Magnolia Oil & Gas Corp (MGY) 2025 Q1 法說會逐字稿

Good morning, everyone and thank you for participating in Magnolia Oil and Gas Corporation's first quarter 2025 earnings conference call. My name is Megan and I will be your operator for today's call. At this time, all participants will be placed in a listen-only mode as our call is being recorded. 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.

大家早安，謝謝大家參加 Magnolia Oil and Gas Corporation 2025 年第一季財報電話會議。我叫梅根，今天我將擔任您的電話接線生。此時，所有參與者都將處於只聽模式，因為我們的通話正在錄音。現在，我將把電話轉給 Magnolia 的管理層，請他們發表準備好的發言，然後進行簡短的問答環節。

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

謝謝你，梅根，大家早安。歡迎參加 Magnolia Oil and Gas 第一季財報電話會議。今天參加電話會議的有 Magnolia 總裁兼執行長 Chris Stavros 和高級副總裁兼財務長 Brian Corrales。提醒一下，今天的電話會議包含聯邦證券法所定義的某些預測和其他前瞻性陳述。這些聲明受風險和不確定性的影響，可能導致實際結果與這些聲明中表達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 10K filed with the SEC. A full safe harbor can be found on slide 2 of the conference calls slide presentation with supplemental data on our website. You can download Magnolia's first quarter 2025 earnings press release, as well as the conference call slides from the investor section of the company's website at www.magnoliaoilgas.com. I will now turn the call over to Mr. Chris Stavros.

有關可能導致結果不同的風險因素的更多信息，請參閱公司向美國證券交易委員會提交的 10K 表年度報告。完整的安全港可以在電話會議幻燈片演示的第 2 張幻燈片上找到，並在我們的網站上提供補充資料。您可以在公司網站 www.magnoliaoilgas.com 的投資者專區下載 Magnolia 2025 年第一季的獲利新聞稿以及電話會議投影片。現在，我將把電話交給 Chris Stavros 先生。

Thank you, Tom, and good morning, everyone. We appreciate you joining us today for a discussion of our first quarter of 2025 financial and operating results. I plan to speak about our first quarter results, which puts Magnolia on a very solid foundation to start the year and in a strong position with extensive flexibility to maneuver through the current product price volatility and macroeconomic uncertainty. I will briefly discuss how our asset quality, notably in Giddings, continues to drive our operational execution and providing us with further confidence in our plan for this year.

謝謝你，湯姆，大家早安。感謝您今天加入我們討論 2025 年第一季的財務和經營業績。我計劃談談我們的第一季業績，這為 Magnolia 在新的一年奠定了非常堅實的基礎，並使其處於有利地位，擁有廣泛的靈活性，可以應對當前產品價格波動和宏觀經濟不確定性。我將簡要討論我們的資產品質（尤其是吉丁斯的資產品質）如何繼續推動我們的營運執行，並為我們對今年的計劃提供進一步的信心。

I'll conclude by giving a brief update of Magnolia's 2025 Capital, an operating plan where we now expect to see higher production growth with lower capital spending, resulting in a more capital efficient program and in accordance with our business model discipline. Brian will then review our first quarter financial results in greater detail and provide some additional guidance before we take your questions.

最後，我將簡要介紹 Magnolia 的 2025 年資本，這是一項營運計劃，我們現在預計生產成長會更高，資本支出會更低，從而實現更有效率的資本計劃，並符合我們的商業模式原則。在我們回答您的問題之前，Brian 將更詳細地回顧我們的第一季財務表現並提供一些額外的指導。

Focusing on slide 3 of the investor presentation, Magnolia delivered strong operational and financial results during this year's first quarter. We achieved a record quarterly production rate of 96,500 barrels of oil equivalent per day during the quarter, which was well ahead of our earlier guidance. We made a tactical decision to bring a couple of multi-well pads online in the first quarter that are in a gassier portion of Giddings and to take advantage of higher natural gas prices historically seen during the winter months.

專注於投資者簡報的第 3 張幻燈片，Magnolia 在今年第一季取得了強勁的營運和財務業績。本季度，我們的產量達到了創紀錄的 96,500 桶油當量/天，遠高於我們先前的預期。我們做出了一項戰術決策，在第一季度啟用吉丁斯天然氣較豐富的地區的幾個多井平台，並利用冬季歷史上天然氣價格較高的優勢。

The wells not only exceeded our performance expectations but are also exhibiting a shallower declined profile. The outperformance from these wells helped drive the first quarter year over year total production growth to 14% in addition to oil production growth of 4%. Total production at Giddings grew by 25% compared to the prior year quarter, with Giddings oil volumes growing by 17%. Our first quarter financial results were also strong with total adjusted net income for the quarter of $106 million and adjusted even DAX of $248 million both up 9% compared to the year ago period.

這些油井不僅超出了我們的性能預期，而且還表現出更淺的下降趨勢。這些油井的優異表現推動第一季總產量年增 14%，此外石油產量也成長了 4%。吉丁斯的總產量與去年同期相比增加了 25%，其中吉丁斯的石油產量增加了 17%。我們第一季的財務表現也十分強勁，本季調整後淨收入總額為 1.06 億美元，調整後的 DAX 指數為 2.48 億美元，均比去年同期成長 9%。

Operating income margins were 39% in the order, and our annualized return on capital employed was 23%. Our D&C capital spending was $130 million with a reinvestment rate of 53% during the first quarter. The 1st quarter rate of capital outlays is expected to be the high quarterly, the highest quarterly spending rate for the year. Magnolia generated free cash flow of $111 million and we returned 74% of the free cash, or approximately $82 million to our shareholders through our growing base dividend and ongoing share repurchase program.

營業收入利潤率為 39%，年化資本使用報酬率為 23%。我們第一季的 D&C 資本支出為 1.3 億美元，再投資率為 53%。預計第一季的資本支出率將創下季度新高，也是今年最高的季度支出率。木蘭產生了 1.11 億美元的自由現金流，我們透過不斷增長的基本股息和持續的股票回購計劃向股東返還了 74% 的自由現金，約 8,200 萬美元。

Much of the outperformance seen from the wells I mentioned earlier originated from a newer area of Giddings, which we had previously appraised, ultimately leading to the acquisition of additional acreage and the completion of our first multi-well pads late last year and into early 2025. In addition to the strong performance and lower than expected declines, these wells also generate strong financial returns with quick payback periods. Other areas within Giddings also saw strong oil production performance with meaningful associated gas volumes.

