Magnolia Oil & Gas Q3 revenue rises 58% to $514M
Management expects at least one-third of estimated annual run-rate synergies exceeding $100 million to be realized by year-end 2026.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Magnolia Oil & Gas Corp. (MGY) reported third-quarter 2026 revenue of $513.9 million, up 58% year over year, and net income of $80.5 million versus $78.2 million. Adjusted net income and adjusted EBITDAX, both non-GAAP measures, increased 114% to $166.3 million and 79% to $392.0 million, respectively. Diluted earnings per share were $0.35, down 13%.
Production averaged 117.3 Mboe/d, up 17%, including 49.1 Mbbls/d of oil, up 24%. Net cash from operating activities was $369.0 million and adjusted free cash flow was $223.7 million. Magnolia repurchased 2.3 million Class A shares for $60.2 million; the board added 15 million shares to its authorization, bringing the remaining authorization to 22.6 million shares. The quarterly dividend is $0.18 per share, a cumulative 20% increase from $0.15 in 2026, payable December 1, 2026, to shareholders of record November 10, 2026.
The WildFire acquisition closed in September, so third-quarter results include only a partial period of ownership. Fourth-quarter guidance is 159–161 Mboe/d of production and about $235 million in D&C capital spending. For 2027, production is estimated to grow 4%–5% for both oil and total volumes, with D&C spending of $900–$950 million. Net debt was approximately $1.9 billion as of September 30, 2026.
4 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointQuarterly revenue rose 58% to $513.9 million year over year.
- Moderate pointAdjusted EBITDAX increased 79% to $392.0 million.
- Moderate pointAdjusted net income increased 114% to $166.3 million.
- Moderate pointThe quarterly dividend rose 20% to $0.18 per share from $0.15 in 2026.
Negative
- Moderate pointDiluted earnings per share declined 13% to $0.35 from $0.40.
Filing Explained
WildFire consideration shares were already outstanding and represented 12.0% of September 11 voting power, reducing existing holders’ proportional ownership.
With the WildFire acquisition complete, the Q3 report records
As of September 30, Magnolia had
The presentation estimates annual run-rate synergies above
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $513.9 million
Net income: $80.5 million
Adjusted net income: $166.3 million
+5 more
8 metrics
Revenue
$513.9 million
Q3 2026; $324.9 million in Q3 2025, up 58%
Net income
$80.5 million
Q3 2026; $78.2 million in Q3 2025
Adjusted net income
$166.3 million
Q3 2026; $77.8 million in Q3 2025, up 114%
Adjusted EBITDAX
$392.0 million
Q3 2026; $218.8 million in Q3 2025, up 79%
Diluted earnings per share
$0.35 per share
Q3 2026; $0.40 in Q3 2025, down 13%
Net cash provided by operating activities
$369.0 million
Q3 2026; $247.1 million in Q3 2025
Adjusted free cash flow
$223.7 million
Q3 2026; $133.9 million in Q3 2025
Average daily production
117.3 Mboe/d
Q3 2026; up 17% from Q3 2025
Key Terms
Adjusted EBITDAX, adjusted free cash flow, costless collars, net debt
4 terms
Adjusted EBITDAX financial
"Adjusted EBITDAX was $392.0 million during the third quarter of 2026"
Adjusted EBITDAX is a measure of a company’s operating profit that adds back interest, taxes, depreciation, amortization and specific recurring costs (often exploration or similar project expenses), then removes one‑time or unusual items to show recurring cash profitability. Investors use it like a clean yardstick—ignoring financing choices, accounting rules and one‑off events—to compare core performance across periods or peers and assess a business’s ability to generate cash from operations.
adjusted free cash flow financial
"adjusted free cash flow generated by the Company of $223.7 million"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
costless collars financial
"These additional hedges are structured as costless collars"
A costless collar is a hedging strategy where an investor buys a protective option that limits losses and simultaneously sells an option that caps gains so the two premiums roughly cancel out. Think of it like buying insurance on a car while agreeing to share any big windfall from its sale with the insurer — it protects your downside without an upfront payment, but it also limits how much you can profit. Investors use it to reduce risk on a position while preserving capital and avoiding immediate cash outlay.
net debt financial
"Net debt, or outstanding debt obligations less cash and cash equivalents"
Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.
Earnings Snapshot
Revenue: $513.9 million · Guidance included
Third quarter 2026
Revenue
$513.9 million
Up 58% year over year
Net income
$80.5 million
Up 3% year over year
Adjusted net income
$166.3 million
Up 114% year over year
Adjusted EBITDAX
$392.0 million
Up 79% year over year
Diluted earnings per share
$0.35 per share
Down 13% year over year
Average daily production
117.3 Mboe/d
Up 17% year over year
Guidance
Q4 2026 production is expected to be 159–161 Mboe/d, including 49%–50% oil, and D&C capital spending is estimated at roughly $235 million. For 2027, oil and total production are estimated to grow 4%–5%; D&C capital spending is estimated at $900–$950 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What is MGY's production and capital spending guidance for Q4 2026?
Total production is expected to be 159 to 161 Mboe/d, with oil at 49% to 50%; D&C capital spending is estimated at roughly $235 million.
When will MGY pay its quarterly dividend?
The $0.18 per-share quarterly dividend is payable December 1, 2026, to shareholders of record November 10, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): November 4, 2026
(Exact name of registrant as specified in its charter) | ||||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices, including zip code) | ||||||||
( | ||||||||
Registrant’s telephone number, including area code | ||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
2
Item 2.02 Results of Operations and Financial Condition.
On November 4, 2026, Magnolia Oil & Gas Corporation (the “Company”) issued a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated by reference herein, announcing its financial and operational results for the quarter ended September 30, 2026.
The information furnished pursuant to this Item 2.02 (including Exhibit 99.1) shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise be subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.
Item 7.01 Regulation FD Disclosure
On November 4, 2026, the Company provided information in an earnings presentation on its website, www.magnoliaoilgas.com, regarding its financial and operational results for the quarter ended September 30, 2026.
The earnings presentation, which is attached hereto as Exhibit 99.2, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise be subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit | |||||
Number | Description | ||||
99.1 | Press Release | ||||
99.2 | Earnings Presentation | ||||
104 | Cover Page Interactive Data File (formatted as inline XBRL) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MAGNOLIA OIL & GAS CORPORATION | |||||
Date: November 4, 2026 | By: /s/ Timothy D. Yang | ||||
Name: Timothy D. Yang | |||||
Title: EVP, Chief Legal & Commercial Officer, Corporate Secretary and Land | |||||
2
Exhibit 99.1
Magnolia Oil & Gas Corporation Announces Third Quarter 2026 Results
HOUSTON, TX, November 4, 2026 - Magnolia Oil & Gas Corporation (“Magnolia,” “we,” “our,” or the “Company”) (NYSE: MGY) today announced its financial and operational results for the third quarter of 2026.
Third Quarter 2026 Highlights:
| (In millions, except per share data) | For the Quarter Ended September 30, 2026 | For the Quarter Ended September 30, 2025 | Percentage increase (decrease) | ||||||||
| Net income | $ | 80.5 | $ | 78.2 | 3 | % | |||||
Adjusted net income(1) | $ | 166.3 | $ | 77.8 | 114 | % | |||||
| Earnings per share - diluted | $ | 0.35 | $ | 0.40 | (13) | % | |||||
Adjusted EBITDAX(1) | $ | 392.0 | $ | 218.8 | 79 | % | |||||
| Capital expenditures - D&C | $ | 147.4 | $ | 118.4 | 24 | % | |||||
| Average daily production (Mboe/d) | 117.3 | 100.5 | 17 | % | |||||||
| Average daily oil production (Mbbls/d) | 49.1 | 39.4 | 24 | % | |||||||
Diluted weighted average total shares outstanding(2) | 230.6 | 190.3 | 21 | % | |||||||
•Magnolia reported third quarter 2026 net income of $80.5 million, or $0.35 per diluted share. Third quarter 2026 adjusted net income (1) was $166.3 million, or $0.71 per diluted share. Adjusted net income, which increased by 114% compared to the same prior-year period, excludes special items consisting primarily of transaction and integration costs related to the acquisition of WildFire Energy that closed in the third quarter, and net unrealized losses on derivative contracts.
