Magnolia Oil & Gas Corporation (NYSE: MGY) reported Q3 EPS of $0.21, $0.22 worse than the analyst estimate of $0.43. Revenue for the quarter came in at $178.56 million versus the consensus estimate of $251.89 million.

"The South Texas oil and gas properties that we acquired from EnerVest performed exceptionally well during Magnolia’s first period of ownership, providing better than expected results across both the Karnes County and Giddings Field assets," said Magnolia Chairman, President and CEO, Steve Chazen. "Our strategy and business model was to establish a company whose basic characteristics would appeal to generalist investors - this includes generating real earnings from the start, achieving high full-cycle and pretax operating margins, spending within 60 percent of our gross cash flow drilling wells in order to achieve moderate growth of 10 to 15 percent per year, and finally, maintaining a strong balance sheet with low leverage."

"We are pleased to report that our results are delivering on our business model objectives. On a pro forma basis, our production for the third quarter of 2018 grew 59 percent organically compared to the prior year period. We achieved this growth while spending approximately 50 percent of our gross cash flow on drilling and completing wells, allowing us to generate a meaningful amount of free cash flow. Our pro forma EBITDAX of $574.7 million for the first nine months is running at a pace that is well ahead of what we had forecasted when we announced the original transaction to form Magnolia earlier this year. We continue to evaluate several small bolt-on asset acquisition opportunities that fit our business model and are accretive to the value of our stock."

For earnings history and earnings-related data on Magnolia Oil & Gas Corporation (MGY) click here.