我之前提到的油井的優異表現大部分源自吉丁斯的一個較新的區域，我們之前對該區域進行過評估，最終促成了額外油田的收購，以及我們第一個多井平台於去年年底和 2025 年初的竣工。除了強勁的業績和低於預期的下降幅度外，這些油井還產生了豐厚的財務回報，並且投資回收期較短。吉丁斯的其他地區的石油產量也表現強勁，伴生氣產量也相當可觀。

The outperformance we experienced this past quarter in Giddings is not a new phenomenon for us. Rather, we have more commonly and consistently seen the results in Giddings positively surprise us in terms of well performance and productivity as we have deployed more modern completions, design and technology to this older vintage field. Our subsurface team has done an outstanding job of advancing our knowledge of the Austin Chalk Reservoir. Our drilling completion crews continue to execute on time and below budget, and our production group ensures that the wells are producing in the most efficient manner.

上個季度我們在吉丁斯所經歷的優異表現對我們來說並不是什麼新鮮事。相反，隨著我們為這個老油田部署了更現代化的完井技術、設計和技術，我們更常見、更一致地看到吉丁斯油田的業績在油井性能和生產率方面給我們帶來了驚喜。我們的地下團隊在增進對奧斯汀白堊儲層的了解方面做出了傑出貢獻。我們的鑽井完井隊繼續按時且在預算內完成工作，我們的生產小組確保油井以最高效的方式生產。

These factors have been critical to the successful execution of our business model by maximizing our high return growth for our Giddings asset and with the Karnes area providing significant free cash flow. As a result of the stronger than expected well performance, and which has continued into the second quarter, we are increasing our full year 2025 production growth guidance range to 7 to 9% from a range of 5 to 7% previously.

這些因素對於我們成功執行商業模式至關重要，因為我們可以最大限度地提高吉丁斯資產的高回報成長，而卡恩斯地區則可以提供大量的自由現金流。由於油井表現強於預期，並且這種勢頭一直持續到第二季度，我們將 2025 年全年產量成長預期範圍從先前的 5% 至 7% 上調至 7% 至 9%。

At the same time, we are lowering the range for 2025 capital spending to $430 to $470 million a reduction of approximately $25 million or more than 5% from the midpoint of our original spending plan. Capital discipline continues to be one of the core principles of Magnolia's business model. Within the backdrop of current macroeconomic uncertainty and weaker product prices, we see no reason to be overly heroic in terms of pursuing and generating even higher production growth through our original capital spending and activity levels. The higher growth rate and improved operational flexibility that we now expect to achieve in 2025 is primarily a function of the outperformance of the wells and operational efficiencies we have captured through the first part of this year.

同時，我們將 2025 年資本支出範圍下調至 4.3 億美元至 4.7 億美元，比原支出計畫的中點減少約 2,500 萬美元，即減少 5% 以上。資本紀律仍然是 Magnolia 商業模式的核心原則之一。在當前宏觀經濟不確定性和產品價格疲軟的背景下，我們認為沒有理由過度大膽地透過原有的資本支出和活動水準來追求和創造更高的生產成長。我們目前預計 2025 年將實現更高的成長率和更強的營運彈性，這主要歸功於我們在今年上半年取得的優異油井表現和營運效率。

The reduction to our capital and activity plan will lead to deferring the completion of several wells into next year. To summarize, and at current product prices, we now expect to see somewhat higher production in 2025 compared to our previous forecast and with less capital spending, while maintaining a high level of flexibility within our activity program for the remainder of the year.

我們的資本和活動計劃的減少將導致幾口油井的完工推遲到明年。總而言之，以目前的產品價格，我們預計 2025 年的產量將比我們先前的預測略高，資本支出也會減少，同時在今年剩餘時間的活動計畫中保持高度彈性。

Magnolia's operations remain consistent and steady, and we continue to execute a differentiated, focused, and investable EMT business model that is enduring. Our objective, as always, is to be the most efficient operator, best in class oil and gas assets, generating the highest returns on those assets while employing the least amount of capital for drilling and completing wells.

Magnolia 的營運保持一致和穩定，我們將繼續執行持久的差異化、專注和可投資的 EMT 業務模式。我們的目標一如既往，是成為最高效的營運商，擁有一流的石油和天然氣資產，在使用最少的資金進行鑽井和完井的同時獲得最高的資產回報。

As we noted earlier this year, our teams took proactive measures during the last couple of years to reduce both our field level operating costs, as well as working with our key oil field service providers and material vendors to lower our overall well costs. These early efforts taken during a period of higher product prices has reduced our overall cost structure, placing us in a continued strong position should product prices continue to weaken.

正如我們今年稍早指出的那樣，我們的團隊在過去幾年中採取了積極措施，降低了油田營運成本，並與我們的主要油田服務提供者和材料供應商合作，以降低我們的整體油井成本。在產品價格較高時期採取的這些早期努力降低了我們的整體成本結構，使我們在產品價格繼續走弱的情況下仍能保持強勁地位。

Our low level of debt, business model oriented toward capital discipline and our high-quality assets are valuable characteristics, particularly during periods of greater uncertainty, and allow Magnolia to operate from a position of strength and manage through periods of weaker product prices or potential market instability. Despite the lower product commodity price environment, we will continue to limit our reinvestment rate to 55% of our gross cash flow or even tax, allowing for a significant return of free cash to shareholders through our base dividend and ongoing share repurchase.

我們的低負債水平、以資本紀律為導向的商業模式和高品質的資產都是寶貴的特徵，特別是在不確定性較大的時期，這些特徵使 Magnolia 能夠以實力為基礎運營並度過產品價格疲軟或潛在市場不穩定的時期。儘管產品商品價格較低，我們仍將繼續將再投資率限制在總現金流的 55% 甚至稅收的範圍內，以便透過基本股息和持續的股票回購為股東帶來大量自由現金回報。

Any additional free cash accrues to the balance sheet, allowing us to opportunistically pursue a creative bolt on oil and gas property acquisitions that can improve our opportunity set and enhance the durability of our business model.

