Magnolia Oil & Gas (NYSE: MGY) lifts Q2 profit and outlines WildFire deal
Rhea-AI Filing Summary
Magnolia Oil & Gas Corporation reported strong second quarter 2026 results, with net income of $181.8 million and adjusted net income of $184.3 million, both more than doubling year over year. Diluted EPS was $0.97 and adjusted EPS $0.99. Adjusted EBITDAX was $370.3 million, up 66%, and free cash flow was $234.6 million. Total production averaged 106.1 Mboe/d, up 8%, including 41.9 Mbbls/d of oil, up 5%, and adjusted operating income margin reached 51%.
Drilling and completions capital was $125.0 million, 34% of adjusted EBITDAX, supporting low reinvestment and high cash generation. Magnolia returned $80.1 million to shareholders via $49.3 million of share repurchases (1.7 million shares) and dividends, and raised its quarterly dividend 9% to $0.18 per share (annualized $0.72). Cash at quarter-end was $295.9 million with an undrawn $450 million revolver. The company agreed to acquire WildFire Energy for $4.06 billion, adding ~53 Mboe/d of production and ~810,000 net Giddings acres, funded roughly half with equity (53.3 million new shares for $1.23 billion) and half with debt, including $500 million 6.625% notes due 2034. Standalone 2026 production growth guidance increased to 6%, with Q3 2026 D&C capital expected at ~$115 million.
Positive
- Net income surged to $181.8 million and adjusted net income to $184.3 million in Q2 2026, more than doubling year over year alongside a 51% adjusted operating income margin.
- Free cash flow reached $234.6 million in Q2 2026, up 118% year over year, while D&C capital was just 34% of adjusted EBITDAX, supporting strong cash generation and returns.
- Magnolia announced a $4.06 billion WildFire acquisition that adds ~53 Mboe/d of production and ~810,000 net Giddings acres, materially expanding its South Texas asset base.
Negative
- None.
Filing Explained
Magnolia completed the $1.23 billion equity and $500 million note financing, but WildFire and its approximately 269 million post-close share count remain pending.
As a Form 8-K, this filing reports specified material events. Magnolia reports that its
The WildFire acquisition itself remains a pending transaction, with closing expected late in the third quarter of 2026. The completed financing therefore precedes completion of the acquisition.
The equity financing issued
The earnings presentation lists approximately
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, and exhibit attachments filed with this report.
Key Figures
Net income: $181.8 million
Adjusted EBITDAX: $370.3 million
Free cash flow: $234.6 million
+5 more
8 metrics
Net income
$181.8 million
For the quarter ended June 30, 2026; 124% year-over-year increase
Adjusted EBITDAX
$370.3 million
Q2 2026 adjusted EBITDAX; up 66% from Q2 2025
Free cash flow
$234.6 million
Q2 2026 free cash flow; more than doubled year over year
Total production
106.1 Mboe/d
Average daily production in Q2 2026; 8% growth versus Q2 2025
WildFire acquisition consideration
$4.06 billion
Total consideration for WildFire Energy acquisition
Equity offering for WildFire
53.3 million shares; $1.23 billion net proceeds
New shares issued in public offering to help fund acquisition
Senior notes issued
$500 million at 6.625% due 2034
Debt financing completed to partially fund WildFire acquisition
Quarterly dividend
$0.18 per share
Q2 2026 dividend; 9% increase, annualized at $0.72 per share
Key Terms
Adjusted EBITDAX, free cash flow, non-GAAP financial measures, return on capital employed, +2 more
6 terms
Adjusted EBITDAX financial
"Adjusted EBITDAX (1) was $370.3 million during the second 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.
free cash flow financial
"free cash flow (1) generated by the Company of $234.6 million more than doubling year-over-year."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
non-GAAP financial measures financial
"Adjusted net income, adjusted earnings per share, adjusted EBITDAX, and free cash flow are non-GAAP financial measures."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
return on capital employed financial
"Return on Capital Employed (ROCE) (1) 39% 20%"
Return on capital employed (ROCE) is a percentage that shows how much operating profit a company generates from the money invested in its business — including equity and long‑term debt. Investors use it to judge whether a company uses its resources efficiently, similar to measuring how much output a factory gets from its equipment; a higher ROCE suggests management is getting more profit from each dollar of capital, which can indicate better long‑term value.
asset retirement obligations accretion financial
"Asset retirement obligations accretion | 1,862 | 1,563"
Asset retirement obligations accretion is the regular bookkeeping increase in the stated value of a company’s future cleanup or decommissioning liability as the settlement date approaches; it reflects the “time value” of that future cost and is recorded as an expense. For investors, accretion raises reported liabilities and reduces earnings over time (similar to interest on a growing debt), so it affects profitability measures and helps signal future cash needs for dismantling or environmental obligations.
operating income margin financial
"Magnolia generated operating income as a percentage of revenue (pre-tax margins) of 50% during the second quarter."
