Magnolia Oil & Gas Corporation Class A press release

Magnolia Oil & Gas Corporation Announces Second Quarter 2026 Results

2026-08-05

NYSE - New York Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · United States · Corporate Finance

Magnolia Oil & Gas Corporation (“Magnolia,” “we,” “our,” or the “Company”) (NYSE: MGY) today announced its financial and operational results for the second quarter of 2026.

Second Quarter 2026 Highlights:

| (In millions, except per share data) | For the

Quarter Ended

June 30, 2026 | | For the

Quarter Ended

June 30, 2025 | Percentage increase (decrease) | | | | | Net income | $ | 181.8 | | $ | 81.0 | 124 | % | | Adjusted net income (1) | $ | 184.3 | | $ | 80.9 | 128 | % | | Earnings per share - diluted | $ | 0.97 | | $ | 0.41 | 137 | % | | Adjusted EBITDAX (1) | $ | 370.3 | | $ | 223.2 | 66 | % | | Capital expenditures - D&C | $ | 125.0 | | $ | 95.2 | 31 | % | | Average daily production (Mboe/d) | | 106.1 | | | 98.2 | 8 | % | | Average daily oil production (Mbbls/d) | | 41.9 | | | 40.0 | 5 | % | | Cash balance as of period end | $ | 295.9 | | $ | 251.8 | 18 | % | | Diluted weighted average total shares outstanding (2) | | 184.6 | | | 192.1 | (4 | )% |

Second Quarter 2026 Highlights:

Magnolia reported second quarter 2026 net income of $181.8 million, or $0.97 per diluted share. Second quarter 2026 adjusted net income (1) was $184.3 million, or $0.99 per diluted share. Diluted weighted average total shares outstanding decreased by 4% to 184.6 million (2) compared to second quarter 2025. Second quarter 2026 net income, adjusted net income, and earnings per diluted share all more than doubled compared to the prior-year second quarter and primarily due to higher oil and NGL prices and growth in our overall production volumes. Adjusted EBITDAX (1) was $370.3 million during the second quarter of 2026. Total drilling and completions (“D&C”) capital was $125.0 million which represented approximately 34% of adjusted EBITDAX. Net cash provided by operating activities was $384.0 million during the second quarter of 2026 with free cash flow (1) generated by the Company of $234.6 million more than doubling year-over-year. Magnolia generated operating income as a percentage of revenue (pre-tax margins) of 50% during the second quarter. Total Company production volumes in the second quarter of 2026 grew by 8% on a year-over-year basis to 106.1 thousand barrels of oil equivalent per day (“Mboe/d”) and included 41.9 thousand barrels of oil per day (“Mbbls/d”) which grew by 5% compared to the prior year period, exceeding earlier guidance and due to continued strong well performance. Total production in Giddings increased 10% year-over-year to 85.5 Mboe/d with oil volumes growing by 7%. On July 20, Magnolia announced that the Company entered into a definitive agreement to acquire WildFire Energy (“WildFire” or the “Acquisition”) that will more than double Magnolia’s Giddings acreage and create the dominant Eagle Ford/Austin Chalk acreage position in South Texas by combining two high-quality, complementary assets. The highly accretive Acquisition will be funded with approximately half debt and half equity and is expected to close late in the third quarter of 2026. The Company repurchased 1.7 million shares of its Class A Common Stock during the second quarter for $49.3 million and has 9.9 million Class A common shares remaining under its current share repurchase authorization. As previously announced, Magnolia’s Board of Directors declared a quarterly cash dividend of $0.18 per share, payable on September 1, 2026 to shareholders of record as of August 10, 2026. This quarterly dividend payment is a 9% increase compared to the previous rate, providing an annualized dividend of $0.72 per share. The increase in the quarterly dividend rate was announced in conjunction with the Acquisition. Magnolia returned $80.1 million, or 34% of the Company’s free cash flow (1) , to shareholders during the second quarter through a combination of share repurchases and dividends. Inclusive of the significant return of cash to shareholders, Magnolia ended the second quarter with $295.9 million of cash on the balance sheet and an undrawn $450 million revolving credit facility.

