said, in business will more of really grow. of the is the And returns the and now, I quality returns we've -- As this really, cases, producing outcome many that day than seen in are function the what that

of for more us to I little here it mean, there's where will and smaller. think a Frankly, So bit them does after there. I go? some be go

that look and we're oilier. that but happens thousand things, after -- bit year. go are did everything tell recently might acquired. Early of the or be the to we'll anything to starting fourth drill size asset some to what like quarter particular It's and assets I integrate we similar or you we'll we go back this of everything, The shallower. days good. several plan to what see. in little that -- can't just we -- wells things have larger shallower after a Some in last We'll did feet bit a -- we terms be

with little to quite I a As the overall. said, economics whole a oilier similar as bit broadly Giddings

prospects really forward. the and going So optimistic mean Magnolia it's forward what going for field to going I our to about remain

Neal Dingmann

lead just operating even notable the will Yes, Noticeable, as on potential that getting margin. -- little even just Giddings as And to there. the good a potentially a look you rates notable. maybe plan, we love even bit when maybe you And in you and reinvestment are I'm and pointed could following results, lower the think your reinvestment baked I'm I certainly footprint see wondering certainly Giddings. expanded I you out, this? the increases operating rate definitely highlighted, because up higher at wondering, margins mean, that how is with --

Christopher Stavros

Yes. might I over different. want And be the to the different, I it's one. I to more. say are the mean, I meaningfully will week. I That's a But if going almost look good through there had that edges of as not the if things think mean meaningfully outcome, X-year, any tough going it's the a learn of I will. if results to a period. day think pretty I cycle, which is I take think we some type around be to out, be sort you outcome X-year think you don't

Operator

question MKM from of Leo comes Partners. next Mariani The

Leo Mariani

color I could provide was hoping the maybe more increased little in on you a XXXX. activity bit

mention I similar some of from or Is there's appraisals. acquired the alluded quantify the consider appraisal And X to of kind there around of Do you year. guys a some drilling? going of to drilling kind last more a here? Is color would guess any primarily also it versus it there fourth kind that the of be complexion the a this of split think the did in of newly it split to you way Is I around just helpful. press the kind some that? wells versus program? wells? year appraisal the any last detail more is acquisition X Is wells? would handful release, be fact be quarter. any You year? of it drilling Any just this And And on that fairly program development

Christopher Stavros

Thanks, Yes. Leo.

own repeated some I anyway, of ways. what you question your and said think yes. But answered I some in

anyway or will drill is than wells into probably versus year more net integrated plan. of assets of be maybe dozen of part some a it or we'll this additional the Most new -- that little brought a last the year So wells. half that is

Some in working lateral length is mind wells just is that compared this bit in year's to a the ongoing in tell the the program higher. interest the in longer a development you that also average also little Giddings. Keep I last would year. is little

drilling As wouldn't more But and I there new some may appraisal far there if drilling sort appraisal around Giddings assets -- as prices, the areas. may can learn we on just little other be goes, no, be on appraisal in as Giddings. of a see product to depending the consider bit

goes. we'll see how that So

And program and to similar color some generally. the it what really would be large, been, will you. The of fairly not by had I tell so that's, current very different

Leo Mariani

Okay. expense And provide you a on That's big you then items. picture do just the of have might any color helpful. few

can high G&A have key DD&A bit and going of kind there range on continue ] maybe not perhaps at that out anything asset there up kind of level you of new all? of think any has items? You if little to little kind and [ those the kind I some LOE cost a a is changed? really can to maybe Is oily higher cost, had tick throw of

Christopher Stavros

little the up LOE in we the also We're renters Well, acquisition considering as typical of is is as to the will. assets. it the you Magnolia new have bit prior been sort more standards, that folks in where nature. in of or the might owners that more oilier common bringing of we're if as sure. viewed of assets there Yes, way be latter the assets, would it Yes, a especially did Giddings,

will to So do there's to some standards. it our need or things up to that probably we bring do

we're that on focus LOE that of a will down I my little to year However, is more get to program to that to choice the and pursue tell bit broadly view going sort a you try my a bit. through

you not we're a see terms the as the with a asset transition bit. little LOE, it the And manage then view this but into bump in into So my see some meaningful, year. very and we quarter, to attack new bit of first that going to might frankly, could try point hope little more in and where to the decline is later we

Leo Mariani

That's on pretty Is new the Is flat? just And GP&T if is I ratably the anything costs? still any I barrel other Okay. G&A per either. any pretty the flat? don't helpful. on there's from asset that impact know guess of

Christopher Stavros

see GP&T, that good mean, good and job per we're frankly, -- change I that. meaningfully basis. a really. I'll very going around not at we're I doing much, just on a Not actually, doing job how a think say G&A, barrel I not goes. pretty we'll there, to all,

Operator

The Meade from comes Charles next of question Rice. Johnson

Charles Meade

of and the at -- Chris, team Chris the about on risk acquired... recently there. your the rest Brian of more Magnolia one ask activity I'm going to question you. the frustrating about and

Christopher Stavros

That's all right.