任何額外的自由現金都會累積到資產負債表中，使我們能夠抓住機會，進行創造性的石油和天然氣資產收購，從而改善我們的機會集，並增強我們商業模式的持久性。

As I've emphasized, Magnolia's consistently strong execution supports the competitive advantage we have in South Texas, Eagleford and Austin Chalk, and we will continue to focus our attention and capital in these areas to further generate and compound value for our shareholders. I'll now turn the call over to Brian to provide some further details on our first quarter of 2025 results and additional guidance for the second quarter.

正如我所強調的，Magnolia 一貫強勁的執行力支持了我們在南德克薩斯州、伊格福德和奧斯汀查克的競爭優勢，我們將繼續把注意力和資金集中在這些地區，以進一步為我們的股東創造和復合價值。現在，我將把電話轉給 Brian，讓他提供有關我們 2025 年第一季業績的更多詳細資訊以及第二季的額外指導。

Thanks, Chris, and good morning, everyone. I will review some items from our first quarter results and refer to the presentation slides found on our website. I also provide some additional guidance for the second quarter of 2025 and the remainder of the year before turning it over for questions. Beginning on slide 5, Magnolia had a strong start to 2025 as we continue to adhere to the business model through these uncertain times. During the first quarter, we generated total net income of $107 million the total adjusted net income of $106 million or $0.54 per diluted share. Our adjusted EBITDAX for the quarter was $248 million. The total capital associated with drilling completions and associated facilities of $130 million representing approximately 53% of our adjusted EBITDAX.

謝謝，克里斯，大家早安。我將回顧我們第一季業績中的一些項目，並參考我們網站上的簡報幻燈片。在提交問答之前，我還將針對 2025 年第二季和今年剩餘時間提供一些額外指導。從第 5 張幻燈片開始，Magnolia 在 2025 年取得了強勁開局，因為我們在這些不確定的時期繼續堅持商業模式。第一季度，我們的總淨收入為 1.07 億美元，調整後總淨收入為 1.06 億美元，即每股攤薄收益 0.54 美元。本季調整後的 EBITDAX 為 2.48 億美元。與鑽井完井和相關設施相關的總資本為 1.3 億美元，約占我們調整後 EBITDAX 的 53%。

First quarter capital was expected to be the highest quarterly outlay for the year. First quarter production volumes grew 14% year over year to 96,500 barrels of oil equivalent per day while generating free cash flow of $111 million. Looking at the quarterly cash flow waterfall chart on slide 6, we started the year with $260 million of cash. Cash flow from operations before changes in working capital was $232 million with working capital changes and other small items impacting cash by $7 million.

預計第一季的資本支出將是今年最高的季度支出。第一季產量年增 14%，達到每天 96,500 桶油當量，同時產生 1.11 億美元的自由現金流。查看幻燈片 6 上的季度現金流瀑布圖，我們今年年初的現金為 2.6 億美元。營運資本變動前的營運活動現金流為 2.32 億美元，營運資本變動和其他小型專案對現金的影響為 700 萬美元。

During the quarter, we paid dividends of $30 million and allocated $52 million towards share repurchases. We added $24 million of small bolt on acquisitions during the quarter comprised of working interests, royalties, and some additional sur surface acreage, and this did not come with any production. We incurred $131 million on drilling completions, associated facilities, and leasehold, and ended the quarter with $248 million of cash. Looking at slide 7, this chart illustrates the progress in reducing our total outstanding shares since we began our repurchase program in the second half of 2019. Since that time, we have repurchased 75 million shares, leading to a change in weighted average diluted shares outstanding of 24% net of issuances.

本季度，我們支付了 3,000 萬美元的股息，並撥款 5,200 萬美元用於股票回購。我們在本季增加了價值 2,400 萬美元的小型附加收購，包括工作權益、特許權使用費和一些額外的地表面積，但這並沒有帶來任何產量。我們在鑽井完井、相關設施和租賃上花費了 1.31 億美元，本季末的現金為 2.48 億美元。請看第 7 張投影片，該圖表顯示了自 2019 年下半年開始回購計畫以來，我們在減少總流通股數方面取得的進展。自那時起，我們已回購了 7,500 萬股股票，導致發行後加權平均稀釋流通股數變化了 24%。

Magnolia's weighted average diluted share count declined by approximately 2 million shares sequentially, averaging 194.2 million shares during the first quarter. We currently have 9.6 million shares remaining under our repurchase authorization, which are specifically directed toward repurchasing Class A shares in the open market.

第一季度，Magnolia 的加權平均稀釋股數較上季減少約 200 萬股，平均為 1.942 億股。我們目前有 960 萬股股票的回購授權，專門用於在公開市場上回購 A 類股票。

Turning to slide 8, our dividend has grown substantially over the past few years, including a 15% increase announced earlier this year to $0.15 per share on a quarterly basis. Our next quarterly dividend is payable on June 2nd and provides an annualized dividend payout rate of $0.60 per share. Our plan for annualized dividend growth is an important part of Magnolia's investment proposition. And supported by overall strategy of achieving moderate annual production growth, reducing ours to outstanding shares, and increasing the dividend payout capacity of the company.

翻到第 8 張幻燈片，我們的股息在過去幾年大幅增長，包括今年稍早宣布的季度增長 15% 至每股 0.15 美元。我們的下一季股利將於 6 月 2 日支付，年化股利支付率為每股 0.60 美元。我們的年度股利成長計畫是 Magnolia 投資主張的重要組成部分。並以實現年度產量適度增長、減少流通股數、提高公司股息支付能力的整體策略為支撐。

Magnolia continues to have a very strong balance sheet, and we ended the quarter with $248 million of cash. Our $400 million in senior notes do not mature until 2032, including our first quarter ending cash balance of $248 million and our undrawn $450 million-dollar revolving credit facility, our total liquidity is approximately $700 million-dollars. Our condensed balance sheet as of March 31st is shown on slide 9.

