MGY - Earnings call transcript Q3 2024 | 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 2024 Earnings Conference Call. My name is Cindy, and I will be your moderator for today's call. [Operator Instructions] 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.

Tom Fitter

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

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

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

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

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

Christopher Stavros

we as well us greater detail accomplishments. and appreciate XXXX and and Tom, the and of I you, Thank comments year look quarter will your quarter results in continued XXXX results, highlighting demonstrate will execution provide full third our on take operating the joining good a financial our before of our financial questions. business finally, results. then some which provide some everyone. We of discussion Brian of quarterly third our consistency additional our provide XXXX. plan as you model And into early today morning, an review guidance our for some

of objectives, the most community and completing goals gas financial the the primary drilling on best-in-class amount for continually operator assets capital highest those employing return oil be to generate while the and of and As wells. I assets, efficient so Magnolia's least remind that

shareholders and to share also strive cash our growing a repurchases and secure a form our to substantial return ongoing of the dividend. in flow portion free We of

where built some the and pursue both the by competitive and have we of the basis utilize plan we acquisitions, in excess our business and we generated operate. where to advantage oil a experience bolt-on property attractive to Finally, knowledge cash technical leverage gas

model that are replace produced, high upside firmly cost us and dividend accretive opportunity allowing both our Acquisitions that a business capacity. the advantage of overall provide our over growth to us to per business, been and our accretive our importantly, but set with for durable a believe gas shareholders. entry simply to are for that and financially to ongoing the already provide sustainability stock. improve payout of the increase our serial has opportunities acquisition oil compounders returns and and targeted our not of our share value with We time look enhance strategy and We lower to optionality of access moderate sustain to competitive

team Looking investor efficiency consistent commend enhance for I cash at free through operational and capital efforts that improve their financial value. and costs to These field Slide quarter be and flow program. workers lower initiatives field costs. presentation, we to operating year can have margins per additional in the of continued used this improved resulted our share to reduce actions our Magnolia's delivered chain another our performance, want which X team, of our the strong operating operations to our supply include level and of

multiple midstream unplanned by and approximately outages, day X,XXX barrels period. end was which natural oil in by of third-party of during Total late NGL in resolved of the our quarter fully and per production impacted Overall, per by production our during day the earlier These the with our period. the gas and outages the occurred primarily were affected BOE production approximately third facility quarterly was XX,XXX equivalent company some quarter line guidance.

remain production company year quarter expect day, the ago level the nearly and levels, which XX% to quarter. of Total into we third from this barrels was represented XX,XXX oil resilient growth per quarter, Production fourth ago in oil Giddings the production Giddings quarter, area to the day growing during a equivalent growing with basis. year the compared XX% barrels XX,XXX was oil year-over-year of XX% per on during

We continue assets, overall throughout strong to strength the well which our in flow. and free performance our earnings see underpins cash

have allow ongoing drilling overall completion into overall decline capital, with our high adjusted of just quarter, spent now that completing continue of capital wind year, originally million the to we production drill additional a will we plan from during and anticipated efficiencies well lower-than-expected drilling of is $XXX Giddings fourth and activity. amount costs oil XXXX guidance -- total production quarter a mix this million to of of of the a $XXX part quarter. The capital below in our EBITDAX growth million. are wells third in in and our fourth rate for efficiencies which This total resulted planned As within and exceed down capital year's growth. XX% expect well of us deferred capital represented to is pad costs which the ongoing well and We the provided level single-digit capacity not $XXX and during us which our with XXXX, spare X-well the spending small our of year-over-year was BOE improvements spending an

at We with a [indiscernible] path completion half year-end to XXXX. the expect this be sometime first additional of anticipated in

some additional pad year. into should flexibility with operational next us provide This

exceeding decline to earlier operating our by I'm of our said, field. operating shown costs $X.XX and us quarter, to this field to As of lease continual helped quarter XX% compared in our work XX% by Their the target personnel proud a the operating our level BOE further efforts have second first the the in X% lower half hard to year's of cost very I during third XXXX. per to reduce

in replacement field. from and Realized savings substitutions came water improved a mix and parts over the product this period hauling, of workovers, for chemicals pricing

to field the time implementation contract year. through Additional costs for of further seen of savings are optimizing our software, from management next equipment cost other for lower field our and will from has services reduced and field over utilized our being some into which rental hauling, be labor water needs

capital we operating third free further costs shareholders to a share and repurchase of in $XX $XXX of the improved of base combination returned quarterly quarter. lease led and million cash to during flow dividend program. cash Low flow million spending our reductions free generation ongoing or our XX% through our

