Magnolia - Steady As She Goes

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About: Magnolia Oil & Gas Corporation (MGY)
by: Steve Zachritz
This article is exclusive for subscribers.
Steve Zachritz
Growth, long-term horizon, commodities, oil & gas
Summary

2020 will look a lot like 2019 - underspend, low leverage, premium barrels, no hedge.

The company is putting excess cash towards the balance sheet, share repurchase, opportunistic leasing, and/or a special dividend.

No change to our estimates, we see consensus as too low, and are adjusting numbers slightly to reflect a fourth quarter B shares purchase.

We see the name as inexpensive at this time.

This is a Z4 Research pre call update. More commentary on MGY can be found in previous Seeking Alpha posts, including this post 3Q19 note..

We touched base with the company yesterday. Some key