{"success":true,"data":{"pressRelease":{"id":"23955","rtpr_id":"nBw5Xvb0Ga","ticker":"MGY","exchange":"NYSE","all_tickers":["MGY"],"title":"Magnolia Oil & Gas Corporation Announces First Quarter 2026 Results","author":"Business Wire","published_at":"2026-05-06T20:01:00.735Z","article_body":"Magnolia Oil & Gas Corporation Announces First Quarter 2026 Results\n\nMagnolia Oil & Gas Corporation (“Magnolia,” “we,” “our,” or\nthe “Company”) (NYSE: MGY) today announced its financial and operational\nresults for the first quarter of 2026.\n\nFirst Quarter 2026 Highlights:\n (In millions, except per share data) For the For the Percentage increase (decrease) \n \nQuarter Ended \nQuarter Ended \n \nMarch 31, 2026 \nMarch 31, 2025 \n Net income $ 100.8 $ 106.6 (5 )% \n Earnings per share - diluted $ 0.54 $ 0.54 — % \n Adjusted EBITDAX((1)) $ 252.9 $ 248.4 2 % \n Capital expenditures - D&C $ 128.7 $ 130.4 (1 )% \n Average daily production (Mboe/d)   102.6   96.5 6 % \n Average daily oil production (Mbbls/d)   40.7   39.1 4 % \n Cash balance as of period end $ 124.4 $ 247.6 (50 )% \n Diluted weighted average total shares outstanding((2))   185.9   194.2 (4 )% \n\n\nFirst Quarter 2026 Highlights:\n\n\n * Magnolia reported first quarter 2026 net income attributable to Class A Common\nStock of $99.8 million, or $0.54 per diluted share. First quarter 2026 total\nnet income was $100.8 million. Diluted weighted average total shares\noutstanding decreased by 4% to 185.9 million((2) )compared to first quarter\n2025.\n\n\n * Adjusted EBITDAX((1)) was $252.9 million during the first quarter of 2026.\nTotal drilling and completions (“D&C”) capital was $128.7 million,\nrepresenting approximately 51% of adjusted EBITDAX.\n\n\n * Net cash provided by operating activities was $197.6 million during the first\nquarter of 2026 and the Company generated free cash flow((1)) of $145.6\nmillion. Magnolia generated operating income as a percentage of revenue\n(pre-tax margins) of 36% during the first quarter.\n\n\n * Total Company production volumes in the first quarter of 2026 grew by 6% on a\nyear-over-year basis to 102.6 thousand barrels of oil equivalent per day\n(“Mboe/d”) and included 40.7 thousand barrels of oil per day\n(“Mbbls/d”) which grew by 4% compared to the prior year period. Total\nproduction in Giddings grew 9% year-over-year to 83.9 Mboe/d with oil volumes\nincreasing 8%.\n\n\n * During the first quarter, Magnolia closed multiple bolt-on oil and gas\nproperty acquisitions from private operators in both the Karnes area and\nGiddings for approximately $155 million, encompassing roughly 6,200 net acres.\nThese assets included total production of approximately 500 boe/d (~45% oil),\nwith the majority of the production closing in the latter portion of the first\nquarter. These acquisitions significantly increase Magnolia’s working\ninterest in future high-return development areas in both the Company’s asset\nareas and adding multiple years of development in the Karnes area at\nMagnolia’s current development pace.\n\n\n * The Company repurchased 2.0 million of its Class A and Class B Common Stock\nduring the first quarter for $51.9 million. Magnolia has 11.6 million Class A\nCommon shares remaining under its current share repurchase authorization,\nwhich are specifically allocated toward open market share repurchases.\nEnerVest, the Company’s private equity shareholder, completed the sale of\nits remaining interest in both Magnolia’s Class A and Class B Common Stock\nduring the first quarter.\n\n\n * As previously announced, the Board of Directors declared a cash dividend of\n$0.165 per share of Class A common stock payable on June 1, 2026 to\nshareholders of record as of May 12, 2026.\n\n\n * Magnolia returned $83.3 million((3)), or 57% of the Company’s free cash\nflow((1)), to shareholders during the first quarter through a combination of\nshare repurchases and dividends. Inclusive of the significant return of cash\nto shareholders and bolt-on acquisitions, Magnolia ended the first quarter\nwith $124.4 million of cash on the balance sheet and an undrawn $450 million\nrevolving credit facility.\n\n“Magnolia’s first quarter financial and operating metrics delivered a\nstrong start to 2026,” said Chairman, President and CEO Chris Stavros.