•Adjusted EBITDAX (1) was $392.0 million during the third quarter of 2026. Total drilling and completions (“D&C”) capital was $147.4 million for the third quarter and below our earlier guidance, representing approximately 38% of adjusted EBITDAX.
•Net cash provided by operating activities was $369.0 million during the third quarter of 2026 with adjusted free cash flow(1) generated by the Company of $223.7 million. Magnolia generated adjusted operating income as a percentage of revenue (1) (pre-tax margins) of 43% during the third quarter.
•Total Company production volumes in the third quarter of 2026 grew by 17% on a year-over-year basis to 117.3 thousand barrels of oil equivalent per day (“Mboe/d”) and included 49.1 thousand barrels of oil per day (“Mbbls/d”) which grew by 24% compared to the prior year period. Total production in Giddings increased 23% year-over-year to 97.7 Mboe/d with oil volumes growing by 39%.
•The Company repurchased 2.3 million shares of its Class A Common Stock during the third quarter for $60.2 million. Magnolia’s Board of Directors has increased the existing share repurchase authorization by an additional 15 million shares, bringing the total remaining authorization to 22.6 million shares of Class A Common Stock.
•As previously announced, Magnolia’s Board of Directors declared a quarterly cash dividend of $0.18 per share, payable on December 1, 2026, to shareholders of record as of November 10, 2026.
•Magnolia returned $103.3 million, or 46% of the Company’s adjusted free cash flow(1), to shareholders during the third quarter through a combination of share repurchases and dividends. Magnolia ended the third quarter with $17.5 million of cash on the balance sheet and $435 million in outstanding borrowings on its revolving credit facility.
“Magnolia continues to execute at a high level as we successfully integrate the WildFire assets,” said Magnolia’s Chairman, President and CEO Chris Stavros. “Although our third quarter results include only a partial period of ownership following the September closing, the benefits of the combined asset base are already clearly evident. Our business generated $224 million of adjusted free cash flow during the quarter, with a reinvestment rate of just 38 percent of adjusted EBITDAX. That strong momentum has carried into the fourth quarter – our first full quarter as a combined company.
1
“The integration continues to progress smoothly, and we are meeting all our planned milestones. Synergy capture remains ahead of our expectations, with more than one-third of the anticipated annual synergies on track to be realized by year-end. We are currently running four rigs and two completion crews, and have recently substituted some equipment in an effort to capture further operational and capital efficiencies. Recent Austin Chalk well results on WildFire operated acreage are encouraging and are supportive of our geological model that led to Magnolia’s strong Austin Chalk development plan over the last several years. These early results also suggest greater inventory potential than our earlier baseline acquisition analysis. We plan to continue to delineate the Austin Chalk across our now 1.25 million net acre position in Giddings and our 2027 company-wide drilling program is expected to allocate approximately 65 percent of targeted activity to the Austin Chalk and 35 percent to the Eagle Ford.
“Supported by these strong operational and financial results, Magnolia returned approximately $103 million to shareholders during the quarter through our dividend and share repurchase program, while reducing net debt to approximately $1.9 billion. We achieved our goal of less than 1.0x net debt to forecasted EBITDAX more than a year sooner than originally planned when we announced the WildFire acquisition. The significant free cash flow generation allows us to continue aggressively reducing leverage, while consistently paying and growing our dividend, and maintaining our peer-leading program of repurchasing at least 1 percent of shares outstanding each quarter. Magnolia’s Board has increased our share repurchase authorization by an incremental 15 million shares, bringing the remaining authorization to 22.6 million shares – or nearly 8.5 percent of current shares outstanding – providing us the flexibility to lean into additional repurchases above the 1 percent level opportunistically and when warranted.”
Operational Update
Total Company production volumes in the third quarter of 2026 grew by 17 percent on a year-over-year basis to 117.3 Mboe/d including 49.1 Mbbls/d. Total production in Giddings increased by 23 percent in the third quarter, compared to the prior year period with Giddings oil production growing by 39 percent year-over-year. Giddings production represented 83 percent of total Company volumes during the third quarter. The Company’s third quarter oil production mix represented approximately 42 percent of total volumes, including only a partial period of WildFire ownership, and is expected to rise to 49 to 50 percent of total production in the fourth quarter. Magnolia’s third quarter 2026 capital spending on drilling, completions, and associated facilities was $147.4 million.
Additional Guidance
Fourth quarter 2026 D&C capital spending is estimated to be roughly $235 million. Total production for the fourth quarter is expected to be 159 to 161 Mboe/d (49% to 50% oil).
2027 production is estimated to grow 4 to 5 percent for both oil and total production off a second quarter 2026 pro forma production base of approximately 78 Mbbls/d and 158 Mboe/d after accounting for the production volumes from the non-core asset sale in the third quarter. D&C capital spending is currently estimated to be in the range of $900 to $950 million during 2027 which incorporates a modest amount of oil field service inflation.
Magnolia has provided guidance for the fourth quarter of 2026 (the first full quarter pro forma for the acquisition) for several financial and operating metrics in the table below.
| Financial and Operating Metric | Q4 2026 Guidance | |||||||
| Production (Mboe/d) | 159 - 161 | |||||||
| Oil Percent (%) | 49% - 50% | |||||||
| D&C Capital Spending ($ millions) | ~$235 | |||||||
| LOE (per Boe) | $5.80 - $6.20 | |||||||
| GTP (per Boe) | $1.80 - $2.10 | |||||||
| DD&A (per Boe) | $14.00 - $15.00 | |||||||
| Production and Ad Valorem Taxes (%) | 5.5% - 6.5% | |||||||
| Interest Expense ($ millions) | $35 - $40 | |||||||
| Effective Tax Rate | ~21% | |||||||
| Cash Tax Rate | 0% - 2% | |||||||
| Pre-Hedge Oil Realization (to MEH) | $(2.00) | |||||||
2
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 September 30, 2026, which is expected to be filed with the U.S. Securities and Exchange Commission (“SEC”) on November 5, 2026.
Conference Call and Webcast
Magnolia will host an investor conference call on Thursday, November 5, 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, net debt, adjusted operating income margin, and adjusted 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.
3
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 integration of the WildFire Acquisition, the expected synergies of the WildFire 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 integration of the WildFire Acquisition, the results, effects and benefits of the WildFire Acquisition, future opportunities for Magnolia, other plans and expectations with respect to the WildFire Acquisition, and the anticipated impact of the WildFire 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.
