Magnolia Oil & Gas Corp (MGY) 2024 Q2 法說會逐字稿

Good morning, everyone, and thank you for participating in Magnolia Oil & Gas Corporation's second quarter 2024 earnings conference call. My name is Megan, and I will be your moderator for today's call. (Operator Instructions) Our call is being recorded.

大家早安，謝謝您參加 Magnolia 石油天然氣公司 2024 年第二季財報電話會議。我叫梅根，我將擔任今天電話會議的主持人。（操作員指示）我們的通話正在錄音。

I will now turn the call over to Magnolia's management for their prepared remarks, which will be followed by a brief question-and-answer session.

我現在將把電話轉給 Magnolia 管理層，讓他們準備好講話，然後進行簡短的問答環節。

Thank you, Megan, and good morning, everyone. Welcome to Magnolia Oil & Gas's second quarter earnings conference call. Participating on the call today are Chris Stavros, Magnolia's President; and Chief Executive Officer, and Brian Corales, Senior Vice President and Chief Financial Officer.

謝謝你，梅根，大家早安。歡迎參加木蘭石油天然氣公司第二季財報電話會議。參加今天電話會議的有 Magnolia 總裁 Chris Stavros；兼首席執行官，以及高級副總裁兼首席財務官 Brian Corales。

As a reminder, today's conference call contains certain projections and other forward-looking statements within the meaning of the federal securities laws. These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in these statements.

提醒一下，今天的電話會議包含聯邦證券法含義內的某些預測和其他前瞻性陳述。這些陳述存在風險和不確定性，可能導致實際結果與這些陳述中明示或暗示的結果有重大差異。

Additional information on risk factors that could cause results to differ is available in the company's Annual Report on Form 10-K filed with the SEC. A full Safe Harbor can be found on slide 2 of the conference call slide presentation with the supplemental data on our website. You can download Magnolia's second quarter 2024 earnings press release, as well as the conference call slides from the investor section of the company's website at www.magnoliaoilandgas.com.

有關可能導致結果不同的風險因素的更多信息，請參閱該公司向 SEC 提交的 10-K 表格年度報告。完整的安全港可以在電話會議幻燈片簡報的幻燈片 2 中找到，並在我們的網站上找到補充資料。您可以從該公司網站 www.magnoliaoilandgas.com 的投資者部分下載 Magnolia 2024 年第二季收益新聞稿以及電話會議投影片。

I will now turn the call over to Mr. Chris Stavros.

我現在將把電話轉給克里斯·斯塔夫羅斯先生。

Thanks, Tom, and good morning, everyone. We appreciate you joining us today for a discussion of our second quarter 2024 financial and operating results. I will provide some comments on our quarterly results, which demonstrate the continued execution of our full year 2024 plan and consistency of our business model.

謝謝，湯姆，大家早安。感謝您今天加入我們討論我們 2024 年第二季的財務和營運表現。我將對我們的季度業績發表一些評論，這表明我們 2024 年全年計劃的持續執行以及我們業務模式的一致性。

I'll also briefly discuss the smooth integration of our recent bolt-on acquisition in Giddings and provide an update on the progress of our field level cost reduction initiatives, which have shown some positive early results. Brian will then review our second quarter financial results in greater detail and provide some additional guidance before we take your questions.

我還將簡要討論我們最近在吉丁斯進行的補強收購的順利整合，並提供有關我們現場級成本削減計劃進展的最新信息，這些計劃已顯示出一些積極的早期成果。然後，布萊恩將更詳細地審查我們第二季度的財務業績，並在我們回答您的問題之前提供一些額外的指導。

As a reminder, Magnolia's primary goals and objectives sort of be the most efficient operator of best-in-class oil and gas assets generate the highest returns on those assets while employing the least amount of capital for drilling and completing wells. We also strive to return a substantial portion of our free cash flow to our shareholders in the form of share repurchases and a secure and growing dividend.

需要提醒的是，Magnolia 的主要目標是成為一流石油和天然氣資產的最高效運營商，在這些資產上產生最高回報，同時使用最少的資金來鑽探和完井。我們也努力以股票回購和安全且不斷增長的股息的形式將大部分自由現金流返還給股東。

Finally, we plan to utilize some of the excess cash generated by the business to pursue attractive bolt-on oil and gas property acquisitions where we have a competitive advantage and leveraging both our technical knowledge and experience in basin.

最後，我們計劃利用該業務產生的部分多餘現金，在我們擁有競爭優勢的地方進行有吸引力的補強石油和天然氣資產收購，並利用我們在盆地的技術知識和經驗。

Acquisitions are targeted not to simply replace the oil and gas that has already been produced, but importantly to improve the opportunity set of our overall business enhance the ongoing sustainability of our high returns and increase our dividend per share payout capacity. We look for acquisition opportunities, provide upside optionality with a lower cost of entry that are both financially accretive and also accretive to our stock.

收購的目的不是簡單地取代已經生產的石油和天然氣，更重要的是改善我們整體業務的機會集，增強我們高回報的持續可持續性，並提高我們的每股股息支付能力。我們尋找收購機會，以較低的進入成本提供上行選擇權，這不僅能增加財務收益，也能增加我們的股票。

But looking at slide 3 of the investor presentation, Magnolia continues to execute on our business model, delivering strong quarterly results. Total company production for the second quarter of approximately 90,000 barrels oil equivalent per day, a company record came in a little better than our guidance and growing by 10% compared to the year ago quarter and by 6% sequentially.

但從投資者簡報的幻燈片 3 來看，Magnolia 繼續執行我們的業務模式，取得了強勁的季度業績。第二季公司總產量約為每天 9 萬桶油當量，公司記錄略優於我們的指導，與去年同期相比成長 10%，較上季成長 6%。

Total company oil production during the quarter was nearly 38,000 barrels per day, which represented growth of 11% from year-ago levels, and we anticipate our oil production should remain resilient through the remainder of the year.

本季公司石油總產量接近每天 38,000 桶，比去年同期成長 11%，我們預計我們的石油產量在今年剩餘時間內將保持彈性。

Production in Giddings was 69,600 barrels of oil equivalent per day in the second quarter, representing approximately 77% of Magnolia's total volumes. Overall production at Giddings grew 21% compared to last year's second quarter, with Giddings oil production growing 28% year-over-year. This year's production results have continued to benefit from strong overall well performance.