\n“Our consistent and disciplined business model, characterized by a low\nreinvestment rate, high operating margins and moderate production growth\ndelivered over $145 million of free cash flow during the quarter. Our\noperations rebounded nicely after being affected by the freezing weather in\nJanuary showing total year-over-year production growth of 6 percent and oil\nproduction growth of 4 percent during the quarter. Magnolia returned $83\nmillion of this free cash flow back to shareholders through our dividend and\nshare repurchase program in addition to closing several bolt-on oil and gas\nproperty acquisitions in areas where we operate.\n\n“These numerous bolt-on purchases comprised approximately 6,200 net acres,\nencompassing acreage in both the Karnes area and in Giddings for what turned\nout to be a flurry of acquisition activity in the quarter. These assets were\nacquired for a total of $155 million and included approximately 500 boe per\nday of low decline production with significant undeveloped upside\nopportunities located in highly productive areas. In the Karnes area, the\nacquired acreage creates a large, contiguous block of approximately 10,000\ngross acres across Karnes and Gonzales counties, increasing the working\ninterest to 93 percent in existing Magnolia and acquired tracts and in\nprimarily undeveloped acreage. In Giddings, we were able to increase our\nworking interest in approximately 45,000 gross acres, along with purchasing\nsome additional contiguous acreage, and continuing with our strategy of buying\nmore of what we already own.\n\n“These transactions leverage the deep technical knowledge we’ve gained\nfrom our drilling and completion activities in the field, while meaningfully\nextending our already robust inventory of high-return drilling locations,\nincreasing our working interest in select existing assets, and adding valuable\nduration to our overall resource portfolio. These actions further demonstrate\nour ability to deploy a portion of Magnolia’s excess cash flow into\nhigh-quality and targeted opportunities. Our goal in pursuing these is\nintended not simply to replace produced reserves, but to expand our long-term\nopportunity set and reinforce the sustainability of our strong financial\nreturns. We continue to actively seek out additional asset acquisition\nopportunities that improve our business and where our technical experience in\ndeveloping the Austin Chalk and Eagle Ford formations in south Texas provide\nus with a clear competitive advantage.\n\n“Beyond the benefit of higher oil prices, Magnolia is well-positioned for\nsuccess through the disciplined execution of our business model. Our\nhigh-quality assets and strategy of continued capital spending discipline,\nproactive cost management and pursuit of further operational efficiencies\ncontinue to serve us well during periods of product price volatility. Our\ncapital allocation priorities, which include a low reinvestment rate, remain\nunchanged. We are maintaining our original activity plan of running two rigs\nand one completion crew, which is expected to deliver total production growth\nof approximately 5 percent in 2026 and within the same range of D&C\ncapital we outlined earlier this year. Our assets continue to generate\nmoderate annual production growth, with high pre-tax margins, allowing for a\nsteady and consistent stream of free cash flow to be returned to shareholders.\nThe absence of commodity hedges on all our production is expected to translate\ninto higher earnings and free cash flow in the current quarter, adding to our\nsignificant financial flexibility.”\n\nOperational Update\n\nTotal Company production volumes in the first quarter of 2026 grew by 6\npercent on a year-over-year basis to 102.6 Mboe/d including 40.7 Mbbls/d.\nFirst quarter Giddings total production increased by 9 percent, compared to\nthe prior year period with Giddings oil production growing by 8 percent\ncompared to the first quarter of 2025, and driven by continued strong well\nperformance. Giddings production represented 82 percent of total Company\nvolumes during the first quarter. Magnolia’s first quarter 2026 capital\nspending on drilling, completions, and associated facilities was $128.7\nmillion.