Magnolia 繼續擁有非常強勁的資產負債表，本季末我們擁有 2.48 億美元的現金。我們的 4 億美元優先票據要到 2032 年才到期，包括我們第一季末的 2.48 億美元現金餘額和未提取的 4.5 億美元循環信貸額度，我們的總流動資金約為 7 億美元。截至 3 月 31 日的簡明資產負債表顯示在投影片 9 上。

Turning the slide 10 and looking at our per unit cash cost and operating income margins. Total revenue per BOE declined approximately 3% year over year due to the decline in oil prices and partially offset by an increase in natural gas and NGO prices. Our total adjusted cash operating costs, including GNA, were $11.74 per BOE in the first quarter of 2025. Operating income margin for the first quarter was $15.63 for BOE or 39% of our total revenue and in line with the first quarter 2024 levels.

翻到第 10 張投影片，看看我們的每單位現金成本和營業收入利潤率。由於油價下跌，每桶油當量總收入年減約 3%，但天然氣和 NGO 價格上漲部分抵消了這一下降。2025 年第一季度，我們的總調整現金營運成本（包括 GNA）為每桶油當量 11.74 美元。京東方第一季的營業收入利潤率為 15.63 美元，佔總收入的 39%，與 2024 年第一季的水準一致。

Our year-to-year revenue per BOE declined to $1.01 dollar $0.09 due to decline in oil prices. Yet our operating income margin only declined by $0.52 per BOE. This highlights our success reducing our lease operating expenses last year, enabling us to preserve our margin percentage in a lower price environment.

由於油價下跌，我們的每桶油當量年收入下降至 1.01 美元 0.09 美元。但我們的營業利潤率僅下降了每桶油當量0.52美元。這凸顯了我們去年成功降低了租賃營運費用，使我們能夠在較低的價格環境中保持利潤率。

First quarter per barrel BOE is expected to be the highest level of the year. Turning to guidance, we have lowered our 2025 drilling completion of facilities capital spending to be in the range of $430 to $470 million from a prior range of $460 to $490 million a decrease of slightly more than 5% at the midpoint. This includes an estimate of non-operated capital that is about the same as 2024 levels. Importantly, due to the well outperformance that Chris described, we are increasing our full year production guidance to 7 or 9% from a prior range of 5 to 7%. Total production, for the second quarter is expected to be similar to the first quarter levels or approximately 97,000 barrels equivalent a day with second quarter D&C capital expenditures to be approximately $110 million.

第一季每桶油當量預計將達到年內最高水準。談到指導，我們已將 2025 年鑽井完井設施資本支出從先前的 4.6 億至 4.9 億美元下調至 4.3 億至 4.7 億美元之間，中間值下降幅度略高於 5%。這包括與 2024 年水準大致相同的非營運資本估計值。重要的是，由於克里斯所描述的出色表現，我們將全年產量預期從先前的 5% 至 7% 提高到 7% 或 9%。預計第二季的總產量將與第一季的水準相似，或約為每天 97,000 桶當量，第二季的 D&C 資本支出約為 1.1 億美元。

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 2nd quarter of 2025 is expected to be approximately 193 million shares, which is 4% lower than second quarter 2024 levels. We expect our effective tax rate to be approximately 21%, and our cash tax is expected to be between 7 to 9% for the full year 2025. We're now ready to take your questions.

預計石油價格差額將比麥哲倫東休士頓公司低約每桶 3 美元，而麥哲倫公司的所有石油和天然氣產量仍未進行對沖。預計 2025 年第二季的完全稀釋股數約為 1.93 億股，比 2024 年第二季的水平低 4%。我們預計我們的有效稅率約為 21%，預計 2025 年全年的現金稅率在 7% 至 9% 之間。我們現在準備好回答您的問題。

We will now begin the question-and-answer session. To ask a question, you may press then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then too. At this time, we will pause momentarily to assemble our roster.

我們現在開始問答環節。要提問，您可以按下電話鍵盤上的 1。如果您使用揚聲器，請在按下按鍵之前拿起聽筒。如果您的問題已得到解答並且您想撤回您的問題，也請按星號。此時，我們將暫時暫停以整理我們的名冊。

Our first question comes from Carlos Escalante with Wolf Research. Please go ahead.

我們的第一個問題來自 Wolf Research 的 Carlos Escalante。請繼續。

Hey, good morning team. Good morning, Chris and Brian. First of all, congratulations on the milestone for the year. It's certainly great to see and very encouraging. My first question is to perhaps explore a little bit about what's going on with these new wells and what this means for Magnolia. So, it seems to us that the incremental wells on the area have some existing prior activity by industry that hasn't been specifically touched by you or minimally where you've been minimally active. How should we interpret the general area in terms of inclusion to your definition of development acres versus undeveloped acres? And subsequent to that is. Is this an area you would prioritize developing versus your more usual getting development in a way weighted with advice perhaps to a little more of liquids?

嘿，大家早安。早上好，克里斯和布萊恩。首先，恭喜您今年取得的里程碑。這確實令人高興且令人鼓舞。我的第一個問題是想稍微探究一下這些新井的情況以及它們對木蘭意味著什麼。因此，在我們看來，該地區的增量井有一些現有的行業先前活動，而這些活動尚未受到您的特別觸及，或者您很少進行活動。我們該如何解釋將大致面積納入您對開發面積與未開發面積的定義中？接下來是。您是否會優先考慮開發這個領域，而不是像平常那樣以建議的方式獲得更多的液體？

Thanks, Carlos, for the questions. So, to answer some of the questions, I sort of have to assume that you're, you, what you're guessing on in terms of the area is correct and based on your, the characteristics that you mentioned. You would not be correct. So, I'll answer it the way where we can answer it. I'm not going to tell you, unfortunately for you, I'm not going to tell you exactly for, competitive reasons exactly where this is, we're just not going to disclose that, but. What I will say is that this is a new area, as we talked about. It is in what I would call now our development area.