our high-quality flow and generation. Our provides in business a for free rate low discipline cash capital consistent and model reinvestment assets inherent

cash of and Our plan is to dividend. free this flow our shareholders to base continue a significant share portion repurchases to return growing to grow

sustain to acquisitions well the utilize to of can to and above business knowledge bolt-on model. experience, for of have the durability We look cost our attractive work and ability our also capital continue generate our returns to

interest During sold completed acquiring the working and areas, areas. we development incremental These operating the royalty, in transactions $XX third future deals small at several locations both quarter, ] our increase value lease Conn's million. Giddings our [ totaling these and of

costs have out over we As forward business allow model to our position success look both we year, and results XXXX taken strong into X to delivered initiatives and past plan year, next that well financial LOE years. execute operating both recent reducing our us and and field the The volatility product we close focusing has XXXX. the same for price us on to endure this

over third on financial fourth call guidance. Brian I'll now in operating addition details and quarter to quarter results the for our turn to further

Brian Corales

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

Beginning on third as had Slide quarter. Magnolia Chris an X, discussed, excellent

adjusted $XXX $X.XX per the million total diluted During quarter, income of net of income share. net or generated million and we $XXX total

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

volumes quarter million to fell XX,XXX barrels year-over-year to day, and shares. XXX.X grew total of production equivalent per share count our oil X% year-over-year Third diluted by XX%

XX%, employed quarter on efficiency. return the annualized Our our third continued during capital capital was showing

capital Slide started the million, million. working at $XX items quarter associated completions cash million. quarter was We X. other by drilling chart Total flow Cash with the quarterly including working capital $XXX $XXX Looking was flow operations leasehold $XXX small cash and of million with in impacting for the and on changes facilities incurred, cash. changes from before third waterfall capital

As we million. deals $XX small working mentioned, interest and Chris multiple quarter closed third royalty during for the

million paid We $XX quarter towards of allocated million [ cash. share dividends of ending $XX ] repurchases, $XXX with million the and

outstanding XXXX. This have we shares our began at repurchase diluted of total half repurchased shares a chart program the second leading time, the million illustrates since Since outstanding to our reducing decrease in X. shares that approximately Slide in XX%. in progress share we XX.X of Looking

X averaging fully during quarter. declined Magnolia's by million XXX.X count weighted more sequentially, average diluted than shares shares share the million

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

X. to Slide Turning

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

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

of Magnolia's our capacity proposition shares the an and and our for growth production payout overall plan annualized investment by supported increasing growth moderate of company. of important reducing annual the Our dividend is dividend strategy part outstanding achieving

senior million $XXX quarter and Magnolia million. mature which undrawn notes, credit strong has $XXX cash in Including balance third the total is our of sheet, benefit of revolving liquidity of our and the a quarter million cash our million and very balance we ending facility, $XXX $XXX ended XXXX. with

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

per to and third XXXX. prices to BOE our compared X looking decline unit Total when oil in decreased Slide operating to Turning revenue due year-over-year cash and of margins. quarter at per the costs the income

to levels. Our X% in lower quarter function total the taxes. decrease a of a BOE the or quarter of ago per and third $XX.XX BOE XXXX, second or operating including $X.XX production costs $X.XX X% from increase of cash per was year LOE of The sequential an BOE G&A, compared sequentially of primarily adjusted decrease per 'XX. And were

XX% for operating total margin revenue. quarter BOE $XX.XX of Our per third income our the was or

guidance on Turning Slide to XX.

million the being a We completion than includes associated around year full the slightly $XXX spending of more This with drilled million, approximately million. of activity $XXX pad our midpoint facilities during to Giddings the X-well drilling $XXX to fourth planned quarter. capital original XXXX of from addition and expect originally our February guidance be

Total for with growth completion drilling We be delivering be unhedged to completely remains natural per for production differentials to to price slightly and growth. higher approximately discount of and oil all gas are anticipated barrel a oil 'XX, Magnolia high Houston $X the fourth Magellan annual year-over-year is of production. than quarter Oil BOE quarter a day, BOE XX,XXX $XXX estimated capital approximately facilities production expect approximately total fourth during associated and growth million. production single-digit East its

fully The fourth diluted million than lower count XXXX to fourth share is X% is of approximately quarter expected XXXX which the be levels. XXX for shares, quarter

effective approximately due to refund and our approximately quarter X% the the be This be tax than received cash fourth prior our total year. expect to guidance XX% and rate this for We to our lower quarter X% both year. during is third rate to a we the

