Oil and gas producer Magnolia Oil & Gas (NYSE:MGY) will be reporting earnings this Wednesday after market hours. Here’s what to expect.
Magnolia Oil & Gas beat analysts’ revenue expectations last quarter, reporting revenues of $317.6 million, down 2.8% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ EBITDA estimates. It reported 3.75 million oil production, up 4.9% year on year.
Is Magnolia Oil & Gas a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Magnolia Oil & Gas’s revenue to be flat year on year, slowing from the 9.7% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Magnolia Oil & Gas rarely misses Wall Street’s revenue estimates.
Looking at Magnolia Oil & Gas’s peers in the mixed or offshore upstream e&p segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Solaris Energy Infrastructure delivered year-on-year revenue growth of 55.3%, beating analysts’ expectations by 6.8%, and Weatherford reported a revenue decline of 3.4%, topping estimates by 0.6%. Solaris Energy Infrastructure traded up 5.4% following the results while Weatherford was also up 1.4%.
Read our full analysis of Solaris Energy Infrastructure’s results here and Weatherford’s results here.
There has been positive sentiment among investors in the mixed or offshore upstream e&p segment, with share prices up 5.1% on average over the last month. Magnolia Oil & Gas’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $33.89 (compared to the current share price of $31.05).
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