You the one. first wouldn't be

Charles Meade

different or you be maybe asset. had indicated a -- Well, maybe to asset had that presumably, you on think a you slightly that I the you thought of differential actually that I view I'll would want guys insight best.

for for kind asset. And of acquired those update And you any there? to on results maybe that's the the some number ideas tell designed or so drill differentiated time pads in you you kind going drill if of -- have, going of of And going what's have? test that on a which newly the us that the perhaps aspect case, to any number of that line if well characterize there's wells curious to could of new kind the activity I'm a to you're just you you're

Christopher Stavros

it will be going be where that this results too Yes. early around that some how of you year days data we'll Thanks, probably be or through wells have at single are prior the a over Charles. to make -- handful point, these going frankly, just the know. wells, how drill some little changes wells. gone. see sort be looking of There more it's forward. drilled studying we're We able frankly, results at still where we're But will this sets, time. I of going will specific stage. this how don't some a We're to to at and be not to smallish It's see modest later may these granular to well probably

months we're quite Frankly, just not So about X deal yet. on ago. there the closed we

and it, we're integrating plan. developing So still it devising it, folding it into the

it's still days. early So somewhat

Charles Meade

a Okay. how the A&D at how the characterize Magnolia? of how And larger talk on Ford directed across it trend then to set broadly. second around And more are is Giddings? much you is looking question, do and attention of the you you your Ford and also right opportunities spending Eagle Eagle about this How would And much -- opportunity for Texas?

Christopher Stavros

of -- day, of trying the some areas open and around lot I overly Yes. we're borne out based is our we mosaic gain of experiences where said before, it's to drill quality Percentage own this the more a this at to again, us, It's And pretty there's business of in us. And out that for not improve on what and go earlier, attractive of excites and we there. understanding is blanks of end a of this a maybe it's further fair the the wells of are, and we're is fill want I as what but we mean why things -- bit folks I as and about we the because much directionally the question. what our some little meaningful. a that build and the time, plans see. my of said and asset to trying knowledge we're to

you So are well, areas we more the to over and will I help But sustainability not will own if won't acreage provide look not interesting for can It's that. all like and everywhere. and runway, that I some It's say, help us business after go there the time. this where business the see enhancing everything. will, the I'd like

So the good. opportunity I set reasonably think is

Operator

from & Co. Oliver The next question TPH comes of Huang

Hsu-Lei Huang

Just wanted to outlook really the quick. on hit XXXX

job CapEx, service look helpful a of you year year in is XXXX, range to misalignment able nearly just And volumes. start key are production of would XX% drives expectations, foresee kind costs. what lower the year sort guidance all or last of unique of catalysts a being better-than-expected forward think also, higher I some last I But for exceed kind year CapEx did as the you levers And initial on great probably in well. what could to upside given most know are capital we the and on or about that the any the of into efficiency? lower excited that as color end all drive be line

Christopher Stavros

being on the both where saw we creating gassier between and was side, of much fields we disconnect proximity supply some side in with Thanks, on happen. early chain and operations Oliver. It how know teams, some linkage our us we of don't a everyone the talking make it But vendors east as happen. work some took the completions drilling large didn't was. and the north, activity that I up, there a us But to benefit from got working did this it true and of after partners. benefit credit with the them weakness lot and And to from of that just slowing to and I us.

work. take did a of it lot So

of year. what's certainly for the the of costs -- half terms locked the left, in first In for our we've

are the the half our outlook. in of comfortable So headed things in where I'm of terms year first with very

soar just higher. of For half year, going activity the to me second if away the it as to doesn't is seem

or In prices of that softer bit little lower you where a fact, flat are, pleasant. to all maybe it's sort gas things not see considering

year. But so And the just wiggle room bit little the things may half with have good. It of to provide us for generally, of pretty a we'll feel back see.

we'll areas specific efficiencies on see items. the the we towards cost work side around see. as job terrific per we'll completion day. that some to and efficiencies something maybe some could drilling and We improvements or on last but think like on well, and did especially On hopefully, a side, with some, I'd the year, completion stages that side the

So of you bit I hope a that gives color. little

Hsu-Lei Huang

that's helpful. earlier you interest on about this comment quick a Yes, just follow-up a definitely in year. And made higher wells potentially working

there's get if way net trying of on that a magnitude really of wondering year-over-year quantify just kind increased the any to footage might Just basis. sense lateral a of how to the have shift,

Christopher Stavros

back answer that can and specifically. We get you more to

Operator

comes Goldman The Ati of Modak next from question Sachs.