We're now ready to take questions. your

Operator

[Operator question Truist Neal comes of Instructions] Dingmann from Our Securities. first

Neal Dingmann

continued first growth. My Giddings question remarkable is on your

of success you low was last around that this? of much continued realize result you rate enabled reinvestment all the just a wondering, was I I around that Specifically, acquisition, keep of assets discuss growth so prior quarter the the could these but to the drivers

Christopher Stavros

or Treat, Yes. Neil. Trrick

easy. this this takes never it, to pretty X working Next comments you more good village, a question. time than the now, tell a we've long at X it's and call years, I'll years. for And Look, been

fantastic have reservoir people, talented folks. geologists, and completion drilling We geophysicists, engineers some

where are them All been we to of integral getting have now. us in

sort that we practice of made. riding it out. that And bike for have On oil figure had X, the progress shown knew but through in thank So place. understand we by hydrocarbons a some them time a field a and like I work necessarily and lot that. think didn't could that it, with we Day we And we I of and we've that

knowledge. our So the is the of expand mentioned of that you to point acquisitions off

Our a know. tentacles have beyond we us base, get of to little acquisitions designed sort even already figured the springboard and take sort of further of but knowledge what is already us know we out the may as to tributaries act ad beyond what and sort

than to we're does the subtler what Gen a what often a XXX wells surprised Giddings Giddings rate, in than see So positive time. is [indiscernible]. the of benefit X we our rate the in than more expectations time exceeded your decline has Certainly of performance bit We lower low in we've of shale drilled the and The question, typically anyway wells and a rate over area. typically way. reinvestment over have a seen a generally, little typical decline benefit

doing. time think to subsurface. with experience, some do to well. understanding So from a And the will we We continue and can us where field put that what I knowledge every us just every day, through down learn we not we're that take of and opportunities continue it we other more benefit we'll utilize but provide further,

So I color. hope that gives little you a

Neal Dingmann

well, multiple question unplanned around Chris. my second announced And then does facility It third-party just midstream your outages.

of the recent you further, of consider you outages infrastructure some reoccurring future I this? these outages? your talked concerned While capital completely of And towards been would Are about have maybe know more spending about address you rectified. to any

Christopher Stavros

love you'd destiny, it it to and terms of this all to produce what having wanted you of facility where around to from want a the able pipeline to being a all produce your around and you take have Well, control. Yes. of And take to scenario, in in standpoint. control and perfect is

Magnolia a -- of unfortunately, around guys, to But need So, exactly was do wouldn't confident to size I work these watch specific exactly and if is organizations trying with that that. the capability set larger my this. have some and feel capitalization to knowledge midstream doing we I overly wouldn't I to where

never it without forward, And else I faced it they issues anything were you some faced reliability issues concern specifically, around power calling of anything were that it is. around around than out and be going of the more is predictability because what had might power. the So some some if that and know just

to we'll how don't in in it like our going that of capital what about be we ultimate something would And issue think now, ongoing a of a unlikely in But and that sort consider be do. reliability to terms over see an broad would us time, have goes. I maybe I to fashion continue could forward. I control forward? that doing of to see would concerned related own way, big, going right big but allow we power,

sort with practice. there's best You weather we they work And there's try. have and over there's we I time seems it more whatnot. can and a what it know to issues, take for which them And and to But breakdowns of is. common become issues, of power

what's history. try recent would above I and ask to that -- they So go their go beyond been

Operator

One. The next question comes from Phillips Johnston of Capital

Unknown Analyst

for pretty LOE you program both It's think next guys you paying optimization standpoint, costs and second of realize exit And is year. kind that impact don't directional relative where clear looking [indiscernible] unit GP&T natural off. higher with half a costs out any I gas guidance trend unit year. guess might the have I rate? either the for there But just LOE in do 'XX from next ? trip How will to your

Christopher Stavros

field had from say improve, say decent beyond the to inflation and pushing the levels increasing will a in press year, to requirements. additional always and for see is question. as done. where But small I second half. that continue the I some said, pretty as as and reductions into year, Thanks I we to back environmental double-digit underlying maintaining year job we'll been forward, probably We're think, modest I is of that. Yes. looking We've early gains that. on never done been constantly would we regulatory certainly And we're fair what's would that terms next and you're before for going well reducing these costs, push may I in done,

great XXXX margins. maybe always and would So these think our look improvement. I see modest be least more But can into hold to we if like levels at some it we'll for I said, improve

for a puts prices product think But weaken, further next even place I us it in good into should year.

think a has good all for I this been exercise So us.

