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Magnolia Oil to Report Q4 Earnings: What's in Store for the Stock?
MGYMagnolia Oil & Gas(MGY) ZACKS·2025-02-14 13:31

Core Viewpoint - Magnolia Oil & Gas Corporation (MGY) is expected to report fourth-quarter earnings on February 18, with earnings estimated at 46 cents per share and revenues at 330.02million[1].Group1:PreviousPerformance−Inthelastreportedquarter,MGYachievedanetprofitof52centspershare,exceedingtheZacksConsensusEstimateby4cents,primarilyduetoincreasedproductionvolumes[3].−Totalrevenuesforthelastquarterwere330.02 million [1]. Group 1: Previous Performance - In the last reported quarter, MGY achieved a net profit of 52 cents per share, exceeding the Zacks Consensus Estimate by 4 cents, primarily due to increased production volumes [3]. - Total revenues for the last quarter were 333.1 million, surpassing the Zacks Consensus Estimate by 2.1million[3].−MGYhasbeatentheZacksConsensusEstimateinthreeofthelastfourquarters,withanaveragesurpriseof5.522.1 million [3]. - MGY has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 5.52% [3]. Group 2: Estimate Revisions - The Zacks Consensus Estimate for fourth-quarter 2024 earnings has remained unchanged over the past week, indicating an 8% year-over-year decrease [4]. - Conversely, the revenue estimate shows a 2.29% increase compared to the previous year [4]. Group 3: Revenue and Production Expectations - MGY's revenues are projected to increase to 327.9 million in the upcoming quarter, up from 322.6millionyear−over−year,drivenbystrongcontributionsfromoilandnaturalgas[6].−Oilsegmentrevenuesareexpectedtoriseby1.3322.6 million year-over-year, driven by strong contributions from oil and natural gas [6]. - Oil segment revenues are expected to rise by 1.3% year-over-year to 255.9 million, while natural gas segment revenues are predicted to increase by 17.1% to 30.9million[6].−Totalproductionisanticipatedtoreach8.6millionbarrelsofoilequivalent(MMboe),an8.330.9 million [6]. - Total production is anticipated to reach 8.6 million barrels of oil equivalent (MMboe), an 8.3% increase from 7.9 MMboe in the same quarter last year [7]. - Oil production is expected to rise by 8.5% to 3.5 thousand barrels of oil (MBbls), and natural gas production is predicted to grow by 13.6% to 16.2 million cubic feet [7]. Group 4: Cost Management - MGY's cost management efforts are likely to positively impact profitability, with gathering, transportation, and processing expenses expected to decrease by 20.7% to 8.7 million from $10.9 million year-over-year [8]. - The combination of increased production and effective cost management is expected to lead to higher revenues and improved profitability in the fourth quarter [8]. Group 5: Earnings Prediction - The model predicts an earnings beat for MGY, supported by a positive Earnings ESP of +1.73% and a Zacks Rank of 3 (Hold) [9][10].