Operating income margin shows the share of each dollar of sales a company keeps after paying the regular costs of running its business (like wages, rent and materials) but before interest and taxes. Investors use it to judge how efficiently a company turns sales into profit from core operations—think of it as the portion of revenue that remains in the company’s pocket after running the day-to-day business, useful for comparing profitability across firms.
Earnings Snapshot
Net income: $181.8 million · Guidance included
Quarter ended June 30, 2026
Net income
$181.8 million
124% year-over-year increase
Adjusted EBITDAX
$370.3 million
66% year-over-year increase
Free cash flow
$234.6 million
118% year-over-year increase
Total production
106.1 Mboe/d
8% year-over-year increase
Guidance
Magnolia increased standalone full-year 2026 production growth guidance to 6% from 5% and estimated standalone Q3 2026 D&C capital spending at approximately $115 million, with production similar to Q2 2026 levels.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Magnolia Oil & Gas (MGY) perform financially in Q2 2026?
Magnolia reported Q2 2026 net income of $181.8 million and adjusted net income of $184.3 million, more than doubling year over year. Adjusted EBITDAX was $370.3 million and free cash flow reached $234.6 million, reflecting strong margins and cash generation.
What were Magnolia Oil & Gas (MGY) production levels in Q2 2026?
Total Q2 2026 production averaged 106.1 Mboe/d, up 8% year over year, including 41.9 Mbbls/d of oil, up 5%. Giddings field volumes were 85.5 Mboe/d with oil up 7%, representing 81% of total company production.
What is included in Magnolia Oil & Gas (MGY)’s WildFire Energy acquisition?
Magnolia agreed to acquire WildFire Energy for $4.06 billion, adding ~53 Mboe/d of production and ~810,000 net acres in Giddings. The deal roughly doubles Giddings acreage to over 1.25 million net acres and is expected to close late in Q3 2026.
How is Magnolia Oil & Gas (MGY) financing the WildFire acquisition?
Magnolia is funding the $4.06 billion WildFire acquisition approximately half with equity and half with debt. It issued 53.3 million new shares for net proceeds of $1.23 billion and raised $500 million of 6.625% senior notes due 2034.
What capital returns did Magnolia Oil & Gas (MGY) provide in Q2 2026?
In Q2 2026 Magnolia returned $80.1 million to shareholders, including $49.3 million of share repurchases (1.7 million Class A shares) and dividends. The quarterly dividend was increased 9% to $0.18 per share, or $0.72 annualized.
What guidance did Magnolia Oil & Gas (MGY) give for 2026 after Q2 results?
Magnolia raised its standalone 2026 production growth guidance to 6% from 5%. For Q3 2026, standalone D&C capital is estimated at about $115 million, with total production expected to be similar to Q2’s 106.1 Mboe/d.
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): August 5, 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 | ||||||
Item 2.02 Results of Operations and Financial Condition.
On August 5, 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 June 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 August 5, 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 June 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: August 5, 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 Second Quarter 2026 Results
HOUSTON, TX, August 5, 2026 - 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.
1
•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.
2
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.
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 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.