謝謝卡洛斯提出的問題。因此，為了回答一些問題，我不得不假設你對該地區所做的猜測是正確的，並且基於你提到的特徵。你說的不對。因此，我會以我們能夠回答的方式來回答這個問題。我不會告訴你，不幸的是，出於競爭的原因，我不會確切地告訴你這到底在哪裡，我們只是不會透露這一點，但是。我想說的是，正如我們所討論的，這是一個新領域。它位於我現在稱之為的開發區內。

Part of it may have been already sort of noted in our, a couple of 100,000 acres of development area and part of it is not. So, if you wanted to count acres, I suppose you could say that there's more development acres to be added, and not just by the way, not just from this area, but probably from other areas as well because the 200,000-acre number is fairly stale.

其中一部分可能已經在我們這裡有所提及，有幾十萬英畝的開發區域，但另一部分還沒有。因此，如果您想計算英畝數，我想您可以說還有更多的開發英畝數需要增加，而且不只是順便說一下，不僅來自這個地區，而且可能也來自其他地區，因為 200,000 英畝這個數字已經相當陳舊了。

In terms of, what the wells did and how they looked, they've been producing for a bit of time, as I said, we have a meaningful amount of measurement period if you will. Where I could tell you, we directed some of this activity because it was, in our view, a gassier area and we wanted to take advantage of that. And fortunately, our gastralizations were double what they were a year ago, so, that worked out just fine. But importantly, and I think maybe critically, the financial returns and payback periods on these wells were very strong.

就油井的表現和外觀而言，它們已經生產了一段時間，正如我所說，如果你願意的話，我們有一段有意義的測量期。我可以告訴你，我們指導了部分活動，因為在我們看來，這是一個氣體較多的地區，我們想利用這一點。幸運的是，我們的胃化程度比一年前增加了一倍，所以一切都很順利。但重要的是，我認為也許至關重要的是，這些油井的財務回報和回收期非常強勁。

Because the average well probably produced maybe 500 barrels a day of oil. In addition to the gas. And so, that, that's worked out that much better. And call these wells roughly in this area that that I'm speaking to that we called out roughly in terms of the outperformance, about a dozen wells.

因為平均每口油井每天大概產出 500 桶石油。除氣。所以，這樣，效果就好多了。就我所說的這個區域而言，我們大致稱這些井為性能優異的井，大約有十幾口。

I wouldn't tell you that. Characteristically, there's some things on the subsurface level that are different from other areas of Giddings, but that's not a new statement that I would make. I mean, Giddings is not necessarily homogeneous. There are different areas of Giddings throughout the field. This particular area has its own characteristics, and I'm not going to get into too much of it, but nevertheless, the performance was very good. Both oil and gas beyond our expectations. I mentioned the shallower rates of decline.

我不會告訴你這件事。典型地，地下的一些東西與吉丁斯的其他地區不同，但這並不是什麼新鮮事。我的意思是，吉丁斯不一定是同質的。吉丁斯在整個領域有不同的區域。這個特定區域有其自己的特點，我不會講太多，但儘管如此，表現還是非常出色的。石油和天然氣都超出了我們的預期。我提到了較淺的下降速度。

And, frankly, just based on I mentioned the returns a little bit, but you're looking at F&D costs for these wells that are in the high single digits on a per barrel basis. So that's sort of what I would say. I mean, I think we're being conservative to some extent in terms of how we've evaluated this position and, we'll know more as we see more well results, but yeah, it's a new area, but there are other new areas for us in Giddings too. I mean, there's common, commonly new areas that we'll be able to speak to with more time.

坦白說，僅基於我提到的一點回報，但您正在查看這些油井的 F&D 成本，這些成本按每桶計算處於高個位數。這就是我想說的話。我的意思是，我認為我們在評估這個職位方面在某種程度上是保守的，隨著我們看到更好的結果，我們會了解更多，但是，是的，這是一個新的領域，但吉丁斯對我們來說還有其他新的領域。我的意思是，我們將有更多的時間來討論一些常見的、常見的新領域。

So, we'll study this a little further in order to get a better understanding of what happened or what might have surprised us, but I think, we're obviously very encouraged, very enthusiastic about what's happened just in terms of the results and As I was driving home last night, I thought to myself, wow, would I'd rather have had this circumstance of outperformance where we could lean on it a little bit and driving the better production growth expectations for the year with less capital. Would I have rather had these circumstances at $80 oil, or would I have rather had these circumstances at sub $60 oil? And as you can imagine, I'll take it as it is because in this environment, this is working out just fine for us. So, hopefully that gives you a little color.

因此，我們將進一步研究這一點，以便更好地了解發生了什麼或什麼可能讓我們感到驚訝，但我認為，就結果而言，我們顯然感到非常鼓舞，非常熱情，當我昨晚開車回家時，我心想，哇，我寧願有這種優異的表現，我們可以稍微依靠它，用更少的資本推動今年更好的生產增長預期。我寧願油價 80 美元時出現這種情況，還是寧願油價低於 60 美元時出現這種情況？正如你所想像的，我會接受它，因為在這種環境下，這對我們來說很好。所以，希望這能帶給你一些啟發。

Yeah, no, most definitely, unfortunately, I can't say I didn't expect that answer. My next question, my follow up is precisely about, what you just touched on, in a way, and it's trying to understand what your underlying sustaining capital will look like, said another way, should we expect the underlying sustaining capital to go down commeasurably with your updated 2025 go forward drilling guidance?

是的，不，絕對是，不幸的是，我不能說我沒有想到這個答案。我的下一個問題，我的後續問題正是關於您剛才提到的內容，在某種程度上，它試圖了解您的基礎維持資本將會是什麼樣子，換句話說，我們是否應該預期基礎維持資本會隨著您更新的 2025 年鑽探指南而相應下降？

Well, there there's a number of factors that would play into that, first and foremost what we said around Our ability to, because of the strong production, and we don't have to be overly heroic on the volume growth this year. So, we're going to defer a handful of completions, call it roughly 6 dozen completions into next year. So, that will provide us with more in the way of flexibility, if you will.

嗯，有很多因素都會影響這一點，首先也是最重要的，我們所說的是我們的能力，因為產量強勁，我們不必對今年的產量成長過於誇張。因此，我們將推遲一些項目的完成，大約有 6 打項目將推遲到明年完成。因此，如果您願意的話，這將為我們提供更多的靈活性。

Not just this year but also into next year and so, the cadence of capital just got sort of stretched out or pushed out to some extent. So, I think this year's efficiencies on the capital side also bleeds into Benefiting next year's efficiencies too. And, in addition to that, talking to, what we're seeing a little bit on the OFS cost side. I can't really tell you that in this environment there's any notable upside pressure on pricing on oilfield service side. So, things, if anything, could start to fall off a little bit.