Contacts for Magnolia Oil & Gas Corporation
Investors | ||
| Tom Fitter | ||
| (713) 331-4802 | ||
| tfitter@mgyoil.com | ||
| Media | ||
| Christina Kuhl | ||
| (713) 314-4849 | ||
| ckuhl@mgyoil.com | ||
4
| Magnolia Oil & Gas Corporation | ||||||||||||||||||||||||||
| Operating Highlights | ||||||||||||||||||||||||||
For the Quarters Ended | For the Nine Months Ended | |||||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||
| Production: | ||||||||||||||||||||||||||
| Oil (MBbls) | 4,516 | 3,628 | 11,985 | 10,784 | ||||||||||||||||||||||
| Natural gas (MMcf) | 19,425 | 17,515 | 55,009 | 50,828 | ||||||||||||||||||||||
| Natural gas liquids (MBbls) | 3,037 | 2,700 | 8,522 | 7,620 | ||||||||||||||||||||||
| Total (Mboe) | 10,790 | 9,247 | 29,675 | 26,875 | ||||||||||||||||||||||
| Average daily production: | ||||||||||||||||||||||||||
| Oil (Bbls/d) | 49,082 | 39,430 | 43,902 | 39,500 | ||||||||||||||||||||||
| Natural gas (Mcf/d) | 211,137 | 190,384 | 201,498 | 186,183 | ||||||||||||||||||||||
| Natural gas liquids (Bbls/d) | 33,015 | 29,347 | 31,215 | 27,912 | ||||||||||||||||||||||
| Total (boe/d) | 117,286 | 100,507 | 108,700 | 98,443 | ||||||||||||||||||||||
| Revenues (in thousands): | ||||||||||||||||||||||||||
| Oil revenues | $ | 393,674 | $ | 230,530 | $ | 1,024,763 | $ | 702,409 | ||||||||||||||||||
| Natural gas revenues | 43,446 | 43,169 | 134,915 | 137,386 | ||||||||||||||||||||||
| Natural gas liquids revenues | 75,444 | 51,236 | 190,208 | 154,422 | ||||||||||||||||||||||
| Other revenues | 1,326 | — | 1,326 | — | ||||||||||||||||||||||
| Total Revenues | $ | 513,890 | $ | 324,935 | $ | 1,351,212 | $ | 994,217 | ||||||||||||||||||
| Average sales price: | ||||||||||||||||||||||||||
| Oil (per Bbl) | $ | 87.18 | $ | 63.55 | $ | 85.50 | $ | 65.14 | ||||||||||||||||||
| Natural gas (per Mcf) | 2.24 | 2.46 | 2.45 | 2.70 | ||||||||||||||||||||||
| Natural gas liquids (per Bbl) | 24.84 | 18.98 | 22.32 | 20.27 | ||||||||||||||||||||||
| Total (per boe) | $ | 47.63 | $ | 35.14 | $ | 45.53 | $ | 36.99 | ||||||||||||||||||
| NYMEX WTI (per Bbl) | $ | 85.68 | $ | 64.95 | $ | 83.62 | $ | 66.67 | ||||||||||||||||||
| NYMEX Henry Hub (per MMBtu) | $ | 2.96 | $ | 3.07 | $ | 3.60 | $ | 3.39 | ||||||||||||||||||
| Realization to benchmark: | ||||||||||||||||||||||||||
| Oil (% of WTI) | 102 | % | 98 | % | 102 | % | 98 | % | ||||||||||||||||||
| Natural Gas (% of Henry Hub) | 76 | % | 80 | % | 68 | % | 80 | % | ||||||||||||||||||
| Operating expenses (in thousands): | ||||||||||||||||||||||||||
| Lease operating expenses | $ | 55,990 | $ | 48,553 | $ | 152,150 | $ | 139,218 | ||||||||||||||||||
| Gathering, transportation and processing | 19,598 | 17,744 | 55,008 | 49,186 | ||||||||||||||||||||||
| Taxes other than income | 24,889 | 20,383 | 64,033 | 59,291 | ||||||||||||||||||||||
| Depreciation, depletion and amortization | 147,863 | 110,618 | 377,737 | 323,552 | ||||||||||||||||||||||
| Operating costs per boe: | ||||||||||||||||||||||||||
| Lease operating expenses | $ | 5.19 | $ | 5.25 | $ | 5.13 | $ | 5.18 | ||||||||||||||||||
| Gathering, transportation and processing | 1.82 | 1.92 | 1.85 | 1.83 | ||||||||||||||||||||||
| Taxes other than income | 2.31 | 2.20 | 2.16 | 2.21 | ||||||||||||||||||||||
| Depreciation, depletion and amortization | 13.70 | 11.96 | 12.73 | 12.04 | ||||||||||||||||||||||
5
Magnolia Oil & Gas Corporation
Consolidated Statements of Operations
| (In thousands, except per share data) | For the Quarters Ended | For the Nine Months Ended | ||||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||
| REVENUES | ||||||||||||||||||||||||||
| Oil revenues | $ | 393,674 | $ | 230,530 | $ | 1,024,763 | $ | 702,409 | ||||||||||||||||||
| Natural gas revenues | 43,446 | 43,169 | 134,915 | 137,386 | ||||||||||||||||||||||
| Natural gas liquids revenues | 75,444 | 51,236 | 190,208 | 154,422 | ||||||||||||||||||||||
| Other revenues | 1,326 | — | 1,326 | — | ||||||||||||||||||||||
| Total revenues | 513,890 | 324,935 | 1,351,212 | 994,217 | ||||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Lease operating expenses | 55,990 | 48,553 | 152,150 | 139,218 | ||||||||||||||||||||||
| Gathering, transportation and processing | 19,598 | 17,744 | 55,008 | 49,186 | ||||||||||||||||||||||
| Taxes other than income | 24,889 | 20,383 | 64,033 | 59,291 | ||||||||||||||||||||||
| Exploration expenses | 13,725 | 131 | 15,679 | 841 | ||||||||||||||||||||||
| Asset retirement obligations accretion | 2,513 | 1,838 | 6,232 | 4,957 | ||||||||||||||||||||||
| Depreciation, depletion and amortization | 147,863 | 110,618 | 377,737 | 323,552 | ||||||||||||||||||||||
| General and administrative expenses | 25,345 | 24,204 | 85,941 | 72,072 | ||||||||||||||||||||||
| Transaction and integration costs | 68,743 | — | 71,943 | — | ||||||||||||||||||||||
| Other operating expenses | 625 | — | 625 | — | ||||||||||||||||||||||
| Total operating expenses | 359,291 | 223,471 | 829,348 | 649,117 | ||||||||||||||||||||||
| OPERATING INCOME | 154,599 | 101,464 | 521,864 | 345,100 | ||||||||||||||||||||||
| OTHER EXPENSE | ||||||||||||||||||||||||||
| Interest expense, net | (8,542) | (5,362) | (21,266) | (16,218) | ||||||||||||||||||||||
| Realized loss on derivatives, net | (1,413) | — | (1,413) | — | ||||||||||||||||||||||
| Unrealized loss on derivatives, net | (39,874) | — | (39,874) | — | ||||||||||||||||||||||
| Other income (expense), net | (505) | (661) | (920) | 309 | ||||||||||||||||||||||
| Total other expense, net | (50,334) | (6,023) | (63,473) | (15,909) | ||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 104,265 | 95,441 | 458,391 | 329,191 | ||||||||||||||||||||||
| Current income tax benefit | (15,663) | (32,288) | (9,234) | (15,367) | ||||||||||||||||||||||
| Deferred income tax expense | 39,453 | 49,496 | 104,538 | 78,650 | ||||||||||||||||||||||
| Total income tax expense | 23,790 | 17,208 | 95,304 | 63,283 | ||||||||||||||||||||||
| NET INCOME | 80,475 | 78,233 | 363,087 | 265,908 | ||||||||||||||||||||||
| LESS: Net income attributable to noncontrolling interest | — | 2,777 | 1,011 | 9,409 | ||||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK | $ | 80,475 | $ | 75,456 | $ | 362,076 | $ | 256,499 | ||||||||||||||||||
| NET INCOME PER COMMON SHARE | ||||||||||||||||||||||||||
| Basic | $ | 0.35 | $ | 0.40 | $ | 1.79 | $ | 1.36 | ||||||||||||||||||
| Diluted | $ | 0.35 | $ | 0.40 | $ | 1.79 | $ | 1.36 | ||||||||||||||||||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | ||||||||||||||||||||||||||
| Basic | 230,629 | 184,737 | 199,664 | 186,621 | ||||||||||||||||||||||
| Diluted | 230,641 | 184,749 | 199,676 | 186,633 | ||||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF CLASS B SHARES OUTSTANDING (1) | — | 5,523 | 870 | 5,523 | ||||||||||||||||||||||
DILUTED WEIGHTED AVERAGE TOTAL SHARES OUTSTANDING (1) | 230,641 | 190,272 | 200,546 | 192,156 | ||||||||||||||||||||||
(1) Shares of Class B Common Stock, and corresponding Magnolia LLC Units, are anti-dilutive in the calculation of weighted average number of common shares outstanding.