Unknown Analyst

Okay.

quarter Won the $XX Sounds small there significant worth [indiscernible] that in good. closed? quarter, to came then in deals on the was that in the And have million any of that production would closed

Christopher Stavros

not. of some consequence. that but working incremental that nothing interest No, really production there any mineral around there was interest was were and things was These really nature,

Operator

Pickering. from Oliver comes question of Huang next Our Tudor,

Unknown Analyst

I looks off cost into moving in where wanted sit might perspective it's right commodities like based be you of service alignment to direction what relative and from a today to on to trend that all the was start how all oil think past I continuing costs to just the you hoping XXXX. able all about saw all trying this gas speak to how services. out you might to but you sense an really get trend quarter, better feel

Christopher Stavros

or -- that the would with been where month the of timing really anticipated would renegotiations to savings have had extent, quarter It that expected falling say, a ago. kind worked you year. some we we think for a the third was or small -- have savings provides Oliver. within us contracts in to and And drill Thanks, of softer -- I capital incremental with key well, allowed bit were where for our recent quarter into such it next the capital was going that X as the flexibility months from, pad. fourth some into some extra a that we some partly and little had services that I I that for of lower to we additional have than materials Yes. us period tell things

really, are mid-single steel type other averaging on pumping, minus, mid-single-digit one. or year. OCTG, categories casing which depending And the well, of the I'm rigs And into talking in and across again, plus those all as sort pressure digits, the next savings board, this of

capital the to I grow the going that. So said, we'll as some into -- And will year. next moderately we we're into able next -- on seeing year be just still of

cap of sticking XX% next -- all, at cash our able -- than pricing then XXXX capital levels to see certainly grow into our flow levels, in higher, or sort digits. and year. current for spend, at tough me capital I mid-single if fully But much going we'll be I within terms of certainly on commodity not to higher being anticipate

[indiscernible] think stand similar the we things looking sort best. I amount have it's way But flexibility at per good I of at right of now, a built in.

Unknown Analyst

from considering that question, helpful last the That's I just HBP area one there the a Perfect. anything lease bigger your last even allocation legacy packages Giddings decisions? perspective, late terms super the of been core maybe we that when drilling year, in in both required the April be might north XXs position. year, know over And in impact near-term had position capital and the that and second land percent obligations of for color. is on aware up should closed in that some of high how just or

Christopher Stavros

very obligations not it changed to similar meaningful would it's in at had been. those additional terms all necessarily of No, deals. what nothing There's creating have that really, from

Operator

of The from Research. question Escalante Carlos comes next Wolfe

Unknown Analyst

I'm behalf asking on of Carlos.

is, So D&C deviation is ratable a uptick looks even you the capital your it from quarterly material pulled pad, spend. the minimal, though like early X-well question the not

much for improvements? sense, continued the drilling? capital the incremental for? So in is it how efficiency D&C your proxy of both? that only Otherwise, costs a are just Is it capital Is accounted

Christopher Stavros

a But proxy in we is of drill, would activity. continual tell on the I the it to that include for which Yes. you million don't about be did that approximately we just being can I roughly. did depending quarter, from our to fourth forecast include for $XX the quarter-to-quarter pad for million costs will drilling $XX a timing we that on basis fluctuate it know anything

So that's that. all into incorporated

Unknown Analyst

LOE the it regarding what's depending can my reduction. fixed what in Because on Perfect. be And it there? was a number? number. how goalpost view, a on of On question got you next right Okay. you add can go-forward is, our color moving of And instead the top if target

Christopher Stavros

we're Well, a on, of some is said, lot may direct but there's there. working components within as I LOE lot be of I The that expect a fluctuation. what there modest

fluctuation workovers period, ton and depending to some over what you've and period There's time, of So that. not create control needed to that time over that quarter-to-quarter. got workover may be costs a may from on work modest small, activity

software respect need just But LOE those do. bucket you things, particularly in to what of in do terms we've of every inroads costs, Sometimes you and you implementation. every that around would made reducing direct to need positive in field almost I tell management

inflation. items, picked there's be be proxy think things were believe But where believe back third at more to But nature I good better forward, as general we is that things there's some you're I and I for again, do to we that quarter, pushing going on, do least some mentioned, in field matters that. regulatory more had, always So I environmental a that can as do than and the of up. and

is XXX of next to [ into me. going pretty So to year, ] to good XXX sort feels

Operator

Noah The next Bank comes from of question America. of Hungness

Noah Hungness

bolt-on how wanted trend. to general in the to well? hundreds as and there million million $X the these opportunities just ask dollars you opportunity set see first acquisitions? more million the M&A Is Eagle and are small or it the market I broader currently on $XX of Giddings larger Or at kind Ford both of