不僅是今年，明年也是如此，資本的節奏在某種程度上被拉長或延後了。因此，我認為今年資本方面的效率也會影響明年的效率。除此之外，我們還在談論 OFS 成本方面的情況。我真的無法告訴你，在這種環境下，油田服務的定價是否有明顯的上行壓力。因此，如果有任何情況發生，事情可能會開始稍微惡化。

Later, into this year, so, the capital doesn't feel to me as if it's moving meaningfully higher from the new range that, we've talked about, the updated range, the 430 to 470 paces.

因此，今年晚些時候，我感覺首都似乎並沒有從我們討論過的新範圍（更新後的範圍，即 430 到 470 步）有顯著提高。

Thank you, Chris

謝謝你，克里斯

Thanks, our next question comes from Zach Parham with JP Morgan. Please go ahead.

謝謝，我們的下一個問題來自摩根大通的 Zach Parham。請繼續。

Hey, thanks for taking my question. Wanted to ask about capital allocation and how you think about that between the gassier and oilier areas of the play, in the current macro environment, could you potentially, decide to hold oil volumes flat or even potentially let them fall and focus on gassier areas of the play, just trying to think about how you manage that decision here.

嘿，謝謝你回答我的問題。想問一下資本配置問題，以及您如何看待在當前的宏觀環境下，天然氣和石油儲量較多的地區之間的資本配置，您是否有可能決定保持石油產量平穩，甚至可能讓產量下降，並專注於天然氣儲量較多的地區，只是想想想您是如何在這裡做出這個決定的。

Yeah, thanks Zach. I mean, we find ourselves, frankly, given the broader balance of opportunity set within Giddings to almost do whatever we prefer to do to some extent. Where, the wells that we typically are drilling have, a large amount of gas but also come with a good amount of oil as just evidenced by some of these more recent wells that we talked about in the first quarter, oil is sort of going to grow at, lower single digits this year, which is sort of what I think is, baked to street expectations, 23 4% in that range. I don't see any problem and even in this environment with our capability to do that into next year.

是的，謝謝札克。我的意思是，坦白說，我們發現自己在吉丁斯內部享有更廣泛的機會平衡，在某種程度上幾乎可以做任何我們喜歡做的事情。我們通常鑽探的油井不僅擁有大量的天然氣，而且也蘊藏著大量的石油，正如我們在第一季度談到的一些較新的油井所證明的那樣，今年的石油產量將以較低的個位數增長，我認為這符合華爾街的預期，在 23% 到 4% 的範圍內。我認為沒有任何問題，即使在這種環境下，我們也有能力在明年做到這一點。

What I find interesting around your question is that it almost feels like if oil prices were higher, we'd be talking about just leaning into oil. If gas prices were higher, we'd be talking about leaning into gas. The beauty of Giddings is that the returns on the wells, oil, gas, and a mix thereof.

我發現你的問題有趣的地方在於，感覺好像如果油價更高，我們就會談論傾向於石油。如果汽油價格更高，我們會考慮轉向使用汽油。吉丁斯的魅力在於油井、石油、天然氣及其混合物的回報。

I am very good and so, it provides us with an outcome that it's fairly balanced over time. So, I don't necessarily have to find ourselves strategically leaning into one particular mix of production or stream, we come and go and we sort of move around the field, some of it is experimenting or appraising, and some of it is obviously most of it is development, but we find ourselves coming and going into different areas of the field because it's quite large. The footprint is quite large, but strategically, if you will, rather than tactically, strategically, I don't see necessarily shifting in this sort of pricing environment to one versus the other. You'd have to see something far more dramatic, separation between the two, the streams for us to think about doing that right now and that's not here.

我非常擅長，因此，它為我們提供了一個結果，即隨著時間的推移，它是相當平衡的。因此，我不一定要從戰略上傾向於某種特定的生產或流程組合，我們來來去去，在各個領域中游走，有些是在進行實驗或評估，有些顯然是在進行開發，但我們發現我們自己在這個領域的不同領域來來去去，因為它相當大。其影響範圍相當大，但從策略角度來看，而不是從戰術角度，我認為這種定價環境不一定會轉向其中一種。你必須看到一些更戲劇性的事情，兩者之間的分離，我們現在才會考慮這樣做，但那還不在這裡。

Zach, I'd also add, just like our return of capital to shareholders, it's very balanced. And so, we have a very balanced program throughout the 200,000 acres in Giddings.

札克，我還要補充一點，就像我們向股東的資本回報一樣，這是非常平衡的。因此，我們在吉丁斯的 20 萬英畝土地上實施了非常平衡的計劃。

Thanks guys. And then, follow up, just wanted to ask on the acquisition outlook, you highlighted some, on the cash flow statement that it didn't come with any production this quarter, but you know what you are seeing as far as M&A out there in the current market.

謝謝大家。然後，跟進一下，我只是想問一下關於收購前景的問題，您在現金流量表中強調了一些，本季度沒有任何產出，但您知道就當前市場上的併購而言，您看到了什麼。

Generally smaller, Zach, I mean, we're evaluating some smaller bolt on opportunities, again, generally that are in our backyard, again, focusing on the chalk and Eagleford where we can think we have a competitive advantage through our subsurface knowledge and experience.

一般來說規模較小，扎克，我的意思是，我們正在評估一些較小的附加機會，一般來說，這些機會都在我們的後院，再次關注白堊和伊格爾福德，我們認為我們通過地下知識和經驗擁有競爭優勢。

It's really in these areas where we think the development teams can create better value for the shareholder and for Magnolia over time and improve the opportunities set. But I would tell you right now, given this heightened level of uncertainty, things have generally slowed down a bit, maybe said differently the bid as between buyers and sellers is probably widened. So, I think its people have fallen back to a little bit more of a neutral position, the clearing price may work for one but not necessarily the other.

