HOUSTON–(BUSINESS WIRE)–Magnolia Oil & Gas Corporation (NYSE: MGY) announced preliminary oil and gas production volumes estimated for the fourth quarter of 2022 in the range of 73 to 74 Mboe per day, compared to the midpoint of prior guidance of society of 78 Mboe per day.
Two factors led to the production deviation from previous forecasts. First, a single large pad went live later than expected in Q4 2022. This pad is currently fully operational and working as expected. Second, freezing temperatures impacted Magnolia’s Karnes and Giddings assets in late December, resulting in well closures and plant downtime in both areas.
Despite the impact of these elements in the fourth quarter, Magnolia’s production has since recovered with volumes currently exceeding 80 Mboe per day. The company’s guidance for 2023 remains unchanged and Magnolia expects to generate production growth of 10% for the year 2023 compared to last year, at current product prices.
About Magnolia Oil & Gas
Magnolia is a publicly traded oil and gas exploration and production company that operates primarily in southern Texas, in the heart of the Eagle Ford Shale and Austin Chalk formations. Magnolia is focused on creating shareholder value through steady production growth, strong pre-tax margins and free cash flow. For more information, visit www.magnoliaoilgas.com.
Caution Regarding Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical facts included in this press release, regarding strategy, future operations, financial condition, estimated revenues and losses, projected costs, prospects, plans and objectives of Magnolia’s management are forward-looking statements. When used in this press release, the words could, should, will, might, believe, anticipate, intend, estimate, expect, project, the negative form of these terms and other expressions similar statements are intended to identify forward-looking statements, although all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions regarding future events. Except as otherwise required by applicable law, Magnolia disclaims any obligation to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Magnolia cautions you that these forward-looking statements are subject to all risks and uncertainties, most of which are difficult to predict and many of which are beyond Magnolia’s control, relating to the development, production, gathering and sale of petroleum, natural gas and natural gas liquids. In addition, Magnolia cautions you that the forward-looking statements contained in this press release are subject to the following factors: (i) the economic effects of the COVID-19 pandemic and actions taken by federal, state, and local governments and other third parties in response to the pandemic; (ii) the outcome of any legal proceedings that may be brought against Magnolia; (iii) Magnolia’s ability to realize anticipated benefits from its acquisitions, which may be affected by, among other things, competition and Magnolia’s ability to grow and manage its growth profitably; (iv) changes in applicable laws or regulations; (v) geopolitical and business conditions in key regions of the world; and (vi) the possibility that Magnolia will be adversely affected by other economic, business and/or competitive factors, including inflation. Should one or more of the risks or uncertainties described in this press release materialize, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in the forward-looking statements. Additional information regarding these and other factors that may impact operations and the projections discussed herein may be found in Magnolia’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Magnolia’s filings with the SEC are publicly available on the SEC’s website at www.sec.gov.