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 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 | ||||||||||||||||||||||
5
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 | ||||||||||||||||||||||
(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 Six Months Ended | |||||||||||||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||||||||||
| NET INCOME | $ | 181,776 | $ | 81,028 | $ | 282,612 | $ | 187,676 | ||||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 116,516 | 107,082 | 229,874 | 212,935 | ||||||||||||||||||||||
| Asset retirement obligations accretion | 1,862 | 1,563 | 3,719 | 3,119 | ||||||||||||||||||||||
| Amortization of deferred financing costs | 553 | 540 | 1,099 | 1,072 | ||||||||||||||||||||||
| Deferred income tax expense | 48,196 | 16,812 | 65,086 | 29,153 | ||||||||||||||||||||||
| Gain on revaluation of contingent consideration | — | (2,652) | — | (4,004) | ||||||||||||||||||||||
| Stock based compensation | 9,665 | 7,302 | 21,885 | 13,852 | ||||||||||||||||||||||
| Other | 3,418 | 2,526 | 4,261 | 2,875 | ||||||||||||||||||||||
| Net change in operating assets and liabilities | 22,040 | (15,500) | (26,894) | (23,490) | ||||||||||||||||||||||
| Net cash provided by operating activities | 384,026 | 198,701 | 581,642 | 423,188 | ||||||||||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||||||||||
| Acquisitions | (1,220) | (15,509) | (156,209) | (39,653) | ||||||||||||||||||||||
| Additions to oil and natural gas properties | (125,129) | (100,287) | (253,557) | (231,455) | ||||||||||||||||||||||
| Changes in working capital associated with additions to oil and natural gas properties | (2,239) | (6,440) | 25,208 | 2,770 | ||||||||||||||||||||||
| Other investing | (1,774) | 5,739 | 6,578 | 5,771 | ||||||||||||||||||||||
| Net cash used in investing activities | (130,362) | (116,497) | (377,980) | (262,567) | ||||||||||||||||||||||
| CASH FLOW FROM FINANCING ACTIVITIES | ||||||||||||||||||||||||||
| Class A Common Stock repurchases | (49,328) | (48,539) | (82,606) | (100,932) | ||||||||||||||||||||||
| Class B Common Stock purchases and cancellations | — | — | (19,793) | — | ||||||||||||||||||||||
| Dividends paid | (30,773) | (28,350) | (61,246) | (57,261) | ||||||||||||||||||||||
| Distributions to noncontrolling interest owners | — | (1,014) | (911) | (1,842) | ||||||||||||||||||||||
| Other financing activities | (1,997) | (98) | (9,953) | (8,874) | ||||||||||||||||||||||
| Net cash used in financing activities | (82,098) | (78,001) | (174,509) | (168,909) | ||||||||||||||||||||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 171,566 | 4,203 | 29,153 | (8,288) | ||||||||||||||||||||||
| Cash and cash equivalents – Beginning of period | 124,372 | 247,558 | 266,785 | 260,049 | ||||||||||||||||||||||
| Cash and cash equivalents – End of period | $ | 295,938 | $ | 251,761 | $ | 295,938 | $ | 251,761 | ||||||||||||||||||
7
Magnolia Oil & Gas Corporation
Summary Balance Sheet Data
(In thousands)
| June 30, 2026 | December 31, 2025 | |||||||||||||
| Cash and cash equivalents | $ | 295,938 | $ | 266,785 | ||||||||||
| Other current assets | 192,650 | 175,650 | ||||||||||||
| Property, plant and equipment, net | 2,599,165 | 2,424,152 | ||||||||||||
| Other assets | 52,831 | 36,505 | ||||||||||||
| Total assets | $ | 3,140,584 | $ | 2,903,092 | ||||||||||
| Current liabilities | $ | 308,551 | $ | 288,030 | ||||||||||
| Long-term debt, net | 393,636 | 393,251 | ||||||||||||
| Other long-term liabilities | 291,520 | 222,638 | ||||||||||||
| Stockholders’ equity | 2,146,877 | 1,939,958 | ||||||||||||
| Noncontrolling interest | — | 59,215 | ||||||||||||
| Total liabilities and equity | $ | 3,140,584 | $ | 2,903,092 | ||||||||||
8
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, and accretion of asset retirement obligations, 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) | June 30, 2026 | June 30, 2025 | ||||||||||||
| NET INCOME | $ | 181,776 | $ | 81,028 | ||||||||||
| Interest expense, net | 6,720 | 5,604 | ||||||||||||
| Income tax expense | 50,626 | 20,938 | ||||||||||||
| EBIT | 239,122 | 107,570 | ||||||||||||
| Depreciation, depletion and amortization | 116,516 | 107,082 | ||||||||||||
| Asset retirement obligations accretion | 1,862 | 1,563 | ||||||||||||
| EBITDA | 357,500 | 216,215 | ||||||||||||
| Exploration expenses | 213 | 363 | ||||||||||||
| EBITDAX | 357,713 | 216,578 | ||||||||||||
| Non-cash stock based compensation expense | 9,401 | 6,781 | ||||||||||||
| Transaction related costs | 3,200 | — | ||||||||||||
Other income adjustment (1) | — | (130) | ||||||||||||
| Adjusted EBITDAX | $ | 370,314 | $ | 223,229 | ||||||||||
(1) The quarter ended June 30, 2025 includes a negative adjustment of $2.7 million related to a gain on revaluation of contingent consideration and a positive adjustment of $2.5 million related to a loss on sale of other assets.
