Magnolia Oil & Gas (MGY) Valuation Update - Nov 1

[dan_s]

At the time of this post MGY was trading at $25.31. My current valuation increases by $0.50 to $29.50.

Why?
> Improving production mix, more oil.
> Strong Balance Sheet with no near-term debt issues.
> Lots of "Running Room" in core areas that should generate 8% to 10% annual production growth.
> Magnolia provides accurate guidance and it is easy to forecast.
> They pay out a high percentage of free cash flow as dividends and stock buybacks.
> I expect them to increase dividends again in 2025.
> NONE of their production is hedged, so it does have the highest percentage of commodity price risk in the Sweet 16.

TipRanks: "In the last 3 months, 9 ranked analysts set 12-month price targets for MGY. The average price target among the analysts is $27.00. This morning Neal Dingman updated his price target to $33.00."