\n\nMagnolia plans to continue to operate two drilling rigs and one completion\ncrew during 2026 and expects to maintain this level of activity through the\nremainder of the year. The Company’s two operated rigs and one completion\ncrew development program has been in place consistently for the last five\nyears driving total Company production growth of more than 50 percent and more\nthan doubling our production volumes in Giddings. Approximately 75 to 80\npercent of the 2026 activity is expected to consist of multi-well development\npads in the Giddings area with the remainder focused in the Karnes area and is\nexpected to include some activity on recently acquired acreage. The\ndevelopment program at Giddings consists of drilling multi-well pads\nthroughout our core 240,000 net acre development area. This creates a balanced\nand efficient program providing more consistent year-over-year results.\nMagnolia plans to continue to allocate a modest amount of capital toward\nappraisal activities throughout our large acreage footprint in south Texas\ndesigned to enhance our resource opportunity set and to further de-risk our\nsizable acreage position particularly in Giddings.\n\nAdditional Guidance\n\nWe estimate our second quarter 2026 D&C capital spending to be roughly\n$120 to $125 million, with total capital spending for the year reiterated in\nthe range of $440 to $480 million. This includes an estimate of non-operated\ncapital that is similar to 2025 levels. Our total production for the second\nquarter is estimated to be approximately 105 Mboe/d and we are reiterating our\nfull-year 2026 production growth guidance of approximately 5 percent.\n\nOil price differentials have narrowed significantly in recent weeks, which\nshould provide us with higher oil price realizations in the second quarter and\nsimilar to the Magellan East Houston benchmark which is currently higher than\nthe price for WTI. Magnolia remains completely unhedged for all its oil and\nnatural gas production. The fully diluted share count for the second quarter\nof 2026 is expected to be approximately 185 million shares, which is\napproximately 4 percent lower than second quarter 2025 levels.\n\nQuarterly Report on Form 10-Q\n\nMagnolia's financial statements and related notes will be available in its\nQuarterly Report on Form 10-Q for the three months ended March 31, 2026, which\nis expected to be filed with the U.S. Securities and Exchange Commission\n(“SEC”) on May 7, 2026.\n\nConference Call and Webcast\n\nMagnolia will host an investor conference call on Thursday, May 7, 2026 at\n10:00 a.m. Central (11:00 a.m. Eastern) to discuss these operating and\nfinancial results. Interested parties may join the webcast by visiting\nMagnolia's website at\nwww.magnoliaoilgas.com/investors/events-and-presentations\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.magnoliaoilgas.com%2Finvestors%2Fevents-and-presentations&esheet=54530225&newsitemid=20260506183094&lan=en-US&anchor=www.magnoliaoilgas.com%2Finvestors%2Fevents-and-presentations&index=1&md5=deb974a542e27a683235b53e1168a2fe)\nand clicking on the webcast link or by dialing 1-844-701-1059. A replay of the\nwebcast will be posted on Magnolia's website following completion of the call.\n\nAbout Magnolia Oil & Gas Corporation\n\nMagnolia (MGY) is a publicly traded oil and gas exploration and production\ncompany with operations primarily in South Texas in the core of the Eagle Ford\nShale and Austin Chalk formations. Magnolia focuses on generating value for\nshareholders by delivering steady, moderate annual production growth resulting\nfrom its disciplined and efficient philosophy toward capital spending. The\nCompany strives to generate high pre‐tax margins and consistent free cash\nflow allowing for strong cash returns to our shareholders. For more\ninformation, visit www.magnoliaoilgas.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.magnoliaoilgas.com&esheet=54530225&newsitemid=20260506183094&lan=en-US&anchor=www.magnoliaoilgas.com&index=2&md5=57e42429c8bcaf6f9f7b70db1666a718)\n.