MGY (Magnolia Oil & Gas) Gross Margin % : 49.96% (As of Dec. 2024)

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What is Magnolia Oil & Gas Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Magnolia Oil & Gas's Gross Profit for the three months ended in Dec. 2024 was $163 Mil. Magnolia Oil & Gas's Revenue for the three months ended in Dec. 2024 was $327 Mil. Therefore, Magnolia Oil & Gas's Gross Margin % for the quarter that ended in Dec. 2024 was 49.96%.

The historical rank and industry rank for Magnolia Oil & Gas's Gross Margin % or its related term are showing as below:

MGY' s Gross Margin % Range Over the Past 10 Years
Min: 23.8 Med: 55.84 Max: 74.07
Current: 51.73

During the past 9 years, the highest Gross Margin % of Magnolia Oil & Gas was 74.07%. The lowest was 23.80%. And the median was 55.84%.

MGY's Gross Margin % is ranked better than
78.28% of 907 companies
in the Oil & Gas industry
Industry Median: 27.74 vs MGY: 51.73

Magnolia Oil & Gas had a gross margin of 49.96% for the quarter that ended in Dec. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Magnolia Oil & Gas was 17.60% per year.

Magnolia Oil & Gas Gross Margin % Historical Data

The historical data trend for Magnolia Oil & Gas's Gross Margin % 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.

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Magnolia Oil & Gas Gross Margin % Chart

Magnolia Oil & Gas Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Gross Margin %

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23.80

68.88

74.07

57.24

51.73

Magnolia Oil & Gas Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Gross Margin %	Get a 7-Day Free Trial															54.36	52.49	53.21	51.23	49.96

Competitive Comparison of Magnolia Oil & Gas's Gross Margin %

For the Oil & Gas E&P subindustry, Magnolia Oil & Gas's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Magnolia Oil & Gas's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Magnolia Oil & Gas's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Magnolia Oil & Gas's Gross Margin % falls into.

Magnolia Oil & Gas Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Magnolia Oil & Gas's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )	=	Gross Profit (A: Dec. 2024 )	/	Revenue (A: Dec. 2024 )
	=	680.7	/	1315.886
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1315.886 - 635.2)	/	1315.886
	=	51.73 %

Magnolia Oil & Gas's Gross Margin for the quarter that ended in Dec. 2024 is calculated as

Gross Margin % (Q: Dec. 2024 )	=	Gross Profit (Q: Dec. 2024 )	/	Revenue (Q: Dec. 2024 )
	=	163.2	/	326.609
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(326.609 - 163.432)	/	326.609
	=	49.96 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Magnolia Oil & Gas (NYSE:MGY) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Magnolia Oil & Gas had a gross margin of 49.96% for the quarter that ended in Dec. 2024 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Magnolia Oil & Gas Gross Margin % Related Terms

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Magnolia Oil & Gas Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Magnolia Oil & Gas Corp (NYSE:MGY) » Definitions » Gross Margin %

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

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
James R Larson	director	CSI COMPRESSCO LP, 1735 HUGHES LANDING BLVD STE 200, THE WOODLANDS TX 77380
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