Christopher Stavros

I it items of it's oftentimes and at a all -- look the I our game where certainly operate certainly existing a a and a are the or driven drilling. sometimes would has adjacent been, we hope more tell areas -- things looks to Because and some we're driven of smaller land this above, we are -- I our of so. lot and or like by call lot where what of we've that ground or at opportunities where by group would that you, things

to that be of small the improve things pickups So that going is just value of drilling forward. we'll some

look a good what there some that out would very But possible. certainly certainly ourselves is we've continue so no, quality look drive opportunities are other you I of to run that are that being number that and to packages through there, -- larger process quality are got may asset we a a tell are we There that hand. of at if varying

want of got pick sense it and look I the I me, a to that kind positively describe hand so it. add way And from that's the can front in I've cards deck if my I to up of of that at

always want try business, or make it to for improve you difficult yourself. So complex not to the more

bar. out a it's -- opportunities of a we're few we lot quite there. kick So But high think and tires, I a there's

Noah Hungness

choosing a that pull Why we then And And choosing to take CapEx of one well? -- about the process you fourth efficiency quarter with why sense. continued similar and your around you the seen. D&C forward pulling 'XX, ton just pull activity a if I maybe guess think forward makes No, into 'XX on move next versus all run the your issue forward activity savings? to would have activity would we is then also the then as into thought gains are also, of you in you

Christopher Stavros

somewhat around providing think soft. prices. ourselves things seems around bit a still maybe forward, as a pulling view bit into year, And feels idea, of you next view operational -- uncertainty little it our I given Well, a a optionality, little with go in product is maybe good product little on how it more terms are with evolving like flexibility, my bit more the prices

And my $XX not million. short about talking We're we're million, of not? -- this is is, So $XX why money. view

seems more to in decision. So action as I opposed to mean our flexibility the of better banking creating optionality, course program me be to it

So I'll take it.

Operator

The Mehta next Goldman from question Sachs. comes Neil of

Neil Mehta

like tactical you do those sounds some it. strategic have called worked challenges good about It It interruptions those that looked have through going and was feel you largely question you confidence quarter been midstream the like out. you one. were resolved, in of that kind forward one but there Just tactical

Christopher Stavros

good bit I that to do sometimes a you best we happen I And circumstances think, you there's I there's as be things good they're Yes, your issues. time. exposed is issues. responded time we're as and the from And things has I power to earlier unplanned, unforeseen go. everything around to midstream it's where now. mean facilities -- good. with all everything I providers or job mean, feel said, where a I work done that I And resolved third-party are. certainly -- And reasonable occur fine responding little side feel it. these been on can. fine, to these But anyway, to they've, can about

think we're go. good And so I to

Neil Mehta

oil think Good. second All know, one, and the right And about in And your unhedged and terms for -- to gas back the talk you more managing what it aggressive the philosophy why just right. Very philosophy? good. And just almost would around you then the forward. that step be you're and is as you production. completely would that for hedging, managing take hedging ever risk of

about So just thinking hedging. your philosophy on

Christopher Stavros

The point or the almost completely unhedged. being way you mentioned it about

Now almost unhedged, not unhedged. are we

these it and your We always like And of are a don't it. the fire fire unhedged. totally like around that's of in are insurance a place. risks financial We risk. about business. Look, my insurance. thought risks how And philosophy the sort we about the is of in predict And we it's trying -- to lot first inherent debt. take And the for have lot need don't

a And it to just there's think cost the I complicates hedge, And pay for so premium of insurance, you like business. a there's hedge. the cost a

it's leverage. when think I given that the that side, my low the about understanding that have think don't financial night who issues we commodity us, the won't at the of sleep something could shareholders view they any they we own our And is I own that and exposure who how also with need. investors, on that terms us to folks wanted in

full of prices debt. -- allows we upside So with downside to for have our on I low commodity think the this levels exposure protection given on the

position situation the philosophy. of or optimal an be it's in, that's think to I sort So and

Operator

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

Timothy Rezvan

is sheet, now. Houston a given out the on We Obviously, you're basis heard not follow sheet blown I base right Ship don't at we lot Channel. need the like your on hedges given sort I'd to hedge think decision of prior the to to strength. you the really have traditional dynamics has independent by question. But going to balance of concerned talked of recently that up balance the and team

of the in $X.XX different [indiscernible] years. your have next out about ship peers seen a Some channel We've couple for of view. public

just basis Coast like overblown swaps. you're your So do if the you to on is you comments about there's that. about why talk to Do feel fears area. comfortable love Chris going not what could [ doing Matterhorn Gulf I ] about

Christopher Stavros

obviously I'll -- you as Yes. I it's this and can But imagine on try one. understand complicated.