我們認為，正是在這些領域，開發團隊可以隨著時間的推移為股東和 Magnolia 創造更好的價值，並改善所創造的機會。但我現在要告訴你，鑑於這種不確定性的加劇，事情總體上已經放緩了一點，或者換句話說，買家和賣家之間的出價可能會擴大。因此，我認為其立場已經回歸到更中立的立場，清算價格可能對一方有用，但對另一方不一定有用。

Thanks, Chris. Thanks, Brian.

謝謝，克里斯。謝謝，布萊恩。

Thanks, Our next question comes from Oliver Wong with TPH. Please go ahead.

謝謝，我們的下一個問題來自 TPH 的 Oliver Wong。請繼續。

Good morning Chris and Brian and thanks for taking the questions. Just had one from my end on capital allocation. I know. I mean, just really hoping you all might be able to elaborate on the internal thought process a bit more just given how dynamic the commodity price environment is today. I know there's the less than 55% of EBITDAX which acts as a governor on reinvestment rate for you all, and you've highlighted flexibility in your opening remarks, but just what might we need to see to occur to take a closer look at the program. In the case commodity risk to the downside does play out and would this come in the form of incremental completion deferrals, or would we get to the point of maybe a rate dropping off?

早安，克里斯和布萊恩，謝謝你們回答問題。我剛剛就資本配置問題發表了看法。我知道。我的意思是，我只是真的希望大家能夠更詳細地闡述內部思考過程，因為當今的大宗商品價格環境是如此的動態。我知道，EBITDAX 低於 55% 可以作為您所有人的再投資率的調節器，並且您在開場白中強調了靈活性，但是我們需要看到什麼才能更仔細地研究該計劃。如果大宗商品下行風險確實發生，那麼這種風險會以遞增的完工延期的形式出現，還是我們可能會達到利率下降的程度？

Yeah, right now, I mean it, not that I won't tell you that. That thought hasn't pierced my brain, or anybody around here as far as, curtailing activity, but considering that we're in a good position in terms of the production outperformance, and our flexibility around, rig operators and our frac group.

是的，現在我是認真的，並不是說我不會告訴你。就削減活動而言，這個想法並沒有深入我的腦海，也沒有在任何人腦海中出現，但考慮到我們在生產表現優異以及我們在鑽機操作員和壓裂團隊方面的靈活性方面處於有利地位。

I mean, we just don't find ourselves in a position to need to do that right now. We have a lot of flexibility, so, our plan is maybe to be more pointed. Our plan is not to drop a rig here. We just don't have any reason to do that, but we'll continue to monitor the product price environment, around supply demand conditions, and we'll sort of see how things go. And as you pointed out, we have the governor of the ceiling on 55% of gross cash flow. So, I'm not overly concerned about it right now. Could it get worse? Sure. Could it get better? Sure. We'll just have to monitor it, but we have a lot of flexibility and said, if we needed to, we could defer some things further into next year.

我的意思是，我們現在還不需要這麼做。我們具有很大的靈活性，因此，我們的計劃可能更有針對性。我們的計劃是不在這裡放置鑽孔機。我們沒有任何理由這樣做，但我們會持續監控產品價格環境、供需狀況，看看情況如何發展。正如您所指出的，我們對總現金流的上限設定為 55%。所以，我現在並不太擔心。情況還會變得更糟嗎？當然。情況還能好轉嗎？當然。我們只需要監控它，但我們有很大的靈活性，並且表示，如果需要，我們可以將一些事情推遲到明年。

Again, as I said, it's about a half dozen wells, roughly, but it's all within the outlook that we generally provided you on the production, so, I don't feel necessarily overly pressured at this point in time. We'll just have to wait and see how things pan out as we move through the year.

再說一次，正如我所說，大概有六口井，但這一切都在我們通常為您提供的生產前景之內，因此，我目前並不覺得壓力過大。我們只需拭目以待，看看今年的情況將如何發展。

Perfect. That makes sense and maybe just a quick follow up on service costs. I understand negotiations are likely ongoing, but just anything that you're seeing on either the drilling or frac pricing side of things comm or to any sort of softness we're seeing on the product side.

完美的。這很有道理，也許只是對服務成本進行快速跟進。我知道談判可能仍在進行中，但您所看到的鑽井或壓裂定價方面的情況，或產品方面的任何疲軟情況。

Yeah, I mean for the 2nd quarter, I would tell you probably overall pricing is roughly flat with the 1st quarter.

是的，我的意思是，對於第二季度，我會告訴你整體價格可能與第一季大致持平。

I mean, drilling efficiency gains are offsetting some of the small increases on OCTG pricing, and those are the OCTG steel related really very small in the scheme of our overall well costs really as a result of the steel tariffs, but we do have a lot of flexibility with it within both our rigs and frac service providers. I'm not going to go into the specific terms on other materials and items.

我的意思是，鑽井效率的提高抵消了油井管價格的一些小幅上漲，而這些與油井管鋼材相關的成本在我們的整體油井成本中所佔比例確實很小，這實際上是由於鋼材關稅造成的，但我們在鑽機和壓裂服務提供商方面確實有很大的靈活性。我不會詳細討論其他材料和物品的具體術語。

We're probably seeing some relief, for sure, as you can imagine on things like diesel pricing. We use a lot of diesels, which is offset some of the small price increases, that might be relatively fluid and things like chemicals and valves and other type services, but if this is sort of the picture, in terms of what you're seeing on the screen for commodity prices.

正如您所想像的，我們肯定會看到柴油價格等方面的緩解。我們使用大量柴油，這抵消了一些小幅價格上漲，這些價格上漲可能相對不穩定，還有化學品、閥門和其他類型的服務，但如果這就是你在螢幕上看到的商品價格的情況。

As we move through the year, back half of the year, with a 5 handle on oil and, 350 is shun gas, I wouldn't imagine that there's going to be a ton of upside pressure on pricing. In fact, I would take the other side of it. There probably be some softness as you go through the back half of the year.

隨著我們度過這一年，回顧上半年，石油價格為 5，天然氣價格為 350，我認為價格不會面臨巨大的上行壓力。事實上，我會採取另一種做法。下半年可能會出現一些疲軟跡象。

Awesome thanks for the time, Chris.