“Our second quarter results continue to underscore the strength of Magnolia's differentiated business model and the quality of our asset base,” said Magnolia’s Chairman, President and CEO Chris Stavros. “The consistent capital allocation discipline, operational execution and continued focus on our financial returns, helped generate meaningful free cash flow totaling $235 million during the second quarter. Our adjusted EBITDAX during the quarter was $370 million, and with capital for drilling and completions of approximately $125 million, our reinvestment rate for the quarter was just 34 percent. Stronger than expected overall oil and gas production totaling 106.1 thousand barrels of oil equivalent per day and oil production of 41.9 thousand barrels of oil per day further supported our quarterly financial results and enabled us to increase Magnolia’s standalone full-year 2026 production growth guidance to 6 percent from 5 percent.

“As we announced last month, the acquisition of the WildFire oil and gas properties and acreage is a natural and strategic fit and makes our business better by extending our runway of advantaged profitability and significant free cash flow generation. Our combined position in the Giddings field amounts to more than 1.25 million net acres with upside development opportunities across multiple benches including the Austin Chalk, Eagle Ford and Woodbine. The highly accretive Acquisition is the result of our extensive subsurface understanding, experience, and the demonstration of our proven resource capture in the Giddings field. This creates a premier upstream operation in South Texas by combining two high-quality and complementary assets near Gulf Coast markets which offer premium pricing for our products. WildFire is not only a strong fit for Magnolia offering unique benefits, but it also provides several important characteristics we look for namely, focused, high-quality assets with concentrated scale, a low capital reinvestment rate while providing moderate production growth, high operating margins, and steady free cash flow allowing for consistent and significant shareholder returns.”

Operational Update

Total Company production volumes in the second quarter of 2026 grew by 8 percent on a year-over-year basis to 106.1 Mboe/d including 41.9 Mbbls/d. Total production in Giddings increased by 10 percent in the second quarter, compared to the prior year period with Giddings oil production growing by 7 percent year-over-year, and driven by continued strong well performance. Giddings production represented 81 percent of total Company volumes during the second quarter. Magnolia’s second quarter 2026 capital spending on drilling, completions, and associated facilities was $125.0 million.

Additional Guidance

On a standalone basis, Magnolia’s third quarter 2026 D&C capital spending is estimated to be approximately $115 million, with total estimated standalone company capital spending for the year reiterated in the range of $440 to $480 million. Total production for the standalone company in the third quarter is estimated to be similar to second quarter levels. As previously disclosed, we are raising our full year 2026 production growth guidance on a standalone company basis to 6 percent from 5 percent.

For the third quarter 2026, we expect oil price differentials to be approximately a $3 per barrel discount to Magellan East Houston.

WildFire Energy Acquisition Financing

After the announcement that Magnolia had entered into a definitive agreement to acquire WildFire, Magnolia executed multiple capital market transactions to partially fund the Acquisition. The Company issued 53.3 million new shares in a public offering for net proceeds of $1.23 billion, in addition to $500 million of senior notes at 6.625% due in 2034. These two transactions closed on July 22nd and August 5th, respectively. In total, the Acquisition will be funded with approximately half equity and half debt.

Quarterly Report on Form 10-Q

Magnolia's financial statements and related notes will be available in its Quarterly Report on Form 10-Q for the three months ended June 30, 2026, which is expected to be filed with the U.S. Securities and Exchange Commission (“SEC”) on August 6, 2026.

Conference Call and Webcast

Magnolia will host an investor conference call on Thursday, August 6, 2026 at 10:00 a.m. Central (11:00 a.m. Eastern) to discuss these operating and financial results. Interested parties may join the webcast by visiting Magnolia's website at www.magnoliaoilgas.com/investors/events-and-presentations and clicking on the webcast link or by dialing 1-844-701-1059. A replay of the webcast will be posted on Magnolia's website following completion of the call.