9
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 measures 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) | June 30, 2026 | June 30, 2025 | |||||||||
| NET INCOME | $ | 181,776 | $ | 81,028 | |||||||
| Adjustments: | |||||||||||
| Transaction related costs | 3,200 | — | |||||||||
Other income adjustment (1) | — | (130) | |||||||||
Change in estimated income tax (2) | (672) | 26 | |||||||||
| ADJUSTED NET INCOME | $ | 184,304 | $ | 80,924 | |||||||
| Diluted weighted average shares of Class A Common Stock outstanding during the period | 184,586 | 186,530 | |||||||||
Weighted average shares of Class B Common Stock outstanding during the period (3) | — | 5,523 | |||||||||
Total weighted average shares of Class A and B Common Stock, including dilutive impact of other securities (3) | 184,586 | 192,053 | |||||||||
(1) The quarter ended June 30, 2025 includes a negative adjustment of $2.7 million related to a gain on revaluation of contingent consideration and a positive adjustment of $2.5 million related to a loss on sale of other assets.
(2) Represents corporate income taxes at an assumed annual effective tax rate of 21.0% and 19.9% for the quarters ended June 30, 2026 and 2025, respectively.
(3) 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.
10
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 are non-GAAP measures 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 June 30, 2026 | Per Share Diluted EPS | ||||||||||
| (In thousands, except per share data) | |||||||||||
| NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK | $ | 181,776 | |||||||||
| Dividends and net income allocated to participating securities | (2,442) | ||||||||||
| Net income, net of participating securities | $ | 179,334 | $ | 0.97 | |||||||
| Adjustments: | |||||||||||
| Dividends and net income allocated to participating securities | $ | 2,442 | 0.01 | ||||||||
| Transaction related costs | 3,200 | 0.02 | |||||||||
Change in estimated income tax (1) | (672) | — | |||||||||
| ADJUSTED NET INCOME | 184,304 | ||||||||||
| Adjusted dividends and net income allocated to participating securities | (2,476) | (0.01) | |||||||||
| Adjusted net income, net of participating securities | $ | 181,828 | $ | 0.99 | |||||||
(1) Represents corporate income taxes at an assumed annual effective tax rate of 21.0% for the quarter ended June 30, 2026.
11
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 related 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) | June 30, 2026 | June 30, 2025 | ||||||||||||
| Revenue | $ | 49.60 | $ | 35.68 | ||||||||||
| Total cash operating costs: | ||||||||||||||
Lease operating expenses (1) | (4.92) | (4.78) | ||||||||||||
| Gathering, transportation and processing | (1.78) | (1.84) | ||||||||||||
| Taxes other than income | (2.36) | (2.10) | ||||||||||||
| Exploration expenses | (0.02) | (0.04) | ||||||||||||
General and administrative expenses (2) | (2.14) | (1.94) | ||||||||||||
| Transaction related costs | (0.33) | — | ||||||||||||
| Total adjusted cash operating costs | (11.55) | (10.70) | ||||||||||||
| Adjusted cash operating margin | $ | 38.05 | $ | 24.98 | ||||||||||
| Margin (%) | 77 | % | 70 | % | ||||||||||
| Non-cash costs: | ||||||||||||||
| Depreciation, depletion and amortization | $ | (12.07) | $ | (11.98) | ||||||||||
| Asset retirement obligations accretion | (0.19) | (0.17) | ||||||||||||
| Non-cash stock based compensation | (0.97) | (0.76) | ||||||||||||
| Total non-cash costs | (13.23) | (12.91) | ||||||||||||
| Operating income margin | $ | 24.82 | $ | 12.07 | ||||||||||
| Add back: Transaction related costs | 0.33 | — | ||||||||||||
| Adjusted operating income margin | $ | 25.15 | $ | 12.07 | ||||||||||
| Margin (%) | 51 | % | 34 | % | ||||||||||
(1) Lease operating expenses exclude non-cash stock based compensation of $0.8 million, or $0.09 per boe, and $0.9 million, or $0.10 per boe, for the quarters ended June 30, 2026 and 2025, respectively.