I And gas about our best look, hub, channel $X.XX. Hub. sell it's pretty after as we're -- ship the guess, and confident Henry think it's around I you that second to said,

Katy is the additional and our to than probably better we [ on best at necessarily any area the this think volume this the else's it's and means. of understanding into curve point, ] not -- anyone coming is priced So Matterhorn by

There's, to [indiscernible] like not and gas, dam a day -- Bcf don't of an flood [indiscernible] a million immediate gas I of we coming breaking. Bcf Matterhorn like long on see X.X is guess, sort from

the and on probably think will that that's maybe as coming that get XXX will Texas and -- flows some day. happened I gas benefit home market, pipeline commercial our completed. market Northeast completed interconnects some will facility gas other some Matterhorn. some one [ other be there's away a million more early additional So be the probably And ramps, the likely take and to provide That's south ] to and will that interconnected a LNG it that from from There'll find initial about I Plaquemines will the this But coming from October, storage pull interconnect facilities. offset think the more it's time. in able factors a only into in service,

don't a all So just whether is or one-for-one not I this know. offset?

from hedge just offset this challenging is would amount going to that line. I parts there's to trying what lot and Matterhorn just could potentially So that our the But basis which impacts moving probably think here I speculation do. more say something not of is we're is on a around would part,

Timothy Rezvan

want I that sure make a to oil, circle understand That's on answer. what on context. want to And prepared Chris. good Okay. you're I then just comments appreciate saying. back we your just I

growth, pretty clear. exceeding You oil BOE talked about that's

current that XXs to means. low we Should is think remain just mean oil You said into I'm what oil you something sustainable? the SKU that to understand expect you is to fourth trying the resilient like quarter. take

Christopher Stavros

Yes.

fourth think we anticipate flat the quarter. fourth be going the means it into volumes is that about I the oil what for will quarter

will that a generally, my about where obviously be if yet. know hold volume and that Now will I us will from percentage, around should guess were BOEs a we I third up -- it just bit don't don't in is the bit. be maybe But the a will. similar overall and it little little flattish But you side on be better. quarter

Operator

Energy Daniel The next Sean Partners. of Mitchell question comes from

Unknown Analyst

about little earlier, talked Chris. bit You a it

you a mean You harder guys kind I make kind referred finding good for kind harder? consistent been you've a Is it this going to opportunities doing very pretty hand. good get of bolt-on of have of to just -- a been while. like about and I'm bolt-ons do these are and hand, still the beyond? Or getting in in make thinking we'd it? to to 'XX you feel

Christopher Stavros

opportunity. things, sometimes a you in operate. opportunities that harder. we -- your it's you think out patience every of some have have box to to said, there's smaller think be have just I it of that And just I level have private kick or to around folks create can't don't Like of and and around it, you lot of what think you have out and to of you tankers. you that the there a and No, lung lot I a relationships and of have areas try lot you through just understanding

I -- it's to to about be it be to there's more think think thoughtful thought going there. be have opportunities out yes, continue I'd So you -- I may

Unknown Analyst

Okay. maybe follow-up. And then one

are the a something comments think Is being terms for future. the problem potentially and in thinking potential generation power when in saw facilities if in on mentioned power power? you earlier -- midstream you the you transmission problems of or You about more

Christopher Stavros

It's it's you will of lower on probably when And necessarily And at all. increasing XX ] I of on neck think I that tell power. in Sometimes grow. our issue. pull around all above. about there's obviously only And the [ demands the it's it, wouldn't woods just

have seen to partly generation so extent, And issues anything just weather that. to And are to susceptible capabilities you it else. we've just some that understand and related like

problematic. that that growing this I'm things issue and facilities And for demand only pull a more on as us not consider. makes over potentially time folks grows tighter and need just But is I think to speaking specifically,

Operator

The presentation. you for today's attending now conference has concluded. Thank

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Magnolia Oil & Gas (MGY) 31 Oct 242024 Q3 Earnings call transcript