About Magnolia Oil & Gas Corporation

Magnolia (MGY) is a publicly traded oil and gas exploration and production company with operations primarily in South Texas in the core of the Eagle Ford Shale and Austin Chalk formations. Magnolia focuses on generating value for shareholders by delivering steady, moderate annual production growth resulting from its disciplined and efficient philosophy toward capital spending. The Company strives to generate high pre‐tax margins and consistent free cash flow allowing for strong cash returns to our shareholders. For more information, visit www.magnoliaoilgas.com .

| (1) | Adjusted net income, adjusted earnings per share, adjusted EBITDAX, and free cash flow are non-GAAP financial measures. For reconciliations to the most comparable GAAP measures, please see “Non-GAAP Financial Measures” at the end of this press release. | | (2) | Weighted average total shares outstanding include diluted weighted average shares of Class A Common Stock outstanding during the period and shares of Class B Common Stock, which are anti-dilutive in the calculation of weighted average number of common shares outstanding. |

Cautionary Note Regarding Forward-Looking Statements

The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding the consummation of the Acquisition and the transactions contemplated thereby, the expected synergies of the Acquisition, Magnolia’s share repurchase program, Magnolia’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, the words could, should, will, may, believe, anticipate, intend, estimate, expect, project, the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events. Except as otherwise required by applicable law, Magnolia disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Magnolia cautions you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Magnolia, incident to the development, production, gathering and sale of oil, natural gas and natural gas liquids. In addition, Magnolia cautions you that the forward looking statements contained in this press release are subject to the following factors: (i) the expected timetable for completing the Acquisition, the results, effects and benefits of the Acquisition, future opportunities for Magnolia, other plans and expectations with respect to the Acquisition, and the anticipated impact of the Acquisition on Magnolia’s results of operations, financial position, growth opportunities and competitive position; (ii) the market prices of oil, natural gas, NGLs, and other products or services; (iii) the supply and demand for oil, natural gas, NGLs, and other products or services, including impacts of actions taken by OPEC and other state-controlled oil companies; (iv) the outcome of any legal proceedings that may be instituted against Magnolia; (v) Magnolia’s ability to realize the anticipated benefits of its acquisitions, which may be affected by, among other things, competition and the ability of Magnolia to grow and manage growth profitably; (vi) legislative, regulatory, or policy changes, including those following the change in presidential administrations; (vii) geopolitical and business conditions in key regions of the world; (viii) cybersecurity threats, including increased use of artificial intelligence technologies; and (ix) the possibility that Magnolia may be adversely affected by other economic, business, and/or competitive factors, including inflation. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in Magnolia’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Magnolia’s SEC filings are available publicly on the SEC’s website at www.sec.gov .