Ati Modak

acquisitions there's a I in in lot opportunity of you still Giddings mentioned guess the area.

entities acreages are what are that of doing you? that have this there the Just those well? or maybe you hand And level large try year smaller over wondering if last? is mean these relatively would are does and active asset be in what M&A to replicate as that versus more players that versus And interest you are to largely the

Christopher Stavros

last I do year, they're know some this year if we in looking deal-related a to more a a in to to our are what don't going I Well, frankly, -- or or do willing be operators know necessarily think looking don't do, to wouldn't that done to for replicate what I is whatever. or what acquisitions. able and other had year plan is bit was going of digest active plan which what our activity -- of just than We're we've overall integrate us, XXXX. to heavier to

digestion some is to that needs occur. there So and integration

be and and really, filling they'll we've it'll what tend a So but of in smaller, there a pack may punch trying hopefully accomplish to that as if again, going think said, mosaic been I to forward. are some I history bit -- recent things,

right larger So think to sense I it's don't least that's not now. at going be my

Ati Modak

can the the Got oil it. for think should this prior well we If expectations year? how talk versus about And 'XX foot you around per years? in trends productivity basis, the anything then about

Christopher Stavros

about, been broadened around or way. focused a And frankly, terrible that's way major movement there and a in it's and I evolution and be to talked wells Yes. program of the been of early obviously there a have were very, not concentrated very of over -- population that's much mean mean an limited productivity. out, set was I days, and honest, the smaller more But as area. sort with time. some the Giddings may

that I change, should this year's program major you don't see and to think in similar yield I frankly. saw what 'XX. any results results

Operator

Nicholas Pope question next The comes of Seaport Research. from

Nicholas Pope

PDP wanted that assets? million kind the specific off? there? quick details of tail, tail in on price-related it across kind those there there? is that trying of -- just reserve of the Is the understand just some presentation. make the sure, The balanced outlook $XX Or is Just is of A the question X to make revisions, it I reserves provided to anything you that sure hit coming

Brian Corales

you pricing, year, you roll reserves. when do And significantly higher from Yes. had lose forward last which

the in required change gas. significant, oil relatively pricing SEC So both was year-over-year the and

Nicholas Pope

both across assets it's fairly... So

Brian Corales

or It's assets. both of I is we're just think I production It's percent But mean, our both -- assets. of XX% our XX-plus at remember, Giddings.

probably it's So proportionate.

Nicholas Pope

specific And a timing what be close acquisition? can you about little on acquisition, was the of that the more Giddings of the

Brian Corales

It was right around mid-November.

Operator

Energy next Jay of The Geoff question Daniel comes from Partners.

Geoff Jay

me you that think understand understand just you help there's kind if talked year? completion peers? you you -- And was And looked that if and efficiencies of increase like just your side. benchmark on help come Can to of significant curious, further I efficiency this particularly against sort is? around the the how about gains,

Christopher Stavros

We're process mean through now. looking we're right going I that into now. that

latter portion equipment to half crews, the look ahead add we're much -- think year the we don't don't for how Jay on know on into trying really know. to back or can item I specific just that I of you, Geoff, and the our As I

Brian Corales

bit thing maybe side. is completion per Chris a stages earlier really, Geoff, the on did really little one we I'll job a just and about on good add talked day

of is drilling the is year improve side efficiencies. of those this on the more on to more One for focus

Geoff Jay

what saw of Giddings I release -- in just cost it. the sort kind way break pricing. sort gains if and interplay you there costs the I'm the between was a help that can about And could XX%. might down don't my if know were sort efficiency -- Got I guess piqued of that of well of press down I understand how was Right. there. curiosity about of me you

Christopher Stavros

was a -- were there CTG, steps lot but a [indiscernible] lot frac. it of of it was you steel was, Well, as know, there in of meaningful

are there as well. there benefits So meaningful

Operator

JPMorgan. from Parham comes next question The Zach of

Zachary Parham

expect your you shallower Giddings maybe quantify I give leading are how could the in where edge costs just guess much to and color first, be cheaper D&C some on newly us acreage? the acquired you wells on

Christopher Stavros

foot, running $X,XXX year a lower ago. are about a and XX% wells about The I say, would that's than now

of X,XXX so efficiencies -- quite get shallower costs And we'll stuff you shallower. development, the longer shallower, newer they're for pad well that there X,XXX, a that and as $X too. maybe -- But million longer some laterals for year, that's feet the the said, bit drill this the The per don't -- roughly I exact well.