6
Magnolia Oil & Gas Corporation
Summary Cash Flow Data
(In thousands)
| For the Quarters Ended | For the Nine Months Ended | |||||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||||||||
| NET INCOME | $ | 80,475 | $ | 78,233 | $ | 363,087 | $ | 265,908 | ||||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 147,863 | 110,618 | 377,737 | 323,552 | ||||||||||||||||||||||
| Asset retirement obligations accretion | 2,513 | 1,838 | 6,232 | 4,957 | ||||||||||||||||||||||
| Amortization of deferred financing costs | 517 | 547 | 1,616 | 1,619 | ||||||||||||||||||||||
| Deferred income tax expense | 39,453 | 49,496 | 104,538 | 78,650 | ||||||||||||||||||||||
| Gain on revaluation of contingent consideration | — | (507) | — | (4,511) | ||||||||||||||||||||||
| Stock based compensation | 9,807 | 7,316 | 31,692 | 21,167 | ||||||||||||||||||||||
| Unrealized loss on derivatives, net | 39,874 | — | 39,874 | — | ||||||||||||||||||||||
| Other operating activities | 2,220 | (231) | 6,483 | 2,647 | ||||||||||||||||||||||
| Net change in operating assets and liabilities | 46,257 | (256) | 19,362 | (23,746) | ||||||||||||||||||||||
| Net cash provided by operating activities | 368,979 | 247,054 | 950,621 | 670,243 | ||||||||||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||||||||
| Acquisitions | (2,555,387) | (24,706) | (2,711,597) | (64,359) | ||||||||||||||||||||||
| Additions to oil and natural gas properties | (150,759) | (119,048) | (404,316) | (350,503) | ||||||||||||||||||||||
| Changes in working capital associated with additions to oil and natural gas properties | (11,550) | 5,667 | 13,658 | 8,437 | ||||||||||||||||||||||
| Other investing activities | 37,119 | 12 | 43,697 | 5,782 | ||||||||||||||||||||||
| Net cash used in investing activities | (2,680,577) | (138,075) | (3,058,558) | (400,643) | ||||||||||||||||||||||
| CASH FLOW FROM FINANCING ACTIVITIES | ||||||||||||||||||||||||||
| Issuance of common stock | 1,225,617 | — | 1,225,617 | — | ||||||||||||||||||||||
| Proceeds from revolving credit facility | 535,000 | — | 535,000 | — | ||||||||||||||||||||||
| Proceeds from issuance of long-term debt | 500,000 | — | 500,000 | — | ||||||||||||||||||||||
| Repayment of revolving credit facility | (100,000) | — | (100,000) | — | ||||||||||||||||||||||
| Class A Common Stock repurchases | (60,196) | (51,249) | (142,802) | (152,181) | ||||||||||||||||||||||
| Class B Common Stock purchases and cancellations | — | — | (19,793) | — | ||||||||||||||||||||||
| Dividends paid | (43,054) | (28,081) | (104,300) | (85,341) | ||||||||||||||||||||||
| Cash paid for debt issuance costs | (23,605) | — | (23,605) | — | ||||||||||||||||||||||
| Distributions to noncontrolling interest owners | — | (829) | (911) | (2,671) | ||||||||||||||||||||||
| Other financing activities | (609) | (96) | (10,561) | (8,971) | ||||||||||||||||||||||
| Net cash provided by (used in) financing activities | 2,033,153 | (80,255) | 1,858,645 | (249,164) | ||||||||||||||||||||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (278,445) | 28,724 | (249,292) | 20,436 | ||||||||||||||||||||||
| Cash and cash equivalents – Beginning of period | 295,938 | 251,761 | 266,785 | 260,049 | ||||||||||||||||||||||
| Cash and cash equivalents – End of period | $ | 17,493 | $ | 280,485 | $ | 17,493 | $ | 280,485 | ||||||||||||||||||
7
Magnolia Oil & Gas Corporation
Summary Balance Sheet Data
(In thousands)
| September 30, 2026 | December 31, 2025 | |||||||||||||
| Cash and cash equivalents | $ | 17,493 | $ | 266,785 | ||||||||||
| Other current assets | 363,522 | 175,650 | ||||||||||||
| Property, plant and equipment, net | 6,923,181 | 2,424,152 | ||||||||||||
| Other assets | 72,686 | 36,505 | ||||||||||||
| Total assets | $ | 7,376,882 | $ | 2,903,092 | ||||||||||
| Current liabilities | $ | 746,038 | $ | 288,030 | ||||||||||
| Long-term debt, net | 1,937,799 | 393,251 | ||||||||||||
| Other long-term liabilities | 439,945 | 222,638 | ||||||||||||
| Stockholders’ equity | 4,253,100 | 1,939,958 | ||||||||||||
| Noncontrolling interest | — | 59,215 | ||||||||||||
| Total liabilities and equity | $ | 7,376,882 | $ | 2,903,092 | ||||||||||
8
Magnolia Oil & Gas Corporation
Derivatives
(In thousands)
Magnolia implemented oil hedges during the third quarter, supplementing those inherited in the WildFire Acquisition. These additional hedges are structured as costless collars with attractive floor prices intended to provide ample cash flow to protect the execution of our consistent business model while supporting continuous debt reduction.
The Company had the following outstanding derivative contracts in place as of September 30, 2026:
| Q4 2026 | Q1 2027 | Q2 2027 | Q3 2027 | Q4 2027 | ||||||||||||||||||||||||||||
| Crude oil derivative contracts: | ||||||||||||||||||||||||||||||||
Costless collars (1) | ||||||||||||||||||||||||||||||||
| Notional volume (Bbl) | 3,680,000 | 2,700,000 | 2,275,000 | 920,000 | — | |||||||||||||||||||||||||||
| Weighted average floor price ($/Bbl) | $ | 73.75 | $ | 70.83 | $ | 70.00 | $ | 70.00 | $ | — | ||||||||||||||||||||||
| Weighted average ceiling price ($/Bbl) | $ | 90.97 | $ | 88.68 | $ | 82.31 | $ | 80.08 | $ | — | ||||||||||||||||||||||
Fixed price swap contracts (2) | ||||||||||||||||||||||||||||||||
| Notional volume (Bbl) | 2,261,947 | 2,066,605 | 1,982,790 | 893,666 | 866,955 | |||||||||||||||||||||||||||
| Weighted average fixed price ($/Bbl) | $ | 63.85 | $ | 63.46 | $ | 65.02 | $ | 67.37 | $ | 66.34 | ||||||||||||||||||||||
(1) All oil costless collars settle against the average of the prompt month Argus WTI Houston futures price.
(2) All oil fixed price swaps settle against the average of the prompt month NYMEX WTI futures price.
9
Magnolia Oil & Gas Corporation
Non-GAAP Financial Measures
Reconciliation of net income to adjusted EBITDAX
In this press release, we refer to adjusted EBITDAX, a supplemental non-GAAP financial measure that is used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, and rating agencies. We define adjusted EBITDAX as net income before interest expense, income taxes, depreciation, depletion and amortization, exploration expenses, accretion of asset retirement obligations, transaction and integration costs, and unrealized loss on derivatives, net, adjusted to exclude the effect of certain items included in net income. Adjusted EBITDAX is not a measure of net income in accordance with GAAP.
Our management believes that adjusted EBITDAX is useful because it allows them to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to our financing methods or capital structure. We also believe that securities analysts, investors, and other interested parties may use adjusted EBITDAX in the evaluation of our Company. We exclude the items listed above from net income in arriving at adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Certain items excluded from adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of adjusted EBITDAX. Our presentation of adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Our computations of adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
The following table presents a reconciliation of net income to adjusted EBITDAX, our most directly comparable financial measure, calculated and presented in accordance with GAAP:
For the Quarters Ended | ||||||||||||||
| (In thousands) | September 30, 2026 | September 30, 2025 | ||||||||||||
| NET INCOME | $ | 80,475 | $ | 78,233 | ||||||||||
| Interest expense, net | 8,542 | 5,362 | ||||||||||||
| Income tax expense | 23,790 | 17,208 | ||||||||||||
| EBIT | 112,807 | 100,803 | ||||||||||||
| Depreciation, depletion and amortization | 147,863 | 110,618 | ||||||||||||
| Asset retirement obligations accretion | 2,513 | 1,838 | ||||||||||||
| EBITDA | 263,183 | 213,259 | ||||||||||||
| Exploration expenses | 13,725 | 131 | ||||||||||||
| EBITDAX | 276,908 | 213,390 | ||||||||||||
| Non-cash stock based compensation expense | 6,474 | 5,935 | ||||||||||||
| Transaction and integration costs | 68,743 | — | ||||||||||||
| Unrealized loss on derivatives, net | 39,874 | — | ||||||||||||
| Gain on revaluation of contingent consideration | — | (507) | ||||||||||||
| Adjusted EBITDAX | $ | 391,999 | $ | 218,818 | ||||||||||
10
Magnolia Oil & Gas Corporation
Non-GAAP Financial Measures
Reconciliation of net income to adjusted net income
Our presentation of adjusted net income is a non-GAAP measure because it excludes the effect of certain items included in net income. Management uses adjusted net income to evaluate our operating and financial performance because it eliminates the impact of certain items that management does not consider to be representative of the Company’s on-going business operations. As a performance measure, adjusted net income may be useful to investors in facilitating comparisons to others in the Company’s industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, and capital structure, among other factors. Management believes adjusting these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted net income may not be comparable to similar measures of other companies in our industry.