| Magnolia Oil & Gas Corporation | | | | | | | | | | | | | | | | | | Operating Highlights | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Quarters Ended | | For the Six Months Ended | | | | | | | | | | | | | | | | June 30, 2026 | | June 30, 2025 | | June 30, 2026 | | June 30, 2025 | | | | | | | | | | Production: | | | | | | | | | | | | | | | | | | Oil (MBbls) | | | 3,809 | | | | 3,639 | | | | 7,470 | | | | 7,156 | | | Natural gas (MMcf) | | | 18,201 | | | | 16,820 | | | | 35,584 | | | | 33,313 | | | Natural gas liquids (MBbls) | | | 2,812 | | | | 2,496 | | | | 5,484 | | | | 4,920 | | | Total (Mboe) | | | 9,654 | | | | 8,939 | | | | 18,885 | | | | 17,628 | | | | | | | | | | | | | | | | | | | | | Average daily production: | | | | | | | | | | | | | | | | | | Oil (Bbls/d) | | | 41,855 | | | | 39,990 | | | | 41,269 | | | | 39,536 | | | Natural gas (Mcf/d) | | | 200,016 | | | | 184,840 | | | | 196,599 | | | | 184,048 | | | Natural gas liquids (Bbls/d) | | | 30,898 | | | | 27,432 | | | | 30,300 | | | | 27,182 | | | Total (boe/d) | | | 106,089 | | | | 98,229 | | | | 104,336 | | | | 97,394 | | | | | | | | | | | | | | | | | | | | | Revenues (in thousands): | | | | | | | | | | | | | | | | | | Oil revenues | | $ | 373,759 | | | $ | 226,345 | | | $ | 631,088 | | | $ | 471,879 | | | Natural gas revenues | | | 39,669 | | | | 42,850 | | | | 91,469 | | | | 94,218 | | | Natural gas liquids revenues | | | 65,383 | | | | 49,786 | | | | 114,765 | | | | 103,185 | | | Total Revenues | | $ | 478,811 | | | $ | 318,981 | | | $ | 837,322 | | | $ | 669,282 | | | | | | | | | | | | | | | | | | | | | Average sales price: | | | | | | | | | | | | | | | | | | Oil (per Bbl) | | $ | 98.13 | | | $ | 62.20 | | | $ | 84.49 | | | $ | 65.94 | | | Natural gas (per Mcf) | | | 2.18 | | | | 2.55 | | | | 2.57 | | | | 2.83 | | | Natural gas liquids (per Bbl) | | | 23.25 | | | | 19.94 | | | | 20.93 | | | | 20.97 | | | Total (per boe) | | $ | 49.60 | | | $ | 35.68 | | | $ | 44.34 | | | $ | 37.97 | | | | | | | | | | | | | | | | | | | | | NYMEX WTI (per Bbl) | | $ | 92.85 | | | $ | 63.71 | | | $ | 82.57 | | | $ | 67.55 | | | NYMEX Henry Hub (per MMBtu) | | $ | 2.90 | | | $ | 3.44 | | | $ | 3.93 | | | $ | 3.55 | | | Realization to benchmark: | | | | | | | | | | | | | | | | | | Oil (% of WTI) | | | 106 | % | | | 98 | % | | | 102 | % | | | 98 | % | | Natural Gas (% of Henry Hub) | | | 75 | % | | | 74 | % | | | 65 | % | | | 80 | % | | | | | | | | | | | | | | | | | | | | Operating expenses (in thousands): | | | | | | | | | | | | | | | | | | Lease operating expenses | | $ | 48,409 | | | $ | 43,590 | | | $ | 96,160 | | | $ | 90,665 | | | Gathering, transportation and processing | | | 17,202 | | | | 16,489 | | | | 35,410 | | | | 31,442 | | | Taxes other than income | | | 22,757 | | | | 18,802 | | | | 39,144 | | | | 38,907 | | | Depreciation, depletion and amortization | | | 116,516 | | | | 107,082 | | | | 229,874 | | | | 212,935 | | | | | | | | | | | | | | | | | | | | | Operating costs per boe: | | | | | | | | | | | | | | | | | | Lease operating expenses | | $ | 5.01 | | | $ | 4.88 | | | $ | 5.09 | | | $ | 5.14 | | | Gathering, transportation and processing | | | 1.78 | | | | 1.84 | | | | 1.88 | | | | 1.78 | | | Taxes other than income | | | 2.36 | | | | 2.10 | | | | 2.07 | | | | 2.21 | | | Depreciation, depletion and amortization | | | 12.07 | | | | 11.98 | | | | 12.17 | | | | 12.08 | |

