MGY - Magnolia Oil & Gas: Share Repurchases May Not Add Value At Current Share Price

December, 04 2021 07:43 AM Magnolia Oil & Gas Corporation Class A

Magnolia may generate close to $500 million in positive cash flow in 2022 at $65 WTI oil.
It also had $245 million in cash on hand at the end of Q3 2021.
It spent $78.7 million on share repurchases in Q3 2021, but its current share price looks less favorable for share repurchases.
Magnolia is able to call its unsecured notes due 2026 starting in August 2022.
That (and dividends) would appear to be a better use of its money than share repurchases in the high-teens.

For further details see:

Company Name:	Magnolia Oil & Gas Corporation Class A
Stock Symbol:	MGY
Market:	NYSE
Website:	magnoliaoilgas.com