Company: MGY
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001698990-25-000006
Chunk: 134

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 134
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 of discounted future net cash flows represent the fair market value of the proved reserves. The Company cautions that the disclosures shown are based on estimates of proved reserve quantities and future production schedules which are inherently imprecise and subject to revision, and the 10% discount rate is arbitrary. Proved undeveloped reserves volumes are expected to be converted to proved developed reserves within one year, which may not be comparable to other oil and gas companies. In addition, costs and prices as of the measurement date are used in the determinations and no value may be assigned to probable or possible reserves.

The following table presents the Company’s standardized measure of discounted future net cash flows:

Years Ended (In thousands)December 31, 2024December 31, 2023December 31, 2022Future cash inflows$7,365,663 $7,010,267 $9,103,255 Future production costs(2,447,228)(2,408,679)(2,713,151)Future development costs(343,503)(386,194)(307,848)Future income tax expenses(714,911)(599,386)(1,021,211)Future net cash flows3,860,021 3,616,008 5,061,045 10% discount to reflect timing of cash flows(1,278,214)(1,196,202)(1,712,681)Standardized measure of discounted future net cash flows$2,581,807 $2,419,806 $3,348,364 

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The following table summarizes the principal sources of change in the standardized measure of discounted future net cash flows: 

 Years Ended(In thousands)December 31, 2024December 31, 2023December 31, 2022Standardized measure of discounted future net cash flows, beginning of period$2,419,806 $3,348,364 $2,072,262 Sales of oil, natural gas, and NGLs produced during the period, net of production costs(1,023,311)(961,596)(1,404,194)Purchases of reserves in place94,695 333,713 93,686 Sales of reserves in place— (67,169)— Extensions704,753 599,215 722,877 Changes in estimated future development costs9,764 7,735 4,418 Net change in prices and