Company: MGY
Filing Date: 2025-03-20
Form Type: DEF 14A
Source: 0001558370-25-003377
Chunk: 1

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-03-20
Form: DEF 14A
Chunk 1
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.Turning to our 2024 performance, early in the year we initiated a field-level optimization and cost reduction program designed to reduce our lease operating expenses per barrel of oil equivalent (“boe”) by 5 to 10 percent by year-end. Our asset teams and field employees embraced the program and successfully lowered our lease operating costs by 10 percent per boe through 2024. Combined with continuing efforts to work with materials vendors and oilfield service providers to lower our overall finding and development costs, we achieved a return on capital employed(1)of 22 percent last year.In addition to enhancing our overall cost structure, we grew our annual total company production by 9 percent for a second consecutive year, with full year oil production growth of 11 percent, exceeding our original expectations. Our Giddings asset continued to drive growth, with total production at Giddings growing 16 percent and oil production growing 21 percent, supported by a prior year acquisition, strong well productivity, and a continued expansion of our development area in this field.Combined, these results allowed us to generate $430 million of free cash flow(2)last year. Consistent with our focus on delivering long term value, we returned 88 percent of the free cash flow, or approximately $378 million(3), to our stockholders through our growing base dividend and ongoing share repurchase program. Since Magnolia’s inception, we have returned nearly $1.6 billion(4), or about 35 percent of our current market capitalization, to our stockholders through share repurchases and dividends. After capital expenditures, bolt-on acquisitions, and the significant return of cash to stockholders, we ended the year with a substantial cash balance of $260 million and just $400 million of long term debt.We remain focused on results in the areas of safety, environmental stewardship, workforce development, stakeholder and community outreach, and corporate governance. With those priorities in mind, we have enhanced the disclosures in our 2024 Sustainability Report to include metrics on Board refreshment, total energy consumption, and Scope 2 emissions shown by operating area. We are committed to keeping stakeholders informed as we continue to develop oil and natural gas resources safely and responsibly.Our team’s focus on ownership and execution led to another year of solid performance for Magnolia in 2024. Moving forward, we remain aligned on Magnolia’s overall strategy and core principles, including disciplined capital spending, high operating margins, consistent free cash flow, and moderate production growth.As we approach this year’s Annual