Magnolia Oil & Gas (MGY) Update - Feb 5

[dan_s]

Magnolia Oil & Gas Corporation (NYSE: MGY) announced today that its Board of Directors has declared a cash dividend of $0.13 per share of Class A common stock, and a cash distribution of $0.13 per Class B unit, payable on March 1, 2024, to shareholders of record as of February 16, 2024. Today’s announcement represents a 13 percent increase to Magnolia’s quarterly dividend rate and would provide an annualized dividend of $0.52 per share. This is the third consecutive year that Magnolia has increased its dividend rate since initiating a dividend payment in 2021. Magnolia expects to declare its next quarterly dividend in May for payment in June.

Based on my 2024 forecast, MGY should generate over $2.40/share of free cash flow this year; more than enough to keep raising dividends buying back their common stock. Current production is ~87,000 Boepd (40% crude oil, 28% NGLs and 32% natural gas).