For the Quarters Ended | |||||||||||
| (In thousands) | September 30, 2026 | September 30, 2025 | |||||||||
| NET INCOME | $ | 80,475 | $ | 78,233 | |||||||
| Adjustments: | |||||||||||
| Transaction and integration costs | 68,743 | — | |||||||||
| Unrealized loss on derivatives, net | 39,874 | — | |||||||||
| Gain on revaluation of contingent consideration | — | (507) | |||||||||
Change in estimated income tax (1) | (22,810) | 98 | |||||||||
| ADJUSTED NET INCOME | $ | 166,282 | $ | 77,824 | |||||||
(1) Represents corporate income taxes at an assumed annual effective tax rate of 21.0% and 19.3% for the quarters ended September 30, 2026 and 2025, respectively.
11
Magnolia Oil & Gas Corporation
Non-GAAP Financial Measures
Reconciliation of earnings per share to adjusted earnings per share
Our presentation of adjusted earnings per share is a non-GAAP measure because it excludes the effect of certain items included in net income. Management uses adjusted earnings per share to evaluate our operating and financial performance because it eliminates the impact of certain items that management does not consider to be representative of the Company’s on-going business operations. As a performance measure, adjusted earnings per share may be useful to investors in facilitating comparisons to others in the Company’s industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, and capital structure, among other factors. Management believes excluding these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted earnings per share may not be comparable to similar measures of other companies in our industry.
The Company has not presented prior-period quarterly adjusted diluted earnings per share because differences in the capital structure, including the treatment of the Company's Class B shares as anti-dilutive under ASC 260 in the prior period, result in diluted weighted-average shares outstanding that are not comparable to the current period. Accordingly, management believes presentation of prior-period adjusted diluted earnings per share would not provide a meaningful comparison.
For the Quarter Ended September 30, 2026 | Per Share Diluted EPS | ||||||||||
| (In thousands, except per share data) | |||||||||||
| NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK | $ | 80,475 | |||||||||
| Dividends and net income allocated to participating securities | (808) | ||||||||||
| Net income, net of participating securities | $ | 79,667 | $ | 0.35 | |||||||
| Adjustments: | |||||||||||
| Dividends and net income allocated to participating securities | $ | 808 | — | ||||||||
| Transaction and integration costs | 68,743 | 0.30 | |||||||||
| Unrealized loss on derivatives, net | 39,874 | 0.17 | |||||||||
Change in estimated income tax (1) | (22,810) | (0.10) | |||||||||
| ADJUSTED NET INCOME | 166,282 | ||||||||||
| Adjusted dividends and net income allocated to participating securities | (1,745) | (0.01) | |||||||||
| Adjusted net income, net of participating securities | $ | 164,537 | $ | 0.71 | |||||||
(1) Represents corporate income taxes at an assumed annual effective tax rate of 21.0% for the quarter ended September 30, 2026.
12
Magnolia Oil & Gas Corporation
Non-GAAP Financial Measures
Reconciliation of revenue to adjusted cash operating margin and operating income margin
Our presentation of adjusted operating income margin, adjusted cash operating margin and total adjusted cash operating costs are supplemental non-GAAP financial measures that are used by management. Total adjusted cash operating costs exclude the impact of non-cash activity. We define adjusted cash operating margin per boe as total revenues per boe less cash operating costs per boe. We define adjusted operating income margin as operating margin excluding transaction and integration costs. Management believes that adjusted operating income margin, total adjusted cash operating costs per boe and adjusted cash operating margin per boe provide relevant and useful information, which is used by our management in assessing the Company’s profitability and comparability of results to our peers.
As a performance measure, adjusted operating income margin, total adjusted cash operating costs and adjusted cash operating margin may be useful to investors in facilitating comparisons to others in the Company’s industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, and capital structure, among other factors. Management believes excluding these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted operating income margin, adjusted cash operating margin may not be comparable to similar measures of other companies in our industry.
| For the Quarters Ended | ||||||||||||||
| (in $/boe) | September 30, 2026 | September 30, 2025 | ||||||||||||
| Revenue | $ | 47.63 | $ | 35.14 | ||||||||||
| Total cash operating costs: | ||||||||||||||
Lease operating expenses (1) | (5.12) | (5.16) | ||||||||||||
| Gathering, transportation and processing | (1.82) | (1.92) | ||||||||||||
| Taxes other than income | (2.31) | (2.20) | ||||||||||||
| Exploration expenses | (1.27) | (0.01) | ||||||||||||
General and administrative expenses (2) | (1.82) | (2.07) | ||||||||||||
| Transaction and integration costs | (6.37) | — | ||||||||||||
| Other operating expenses | (0.06) | — | ||||||||||||
| Total adjusted cash operating costs | (18.77) | (11.36) | ||||||||||||
| Adjusted cash operating margin | $ | 28.86 | $ | 23.78 | ||||||||||
| Margin (%) | 61 | % | 68 | % | ||||||||||
| Non-cash costs: | ||||||||||||||
| Depreciation, depletion and amortization | $ | (13.70) | $ | (11.96) | ||||||||||
| Asset retirement obligations accretion | (0.23) | (0.20) | ||||||||||||
| Non-cash stock based compensation | (0.60) | (0.64) | ||||||||||||
| Total non-cash costs | (14.53) | (12.80) | ||||||||||||
| Operating income margin | $ | 14.33 | $ | 10.98 | ||||||||||
| Add back: Transaction and integration costs | 6.37 | — | ||||||||||||
| Adjusted operating income margin | $ | 20.70 | $ | 10.98 | ||||||||||
| Margin (%) | 43 | % | 31 | % | ||||||||||
(1) Lease operating expenses exclude non-cash stock based compensation of $0.8 million, or $0.07 per boe, and $0.9 million, or $0.09 per boe, for the quarters ended September 30, 2026 and 2025, respectively.
(2) General and administrative expenses exclude non-cash stock based compensation of $5.7 million, or $0.53 per boe, and $5.1 million, or $0.55 per boe, for the quarters ended September 30, 2026 and 2025, respectively.
13
Magnolia Oil & Gas Corporation
Non-GAAP Financial Measures
Reconciliation of net cash provided by operating activities to adjusted free cash flow
Free cash flow and adjusted free cash flow are non-GAAP financial measures. Free cash flow is defined as cash flows from operations before net change in operating assets and liabilities less additions to oil and natural gas properties and changes in working capital associated with additions to oil and natural gas properties. Adjusted free cash flow is defined as free cash flow excluding transaction and integration costs. Management believes free cash flow and adjusted free cash flow are useful for investors and widely accepted by those following the oil and gas industry as financial indicators of a company’s ability to generate cash to internally fund drilling and completion activities, fund acquisitions, and service debt. It is also used by research analysts to value and compare oil and gas exploration and production companies and are frequently included in published research when providing investment recommendations. Free cash flow and adjusted free cash flow are used by management as an additional measure of liquidity. Free cash flow and adjusted free cash flow are not a measure of financial performance under GAAP and should not be considered alternatives to cash flows from operating, investing, or financing activities.
| For the Quarters Ended | ||||||||||||||
| (In thousands) | September 30, 2026 | September 30, 2025 | ||||||||||||
| Net cash provided by operating activities | $ | 368,979 | $ | 247,054 | ||||||||||
| Add back: net change in operating assets and liabilities | (46,257) | 256 | ||||||||||||
| Cash flows from operations before net change in operating assets and liabilities | 322,722 | 247,310 | ||||||||||||
| Additions to oil and natural gas properties | (150,759) | (119,048) | ||||||||||||
| Changes in working capital associated with additions to oil and natural gas properties | (11,550) | 5,667 | ||||||||||||
| Free cash flow | 160,413 | 133,929 | ||||||||||||
| Adjustments: | ||||||||||||||
Transaction and integration costs(1) | 63,285 | — | ||||||||||||
| Adjusted free cash flow | $ | 223,698 | $ | 133,929 | ||||||||||
(1) Transaction and integration costs exclude non-cash stock based compensation of $5.5 million for the quarter ended September 30, 2026.
14
Magnolia Oil & Gas Corporation
Non-GAAP Financial Measures
Reconciliation of loss on derivatives to settlement of derivative contracts
Cash paid to settle derivative contracts differs from the loss on derivatives reported in the consolidated statements of operations because certain settlements relate to derivative liabilities established in connection with the WildFire Acquisition. The following table reconciles loss on derivatives, net, to settlements of derivative contracts for the period presented.
| For the Quarter Ended | ||||||||
| (In thousands) | September 30, 2026 | |||||||
| Loss on derivatives, net | $ | (41,287) | ||||||
| Add back: Unrealized loss on derivatives, net | 39,874 | |||||||
| Realized loss on derivatives, net | (1,413) | |||||||
Settlements of derivatives assumed in the WildFire Acquisition, at their closing fair value (1) | (19,027) | |||||||
| Total settlement of derivative contracts | $ | (20,440) | ||||||
(1) Derivative contracts taken on in the WildFire acquisition were recorded at fair value as a liability on the acquisition date. When these contracts settle, the portion of the cash payment equal to their acquisition-date fair value reduces that liability and is not recognized as a realized loss.
15
Magnolia Oil & Gas Corporation
Non-GAAP Financial Measures
Reconciliation of long-term debt, net to net debt
Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial measure. Management uses net debt as a measure of the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The following table reconciles long-term debt, net, to net debt for the periods presented.
| (In thousands) | September 30, 2026 | December 31, 2025 | ||||||||||||
| Long-term debt, net | $ | 1,937,799 | $ | 393,251 | ||||||||||
| Unamortized premiums | (18,479) | — | ||||||||||||
| Unamortized deferred financing costs | 15,680 | 6,749 | ||||||||||||
| Total long-term debt | 1,935,000 | 400,000 | ||||||||||||
| Less: Cash and cash equivalents | (17,493) | (266,785) | ||||||||||||
| Net debt | $ | 1,917,507 | $ | 133,215 | ||||||||||
16
Third Quarter 2026 Earnings Presentation November 4, 2026 Christopher Stavros – Chairman, President & CEO Brian Corales – Senior Vice President & CFO Tom Fitter – Vice President, Investor Relations
Disclaimer Third Quarter 2026 Earnings Presentation 2 FORWARD LOOKING STATEMENTS The information in this presentation 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 presentation, regarding the integration of the WildFire Acquisition, the expected synergies of the WildFire 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 presentation, 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 presentation. 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 presentation are subject to the following factors: (i) the integration of the WildFire Acquisition, the results, effects and benefits of the WildFire Acquisition, future opportunities for Magnolia, other plans and expectations with respect to the WildFire Acquisition, and the anticipated impact of the WildFire 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 presentation 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. NON-GAAP FINANCIAL MEASURES This presentation includes non-GAAP financial measures, including adjusted net income, adjusted free cash flow, adjusted EBITDAX, adjusted cash operating costs, adjusted cash operating margin, adjusted operating income margin, net debt, and return on capital employed. Magnolia believes these metrics are useful because they allow Magnolia to more effectively evaluate its operating performance and compare the results of its operations from period to period and against its peers without regard to accounting methods or capital structure. Magnolia does not consider these non-GAAP measures in isolation or as an alternative to similar financial measures determined in accordance with GAAP. The computations of these non-GAAP measures may not be comparable to other similarly titled measures of other companies. Adjusted net income and adjusted EBITDAX should not be considered an alternative to, or more meaningful than, net income as determined in accordance with GAAP. Certain items excluded from adjusted free cash flow, adjusted net income, adjusted EBITDAX, adjusted cash operating costs, adjusted cash operating margin, adjusted operating income margin, net debt, and return on capital employed are significant components in understanding and assessing a company’s financial performance and should not be construed as an inference that its results will be unaffected by unusual or non-recurring terms. As performance measures, adjusted net income, adjusted EBITDAX, adjusted cash operating costs, adjusted cash operating margin, adjusted operating income margin and return on capital employed may be useful to investors in facilitating comparisons to others in the Company’s industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, and capital structure, among other factors. Management believes excluding these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. As liquidity measures, management believes adjusted free cash flow and net debt are useful for investors and widely accepted by those following the oil and gas industry as financial indicators of a company’s ability to generate cash to internally fund drilling and completion activities, fund acquisitions, and service debt. Our presentation of adjusted net income, adjusted EBITDAX, adjusted free cash flow, adjusted cash operating costs, adjusted cash operating margin, adjusted operating income margin, net debt, and return on capital employed may not be comparable to similar measures of other companies in our industry. Reconciliations of non-GAAP measures included herein to the nearest corresponding GAAP measure are included in this presentation. INDUSTRY AND MARKET DATA This presentation has been prepared by Magnolia and includes market data and other statistical information from sources believed by Magnolia to be reliable, including independent industry publications, governmental publications or other published independent sources. Some data is also based on the good faith estimates of Magnolia, which are derived from its review of internal sources as well as the independent sources described above. Although Magnolia believes these sources are reliable, it has not independently verified the information and cannot guarantee its accuracy and completeness.
Third Quarter 2026 Highlights & Announcements OperationsFinancial Corporate • Q3 2026 adjusted net income of $166 MM and an adjusted operating income margin of 43% • Adjusted EBITDAX of $392 MM with a 38% capital reinvestment rate • D&C capital of $147 MM and adjusted free cash flow (FCF) of $224 MM • Returned ~$103 MM to shareholders, including: $60 MM of share repurchases and dividends of $43 MM • Closed acquisition of WildFire Energy (“WildFire”), adding ~53 Mboe/d (~70% oil) bringing total Giddings position to >1.25 MM net acres • Sold non-core assets for a total consideration of $47.5 MM plus received 616 net acres in Gonzales County (Karnes Area) • Increased share repurchase authorization by 15 MM shares, bringing total remaining authorization to 22.6 MM shares as of 9/30/26 • Q3 2026 total production of 117.3 Mboe/d (17% YoY growth) & oil production of 49.1 Mbbls/d (24% YoY growth) • Q3 2026 Giddings YoY total production growth of 23% and oil production growth of 39% • Running 4 drilling rigs and 2 completion crews; Activity level expected to drive organic growth of 4% to 5% in 2027, for both total volumes and oil production Third Quarter 2026 Earnings Presentation 3 Continuing to execute a differentiated business model focused on enhancing per share value