第二季吉丁斯的日產量為 69,600 桶油當量，約佔 Magnolia 總產量的 77%。與去年第二季相比，吉丁斯的總產量增加了 21%，其中吉丁斯石油產量年增了 28%。今年的生產業績持續受益於強勁的整體油井表現。

We were able to achieve this growth by spending approximately half of our $246 million of adjusted EBITDAX generated during the second quarter on drilling and completing wells. Our free cash flow for the second quarter was $97 million and we returned approximately $130 million to our shareholders during the period, including $103 million for the repurchase of 4 million shares of Magnolia, representing 2% of our total outstanding shares.

我們之所以能夠實現這一成長，是因為我們將第二季產生的 2.46 億美元調整後 EBITDAX 中的大約一半用於鑽井和完井。我們第二季的自由現金流為 9,700 萬美元，期間向股東返還約 1.3 億美元，其中 1.03 億美元用於回購 400 萬股 Magnolia 股票，占我們已發行股份總數的 2%。

With a focused business model that allows us to consistently generate free cash flow. Our plan is to continue to return a significant portion of this to our shareholders through our ongoing share repurchases and our growing base dividend. As we have previously disclosed, we completed a bolt-on asset acquisition for $125 million during the quarter, which is adjacent to our development area in Giddings. This transaction added 27,000 net acres, which includes both working interest in existing acreage as well as new acreage and small amount of production.

專注的商業模式使我們能夠持續產生自由現金流。我們的計劃是透過持續的股票回購和不斷增長的基本股息，繼續將其中很大一部分返還給股東。正如我們先前所揭露的，我們在本季以 1.25 億美元完成了一項補強資產收購，該資產收購毗鄰我們在吉丁斯的開發區。此次交易增加了 27,000 英畝淨面積，其中包括現有面積的工作權益以及新面積和少量生產。

These assets are next door to our current Giddings activity and in an area where we have a lot of experience and strong subsurface technical knowledge. We expect this acquisition to provide us with significant high-return development opportunities that will be folded into our ongoing Giddings development plan.

這些資產毗鄰我們目前的吉丁斯活動，並且位於我們擁有豐富經驗和強大地下技術知識的領域。我們預計此次收購將為我們提供重要的高回報開發機會，這些機會將納入我們正在進行的吉丁斯開發計畫中。

Over the past year, Magnolia has continued to dedicate some capital towards its appraisal program in an effort to delineate additional opportunities within our sizable acreage position. As a result of this additional appraisal activity in our legacy Giddings acreage and the recent bolt-on acquisition that I mentioned our Giddings development area has now grown to over 200,000 net acres compared to 150,000 net acres during last year's fourth quarter.

在過去的一年裡，Magnolia 繼續為其評估計畫投入一些資金，努力在我們龐大的種植面積範圍內尋找更多機會。由於對我們遺留的吉丁斯面積進行了額外的評估活動以及最近我提到的補強收購，我們的吉丁斯開發區現已增長到超過200,000 淨英畝，而去年第四季度為150,000 淨英畝。

This expanded development area represents a large portion of our total Giddings acreage footprint that offers high-return multi-well pad drilling opportunities. We have been regularly at systematically appraising our Giddings acreage each year and those efforts will continue. This gradual and measured process can often take years from when we first drill a well or two in a new area, move to evaluate the results, look for other opportunities to bolt on additional acreage or minerals if there is potential and before finally, developing multi-well pads.

這一擴大的開發區域占我們吉丁斯總面積的很大一部分，提供高回報的多井平台鑽井機會。我們每年都會定期有系統地評估我們的吉丁斯種植面積，這些努力將繼續下去。從我們第一次在新地區鑽一兩口井，評估結果，尋找其他機會來增加額外的面積或礦產（如果有潛力），最後開發多種礦產之前，這個漸進和謹慎的過程通常可能需要數年時間。

Our approach has been a successful strategy for Magnolia, and we continue appraising additional areas over time, which should lead to further prospects for resource capture, improving the future opportunity set for the business.

我們的方法對 Magnolia 來說是一項成功的策略，隨著時間的推移，我們將繼續評估其他領域，這應該會帶來進一步的資源取得前景，從而改善業務的未來機會。

As discussed last quarter, our operations and supply chain teams initiated a field level optimization and cost reduction program early this year. Our expectations were that these efforts would lower our cash costs, reducing our LOE per BOE by 5% to 10% during the second half of 2024 compared to the first quarter.

正如上季所討論的，我們的營運和供應鏈團隊在今年年初啟動了現場優化和成本降低計畫。我們的預期是，這些努力將降低我們的現金成本，與第一季相比，2024 年下半年每桶油當量的 LOE 降低 5% 至 10%。

Magnolia's field team successfully captured improvements well ahead of schedule, some low hanging fruit as part of these efforts, which included the implementation of digital field management software in addition to the optimization of maintenance, workovers and utilization of field equipment.

Magnolia 的現場團隊成功地提前完成了改進，其中包括實施數位化現場管理軟體以及優化現場設備的維護、修井和利用，其中包括實施一些容易實現的成果。

These actions have already resulted in a meaningful reduction to our field-level operating costs, lowering LOE to $5.40 per BOE, representing a 10% sequential quarterly decline. While further actions will continue, we expect to maintain a similarly low level of field level costs through the second half of the year, which should continue to support our operating margins and free cash flow.

這些行動已經顯著降低了我們的現場營運成本，將 LOE 降低至每桶油當量 5.40 美元，比季度環比下降 10%。雖然將繼續採取進一步行動，但我們預計今年下半年現場成本將保持在類似的低水平，這將繼續支持我們的營業利潤和自由現金流。

As shown on slide 4, our high quality and efficient assets, together with our focus on containing both our cash operating expenses and D&C costs as well as our ongoing share repurchases, has led to a top tier five-year average return on capital employed of 18% and an annualized ROCE of 23% for the first half of 2024 and both well ahead of our cost of capital.

如投影片 4 所示，我們優質且高效的資產，加上我們對控制現金營運支出和 D&C 成本以及持續的股票回購的關注，使我們的五年平均資本回報率達到了頂級水平。半年的年化ROCE 為18%，年化ROCE 為23%，均遠高於我們的資本成本。

I'll now turn the call over to Brian for further details on our second quarter 2024 financial and operating results.

