MGY - Magnolia Oil & Gas - Building Cash In A $40 Oil Environment And Undervalued Especially Relative To Penn Virginia

• Magnolia continues to underspend cash flow by design.
• Magnolia is restarting completion activities with a high single digit to low double digit well count expected to be turned to sales at Giddings in 4Q20.
• Magnolia is set to generate free cash this year and next while maintaining a strong balance sheet with nothing drawn on the credit facility.
• Magnolia is undervalued in our view offering significant upside potential as the completions program returns and cash balances grow.
• At the end of this piece there is a pair trade idea.

For further details see: