Steve Chazen up and running in the Eagle Ford, Austin Chalk

Steve Chazen’s newly formed company, Magnolia Oil & Gas, is up and running, its stock trading on the NYSE under ticker MSY.

Magnolia came out of TPG Pace Energy Holdings Corp. (NYSE: TPGE) merger with EnerVest, Ltd.’s South Texas Division for $2.66 billion. The deal closed July 31.

The formation of Magnolia creates a pure-play South Texas operator with operations in the Eagle Ford and Austin Chalk with more than 40,000 BOEPD of production.

The former 360,000 total net EnerVsest acres in South Texas, which consist of approximately 14,000 net acres in one of the most prolific sections of Karnes County and 345,000 net acres in the emerging, high-growth potential Giddings Field, are Magnolia’s home base.

TPG Pace Energy Holdings Closes $2.6 Billion Merger

Magnolia Giddings Field and Karnes County Assets: Source: Magnolia

Chazen, who was CEO of Occidental Petroleum from 2011-2016, serves as Magnolia’s chairman, president, and CEO. Christopher Stavros, upon closing, was appointed as Magnolia’s CFO. Stavros was previously the CFO at Occidental Petroleum Corporation.

The Magnolia assets performed as follows for Q1 2018:

  • Operating revenue of $193.3 million
  • Pro forma EBITDA of $152.2 million
  • Free cash flow of $66.3 million
  • Average daily net production of 45.7 MBOEPD (62% oil, 78% liquids)

“These strong results were above our expectations for production and realized prices in the first quarter of 2018 and confirm that the Magnolia assets are an excellent match with our desire to build a large-scale company that can generate steady production growth, strong pre-tax margins and significant free cash flow,” Chazen said in the Q1 press release.

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