我現在將把電話轉給 Brian，以了解有關我們 2024 年第二季財務和營運業績的更多詳細資訊。

Thanks, Chris, and good morning, everyone. I will review some items from our second quarter results and refer to the presentation slides found at our website, also provide some additional guidance for the third quarter of 2024 and the remainder of the year before turning it over for questions.

謝謝克里斯，大家早安。我將回顧第二季業績中的一些項目，並參考我們網站上的簡報投影片，也將為 2024 年第三季和今年剩餘時間提供一些額外指導，然後再轉交提問。

Beginning on slide 5, and as Chris discussed, Magnolia had a strong second quarter during the quarter, we generated total GAAP net income attributed to Class A common stock of $96 million, with total adjusted net income of $104 million or $0.52 per diluted share.

從幻燈片5 開始，正如Chris 所討論的，Magnolia 在第二季度表現強勁，我們產生了歸屬於A 類普通股的GAAP 淨利潤總額9,600 萬美元，調整後淨利潤總額為1.04 億美元，或攤薄後每股收益0.52 美元。

Our adjusted EBITDAX for the quarter was $246 million, with total CapEx associated with drilling completions and associated facilities of $123 million or 50% of our adjusted EBITDAX. Second quarter total production volumes grew 10% year-over-year to 90,200 barrels of oil equivalent per day, driven by our Giddings asset. And our diluted share count fell by 5% year-over-year to 201.2 million shares.

本季調整後的 EBITDAX 為 2.46 億美元，與鑽井完井和相關設施相關的資本支出總額為 1.23 億美元，佔調整後的 EBITDAX 的 50%。在吉丁斯資產的推動下，第二季總產量年增 10%，達到每天 90,200 桶石油當量。我們的稀釋後股票數量年減 5%，至 2.012 億股。

Looking at the quarterly cash flow waterfall chart on slide 6. We started the quarter with $399 million of cash flow from operations before changing changes in working capital for the second quarter was $233 million with working capital changes and other small items increasing cash by $27 million. We paid dividends of $27 million allocated $106 million towards share repurchases. In addition to $124 million of bolt-on acquisitions.

查看幻燈片 6 上的季度現金流瀑布圖。本季開始時，我們的營運現金流為 3.99 億美元，之後第二季的營運資本變動為 2.33 億美元，其中營運資本變動和其他小型專案增加了 2,700 萬美元的現金。我們支付了 2,700 萬美元的股息，其中 1.06 億美元用於股票回購。此外還進行了 1.24 億美元的補強收購。

Total capital incurred, including leasehold was $126 million, ending the quarter with $276 million of cash. Looking at slide 7, this chart illustrates the progress in reducing our total share total outstanding shares since we began our repurchase program in the second half of '19.

包括租賃在內的總資本為 1.26 億美元，本季末現金為 2.76 億美元。請看第 7 張投影片，該圖表顯示了自 19 年下半年開始回購計畫以來，我們在減少總股本和已發行股本方面取得的進展。

Since that time, we have repurchased 68.3 million shares, leading to a decrease in diluted shares outstanding of approximately 22%. Minorities weighted average fully diluted share count declined by more than 3 million shares sequentially, averaging 201.2 million shares during the second quarter.

自那時以來，我們已回購 6,830 萬股股票，導致稀釋後的已發行股票減少約 22%。第二季少數族裔加權平均完全稀釋股票數量連續減少超過 300 萬股，平均為 2.012 億股。

We have 5.9 million shares remaining under our current share repurchase authorization, which are specifically directed toward repurchasing Class A shares in the open market.

我們目前的股票回購授權尚有 590 萬股，專門用於在公開市場回購 A 類股票。

Turning to slide 8. Our dividend has grown substantially over the past few years, including a 13% increase announced early in 2024 to $0.13 per share on a quarterly basis. Our next quarterly dividend is payable on September 3, and provides an annualized dividend payout rate of [$0.52] per share. Our plan for annualized dividend growth is an important part of Magnolia's investment proposition and supported by our overall strategy of achieving moderate annual production growth, reducing our outstanding shares and increasing the dividend payout capacity of the company.

轉到投影片 8。過去幾年，我們的股息大幅成長，其中包括 2024 年初宣布的季度股息成長 13%，達到每股 0.13 美元。我們的下一個季度股利將於 9 月 3 日支付，年化股利支付率為每股 [0.52 美元]。我們的年化股利成長計畫是白玉蘭投資主張的重要組成部分，並得到我們實現適度的年度產量成長、減少流通股和提高公司股利支付能力的整體策略的支持。

Magnolia has the benefit of a very strong balance sheet, and we ended the quarter with $276 million of cash and $400 million of senior notes which mature in 2026, including our second quarter ending cash balance of $276 million and our undrawn $450 million revolving credit facility. Our total liquidity is approximately $726 million. Our condensed balance sheet as of June 30, as shown on slide 9.

Magnolia 擁有非常強大的資產負債表，本季末我們擁有2.76 億美元的現金和4 億美元的將於2026 年到期的高級票據，其中包括第二季末2.76 億美元的現金餘額和未提取的4.5 億美元的循環信貸額度。我們的總流動資金約為 7.26 億美元。我們截至 6 月 30 日的簡明資產負債表，如投影片 9 所示。

Turning to slide 10 and looking at a pretty unit cash costs and operating income margins. Total revenue per BOE increase year over year due to increase in oil prices when compared to the second quarter of '23. Our total adjusted cash operating costs, including G&A, was $11.10 per BOE in the second quarter of the year, an increase of $0.77 per BOE or 7% compared to year-ago levels. The year-over-year increase was primarily due to higher LOE from oil-weighted acquisition late last year and higher production taxes.

轉向投影片 10，查看相當大的單位現金成本和營業利潤率。與 2023 年第二季相比，由於油價上漲，每桶油當量的總收入年增。今年第二季度，包括一般管理費用在內的調整後現金營運成本總額為每桶油當量 11.10 美元，比去年同期水準增加 0.77 美元，即每桶油當量增加 7%。年比成長主要是由於去年年底石油加權收購的 LOE 增加以及生產稅增加。

Our operating income margin for the second quarter was $16.37 per BOE of 40% of our total revenue. Turning to the guidance on slide 11. We are reiterating our expected 2024D&C capital spending to be in the range of $450 million to $480 million and total production and oil and production are still expected to grow high single digits on an annual basis.

第二季我們的營業利潤率為每桶油當量 16.37 美元，占我們總收入的 40%。轉向幻燈片 11 上的指示。我們重申，我們預計 2024 年 D&C 資本支出將在 4.5 億至 4.8 億美元之間，總產量以及石油和產量預計仍將每年實現高個位數成長。

For the third quarter, our D&C and associated facilities capital expenditures are expected to be approximately $120 million with total production from the third quarter estimated to be approximately 91,000 BOEs a day.

第三季度，我們的 D&C 和相關設施資本支出預計約為 1.2 億美元，第三季的總產量預計約為每天 91,000 個 BOE。

Oil price differentials are anticipated to be approximately a $3 per barrel discount to Magellan East Houston and Magnolia remains completely unhedged for all its oil and natural gas production. The fully diluted share count for the third quarter of 2024 is expected to be approximately 199 million shares, which is 5% lower than the second quarter 2023 levels. We expect our effective tax rate to be approximately 21% and our cash tax rate to be approximately 9% to 10% for the year. We are now ready to take your questions.

預計與麥哲倫東休士頓相比，油價差異約為每桶 3 美元，而 Magnolia 的所有石油和天然氣生產仍完全未對沖。2024 年第三季完全稀釋後的股數預計約為 1.99 億股，比 2023 年第二季的水準減少 5%。我們預計今年的有效稅率約為 21%，現金稅率約為 9% 至 10%。我們現在準備好回答您的問題。

We will now begin the question and answer session. (Operator Instructions)

我們現在開始問答環節。（操作員說明）

Neal Dingmann, SunTrust.

尼爾丁曼，SunTrust。

Hi guys. Nice results. Guys, my first question is on the Giddings development. Certainly, you sounded more confident now we're talking about over 200,000 net development acres. I'm just wondering, can you talk about what you see as far as -- is there much variability among this acreage? And is there -- Chris, wondering if there's much white space in that area that you could still add?

嗨，大家好。不錯的結果。各位，我的第一個問題是關於吉丁斯的發展。當然，現在我們正在談論超過 200,000 英畝的淨開發面積，您聽起來更有自信了。我只是想知道，您能否談談您所看到的情況——這些面積之間是否存在很大的差異？克里斯，想知道該區域是否還有很多空白可以添加？

Yeah. Thanks, Neil. The answer is that Giddings generally, there is always some variability. Giddings north is different from Giddings south, Giddings east is different from Giddings west. But within our core development area, if you will, which this is a part of the variability tends to be far less. And I wouldn't expect to see much of that here.

是的。謝謝，尼爾。吉丁斯的答案是，總的來說，總是存在一些可變性。吉丁斯北與吉丁斯南不同，吉丁斯東與吉丁斯西不同。但在我們的核心開發領域內，如果你願意的話，這是可變性的一部分，往往要小得多。我不希望在這裡看到太多這樣的事。

And yes, I think there are more things to add with time. And I think it's fair, probably for me to give you or maybe expand a little bit on what I said in my remarks, but give you maybe a real life example of sort of how this has come about and how other things come about within the expanded development area.

是的，我認為隨著時間的推移，還有更多的東西可以添加。我認為這是公平的，也許我可以給你們提供或擴展一下我在發言中所說的內容，但給你們一個現實生活中的例子，說明這是如何發生的，以及其他事情是如何發生的擴大開發面積。

So half of the increase in the development acreage that we cited came from the bolt-on acquisition, while the other half came from success out of the appraisal program. As I mentioned in my remarks, I mean, simply adding to our assessment and view of the development acreage, it's a long journey.

因此，我們引用的開發面積增加的一半來自補強收購，而另一半則來自評估計畫的成功。正如我在演講中提到的，我的意思是，僅補充我們對開發面積的評估和看法，這是一個漫長的旅程。

And it doesn't simply happen overnight. So I'll try to give you this real life example of how sort of how it works, at least for us. So in late 2021, maybe early 2022, we drilled one or two appraisal wells outside of our then development area in Giddings.

這並不是一朝一夕就能發生的。因此，我將嘗試向您提供這個現實生活中的例子，說明它是如何運作的，至少對我們來說是這樣。因此，在 2021 年底，也許 2022 年初，我們在吉丁斯當時的開發區域之外鑽了一兩口評估井。

Our evaluation confirmed positive results. Later in 2022, we closed on an acquisition in this area, accumulating a reasonable position where we drilled a very successful pad earlier this year. And so our efforts around this are ongoing.

我們的評估證實了正面的結果。2022 年晚些時候，我們完成了該領域的收購，並在今年稍早鑽探了一個非常成功的平台，累積了合理的部位。因此，我們圍繞這方面的努力正在進行中。

We've accumulated a significant acreage position with plenty to work on and we continue to do appraisal activity each year as part of that drilling program, but the process can take a couple of years to play out, and it continues to be gradual and measured for us.

我們已經累積了重要的面積位置，還有很多工作要做，作為鑽探計劃的一部分，我們每年都會繼續進行評估活動，但這個過程可能需要幾年的時間才能完成，而且它仍然是漸進和可衡量的對我們來說。

So it can often lead to things that we see through appraisal and we may acquire additional acreage to expand on that. We've done that with some success. And I would expect that we'll continue to follow a similar process with time.

因此，它通常會導致我們透過評估所看到的事情，並且我們可能會獲得額外的面積來擴大這一點。我們已經做到了這一點並取得了一些成功。我希望隨著時間的推移，我們將繼續遵循類似的流程。

Great details. And my second question, just on the reinvestment rate, I guess going forward, do you anticipate looks like that continue to be quite low? Do you anticipate the capital return changing?

很棒的細節。我的第二個問題，關於再投資率，我想展望未來，您預計它會繼續很低嗎？您預期資本報酬率會有所變動嗎？

Yeah. So it's interesting. I mean -- so we just passed our six year anniversary. And over the six years, our reinvestment rate has been 47%. Our ceiling is sort of 55%. This is really the crux of the business model. This discipline is really the foundation of the business model for Magnolia, which delivers moderate growth and a lot of free cash flow. So I would expect to see nothing really, very different as part of the plan, the remainder of this year and into next year.

是的。所以這很有趣。我的意思是——我們剛剛度過了六週年紀念日。六年來，我們的再投資率為47%。我們的上限是 55%。這確實是商業模式的關鍵。這項原則實際上是 Magnolia 商業模式的基礎，它帶來了適度的成長和大量的自由現金流。因此，我預計今年剩餘時間和明年的計劃不會有任何真正、非常不同的情況。

Love the stability. Thank you.

喜歡穩定。謝謝。

Phillips Johnston, Capital One.

菲利普斯約翰斯頓，《第一資本》。

Hey, thanks for the question. I think you guys get asked about oil mix every quarter, so I thought I'd keep the streak alive. Chris, you mentioned that your oil volumes should remain pretty resilient throughout the year. And I think in the past, you've said the oil mix should continue to be a bit lumpy just from quarter to quarter. But I just wanted to check in to see if we should be aware of any trends or nuances over the next few quarters?

嘿，謝謝你的提問。我想你們每季都會被問到有關石油混合的問題，所以我想我會保持這種連勝。克里斯，您提到您的石油產量全年應該保持相當的彈性。我認為過去，您曾說過石油結構每個季度都應該繼續有點不穩定。但我只是想檢查一下我們是否應該了解未來幾季的任何趨勢或細微差別？

Not necessarily. I'm pleased that the mix has been fairly steady and the overall oil production has been pretty steady and resilient. Some acquisitions that we've done and our activity program certainly for this year has been a little bit oilier. And so that's allowed things to hold up, I think, pretty well. As you can see, our Giddings activity is a high proportion of our overall activity.

未必。我很高興的是，這種結構相當穩定，整體石油產量也相當穩定且有彈性。我們已經完成的一些收購以及我們今年的活動計劃肯定有點油膩。我認為，這使得事情能夠很好地持續下去。正如您所看到的，我們的吉丁斯活動在我們的整體活動中所佔的比例很高。

And so Giddings generally is a little less oily than the rest of the company, but it sort of depends how we drill. I wouldn't necessarily steer you in one direction. But I think for now, oil should hold up, the production on oil should hold up pretty well for the remainder of the year and I think into next year as well.

因此，吉丁斯總體上比公司其他部門要少一些油膩，但這在某種程度上取決於我們的鑽探方式。我不一定會引導你朝一個方向發展。但我認為目前石油應該保持穩定，石油產量在今年剩餘時間內應該保持良好，我認為明年也是如此。

Okay. That's really helpful. It's early obviously, on 2025. But for now, should we just assume a pretty steady program at sort of that 2 rigs one frac spread pace? And I guess, is there anything to keep in mind in terms of geographic mix shift or working interest or anything that sort of might affect the pace of growth either faster or slower?

好的。這真的很有幫助。2025 年，顯然還早。但現在，我們是否應該假設一個相當穩定的計劃，以 2 台鑽機一次壓裂的速度進行？我想，在地理組合變化或工作興趣或任何可能影響成長速度更快或更慢的因素方面，有什麼需要記住的嗎？

No, I think it's pretty steady just in terms of the of the two operated rigs and one frac spread. So that -- that I would expect that wouldn't change our cycle times continue to improve and we're getting more in the way of drilling efficiencies. We'll as I said in the earlier question or response, we'll continue to look at some appraisal opportunities later this year and into next up to see where that takes us. But I don't anticipate any significant or major changes or differences.

不，我認為僅就兩台運行的鑽機和一台壓裂價差而言，它就相當穩定。因此，我預計這不會改變我們的循環時間繼續改善，並且我們在鑽井效率方面取得了更多進展。正如我在先前的問題或答覆中所說，我們將在今年稍後繼續尋找一些評估機會，並在接下來的時間裡看看我們會走向何方。但我預計不會有任何顯著或重大的變化或差異。

Okay. Thanks for the color.

好的。謝謝你的顏色。

Zach Parham, JPMorgan.

札克·帕勒姆，摩根大通。

Good morning. I just wanted to ask on cash return. EnerVest sold down some stock this past quarter and now don't have a lot left. Once they're completely out of the stock, does that change your cash return methodology at all? Do you consider buying more stock in the open market? Just curious on how you think about that?

早安.我只是想問一下現金回饋的問題。EnerVest 在上個季度賣出了一些股票，現在所剩無幾。一旦他們完全缺貨，這會改變你的現金回報方式嗎？您是否考慮在公開市場購買更多股票？只是好奇你對此有何看法？

Yes. I'll have to think about that a little bit just in terms of pivoting one way or another. And on the share repurchases, I mean, to be quite frank, we certainly are a little sensitive to the share price to some degree. We sort of have to be prudence would dictate that.

是的。我必須從以某種方式進行調整的角度來考慮這一點。關於股票回購，我的意思是，坦白說，我們在某種程度上對股價確實有點敏感。我們必須謹慎行事才能做到這一點。

But just in terms of giving you a little sense of how I think about it and maybe I think about it a little differently. I do believe that having a consistent and ongoing share repurchase program for Magnolia is important, certainly, at least for Magnolia. I have a lot of personal confidence in buying the shares because I know exactly what I'm buying.

但只是為了讓你稍微了解我的想法，也許我的想法有點不同。我確實相信，為 Magnolia 制定一致且持續的股票回購計劃當然很重要，至少對 Magnolia 來說是如此。我對買股票很有信心，因為我確切地知道我要買什麼。

In addition, there's been a tremendous cumulative benefit to repurchasing our shares over the past five years. So as an example, the 60 million-plus shares that we repurchased since 2019 has improved our per share earnings by 30%, or about $0.50 a share. So if we trade at roughly 12 times earnings, that represents $6 a share of value in the stock, and that's sort of how I think about it to some extent or I can't ignore that.

此外，過去五年回購股票帶來了巨大的累積效益。舉個例子，我們自 2019 年以來回購的 6,000 多股股票使我們的每股盈餘提高了 30%，即每股約 0.50 美元。因此，如果我們以大約 12 倍市盈率進行交易，則代表該股票每股價值 6 美元，這就是我在某種程度上的想法，或者我不能忽視這一點。

So as we continue to buy in the shares, the program, it's also creating greater value for all the remaining shareholders. So purchases has created some scarcity in the shares, if you will. So when we were added to the S&P SmallCap 600 Index this year, and when that happened, the folks that run those indexes, they probably weren't distinguishing between the stock at '25 or '26. They just added the shares, and they created more demand for what's relatively scarce share.

因此，當我們繼續購買股票和計劃時，它也為所有剩餘股東創造了更大的價值。因此，如果你願意的話，購買會造成股票的稀缺性。因此，當我們今年被納入 S&P SmallCap 600 指數時，當這種情況發生時，運行這些指數的人可能不會區分 '25 或 '26 的股票。他們只是增加了股票，並且為相對稀缺的股票創造了更多的需求。

So I've got to think about all these things in how we approach the share repurchase program. And I think that's these are a couple of the reasons why I think doing this on an ongoing basis can add value to the stock over time. But the dividend, the consistent growing base dividend grows out of the business model, the execution on the business model.

因此，在我們如何實施股票回購計畫時，我必須考慮所有這些問題。我認為這就是為什麼我認為持續這樣做可以隨著時間的推移為股票增值的幾個原因。但是股息，持續成長的基礎股息源自於商業模式，商業模式的執行。

So as we continue to grow our production, which we call sort of mid-single digits over time, and we continue to buy in the shares, call it, 1% every quarter, thereabouts. That provides the greater ability to grow the dividend on a per share basis over time, the payout capacity, if you will. So that's sort of how I think about it.

因此，隨著我們的產量不斷增長（我們稱之為中個位數），我們將繼續購買股票，稱為每季 1% 左右。隨著時間的推移，這提供了更大的能力來增加每股股息，即支付能力（如果您願意的話）。這就是我的想法。

Thanks Chris. And then my follow-up just on the '24 CapEx guidance. You've got 3Q out there now. And to hit the midpoint of the guidance range, you'd have to have a decent step down in spending in 4Q. Is that the plan? Is there a frac holiday or some slowdown in activity plan? Just curious on how you're thinking about activity going into the back half of the year.

謝謝克里斯。然後是我對 24 年資本支出指南的後續行動。現在你已經有 3Q了。為了達到指導範圍的中點，第四季的支出必須大幅下降。是這樣的計劃嗎？是否有壓裂假期或活動計畫放緩？只是好奇您如何看待下半年的活動。

Yes. I wouldn't describe it as any frac holiday, not that I can see. I mean, the spending each quarter can be a little bit lumpy depending on timing completions as well as the timing of non-op activity. But I think it's fair to say that we expect to be in the upper half of the full year guidance range for capital this year. Most recently, we had some additional non-op activity come into the program and some of that's expected to get folded into activity later in the year.

是的。我不會將其描述為任何壓裂假期，據我所知。我的意思是，每季的支出可能會有點不穩定，這取決於完成時間以及非操作活動的時間。但我認為可以公平地說，我們預計今年的資本指導範圍將處於全年指導範圍的上半部。最近，我們將一些額外的非營運活動納入該計劃，其中一些預計將在今年稍後納入活動中。

It should, I think, positively impact production early into 2025. We also continue to experience efficiencies in drilling and completion. So as I said earlier, that's improved our cycle times. And so we're essentially going faster, all of which has created a little bit of an upward bias to our capital, but not necessarily in a bad way. It's still inside the guidance range, but I think just at the higher end.

我認為，這應該會對 2025 年初的生產產生正面影響。我們也持續體驗鑽井和完井的效率。正如我之前所說，這改善了我們的週期時間。因此，我們本質上正在加快步伐，所有這些都對我們的資本產生了一點向上的偏見，但不一定是壞的方式。它仍在指導範圍內，但我認為只是處於較高端。

Thanks, Chris, really appreciate the color.

謝謝，克里斯，真的很喜歡這個顏色。

Carlos Escalante, Wolfe Research.

卡洛斯·埃斯卡蘭特，沃爾夫研究中心。

Good morning, gentlemen. Thank you for taking my call. Chris I know it's not in your DNA to talk about specific locations or inventory debt. But I like to take a stab at it because you've provided some remarks in the past that in light of the recent expansion to of getting to 200,000 net acres, it's worth revisiting.

早安，先生們。感謝您接聽我的電話。克里斯，我知道你的基因裡不適合談論特定地點或庫存債務。但我想對此進行嘗試，因為您過去曾發表過一些評論，鑑於最近淨面積擴大到 200,000 英畝，值得重新審視。

So if I use you're as a proxy where you've outlined that the 27,000 net acres that you acquired recently, our equivalent to roughly a couple of years in inventory. If I reverse engineer that number into 2000 net acres, that directionally and I again, I know you're reticent to provide specific locations. Would it be fair to assume or think that your Giddings program has north of 700 locations?

因此，如果我用您作為代理，您概述了您最近獲得的 27,000 淨英畝土地，我們相當於大約幾年的庫存。如果我將這個數字反向工程為 2000 淨英畝，那麼我再次，我知道您不願意提供具體位置。假設或認為您的吉丁斯計劃擁有超過 700 個地點是否公平？

Yes, I like the way, I think, Carlos. But I mean, you're certainly right about one thing. It's -- this whole conversation is sort of not in my bones. So on directionally, you're moving in the right direction, but extrapolating that necessarily in the exact same manner, I don't know if I would do that in the precise same way.

是的，我想我喜歡這種方式，卡洛斯。但我的意思是，你有一點肯定是對的。整個談話有點不在我的骨子裡。因此，在方向上，你正在朝著正確的方向前進，但必須以完全相同的方式推斷，我不知道我是否會以完全相同的方式這樣做。

But you know, because in different basins, I would tell you probably similarly, every acre is not necessarily created equal and a lot can depend on a variety of variables and attributes. So directionally, you're right, but I'm not going to start arm wrestling your over precise numbers or anything like that?

但你知道，因為在不同的盆地中，我可能會類似地告訴你，每一英畝不一定都是平等的，很多因素可能取決於各種變數和屬性。所以從方向上來說，你是對的，但我不會開始就精確的數字或類似的事情與你進行扳手腕？

No, I wasn't expecting you to do that either way, but I didn't take my shot at it. And then my follow-up would be on, you mentioned the non-op, obviously, towards the end of the year, you have itself there on capital that you will see production from that non-op allocation come back, come online in 2025, early '25. Can we have a sense of what a ratable amount of any non-op Magnolia plans you have going forward?