Key Milestones Achieved Post-WildFire Acquisition Announcement Key Milestones Achieved 1 Portfolio Optimization • Sold non-core assets for total consideration of $47.5 million plus received 616 net acres in Gonzales County increasing our working interest in a contiguous block of undeveloped acreage acquired earlier this year. 2 Strong Progress on Reducing Debt and Strengthening the Balance Sheet • Ended the third quarter 2026 with approximately $1.9 billion of net debt, which is below 1.0x net debt to 2027E EBITDA at current strip prices, and more than a full year ahead of our original plan. 3 Market Volatility Provided for Opportunistic Addition of Attractive Short-term Oil Hedges • Implemented hedges at attractive pricing using costless collars with more than half our oil production hedged through Q2 2027. • The hedges protect the execution of our business model, allowing us to continue to reduce debt while retaining exposure to higher prices. 4 Achieved Early-Stage Capture of Synergies from WildFire Acquisition • Integration of the WildFire assets & operations is proceeding smoothly and on track. • Expect to realize at least one-third of estimated >$100 million annual run-rate synergies by year-end 2026. • Should realize more than three-quarters of run-rate synergies by mid-2027. 4 Third Quarter 2026 Earnings Presentation
Significant Synergy Capture & Unmatched Resource Base Third Quarter 2026 Earnings Presentation 5 Complementary Assets & Operations Lead to Significant Synergy Capture ($ MM) D&C and Facilities Field Operations Corporate G&A Total Estimated Synergies by YE 2027 $60 $20 $20 >$100 MM Annual – At least 1/3 of Run-rate Synergies Realized by YE2026 – 3/4 of Run-rate Synergies Realized by mid-2027 Existing Acreage Acquired Acreage Increased WI Acquired Sand Mine Unmatched Eagle Ford & Austin Chalk Acreage Position of >1.25 Million Net Acres
✓ Maintain Conservative Leverage – Focus on Steady Reduction of Debt from WildFire Acquisition – Minimizes Risk & Provides Greater Financial Flexibility ✓ Limit Capital Spending to <=55% of Adjusted EBITDAX ̶ Provides Consistent Free Cash Flow Generation ✓ Deliver Moderate Production Growth – High-Quality Assets Drive Low Reinvestment Rate Providing Both Moderate Oil & Total Volume Growth ✓ Generate High Pre-tax Operating Margins ✓ Consistently Return a Substantial Portion of Our Free Cash Flow to Shareholders – Provide a Safe, Sustainable Dividend with a Long-term Compound Annual Growth Rate of ~10% – Share Repurchases of At Least 1% of Outstanding Shares Per Quarter Capital Allocation Priorities 1) D&C Capital of <=55% of Adjusted EBITDAX 2) Safe, Sustainable and Growing Dividend 3) Consistent Share Repurchases of At Least 1% of Outstanding Shares per Quarter 5) Small, Bolt-on Acquisitions that Improve the Business 4) Debt Reduction – Reduce Leverage to <= 0.5x Net Debt/EBITDA Differentiated & Proven Business Model 6 Third Quarter 2026 Earnings Presentation Magnolia’s Differentiated & Proven Business Model
Third Quarter 2026 Key Financial Metrics (1) Q3 2026 ROCE annualized based on adjusted operating income which excludes transaction and integration costs. 7 Metric Q3 2026 YoY % Change Total Production (Mboe/d) 117.3 17% Oil Production (Mbbls/d) 49.1 24% Revenue ($ MM) $514 58% Adjusted EBITDAX ($ MM) $392 79% Adjusted Net Income ($ MM) $166 114% D&C Capex ($ MM) $147 24% D&C Capital % of Adjusted EBITDAX 38% (16%) Return on Capital Employed (ROCE) (1) 20% 3% Adjusted Free Cash Flow ($ MM) $224 67% Diluted Weighted Average Shares Outstanding (MM) 230.6 21% Third Quarter 2026 Earnings Presentation
296 1,226 911 323 37 33 43 60 151 2,555 17 0 500 1,000 1,500 2,000 2,500 3,000 Cash 6/30/2026 Issuance of Common Stock Debt, net of Issuance Costs Cash Flow from Operations Divestitures & Other Investing Changes in Working Capital and Other Dividends Share Repurchases D&C and Facilities Capital Acquisitions Cash 9/30/2026 (1) (2) (3) (4) (5) (6) (7) (8) Third Quarter 2026 Cash Flow Reconciliation (1) Comprised of the $500 million issuance of the 2034 Senior Notes, less $10 million in deferred financing costs, and the $535 million draw on the RBL Facility, less $14 million in deferred financing costs and $100 million in repayment of outstanding borrowings. (2) Cash flow from operations before changes in working capital. (3) Includes $41 million received from sale of oil and gas properties offset by $4 million of other investing. (4) Comprised of $34 million of working capital changes including capital accruals offset by $1 million in other financing activities. (5) Includes $43 million of dividends paid to Class A shareholders. (6) Comprised of $60 million Class A Common Stock Repurchases. (7) Incurred D&C and Leasehold Capital of $151 million. (8) Quarter to date acquisition activity primarily relates to the WildFire Acquisition. 8 $ I n M ill io n s Third Quarter 2026 Earnings Presentation
(1) Class A share reduction includes 3.6 million non-compete shares that were paid in cash in lieu of stock in 2021. Includes both Class A and Class B share repurchases. History of Significant & Consistent Share Repurchases 7.0 4.5 25.3 15.5 9.6 11.0 8.9 6.0 (87.8) 2019 2020 2021 2022 2023 2024 2025 2026 YTD Total 0 10 20 30 40 50 60 70 80 90 9 Magnolia’s Consistent Share Repurchases (1) (million shares repurchased) Third Quarter 2026 Earnings Presentation • Increased share repurchase authorization by 15 MM shares • Remaining authorization of 22.6 MM shares as of 9/30/26, or ~8.5% of outstanding shares M M o f Sh ar es
$0.28 $0.40 $0.46 $0.52 $0.60 $0.66 2021 2022 2023 2024 2025 2026 Pre Wildfire 2026 Pro Forma Track Record of a Safe, Sustainable and Growing Dividend ❑ Magnolia’s dividend has grown at a double-digit rate over the past 5 years ❑ Increased quarterly dividend by a cumulative 20% to $0.18 per share from $0.15 per share in 2026 ❑ Sustainable dividend growth supported through product price cycles ❑ Dividend per share payout capacity is enhanced by moderate production growth and ongoing share repurchases, leading to higher than peer average dividend growth 10 Annualized Dividend Payout Per Share CAGR Has Exceeded 15% $0.72 Third Quarter 2026 Earnings Presentation
$600 $435 $400 $500 2026 2027 2028 2029 2030 2031 2032 2033 2034 Capital Structure & Liquidity Overview Third Quarter 2026 Earnings Presentation (1) Net debt is total principal long-term debt less cash and cash equivalents. (2) Liquidity defined as cash plus availability under revolving credit facility. 11 Capitalization & Liquidity ($MM) Debt Maturity Schedule ($MM) $1.75 B Credit Facility ($435 MM Drawn as of 9/30/2026) 6.875% Senior Unsecured Notes Capital Structure Overview ▪ Maintaining low financial leverage profile ‒ Currently have a net debt(1) position of $1,918 MM ▪ Current Liquidity of $1,332 million, including remaining credit facility (2) ▪ No debt maturities until senior unsecured notes mature in 2029 Capitalization Summary As of 9/30/2026 Cash and Cash Equivalents $17 Revolving Credit Facility $435 7.500% Senior Notes Due 2029 $600 6.875% Senior Notes Due 2032 $400 6.625% Senior Notes Due 2034 $500 Total Principal Debt Outstanding $1,935 Total Equity $4,253 Net Debt / Q3 Annualized Adjusted EBITDAX 1.2x Net Debt / Total Book Capitalization 31% Liquidity Summary As of 9/30/2026 Cash and Cash Equivalents $17 Credit Facility Availability $1,315 Liquidity (2) $1,332 6.625% Senior Unsecured Notes 7.500% Senior Unsecured Notes
Margins and Cost Structure 12 (1) Lease operating expenses exclude non-cash stock-based compensation of $0.8 million, or $0.07 per boe, and $0.9 million, or $0.09 per boe, for the quarters ended September 30, 2026 and 2025, respectively. (2) General and administrative expenses exclude non-cash stock-based compensation of $5.7 million, or $0.53 per boe, and $5.1 million, or $0.55 per boe, for the quarters ended September 30, 2026 and 2025, respectively. Third Quarter 2026 Earnings Presentation $ / Boe, unless otherwise noted For the Quarters Ended September 30, 2026 September 30, 2025 Revenue $47.63 $35.14 Total Cash Operating Costs: Lease Operating Expenses (1) (5.12) (5.16) Gathering, Transportation & Processing (1.82) (1.92) Taxes Other Than Income (2.31) (2.20) Exploration Expenses (1.27) (0.01) General & Administrative Expenses (2) (1.82) (2.07) Transaction & Integration Costs (6.37) - Other Operating Expenses (0.06) - Total Adjusted Cash Operating Costs (18.77) (11.36) Adjusted Cash Operating Margin $28.86 $23.78 Margin % 61% 68% Non-Cash Costs: Depreciation, Depletion, and Amortization (13.70) (11.96) Asset Retirement Obligations Accretion (0.23) (0.20) Non-Cash Stock Based Compensation (0.60) (0.64) Total Non-Cash Costs (14.53) (12.80) Operating Income Margin $14.33 $10.98 Add back: Transaction & Integration Costs 6.37 - Adjusted Operating Income Margin $20.70 $10.98 Margin % 43% 31%