\n (1) Adjusted EBITDAX, and free cash flow are non-GAAP financial measures. For \n reconciliations to the most comparable GAAP measures, please see “Non-GAAP \n Financial Measures” at the end of this press release. \n (2) Weighted average total shares outstanding include diluted weighted average \n shares of Class A Common Stock outstanding during the period and shares of \n Class B Common Stock, which are anti-dilutive in the calculation of weighted \n average number of common shares outstanding. \n (3) Excludes $1.2 million of share repurchases incurred during the fourth quarter \n of 2025, but settled during the first quarter of 2026. \n\n\nCautionary Note Regarding Forward-Looking Statements\n\nThe information in this press release includes forward-looking statements\nwithin the meaning of Section 27A of the Securities Act of 1933, as amended,\nand Section 21E of the Securities Exchange Act of 1934, as amended. All\nstatements, other than statements of present or historical fact included in\nthis press release, regarding Magnolia’s strategy, future operations,\nfinancial position, estimated revenues and losses, projected costs, prospects,\nplans and objectives of management are forward looking statements. When used\nin this press release, the words could, should, will, may, believe,\nanticipate, intend, estimate, expect, project, the negative of such terms and\nother similar expressions are intended to identify forward-looking statements,\nalthough not all forward-looking statements contain such identifying words.\nThese forward-looking statements are based on management’s current\nexpectations and assumptions about future events. Except as otherwise required\nby applicable law, Magnolia disclaims any duty to update any forward-looking\nstatements, all of which are expressly qualified by the statements in this\nsection, to reflect events or circumstances after the date of this press\nrelease. Magnolia cautions you that these forward-looking statements are\nsubject to all of the risks and uncertainties, most of which are difficult to\npredict and many of which are beyond the control of Magnolia, incident to the\ndevelopment, production, gathering and sale of oil, natural gas and natural\ngas liquids. In addition, Magnolia cautions you that the forward looking\nstatements contained in this press release are subject to the following\nfactors: (i) the market prices of oil, natural gas, NGLs, and other products\nor services; (ii) the supply and demand for oil, natural gas, NGLs, and other\nproducts or services, including impacts of actions taken by OPEC and other\nstate-controlled oil companies; (iii) the outcome of any legal proceedings\nthat may be instituted against Magnolia; (iv) Magnolia’s ability to realize\nthe anticipated benefits of its acquisitions, which may be affected by, among\nother things, competition and the ability of Magnolia to grow and manage\ngrowth profitably; (v) legislative, regulatory, or policy changes, including\nthose following the change in presidential administrations; (vi) geopolitical\nand business conditions in key regions of the world; (vii) cybersecurity\nthreats, including increased use of artificial intelligence technologies; and\n(viii) the possibility that Magnolia may be adversely affected by other\neconomic, business, and/or competitive factors, including inflation. Should\none or more of the risks or uncertainties described in this press release\noccur, or should underlying assumptions prove incorrect, actual results and\nplans could differ materially from those expressed in any forward-looking\nstatements. Additional information concerning these and other factors that may\nimpact the operations and projections discussed herein can be found in\nMagnolia’s filings with the SEC, including its Annual Report on Form 10-K\nfor the fiscal year ended December 31, 2025. Magnolia’s SEC filings are\navailable publicly on the SEC’s website at www.sec.gov\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sec.gov&esheet=54530225&newsitemid=20260506183094&lan=en-US&anchor=www.sec.gov&index=3&md5=343e017a76d28fe66cafb145c1709c26)\n.