Magnolia Oil & Gas increases production 10% q-o-q
Magnolia Oil & Gas Corp., Houston, reported third-quarter production of 81,500 boe/d, a quarterly record for the company, representing a 21% increase compared with the prior-year quarter, and a 10% increase over second-quarter 2022, the company said in a release Nov. 1.
Total volumes, 7% ahead of the high end the company’s production guidance, were the result of stronger-than-expected well performance in Giddings and Karnes asset areas.
The company had third-quarter 2022 net income attributable to Class A Common Stock of $245.5 million. Total drilling and completions capital during the quarter was $114.5 million. Net cash provided by operating activities was $410.7 million.
The company continues to operate two drilling rigs and expects to maintain this level of activity through 2023. One rig will continue to drill multi-well development pads in the company’s Giddings area, and a second rig will drill a mix of wells in both the Karnes and Giddings areas, including some appraisal wells in Giddings, said Chris Stavros, president, and chief executive officer.
The company estimates fourth-quarter 2022 production of 77,000-79,000 boe/d, “as most of the wells in our program are expected to come online toward the latter part of the quarter,” Stavros said.
Drilling and completions capital of $125-140 million in fourth-quarter 2022 is expected due to a higher number of well completions and higher anticipated non-op activity that should result in yearend total production at a level that exceeds the third-quarter production, he said.
In 2023, the company plans to operate two drilling rigs and one completion crew and expects its capital program and activity levels to deliver full-year 2023 production growth of about 10% compared to 2022 levels.
In the release, the company also noted the promotion of Brian Corales, Magnolia's vice-president, investor relations, to chief financial officer. Corales joined the company in 2018.
Magnolia has operations primarily in South Texas in the Eagle Ford shale and Austin Chalk formations.