Fourth Quarter & FY 2027 Operating Plan & Guidance FY 2027 Guidance Production Growth FY 2027 Organic Total & Oil Growth 4% – 5% D&C Capital Spending FY 2027 Capital $900 - $950 Million 2027 Operating Plan ~4 Rigs / ~2 Completion Crews 2027E Capital ~10-12% Karnes ~88-90% Giddings Fourth Quarter 2026 Guidance Production 159 - 161 Mboe/d (49% to 50% oil) D&C Capital Spending ~$235 Million Oil Differential (To Magellan East Houston) ($2) Bbl Fully Diluted Share Count ~266 million 13 Third Quarter 2026 Earnings Presentation
Summary Investment Highlights 14 Giddings Karnes High-Quality Assets Positioned for Success • Dominant position in the Giddings area with low capital reinvestment rate, low breakevens and unmatched running room • Coveted position in the Karnes area in the core of the Eagle Ford • Generate consistent, ongoing annual free cash flow since Magnolia’s inception • Strong operating margins through the commodity cycle Positive Free Cash Flow and Industry Leading Margins & Returns Multiple Levers of Growth Conservative Financial Policy and Pathway for Leverage Reduction • Steady organic growth through proven drilling program while remaining well within cash flow • Opportunistically pursue small to mid size accretive bolt-on acquisitions in the areas Magnolia operates • Current net debt to 2027E EBITDAX of <1.0x with clear pathway to quickly reduce absolute debt levels • Capital Expenditures limited to 55% of EBITDAX providing free cash flow every year and quick reduction of leverage Third Quarter 2026 Earnings Presentation
Appendix
2018 2019 2020 2021 2022 2023 2024 2025 2026 YTD Sizable & Consistent Cash Return to Shareholders ❑ Magnolia has a strong track record of returning capital to shareholders ❑ Returned >30% of current market cap over the past eight years ❑ Focus on compounding per share value through share count reduction and safe, sustainable dividend growth Inception Cumulative Return of Capital ($MM) $79 $108 $467 $908 $1,213 ~$2.2 Billion Returned to Shareholders Share Repurchases Dividends $1,591 $1,913 16 $2,180 Third Quarter 2026 Earnings Presentation
Summary Balance Sheet 17 Third Quarter 2026 Earnings Presentation (in thousands) September 30, 2026 December 31, 2025 Cash and cash equivalents $17,493 $266,785 Other current assets 363,522 175,650 Property, plant and equipment, net 6,923,181 2,424,152 Other assets 72,686 36,505 Total assets $7,376,882 $2,903,092 Current liabilities $746,038 $288,030 Long-term debt, net 1,937,799 393,251 Other long-term liabilities 439,945 222,638 Total equity 4,253,100 1,999,173 Total liabilities and equity $7,376,882 $2,903,092
Oil Derivative Positions Third Quarter 2026 Earnings Presentation Added Magnolia Hedges Crude Oil Costless Collars (MEH) Q4 2026 Q1 2027 Q2 2027 Q3 2027 Q4 2027 Notional Volume (Bbls) 3,680,000 2,700,000 2,275,000 920,000 - Weighted Average Floor Price ($/Bbl) $73.75 $70.83 $70.00 $70.00 - Weighted Average Ceiling Price ($/Bbl) $90.97 $88.68 $82.31 $80.08 - Crude Oil Swaps (NYMEX WTI) Q4 2026 Q1 2027 Q2 2027 Q3 2027 Q4 2027 Notional Volume (Bbls) 2,261,947 2,066,605 1,982,790 893,666 866,955 Weighted Average Price ($/Bbl) $63.85 $63.46 $65.02 $67.37 $66.34 Hedges Inherited from WildFire Acquisition 18
Adjusted Free Cash Flow Reconciliations 19 Third Quarter 2026 Earnings Presentation (in thousands) For the Quarters Ended September 30, 2026 September 30, 2025 Net cash provided by operating activities $368,979 $247,054 Add back: net change in operating assets and liabilities (46,257) 256 Cash flows from operations before net change in operating assets and liabilities $322,722 $247,310 Additions to oil and natural gas properties (150,759) (119,048) Changes in working capital associated with additions to oil and natural gas properties (11,550) 5,667 Free cash flow $160,413 $133,929 Adjustments: Transaction and integration costs (1) 63,285 - Adjusted Free Cash Flow $223,698 $133,929 (1) Transaction and integration costs exclude non-cash stock-based compensation of $5.5 million for the quarter ended September 30, 2026.
Adjusted EBITDAX Reconciliations 20 Third Quarter 2026 Earnings Presentation (in thousands) For the Quarters Ended September 30, 2026 September 30, 2025 Net income $80,475 $78,233 Interest expense, net 8,542 5,362 Income tax expense 23,790 17,208 EBIT $112,807 $100,803 Depreciation, depletion and amortization 147,863 110,618 Asset retirement obligations accretion 2,513 1,838 EBITDA $263,183 $213,259 Exploration expenses 13,725 131 EBITDAX $276,908 $213,390 Non-cash stock based compensation expense 6,474 5,935 Transaction and integration costs 68,743 - Unrealized loss on derivatives, net 39,874 - Gain on revaluation of contingent consideration - (507) Adjusted EBITDAX $391,999 $218,818
Adjusted Net Income Reconciliation 21 (1) Represents corporate income taxes at an assumed annual effective tax rate of 21.0% and 19.3% for the quarters ended September 30, 2026 and 2025, respectively. Third Quarter 2026 Earnings Presentation (in thousands) For the Quarters Ended September 30, 2026 September 30, 2025 Net income $80,475 $78,233 Adjustments: Transaction and integration related costs 68,743 - Unrealized loss on derivatives, net 39,874 - Gain on revaluation of contingent consideration - (507) Change in estimated income tax (1) (22,810) 98 Adjusted Net Income $166,282 $77,824
Return on Capital Employed 22 Third Quarter 2026 Earnings Presentation (in thousands) For the Quarters Ended September 30, 2026 September 30, 2025 Operating income $154,599 $101,464 Add Back: Transaction & Integration Costs $68,743 - Adjusted operating income (A) $223,342 $101,464 Debt - beginning of period 393,636 392,880 Stockholders' Equity - beginning of period 2,146,877 1,998,346 Capital employed - beginning of period 2,540,513 2,391,226 Debt - end of period 1,937,799 393,064 Stockholders' Equity - end of period 4,253,100 2,006,415 Capital employed - end of period 6,190,899 2,399,479 Average capital employed (B) $4,365,706 $2,395,353 Return on average capital employed (A/B) 5.1% 4.2% Annualized return on capital employed 20% 17%
Oil & Gas Production Results 23 Third Quarter 2026 Earnings Presentation Combined Karnes Giddings Combined Karnes Giddings For the Quarter Ended September 30, 2026 For the Quarter Ended September 30, 2025 Production: Oil (MBbls) 4,516 1,090 3,426 3,628 1,164 2,464 Natural gas (MMcf) 19,425 2,217 17,208 17,515 2,428 15,087 Natural gas liquids (MBbls) 3,037 339 2,698 2,700 391 2,309 Total (Mboe) 10,790 1,798 8,992 9,247 1,960 7,287 Average Daily Production Volume: Oil (MBbls/d) 49.1 11.8 37.3 39.4 12.6 26.8 Natural gas (MMcf/d) 211.1 24.1 187.0 190.4 26.4 164.0 Natural gas liquids (MBbls/d) 33.0 3.7 29.3 29.3 4.3 25.0 Total (MBoe/d) 117.3 19.6 97.7 100.5 21.3 79.2
Magnolia’s Commitment to Sustainability Governing with IntegritySafeguarding the Environment Supporting Employees and Communities • 24-percent reduction in gross Scope 1 greenhouse gas intensity rate since 2021 • 64-percent reduction in gas flared as a percent of total production since 2021 • 5th consecutive year of reduction in methane emissions as a percentage of GHG emissions • $309 million in royalty, lease, and surface payments to Texas residents; $113 million in tax payments to Texas communities • $682 million in payments made to local vendors and service providers • Recognized as Top Workplace in Houston Chronicle Top Workplaces Survey • 50-percent refreshment rate with 4 directors with 5 or fewer years of tenure on Board of Directors • 3 new independent directors with specific oil & gas industry and executive leadership experience • 93 percent of shareholders approved say-on-pay proposal at 2026 Annual Meeting 24 Third Quarter 2026 Earnings Presentation