| Magnolia Oil & Gas Corporation

Consolidated Statements of Operations

(In thousands, except per share data) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Quarters Ended | | For the Six Months Ended | | | | | | | | | | | | | | | | June 30, 2026 | | June 30, 2025 | | June 30, 2026 | | June 30, 2025 | | | | | | | | | | REVENUES | | | | | | | | | | | | | | | | | | Oil revenues | | $ | 373,759 | | | $ | 226,345 | | | $ | 631,088 | | | $ | 471,879 | | | Natural gas revenues | | | 39,669 | | | | 42,850 | | | | 91,469 | | | | 94,218 | | | Natural gas liquids revenues | | | 65,383 | | | | 49,786 | | | | 114,765 | | | | 103,185 | | | Total revenues | | | 478,811 | | | | 318,981 | | | | 837,322 | | | | 669,282 | | | OPERATING EXPENSES | | | | | | | | | | | | | | | | | | Lease operating expenses | | | 48,409 | | | | 43,590 | | | | 96,160 | | | | 90,665 | | | Gathering, transportation and processing | | | 17,202 | | | | 16,489 | | | | 35,410 | | | | 31,442 | | | Taxes other than income | | | 22,757 | | | | 18,802 | | | | 39,144 | | | | 38,907 | | | Exploration expenses | | | 213 | | | | 363 | | | | 1,955 | | | | 711 | | | Asset retirement obligations accretion | | | 1,862 | | | | 1,563 | | | | 3,719 | | | | 3,119 | | | Depreciation, depletion and amortization | | | 116,516 | | | | 107,082 | | | | 229,874 | | | | 212,935 | | | General and administrative expenses | | | 29,151 | | | | 23,278 | | | | 60,595 | | | | 47,867 | | | Transaction related costs | | | 3,200 | | | | — | | | | 3,200 | | | | — | | | Total operating expenses | | | 239,310 | | | | 211,167 | | | | 470,057 | | | | 425,646 | | | | | | | | | | | | | | | | | | | | | OPERATING INCOME | | | 239,501 | | | | 107,814 | | | | 367,265 | | | | 243,636 | | | | | | | | | | | | | | | | | | | | | OTHER EXPENSE | | | | | | | | | | | | | | | | | | Interest expense, net | | | (6,720 | ) | | | (5,604 | ) | | | (12,724 | ) | | | (10,856 | ) | | Other income (expense), net | | | (379 | ) | | | (244 | ) | | | (415 | ) | | | 971 | | | Total other expense, net | | | (7,099 | ) | | | (5,848 | ) | | | (13,139 | ) | | | (9,885 | ) | | | | | | | | | | | | | | | | | | | | INCOME BEFORE INCOME TAXES | | | 232,402 | | | | 101,966 | | | | 354,126 | | | | 233,751 | | | | | | | | | | | | | | | | | | | | | Current income tax expense | | | 2,430 | | | | 4,126 | | | | 6,428 | | | | 16,922 | | | Deferred income tax expense | | | 48,196 | | | | 16,812 | | | | 65,086 | | | | 29,153 | | | Total income tax expense | | | 50,626 | | | | 20,938 | | | | 71,514 | | | | 46,075 | | | | | | | | | | | | | | | | | | | | | NET INCOME | | | 181,776 | | | | 81,028 | | | | 282,612 | | | | 187,676 | | | LESS: Net income attributable to noncontrolling interest | | | — | | | | 2,911 | | | | 1,011 | | | | 6,632 | | | NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK | | $ | 181,776 | | | $ | 78,117 | | | $ | 281,601 | | | $ | 181,044 | | | | | | | | | | | | | | | | | | | | | NET INCOME PER COMMON SHARE | | | | | | | | | | | | | | | | | | Basic | | $ | 0.97 | | | $ | 0.41 | | | $ | 1.51 | | | $ | 0.95 | | | Diluted | | $ | 0.97 | | | $ | 0.41 | | | $ | 1.51 | | | $ | 0.95 | | | WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | | | | | | | | | | | | | | | | | | Basic | | | 184,574 | | | | 186,518 | | | | 183,924 | | | | 187,579 | | | Diluted | | | 184,586 | | | | 186,530 | | | | 183,936 | | | | 187,591 | | | WEIGHTED AVERAGE NUMBER OF CLASS B SHARES OUTSTANDING (1) | | | — | | | | 5,523 | | | | 1,312 | | | | 5,523 | | | DILUTED WEIGHTED AVERAGE TOTAL SHARES OUTSTANDING (1) | | | 184,586 | | | | 192,053 | | | | 185,248 | | | | 193,114 | |