HOUSTON – Magnolia Oil & Gas Corporation (NYSE: MGY) announced today the appointment of R. Lewis (JO:) Ropp as an independent director to its board of directors, effective immediately. Mr. Ropp will also join the Audit Committee of the company.
With a robust background in finance, capital markets, and investment management, Ropp brings a wealth of experience to Magnolia’s board, particularly from his tenure in the oil and gas industry. His expertise extends to safety and environmental compliance within the energy sector. This appointment comes as Magnolia maintains strong financial health with a ‘GOOD’ rating from InvestingPro, operating with moderate debt levels and maintaining robust liquidity ratios.
Dan Smith, Chairman of the Board, expressed confidence in Ropp’s abilities, stating that his diverse experience will offer a unique and valuable perspective to the board.
Ropp’s career spans over four decades, beginning in 1981 in oil and gas operations and engineering. He has held various management positions, including a significant role at Barrow Hanley Global Investors, where he was a Senior Managing Director and Senior Equity Partner until June 2024. His previous roles also include a research analyst for exploration and production companies and an associate project engineer at Baker Hughes Company (NASDAQ:). Additionally, he was a process team leader at Shell (LON:) Oil Company, where he was responsible for overseeing field development and other technical aspects from 1990 to 1997.
Apart from his professional achievements, Ropp has been active in community service, serving on several boards, including SAMS, USA, and Leukemia Texas.
Magnolia Oil & Gas is focused on oil and gas exploration and production, primarily operating in South Texas. The company emphasizes moderate production growth, high pre-tax margins, and consistent free cash flow to provide returns to shareholders.
This announcement is based on a press release statement from Magnolia Oil & Gas Corporation.
In other recent news, Magnolia Oil & Gas Corp has secured a $1.5 billion credit facility and plans to privately place $400 million in senior unsecured notes due 2032. The aim of this placement is to fully repurchase and redeem the company’s outstanding 6.00% Senior Notes due 2026. This move is subject to market conditions and will be conducted through a private offering memorandum.
In terms of financial performance, Magnolia reported a significant 18% increase in oil production year-over-year, alongside a net income of $106 million for Q3. The company generated $126 million in free cash flow, returning 70% to its shareholders. Despite lower total revenue per barrel due to falling oil prices, Magnolia managed to reduce its field-level operating costs.
For 2024, Magnolia plans to maintain a disciplined capital expenditure of approximately $470 million. However, the company has expressed concerns over reliability and predictability in midstream operations due to ongoing power issues. Despite these potential challenges, Magnolia remains committed to its growth strategy and shareholder value.
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