Magnolia Oil & Gas (Magnolia Oil & Gas) Operating Income

: $550 Mil (TTM As of Dec. 2023)

View and export this data going back to 2017. Start your Free Trial

Magnolia Oil & Gas's Operating Income for the three months ended in Dec. 2023 was $138 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $550 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Magnolia Oil & Gas's Operating Income for the three months ended in Dec. 2023 was $138 Mil. Magnolia Oil & Gas's Revenue for the three months ended in Dec. 2023 was $323 Mil. Therefore, Magnolia Oil & Gas's Operating Margin % for the quarter that ended in Dec. 2023 was 42.80%.

Magnolia Oil & Gas's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Magnolia Oil & Gas's annualized ROC % for the quarter that ended in Dec. 2023 was 20.73%. Magnolia Oil & Gas's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 29.50%.

Magnolia Oil & Gas Operating Income Historical Data

The historical data trend for Magnolia Oil & Gas's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Magnolia Oil & Gas Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

127.94

-544.41

602.59

1,073.79

550.22

Magnolia Oil & Gas Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income																197.91	142.67	121.33	148.13	138.09

Magnolia Oil & Gas Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $550 Mil.

Magnolia Oil & Gas (NYSE:MGY) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Magnolia Oil & Gas's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	552.352 * ( 1 - 21.7% )	/	( (1920.874	+	2252.487)	/ 2 )
=	432.491616	/	2086.6805
=	20.73 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2652.493	-	229.576	-	( 618.466	-	max(0, 303.705	-	805.748	+	618.466	))
=	1920.874

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2756.216	-	227.343	-	( 401.121	-	max(0, 314.887	-	591.273	+	401.121	))
=	2252.487

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Magnolia Oil & Gas's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	550.852	/	( ( (1682.456 + max(-116.423, 0))	+	(2052.021 + max(-124.735, 0)) )	/	2 )
=	550.852	/	( ( 1682.456	+	2052.021 )	/	2 )
=	550.852	/	1867.2385
=	29.50 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(186.763	+	0	+	0.51900000000001)	-	(229.576	+	0	+	74.129)
=	-116.423

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(189.705	+	0	+	0.447)	-	(227.343	+	0	+	87.544)
=	-124.735

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Magnolia Oil & Gas's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	138.088	/	322.628
	=	42.80 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Magnolia Oil & Gas Operating Income Related Terms

Thank you for viewing the detailed overview of Magnolia Oil & Gas's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Magnolia Oil & Gas (Magnolia Oil & Gas) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Magnolia Oil & Gas Corp (NYSE:MGY) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

Nine Greenway Plaza, Suite 1300, Houston, TX, USA, 77046

Website

https://www.magnoliaoilgas.com

Magnolia Oil & Gas Corp is an independent oil and natural gas company engaged in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquid (NGL) reserves. The Company's oil and natural gas properties are located in Karnes County and the Giddings area in South Texas, where the Company targets the Eagle Ford Shale and Austin Chalk formations. Its objective is to generate stock market value over the long term through consistent organic production growth, high full-cycle operating margins, and an efficient capital program with short economic paybacks. The company's operating segment is acquisition, development, exploration, and production of oil and natural gas properties located in the United States.

Executives

James R Larson	director	CSI COMPRESSCO LP, 1735 HUGHES LANDING BLVD STE 200, THE WOODLANDS TX 77380
Enervest, Ltd.	director, 10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
John B Walker	director, 10 percent owner	NINE GREENWAY PLAZA, SUITE 1300, HOUSTON TX 77046
Brian Corales	officer: SVP & Chief Financial Officer	C/O MAGNOLIA OIL & GAS CORPORATION, NINE GREENWAY PLAZA, SUITE 1300, HOUSTON TX 77046
Stephen I Chazen	director, officer: Chairman, President & CEO	1700 E. PUTNAM AVE, SUITE 500, OLD GREENWICH CT 06870
Enervest Energy Institutional Fund Xiv-c, L.p.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Angela M Busch	director	1 ECOLAB PLACE, SAINT PAUL MN 55102
Enervest Management Gp, L.c.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Enervest Investment Services, L.l.c.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Enervest Energy Institutional Fund Xiv-wic, L.p.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Enervest Energy Institutional Fund Xiv-3a, L.p.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Enervest Energy Institutional Fund Xiv-2a, L.p.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Enervest Energy Institutional Fund Xiv-a, L.p.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Enervest Energy Institutional Fund Xiv-c-aiv, L.p.	10 percent owner	1001 FANNIN STREET, SUITE 800, HOUSTON TX 77002
Michael G. Macdougall	director	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102