MGY - Magnolia Oil & Gas: Giddings Field Offers Significant Upside

• Magnolia appears able to generate around $160 million in positive cash flow in 2021 at current strip prices along with modest production growth.
• It can deliver excellent returns from its Karnes County acreage.
• It has a much larger Giddings Field position that could add value to the company as it gets proved out.
• The early Giddings Field wells have been strong, with solid initial rates of production combined with shallow decline rates.
• Magnolia has been able to reduce its Giddings Field well costs substantially, with a target of $6 million per well going forward, down 30% from initial levels.

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