(2) General and administrative expenses exclude non-cash stock based compensation of $8.6 million, or $0.88 per boe, and $5.9 million, or $0.66 per boe, for the quarters ended June 30, 2026 and 2025, respectively.
12
Magnolia Oil & Gas Corporation
Non-GAAP Financial Measures
Reconciliation of net cash provided by operating activities to free cash flow
Free cash flow is a non-GAAP financial measure. 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. Management believes free cash flow is 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 is used by management as an additional measure of liquidity. Free cash flow is not a measure of financial performance under GAAP and should not be considered an alternative to cash flows from operating, investing, or financing activities.
| For the Quarters Ended | ||||||||||||||
| (In thousands) | June 30, 2026 | June 30, 2025 | ||||||||||||
| Net cash provided by operating activities | $ | 384,026 | $ | 198,701 | ||||||||||
| Add back: net change in operating assets and liabilities | (22,040) | 15,500 | ||||||||||||
| Cash flows from operations before net change in operating assets and liabilities | 361,986 | 214,201 | ||||||||||||
| Additions to oil and natural gas properties | (125,129) | (100,287) | ||||||||||||
| Changes in working capital associated with additions to oil and natural gas properties | (2,239) | (6,440) | ||||||||||||
| Free cash flow | $ | 234,618 | $ | 107,474 | ||||||||||
13
Second Quarter 2026 Earnings Presentation August 5, 2026 Christopher Stavros – Chairman, President & CEO Brian Corales – Senior Vice President & CFO Tom Fitter – Vice President, Investor Relations
Disclaimer Second 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 consummation of the acquisition of WildFire and the transactions contemplated thereby (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 expected timetable for completing 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, free cash flow, adjusted EBITDAX, adjusted cash operating costs, adjusted cash operating margin, adjusted operating income margin 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 free cash flow, adjusted net income, adjusted EBITDAX, adjusted cash operating costs, adjusted cash operating margin, adjusted operating income margin 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 a liquidity measure, management believes free cash flow is 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, free cash flow, adjusted cash operating costs, adjusted cash operating margin, adjusted operating income margin 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.
Second Quarter 2026 Highlights & Announcements OperationsFinancial Corporate • Q2 2026 Total adjusted net income of $184 MM and an adjusted operating income margin of 51% • Adjusted EBITDAX of $370 MM with a 34% capital reinvestment rate • D&C capital of $125 MM and free cash flow (FCF) of $235 MM • Returned ~$80 MM to shareholders, including: $49 MM of share repurchases and dividends of $31 MM • Announced definitive agreement to acquire WildFire Energy (“WildFire”). WildFire adds ~53 Mboe/d (~70% oil) and ~810,000 net acres in Giddings • Closing of the acquisition expected late in the third quarter 2026 • Announced a 9% quarterly dividend increase to 18 cents per share in conjunction with agreement to acquire WildFire, and payable on September 1st • Q2 2026 total production of 106.1 Mboe/d (8% YoY growth) & oil production of 41.9 Mbbls/d (5% YoY growth) • Q2 2026 Giddings YoY total production growth of 10% and oil production growth of 7% • Increased MGY standalone full-year 2026 production growth guidance to 6% from 5% Second Quarter 2026 Earnings Presentation 3 Continuing to execute a differentiated business model focused on enhancing per share value