of right what So I know that's now. sort

Brian Corales

give And need and can drill to you But we is first we shallower. Zach, better it a answer. let's -- one

should it per cheaper. So a on little a be foot,

Zachary Parham

to out give gas. of flattened differentials going in also bit both it. given Hub Henry further guess thoughts natural on over concerns to and the your wanted heard versus on Permian Gas Ship I quarters. us Got Channel Ship expect some Gulf. trend and also ask couple flow Channel a into last gas out 'XX on just forward? I volumes increasing have Can We've differentials you widening you how the

Brian Corales

outside Yes. all the taker. closer think of probably Well, gas second price best are I Channel, We're hub Ship Permian. gas. to to honest, to a it's mean, we than deliver market the Henry still be goes our Hub your I to

We have it in all challenged? we Is general infrastructure the need. is Yes. -- gas

Christopher Stavros

in see the this evolves be going really -- market. what to It's how Zach. interesting to

the the a seen gassier their the from probably activity producers of bit. independent maybe reducing You've producers, here some already some of comments --

economics. And this to is the respond will so a and operators the market

that that bring pulled are will And balance. response. be that to in better extent to it may, see things things over the time, interesting into So

see. we'll So

Operator

Capital Tim from comes question Rezvan next of The KeyBanc Markets.

Timothy Rezvan

on to repurchases first. like I'd start

to because on the a Do like Or back deficit Just your free changing? bit? that pretty it maybe not as back a the think based understand just that anything Just trying first to pulling repurchase methodical range quarter we cash flow quarter? is if a in trying amount have the you to it of kind heavy a been like information, CapEx lower outstanding million-ish repurchases. $XX you've little understand it of into of you're Is sort that of wanting with you've -- kind run. about than suggests maybe shares XQ

Christopher Stavros

repurchases really. I I that think million didn't Well, not I quarter. X.X I we the in was think, not as recall, we I same, shares the think if about if bought -- we're same exactly third mean exactly the the forecasting share quarter. in the And fourth

us capacity. symbiotic I an repurchase been different the dollar dividend The I not might amount of same. little which way. bit because available the lean shares there There's buy look happen, sort comment, the then come a integral know supports -- in. in. If if relationship for at shares are that the share with as lean some the we fine. I it little our disconnect might in might repurchased opportunistic. have the we share less sort The share have could certainly could at just amount were was repurchase, not share sequentially, more a the is but in shares of per of I'm shares repurchase program that if dividend And ongoing a payout value, the of to And look market. more terms and and I feel that I a bought in, So as mean, broad been that. a perceived in I anything, expensively, there's in The be

think So about sort that's it. I how of

Timothy Rezvan

Okay.

the That's that light. million just Okay. math to seems if We're I trying a just for quarter, -- if $XXX not. what guess something it little on there's there's there. the understand And was I first you do

follow-up, the interesting, cut similar in kind Is thought general, enough from they well asset your it you're you getting where sort cuts, trying you seen that confidence through what of If you've confidence said be it -- that Is little should gives you So have Chris. XXXX. that a at bit. I have going it, I Giddings is? appreciate that mid-XXs. the was you as cut oil oil you confident that going call understand program. SKUs that. And sort controlling oil XXXX -- to a in of staying to you're my oil we look Giddings the Just of

Christopher Stavros

thanks. this Tim, with year's No, confident I'm on if Yes. oil you program will. the pretty volumes,

in and BOE XX% volume. volumes year-on-year to somewhat much. The through oil ran we on overall I they'll a will to of grow maybe the take they'll the If a had be in think grow, as they'll for that that a the XX%, similar little I year, movement, I but all said, oil it think I range. quarter fourth similar view, right quarter, not each grow the for basis mix

is that. the how well and designed to pretty Giddings, program confident I'm of in that's then I with the And yes, just in So the what control deliver. That's feel. terms confidence

Operator

comes The from of Paul next question Citi. Diamond

Paul Diamond

Just one quick one for you.

forward addressable more your kind going think I see as want the total about is is of to you as -- your As progress like you Or kind effort? that and that guys far about Giddings we -- just as addressable year acreage of the as what be what something like that, single about to should multiyear size right guess you a think at. the goal?

Christopher Stavros

years. see period, X-year once X-, necessarily over at been result. this here up of has I the all learning or we once term. and in to evolving that come don't It's this it a see for experience I shorter going occurring all picked not over at us amount it's the as

-- could position So that have through an of we where -- we're some large makes a small that learn activity will likely as will continue own we and our to still other that, extension pursue sense. and we'll opportunities

Paul Diamond

up more really in of further of you there more are kind is existing flung there? those acreage? Or Understood. interested And think on kind do you exploring blocking areas opportunities smaller are guys

Christopher Stavros

the Mainly filling former, in.

Operator

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

Magnolia Oil & Gas (MGY) 15 Feb 242023 Q4 Earnings call transcript