不，我沒想到你會這麼做，但我沒有這麼做。然後我的後續行動將是，你提到了非操作，顯然，到今年年底，你自己就有資本，你將看到非操作分配的生產回來，在 2025 年上線，25 年初。我們能否了解一下您未來的非營運 Magnolia 計畫的可估價金額是多少？

Yeah, this one is a hard call because we don't get a lot of forward information or on a very timely basis. I mean, sometimes we get these things 30 to 60 days out. So it's some it's hard to say. It feels like there is a little bit of an uptick, like I suggested for the back half of the year for the latter part of the year that should influence the capital and volumes later.

是的，這是一個艱難的決定，因為我們沒有得到很多前瞻性訊息，也沒有得到非常及時的資訊。我的意思是，有時我們會在 30 到 60 天後拿到這些東西。所以有些是很難說的。感覺好像有點上升，就像我在今年下半年建議的那樣，這應該會影響以後的資本和交易量。

But right now to give you a full sense of what 2025 might look like it's just too early. I just don't know if I had I guess it doesn't feel dramatically different than what we're seeing broadly for our full year '23 or '24, which was on the lower side of that, that could change. But we haven't got any strong indication that it's changing for now for a longer term or into next year just yet.

但現在讓您全面了解 2025 年可能會是什麼樣子還為時過早。我只是不知道我是否有過這種感覺，我想這與我們在 23 或 24 年全年所看到的情況並沒有太大不同，後者處於較低的一側，這可能會改變。但我們還沒有任何強有力的跡象表明，從長遠來看，或者到明年，情況會改變。

Okay. Thank you, Chris.

好的。謝謝你，克里斯。

Okay. Thanks.

好的。謝謝。

Oliver Huang, Tudor, Pickering, Holt.

奧利佛黃、都鐸、皮克林、霍爾特。

Good morning, Chris and Brian, and thanks for taking my questions. Just one just wanted to start up with a follow-up to Neal's initial question on Giddings. Just with the additional acreage, you all have gained enough confidence to add into your core development area, just kind of given how these acres previously sat in the appraisal bucket, should we expect that to now drive slightly higher allocation when thinking about how the drilling schedule might look going forward?

早安，克里斯和布萊恩，感謝您回答我的問題。只有一個人想從尼爾關於吉丁斯的最初問題的後續行動開始。僅僅有了額外的面積，你們就已經獲得了足夠的信心來添加到您的核心開發區域中，只是考慮到這些英畝以前如何位於評估桶中，我們是否應該期望現在在考慮鑽探如何時推動略高的分配時間表可能會向前推進嗎？

If you're asking, are we going to increasingly be shifting more to Giddings, I wouldn't necessarily go there up as a result of what's happening because of the appraisal program. This is all just part of how we think about the overall pool of assets and the allocation of the money. And we'll continue to in our sort of occasionally flip back to Karnes and drill some pads through a year.

如果你問，我們是否會越來越多地將更多的資金轉移到吉丁斯，我不一定會因為評估計畫而去那裡。這只是我們如何看待整體資產池和資金分配的一部分。我們將繼續偶爾回到卡恩斯並在一年內鑽一些墊子。

But now I think -- when you're when you're talking about allocating about roughly 80% of those money in activity towards Giddings, that fields for right now about what and what it will look like.

但現在我認為，當你談論將大約 80% 的活動資金分配給吉丁斯時，現在就需要考慮它會是什麼樣子。

Okay. And just kind of to clarify for within Giddings just kind of given how on this, I guess, incremental 25,000 net acres that's getting added to the core development bucket. Could we see a higher allocation when you're kind of looking at it from a getting standalone basis?

好的。我想在吉丁斯內部澄清一下，我想，增量 25,000 淨英畝的土地將如何添加到核心開發桶中。當你從獨立的角度來看時，我們能看到更高的分配嗎？

I mean -- maybe I -- we haven't laid out the exact program yet for 2025, but perhaps, I mean, it's a large a couple of hundred thousand acres plus is a large area. And so there's a lot of things that we take into consideration when we look at planning and scheduling wells and where we'll drill exactly. But I would say we consider this all now a part of Giddings and we can tend to hop to different areas from time to time.

我的意思是——也許我——我們還沒有製定 2025 年的確切計劃，但也許，我的意思是，這是一個很大的區域，有幾十萬英畝，而且是一個很大的區域。因此，當我們考慮規劃和安排油井以及準確鑽探的位置時，我們會考慮很多事情。但我想說，我們現在認為這一切都是吉丁斯的一部分，我們可以不時地跳到不同的區域。

And that's typically what a program does look like during the year. We hope to different areas around the 200,000 acres. We don't sort of proceed in any overly logical fashion that you might imagine. It just goes sort of back and forth for different reasons. And we'll continue to have some additional appraisal drilling as well that will likely bear out some additional opportunities.

這就是一年中計劃的典型情況。我們希望在20萬英畝左右的不同地區。我們不會像你想像的那樣以任何過於邏輯的方式進行。它只是出於不同的原因來回移動。我們也將繼續進行一些額外的評估鑽探，這可能會證實一些額外的機會。

Okay. That makes sense. And for my second question, just wanted to kind of touch on cost reductions. I know you all have done a solid job across the board on that front, tackling the completion side last year, drilling side this year and even the LOE reduction program this past quarter. And I know the team is always very focused on managing costs. I don't want to get too far ahead of ourselves, but just kind of wondering what you all might be looking at next to squeeze more out of the system when we're kind of looking ahead.

好的。這是有道理的。對於我的第二個問題，我只想談談降低成本。我知道你們在這方面都做了紮實的工作，去年解決了完井方面的問題，今年解決了鑽井方面的問題，甚至上個季度的 LOE 削減計劃也得到了解決。我知道團隊始終非常注重成本管理。我不想太過超前，只是想知道當我們展望未來時，你們接下來可能會關注什麼，以便從系統中擠出更多東西。

Sure. Yes. Look, the quick wins, if you will, that I think we achieved, remember, some of the increases in LOE that we saw late last year and very early this year, did come out as a result of some of the acquisitions that we had done that were a bit oilier, and so that led to a little bit of higher LOE.

