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Magnolia Oil & Gas sees FY19 capital spending 50%-60% of total EBITDAX.

The company said, "We anticipate that our assets will generate further volume growth as we exit 2018, and as a result of our continued development program, strong drilling results, and higher non-operated activity. Q4 total production is expected to average approximately 59 Mboe/d. This should allow us to generate FY18 production of approximately 53 Mboe/d, which is above our previous guidance of 50 Mboe/d. Further sequential growth is expected in the Giddings Field as additional wells are completed and brought on line, with fourth quarter volumes estimated at approximately 17 Mboe/d. We continue to expect that our drilling and completion capital expenditures will be in a range of 50%-55% of our FY18 EBITDAX, in line with our latest guidance. Looking into 2019, we expect that our total capital spending will be in the range of 50%-60% of our total EBITDAX for the year, in line with our business model. We plan to add a second rig in the Giddings Field in the early part of 2019 to further appraise and delineate our sizable net acreage position."

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Publication:The Fly
Date:Nov 13, 2018
Words:182
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