Magnolia Oil & Gas Corp., Houston, revised down its preliminary fourth-quarter 2022 estimated oil and gas production volumes to 73,000-74,000 boe/d. Earlier guidance had volumes at 78,000 boe/d at the midpoint.
Two factors led to the volume reduction. First, a single large pad was brought online later than expected during fourth-quarter 2022. The pad is currently fully operational and performing in line with expectations, the company said. Second, freezing temperatures impacted both Magnolia’s Karnes and Giddings assets in Texas in late December, resulting in some well shut-ins and infrastructure downtime in both areas.
Production has recovered with volumes currently exceeding 80,000 boe/d, the company said, and 2023 guidance remains unchanged, with full-year 2023 production growth of 10% compared with 2022 at current product prices.