2024-02-20 15:23:56 ET
Summary
- Magnolia Oil & Gas Corporation is projected to generate $437 million in free cash flow at current strip prices for 2024.
- Magnolia is dealing with weak natural gas prices (and no hedges) for approximately 30% of its total production.
- Magnolia's oil cut may end up at 42% for 2024, slightly better than I had previously modeled.
- Magnolia may be able to reduce its outstanding share count to 197 million by the end of 2024.
Magnolia Oil & Gas Corporation ( MGY ) recently reported Q4 2023 results along with its 2024 guidance. Magnolia mentioned that its Q1 2024 production took a hit due to severe winter weather, but the overall effect on the full-year should be relatively minor. I now estimate that Magnolia can generate $437 million in free cash flow in 2024 at current strip prices despite weak natural gas prices (and no hedges)....
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Magnolia Oil & Gas: Projected To Generate Over $400 Million In 2024 FCF