MGY and ROCC Updates - July 21

[dan_s]

Notes below are from Neal Dingmann at Truist Financial on July 21, 2022

Magnolia Oil & Gas Corporation (MGY, $22.32, Buy) -
Leading Low Reinvestment Rate Enables Notable Shareholder
Returns/Buybacks - We forecast a relatively in-line 2Q22 with
both our production and EBITDAX estimates near current
street consensus, but more importantly we anticipate Magnolia
to continue to return the majority of capital through share
repurchases. Operationally, the company is likely to continue to
focus on the Giddings area with the possibility of some additional
small M&A to fill in the acreage footprint. We remain constructive
on the company’s ability to clear its EnerVest (Private) share
overhang while also slowly increasing its dividend as its strong
FCF profile continues. - Neal Dingmann​

Ranger Oil Corporation (ROCC, $33.98, Buy) - Recent
Shareholder Return Acceleration Bodes Well for 2Q22/2H22
- Ranger recently issued a positive update on the progress of
its share buyback program and quarterly dividend, with both
increased ahead of our estimates. In our view, the news signals
the company’s confidence during the prior quarter as well as the
remainder of the year, providing a strong sense of assurance into
the upcoming earnings season. - Neal Dingmann