非常感謝你抽出時間，克里斯。

Thanks.

謝謝。

Our next question comes from Tim Moore with Clear Street. Please go ahead.

我們的下一個問題來自 Clear Street 的 Tim Moore。請繼續。

Thanks, and the great execution on the quarter and the guidance raise. So, for just forgetting, I get asked a lot about this because you have so much untapped potential there and, you're probably planning to do some more peripheral and fringe study work. As Chris has mentioned in the past, those acres lines aren't smooth, they're not homogeneous, and they're more staggered odd shapes. It's probably harder to apply a logical approach for appraisal drilling, but, I'm just wondering, I know Chris started talking about this in his first, question response today. If you can, elaborate more color maybe on, how you landed on that acreage, just, maybe with an example, pinpointing where it is and really how you're maybe trying to hop around, if you're going to be hopping around more this year than maybe you would expect. A couple of years down the road just because, you've only been working on it for a little bit over a year.

謝謝，本季的執行情況非常出色，指導價格也提高了。所以，只是忘記了，我經常被問到這個問題，因為你在那裡有太多未開發的潛力，而且你可能計劃做一些更外圍和邊緣的研究工作。正如克里斯過去提到的那樣，這些英畝線並不平滑，也不均勻，而且是更交錯的奇怪形狀。應用邏輯方法進行評估鑽探可能比較困難，但我只是想知道，我知道克里斯今天在他的第一個問題回答中就開始談論這個問題了。如果可以的話，請詳細說明您是如何獲得該面積的，也許可以舉個例子，指出它在哪裡，以及您實際上是如何嘗試跳躍的，如果您今年的跳躍次數可能比您預期的要多。幾年後，因為你只花了一年多的時間。

Well, the particular acreage that that we highlighted within, where the wells outperformed, I mean, some of this was part of our original area within Giddings, going back from the beginning. And part of it was, as we appraise some of it, some of the area, part of it was, also acquired after that, as part of a package, a couple years ago, at least I think 22 plus years ago. So, we continue to scour around for opportunities to fill in.

嗯，我們重點關注的特定區域，其中油井表現優異，我的意思是，其中一些是我們從一開始就在吉丁斯的原始區域的一部分。其中一部分，正如我們評估的那樣，是在那之後作為一攬子計劃的一部分獲得的，幾年前，我想至少是 22 多年前。因此，我們繼續尋找填補的機會。

Holes within our acreage where we think, conditions are right for further, development area that that looks like the same thing we've been seeing in and around Giddings, so, it's a little bit of the extension of the boundaries. I can't do much about, lease lines. It is what it is, but nevertheless, we continue to look for opportunities to acquire or even potentially lease more or whatever; to pursue, further opportunities set over time.

我們認為，我們的土地範圍內的空洞適合進一步開發，這些空洞與我們在吉丁斯及其周邊地區看到的一樣，所以，這算是邊界的一點延伸。對於租賃線路，我無能為力。事實就是如此，但儘管如此，我們仍在繼續尋找機會收購甚至租賃更多或其他任何東西；隨著時間的推移，追求進一步的機會。

And that, that's great. Thanks for that color and that was it for my question.

那真是太棒了。謝謝你的顏色，這就是我的問題。

Our next question comes from Noah Hungness with Bank of America. Please go ahead.

我們的下一個問題來自美國銀行的 Noah Hungness。請繼續。

Morning Chris and Brian. For my first question here, it was, how can we think about like the oil cut through the remainder of 25? I mean, with the increased production growth guidance, is it also fair to assume that we'll have, some oil growth along with that, some additional oil growth?

早上好，克里斯和布萊恩。我的第一個問題是，我們如何考慮石油削減剩餘的 25%？我的意思是，隨著產量成長指引的增加，我們是否也可以公平地假設，隨之而來的還有一些石油成長？

I think we'll have, and based on what we're looking at, I think we'll have a little bit of absolute oil growth, oil volumes, a little bit through the year. On a percentage basis, I think it'll remain relatively stable, and quite similar to what we've seen in my bounce around, but we call it roughly a percent or so, but we were sort of 40%, so, maybe 40, 41% in that vicinity, but based on what we're seeing right now in terms of, the planning for the wells through the year, it looks like, maybe we'll see a little bit of additional oil in coming quarters, but fairly stable.

我認為，根據我們所觀察的情況，我認為全年我們的絕對石油產量將有小幅成長。從百分比來看，我認為它會保持相對穩定，與我們在反彈中看到的情況非常相似，但我們稱其為大約百分之一，但我們的比例大約是 40%，所以，也許是 40% 或 41% 在那個附近，但根據我們目前看到的全年油井規劃，看起來，也許我們會在未來幾個季度看到一點額外的石油，但相當穩定。

Great. And then, on, me for my next question, it's on, GP&T costs. I think it was a little higher than what we were expecting, as we kind of see natural gas still in a con tango, for the forward curve, how can we think about GP&T costs trending through the rest of 25 and also into 26 if you could.

偉大的。然後，我的下一個問題是，GP&T 費用。我認為它比我們預期的要高一點，因為我們看到天然氣仍處於正價差走勢中，對於遠期曲線，我們如何看待 GP&T 成本在 25 年剩餘時間以及 26 年的趨勢（如果可以的話）。

I mean, most of the increase that that you see, I mean these things GP&T tends to move in tandem with gas prices. So, generally, the move is in about the same direction, not necessarily linearly, but there's other variables as well, but that it that might impact GP&T, but generally in a similar broad direction. So, if gas prices should spike, or rise further into summer or, as you get more into winter, I would imagine, GP&T would move generally in the same direction and alternatively, the opposite would be the case.

我的意思是，您所看到的大部分增長，我的意思是這些 GP&T 往往與汽油價格同步變動。因此，一般來說，走勢大致朝著相同的方向，不一定是線性的，但也有其他變量，但這可能會影響 GP&T，但總體上朝著類似的方向發展。因此，如果汽油價格飆升，或在夏季或冬季進一步上漲，我想，GP&T 將大致朝著同一方向發展，或者情況相反。

Great, thanks for the call.

太好了，謝謝您的來電。

This is the end of the question-and-answer session. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

問答環節到此結束。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。