Pro Forma Q2 2026 Oil Production (MBOPD) 42 37 79 Q2 2026 Production (MBOEPD) 106 53 159 Oil Percentage ~40% ~70% ~50% Net Giddings Acreage ~562,000 ~810,000 ~1,252,0001 Highly Accretive Acquisition Creates the Premier Eagle Ford/Austin Chalk Position WildFire Total Consideration $4.06 B ➢ Adds Significant Acreage (~810,000 net acres) in Eagle Ford & Austin Chalk Providing Concentration of High-Quality Resource in the Giddings Field ➢ Adds ~37 MBOPD of Oil Production and Improves Oil Mix to ~50% ➢ Highly Accretive to All Key Financial Metrics, including: Re-investment rate, Operating Margins, Cash Flow, FCF per share, and EPS ➢ Estimated Annual Run-rate Synergy Capture of >$100 MM by YE2027 1) Includes equity issued to WildFire owners and Magnolia equity financing 2) Includes Magnolia cash on balance sheet, incremental debt ($500 MM notes and revolver) and assumed WildFire $600 MM notes 3) Approximately 120,000 net acres overlap with respective ownership in different formations Second Quarter 2026 Earnings Presentation Strong Strategic Fit With Highly Contiguous Acreage in Giddings Existing Acreage Acquired Acreage Increased WI Acquired Sand Mine Equity1 $2.08 B (~51%) Cash & Debt2 $1.98 B (~49%) 4
Magnolia’s Differentiated & Proven Business Model ✓ Maintain Conservative Leverage – Focus on Steady Reduction of Debt from WildFire Acquisition – Minimizes Risk & Provides Greater Financial Flexibility ✓ Limit Capital Spending to <=55% of Adjusted EBITDAX ̶ Provides Consistent Free Cash Flow Generation ✓ Deliver Moderate Production Growth – High-Quality Assets Drive Low Reinvestment Rate Providing Both Moderate Oil & Total Volume Growth ✓ Generate High Pre-tax Operating Margins ✓ Consistently Return a Substantial Portion of Our Free Cash Flow to Shareholders – Provide a Safe, Sustainable Dividend with a Long-term Compound Annual Growth Rate of ~10% – Share Repurchases of At Least 1% of Outstanding Shares Per Quarter Capital Allocation Priorities 1) D&C Capital of <=55% of Adjusted EBITDAX 2) Safe, Sustainable and Growing Dividend 3) Consistent Share Repurchases of At Least 1% of Outstanding Shares per Quarter 5) Small, Bolt-on Acquisitions that Improve the Business 4) Debt Reduction – Reduce Leverage to <= 0.5x Net Debt/EBITDA Differentiated & Proven Business Model 5 Second Quarter 2026 Earnings Presentation
Second Quarter 2026 Key Financial Metrics (1) Q2 2026 ROCE annualized. (2) Weighted average total shares outstanding include diluted weighted average shares of Class A Common Stock outstanding during the period and shares of Class B Common Stock, which are anti-dilutive in the calculation of weighted average number of common shares outstanding. 6 Metric Q2 2026 YoY % Change Total Production (Mboe/d) 106.1 8% Oil Production (Mbbls/d) 41.9 5% Revenue ($ MM) $479 50% Adjusted EBITDAX ($ MM) $370 66% Adjusted Net Income ($ MM) $184 128% D&C Capex ($ MM) $125 31% D&C Capital % of Adjusted EBITDAX 34% (9%) Return on Capital Employed (ROCE) (1) 39% 20% Free Cash Flow ($ MM) $235 118% Cash Balance ($ MM) $296 18% Diluted Weighted Average Shares Outstanding (MM)(2) 184.6 (4%) Second Quarter 2026 Earnings Presentation
124 362 15 31 49 125 296 0 100 200 300 400 500 600 Cash 3/31/2026 Cash Flow from Operations Changes in Working Capital and Other Dividends Share Repurchases DC&F Capital & Leasehold Cash 6/30/2026 (1) (2) (3) Second Quarter 2026 Cash Flow Reconciliation (1) Cash flow from operations before changes in working capital. (2) Comprised of $20 million of working capital changes including capital accruals and ($5) million in other investing and financing activities. (3) Incurred DC&F and leasehold capital of $125 million. 7 $ I n M ill io n s Second Quarter 2026 Earnings Presentation
(1) Class A share reduction includes 3.6 million non-compete shares that were paid 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 3.7 (85.5) 2019 2020 2021 2022 2023 2024 2025 2026 YTD Total 0 10 20 30 40 50 60 70 80 90 8 Magnolia’s Consistent Share Repurchases (1) (million shares repurchased) Second Quarter 2026 Earnings Presentation
$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 9% to $0.18 /share from $0.165/share and payable September 1st ❑ 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 9 Dividend Payout Per Share CAGR Has Exceeded 15% $0.72 Second Quarter 2026 Earnings Presentation
