Magnolia Petroleum to report stronger-than-expected results

14th Mar 2014 07:52

AIM-listed US onshore outfit Magnolia Petroleum said it expects adjusted annual profits to be ahead of market expectations.The company, which continues to expect 240% growth in 2013 revenues, said that earnings before interest, tax, depreciation and amortisation - adjusted for currency movements - are now predicted to beat analysts' forecasts.Chief Operating Officer Rita Whittington said this was a result of Magnolia's "excellent operational performance" last year in terms of well count, production and proven reserves.Due to strong trading and the significant increase in the number of proposals Magnolia is receiving to participate in wells on its leases, the company has also raised its borrowing base limit on its credit facility to $2.1m from $1.6m."The increase in the borrowing limit of the credit facility before the completion of our updated Reserves Report provides third-party recognition of the rapid progress made," Whittington said.The company said it will report its results on or around May 1st.BC