Magnolia Oil & Gas drops as EnerVest slashes stake in block trade

Magnolia Oil & Gas

15/05/2024 15:14

** Shares of Magnolia Oil & Gas  MGY.N  down 3.9% at $25.08
early Weds after unregistered secondary block
    ** South Texas shale driller late Tues announced affiliates
of PE firm EnerVest agreed to sell 12 mln Class A shares
pursuant to SEC Rule 144
    ** JP Morgan handling the block, as per SEC filings
    ** Also, MGY to purchase 3 mln Class B shares from EnerVest
    ** The transactions will result in EnerVest owning ~4.2 mln
Class A and ~11 mln Class B shares, or ~7.6% of co's ~200 mln
total shares outstanding
    ** Magnolia last week reported Q1 adj EBITDA of $278 mln, up
from $217 mln a yr ago, topping LSEG consensus of $219 mln
    ** Co said total production in qtr grew 7% yr/yr to 84.8 mln
barrels/day (Mboe/d), including 37.5 mln barrels/day of oil, and
expects Q2 total production of 89 Mboe/d
    ** With move on the session, MGY's shares up 18% YTD and up
about 30% over the past 12 months

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))