Summary Balance Sheet 10 (in thousands) June 30, 2026 December 31, 2025 Cash and cash equivalents $295,938 $266,785 Other current assets 192,650 175,650 Property, plant and equipment, net 2,599,165 2,424,152 Other assets 52,831 36,505 Total Assets $3,140,584 $2,903,092 Current liabilities $308,551 $288,030 Long-term debt, net 393,636 393,251 Other long-term liabilities 291,520 222,638 Total equity 2,146,877 1,999,173 Total Liabilities and Equity $3,140,584 $2,903,092 Second Quarter 2026 Earnings Presentation
Margins and Cost Structure 11 $ / Boe, unless otherwise noted For the Quarters Ended June 30, 2026 June 30, 2025 Revenue $49.60 $35.68 Total Cash Operating Costs: Lease Operating Expenses (1) (4.92) (4.78) Gathering, Transportation & Processing (1.78) (1.84) Taxes Other Than Income (2.36) (2.10) Exploration Expenses (0.02) (0.04) General & Administrative Expenses (2) (2.14) (1.94) Transaction Related Costs (0.33) - Total Adjusted Cash Operating Costs (11.55) (10.70) Adjusted Cash Operating Margin $38.05 $24.98 Margin % 77% 70% Non-Cash Costs: Depreciation, Depletion, and Amortization (12.07) (11.98) Asset Retirement Obligations Accretion (0.19) (0.17) Non-Cash Stock-Based Compensation (0.97) (0.76) Total Non-Cash Costs (13.23) (12.91) Operating Income Margin $24.82 $12.07 Add back: Transaction Related Costs $0.33 - Adjusted Operating Income Margin $25.15 $12.07 Margin % 51% 34% (1) Lease operating expenses exclude non-cash stock-based compensation of $0.8 million, or $0.09 per boe, and $0.9 million, or $0.10 per boe, for the quarters ended June 30, 2026 and 2025, respectively. (2) General and administrative expenses exclude non-cash stock-based compensation of $8.6 million, or $0.88 per boe, and $5.9 million, or $0.66 per boe, for the quarters ended June 30, 2026 and 2025, respectively. Second Quarter 2026 Earnings Presentation
Third Quarter & FY 2026 Operating Plan & Guidance (MGY Standalone) MGY Standalone FY2026 Guidance Production Growth Full-Year 2026 Total Growth increased to 6% D&C Capital Spending FY 2026 Capital $440 - $480 Million 2026 Operating Plan ~2 Rigs / ~1 Completion Crew 2026E Capital ~20-25% Karnes ~75-80% Giddings MGY Standalone Q3 2026 Guidance Production Similar to Q2 2026 (~106.1 Mboe/d) D&C Capital Spending ~$115 Million Oil Differential (To Magellan East Houston) ($3) Bbl Fully Diluted Share Count (Post WildFire Close) ~269 million 12 Second Quarter 2026 Earnings Presentation
Summary Investment Highlights 13 Giddings Karnes High Quality Assets Positioned for Success • Dominant position in the Giddings area with low capital reinvestment rate, low breakevens and unmatched running room • Coveted position in the Karnes area in the core of the Eagle Ford • Generate consistent, ongoing annual free cash flow and since Magnolia’s inception • Strong operating margins through the commodity cycle Positive Free Cash Flow and Industry Leading Margins Multiple Levers of Growth Conservative Financial Policy and Pathway for Leverage Reduction • Steady organic growth through proven drilling program while remaining well within cash flow • Opportunistically pursue small to mid size accretive bolt-on acquisitions in the areas Magnolia operates • Unique in-basin opportunity and strong balance sheet allowed for accretive acquisition of WildFire Energy • Capital Expenditures limited to 55% of EBITDAX providing free cash flow every year and quick reduction of leverage Second Quarter 2026 Earnings Presentation
Appendix
2018 2019 2020 2021 2022 2023 2024 2025 2026 YTD Sizable & Consistent Cash Return to Shareholders ❑ Magnolia has a strong track record of returning capital to shareholders ❑ Returned ~35% of current market cap over the past eight years ❑ Focus on compounding per share value through share count reduction and safe, sustainable dividend growth Inception Cumulative Return of Capital ($MM) $79 $108 $467 $908 $1,213 >$2 Billion Returned to Shareholders Share Repurchases Dividends $1,591 $1,913 15 $2,077 Second Quarter 2026 Earnings Presentation
