Magnolia Oil

[charlie1]

Missing from the MGY report is an appraisal of management. Shortly after their SPAC conversion I bought the stock on the strength of the management team assembled by TPG. Steve Crazen and Christopher Stavros were President and CFO at OXY prior to joining MGY.At the time of the conversion the Karnes Co. property was the only producing asset with the Austin Chalk property a geologic idea/dream comprised for 450,000 acres prior to any drill bit exposure. Today three to four years later the Austin Chalk is now producing 44,100 BOE per day. The Karnes Co. continues to produce. This property is surrounded by EGO, MRO, and COP. Not bad neighbors. Sixty percent of MGY's non-ops are with EOG. Last week DVN spent $1.8 billion to buy 42,000 Karnes Co acres, just about doubling their Karnes Co. position.At Enercom Silverbow mentioned the this Eagleford play is generating Permian Basin returns. I have owned MGY for the past three or four years and expect to own it for the foreseeable future

[dan_s]

Thanks for the comments. Karnes County is the "Core of the Core" in the Eagle Ford.

I love Magnolia's strategy of being fully committed to generating free cash flow from operations. The Giddings development program is actually doing better than I expected.

[Fraser921]

Nice post. I like the company and management.

No debt & no hedges