當然。是的。看，如果你願意的話，我認為我們實現了快速勝利，請記住，去年年底和今年年初我們看到的 LOE 的一些增長確實是我們進行的一些收購的結果這樣做有點油膩，所以導致了一點更高的LOE。

So some of the gains that we realized now here recently came from this workover optimization, improving the utilization of some field equipment's, that included compressors and cooling units. In my remarks, I also mentioned this implementation of a field level data management platform. And I can't really say enough about this, but this tool can help us reduce spending and increase actual control over field services such as contract labor, trucking as examples. And it really digitize this procure-to-pay process.

因此，我們最近在這裡實現的一些收益來自修井優化，提高了一些現場設備的利用率，其中包括壓縮機和冷卻裝置。在我的發言中，我還提到了現場級資料管理平台的實施。我對此無法說太多，但這個工具可以幫助我們減少支出並增加對現場服務（例如合約工、卡車運輸）的實際控制。它真正實現了採購到付款流程的數位化。

And so we've also implemented this platform now over broader hauling in Giddings. So going forward, we plan to expand this to things like roustabout crews, oil hauling and for most of the other field services that we use. So the whole initiative around cost reduction, that will continue and other areas that will push on include pursuing bids for processes for certain materials and equipment.

因此，我們現在也在吉丁斯的更廣泛的運輸中實施了這個平台。因此，展望未來，我們計劃將其擴展到諸如碼頭工人、石油運輸以及我們使用的大多數其他現場服務等領域。因此，圍繞著降低成本的整個舉措將繼續下去，其他領域將繼續推進，包括對某些材料和設備的工藝進行投標。

But like you said, we've made some strong early progress. I don't want to get too much ahead of ourselves on forecasting further large significant gains as there's always items that can pop up and arise in the field. So I want to be mindful -- continually mindful of safety. This is always our first priority for us while we're always looking to improve. I would say that at least maintaining these levels is probably fair for forecasting going forward right now. But I'm proud of the guys and the progress that the field teams have made, and they've really done a terrific job embracing the whole initiative. So it's going well.

但正如您所說，我們已經取得了一些強有力的早期進展。我不想在預測進一步的重大收益方面太過超前，因為總有一些項目可能會在該領域突然出現。所以我要保持警覺——不斷注意安全。這始終是我們的首要任務，同時我們一直在尋求改進。我想說，至少維持這些水準對於目前的預測來說可能是公平的。但我為這些人員和現場團隊的進步感到自豪，他們在整個計劃方面確實做得非常出色。所以進展順利。

Thanks for the color. Appreciate the time, Chris.

謝謝你的顏色。珍惜時間，克里斯。

Noah Hungness, Bank of America.

諾亞·洪尼斯，美國銀行。

Morning all. I just wanted to first ask about the -- appraisal programs. Earlier this year you all mentioned that you were planning to drill an appraisal well in Northern Giddings this was targeting an oilier formation. Could you give us any update there?

大家早安。我只想先問一下評估計劃。今年早些時候，你們都提到你們計劃在北吉丁斯鑽一口評價井，目標是含油地層。您能為我們提供任何更新嗎？

Sure. Yes, I don't know if we can't recall actually pointing out an appraisal well in Northern Giddings. I mean, Giddings in the north or part of Giddings in the northern area was part of an acquisition that we had done late later last year. There's -- as part of our plan, we do have a modest amount of activity on some of these earlier acquired assets, and they've been integrated into our overall development path plan and then broader Giddings position.

當然。是的，我不知道我們是否不記得在北吉丁斯確實指出過一口評估井。我的意思是，北部的吉丁斯或北部地區吉丁斯的一部分是我們去年年底進行的收購的一部分。作為我們計劃的一部分，我們確實對其中一些早期收購的資產進行了適量的活動，並且它們已被整合到我們的整體發展路徑計劃以及更廣泛的吉丁斯立場中。

But there's -- I can't tell you that there's specifically a lot of appraisal work going on there right now. There may be over time, but there's nothing that I have to say exactly about that area in terms of appraisal, right now.

但我不能告訴你，目前正在進行大量評估工作。隨著時間的推移，可能會出現這種情況，但目前我在評估方面還沒有什麼要說的。

Okay. And then on for my second question, I just wanted to ask on cash taxes. You mentioned 9% to 10% for this year. Is that a good assumption moving forward as well into '25 and beyond?

好的。接下來的第二個問題，我只想問現金稅。你提到今年9%到10%。對於 25 世紀及以後來說，這是一個好的假設嗎？

Yes, for this year, it's fine. It's so dependent, Noah, on product prices, very sensitive to that. So in this sort of range. If this is what you're looking at in our just in terms of strip prices, it's probably fair for next year going out beyond that, I don't want to get too ahead of ourselves. But for next year, I think it's about right.

是的，今年還好。諾亞，它非常依賴產品價格，對此非常敏感。所以在這樣的範圍內。如果這就是您在我們的帶鋼價格方面所看到的，那麼明年超出這個價格可能是公平的，我不想太超前。但對於明年，我認為這是正確的。

Thank you.

謝謝。

Paul Diamond, Citi.

保羅戴蒙德，花旗銀行。

Good morning. Thanks for taking the time. Just a quick one on the kind of portending of the bolt-on acquisition. So you think across Fayette, Washington and [Lee], where do you see the biggest opportunity set more blocking out down at Fayette like this recent deal did? Or is it more disparate and kind of all over the place?

早安.感謝您抽出時間。只是簡單介紹一下這次補強收購的預兆。所以你想想費耶特、華盛頓和[李]，你認為最大的機會在哪裡，就像最近的交易一樣，在費耶特被更多地封鎖了？或者是更加不同並且到處都是？

It could be in a variety of different places. I'd rather not get overly specific by county or area. But again, I kind of described the process that we go through when we do some appraisal work and oftentimes some things that we see on the land side or the acquisition opportunity side can come out of that. I'd rather not get too specific on a call just in terms of what we're focusing on or looking at, it is competitive out there. But fair to say that the areas you mentioned are all fair game for opportunities and others.

它可能位於各種不同的地方。我不想按縣或地區過於具體。但我再次描述了我們在進行一些評估工作時所經歷的過程，通常我們在土地方面或收購機會方面看到的一些東西可以從中得出。我不想在電話會議上過於具體地討論我們關注或關注的內容，因為那裡競爭激烈。但公平地說，你提到的領域都是機會和其他領域的公平遊戲。

Understood. Thanks.

明白了。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。