Free Cash Flow Reconciliations 16 (in thousands) For the Quarters Ended June 30, 2026 June 30, 2025 Net cash provided by operating activities $384,026 $198,701 Add back: net change in operating assets and liabilities (22,040) 15,500 Cash flows from operations before net change in operating assets and liabilities $361,986 $214,201 Additions to oil and natural gas properties (125,129) (100,287) Changes in working capital associated with additions to oil and natural gas properties (2,239) (6,440) Free cash flow $234,618 $107,474 Second Quarter 2026 Earnings Presentation
Adjusted EBITDAX Reconciliations 17 (in thousands) For the Quarters Ended June 30, 2026 June 30, 2025 Net income $181,776 $81,028 Interest expense, net 6,720 5,604 Income tax expense 50,626 20,938 EBIT $239,122 $107,570 Depreciation, depletion and amortization 116,516 107,082 Asset retirement obligations accretion 1,862 1,563 EBITDA $357,500 $216,215 Exploration expenses 213 363 EBITDAX $357,713 $216,578 Non-cash stock-based compensation expense 9,401 6,781 Transaction related costs 3,200 - Other income adjustment (1) - (130) Adjusted EBITDAX $370,314 $223,229 (1) The quarter ended June 30, 2025 includes a negative adjustment of $2.7 million related to a gain on revaluation of contingent consideration and a positive adjustment of $2.5 million related to a loss on sale of other assets. Second Quarter 2026 Earnings Presentation
Adjusted Net Income Reconciliation 18 (1) The quarter ended June 30, 2025 includes a negative adjustment of $2.7 million related to a gain on revaluation of contingent consideration and a positive adjustment of $2.5 million related to a loss on sale of other assets. (2) Represents corporate income taxes at an assumed annual effective tax rate of 21.0% and 19.9% for the quarters ended June 30, 2026 and 2025, respectively. (3) 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. (in thousands) For the Quarters Ended June 30, 2026 June 30, 2025 Net income $181,776 $81,028 Adjustments: Transaction related costs 3,200 - Other income adjustment(1) - (130) Change in estimated income tax(2) (672) 26 Adjusted Net Income $184,304 $80,924 (in thousands) For the Quarters Ended Total Share Count June 30, 2026 June 30, 2025 Diluted weighted average shares of Class A Common Stock outstanding during the period 184,586 186,530 Weighted average shares of Class B Common Stock outstanding during the period (3) - 5,523 Total weighted average shares of Class A and B Common Stock, including dilutive impact of other securities (3) 184,586 192,053 Second Quarter 2026 Earnings Presentation
Return on Capital Employed 19 (in thousands) For the Quarter Ended June 30, 2026 Operating income $239,501 Operating income (A) $239,501 Debt - beginning of period 393,442 Stockholders' Equity - beginning of period 2,035,881 Capital employed - beginning of period 2,429,323 Debt - end of period 393,636 Total equity - end of period 2,146,877 Capital employed - end of period 2,540,513 Average capital employed (B) $2,484,918 Return on average capital employed (A/B) 9.6% Annualized return on capital employed 38.6% Second Quarter 2026 Earnings Presentation
Oil & Gas Production Results 20 Combined Karnes Giddings Combined Karnes Giddings For the Quarter Ended June 30, 2026 For the Quarter Ended June 30, 2025 Production: Oil (MBbls) 3,809 1,167 2,642 3,639 1,175 2,464 Natural gas (MMcf) 18,201 2,435 15,766 16,820 2,235 14,585 Natural gas liquids (MBbls) 2,812 300 2,512 2,496 341 2,155 Total (Mboe) 9,654 1,873 7,781 8,939 1,889 7,050 Average Daily Production Volume: Oil (MBbls/d) 41.9 12.8 29.1 40.0 12.9 27.1 Natural gas (MMcf/d) 200.0 26.8 173.2 184.8 24.6 160.2 Natural gas liquids (MBbls/d) 30.9 3.3 27.6 27.4 3.8 23.6 Total (MBoe/d) 106.1 20.6 85.5 98.2 20.8 77.4 Second Quarter 2026 Earnings Presentation
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 2025 Annual Meeting 21 Second Quarter 2026 Earnings Presentation