\n Magnolia Oil & Gas Corporation \n Operating Highlights \n           \n     For the Quarters Ended \n     March 31, 2026   March 31, 2025 \n Production:         \n Oil (MBbls)     3,661       3,517   \n Natural gas (MMcf)     17,383       16,492   \n Natural gas liquids (MBbls)     2,673       2,424   \n Total (Mboe)     9,231       8,689   \n           \n Average daily production:         \n Oil (Bbls/d)     40,678       39,078   \n Natural gas (Mcf/d)     193,143       183,248   \n Natural gas liquids (Bbls/d)     29,696       26,930   \n Total (boe/d)     102,564       96,549   \n           \n Revenues (in thousands):         \n Oil revenues   $ 257,329     $ 245,534   \n Natural gas revenues     51,800       51,367   \n Natural gas liquids revenues     49,382       53,399   \n Total Revenues   $ 358,511     $ 350,300   \n           \n Average sales price:         \n Oil (per Bbl)   $ 70.29     $ 69.81   \n Natural gas (per Mcf)     2.98       3.11   \n Natural gas liquids (per Bbl)     18.48       22.03   \n Total (per boe)   $ 38.84     $ 40.31   \n           \n NYMEX WTI (per Bbl)   $ 72.17     $ 71.42   \n NYMEX Henry Hub (per MMBtu)   $ 4.97     $ 3.66   \n Realization to benchmark:         \n Oil (% of WTI)     97 %     98 % \n Natural Gas (% of Henry Hub)     60 %     85 % \n           \n Operating expenses (in thousands):         \n Lease operating expenses   $ 47,751     $ 47,075   \n Gathering, transportation and processing     18,207       14,953   \n Taxes other than income     16,387       20,105   \n Depreciation, depletion and amortization     113,359       105,853   \n           \n Operating costs per boe:         \n Lease operating expenses   $ 5.17     $ 5.42   \n Gathering, transportation and processing     1.97       1.72   \n Taxes other than income     1.78       2.31   \n Depreciation, depletion and amortization     12.28       12.18   \n\n Magnolia Oil & Gas Corporation \n \n \n \nConsolidated Statements of Operations \n \n \n \n(In thousands, except per share data) \n   \n     For the Quarters Ended \n     March 31, 2026   March 31, 2025 \n REVENUES         \n Oil revenues   $ 257,329     $ 245,534   \n Natural gas revenues     51,800       51,367   \n Natural gas liquids revenues     49,382       53,399   \n Total revenues     358,511       350,300   \n OPERATING EXPENSES         \n Lease operating expenses     47,751       47,075   \n Gathering, transportation and processing     18,207       14,953   \n Taxes other than income     16,387       20,105   \n Exploration expenses     1,742       348   \n Asset retirement obligations accretion     1,857       1,556   \n Depreciation, depletion and amortization     113,359       105,853   \n General and administrative expenses     31,444       24,588   \n Total operating expenses     230,747       214,478   \n           \n OPERATING INCOME     127,764       135,822   \n           \n OTHER EXPENSE         \n Interest expense, net     (6,004 )     (5,252 ) \n Other income (expense), net     (36 )     1,215   \n Total other expense, net     (6,040 )     (4,037 ) \n           \n INCOME BEFORE INCOME TAXES     121,724       131,785   \n           \n Current income tax expense     3,998       12,795   \n Deferred income tax expense     16,890       12,342   \n Total income tax expense     20,888       25,137   \n           \n NET INCOME     100,836       106,648   \n LESS: Net income attributable to noncontrolling interest     1,011       3,721   \n NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK   $ 99,825     $ 102,927   \n           \n NET INCOME PER COMMON SHARE \n Basic   $ 0.54     $ 0.54   \n Diluted   $ 0.54     $ 0.54   \n WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING \n Basic     183,267       188,653   \n Diluted     183,279       188,664   \n WEIGHTED AVERAGE NUMBER OF CLASS B SHARES OUTSTANDING ((1))     2,639       5,523   \n DILUTED WEIGHTED AVERAGE TOTAL SHARES OUTSTANDING ((1))     185,918       194,187   \n\n  (1) Shares of Class B Common Stock, and corresponding Magnolia LLC Units, are \n anti-dilutive in the calculation of weighted average number of common shares \n outstanding. \n\n Magnolia Oil & Gas Corporation \n \n \n \nSummary Cash Flow Data \n \n \n \n(In thousands) \n   \n     For the Quarters Ended \n     March 31, 2026   March 31, 2025 \n CASH FLOWS FROM OPERATING ACTIVITIES \n NET INCOME   $ 100,836     $ 106,648   \n Adjustments to reconcile net income to net cash provided by operating         \n activities: \n Depreciation, depletion and amortization     113,359       105,853   \n Asset retirement obligations accretion     1,857       1,556   \n Amortization of deferred financing costs     546       532   \n Deferred income tax expense     16,890       12,342   \n Gain on revaluation of contingent consideration     —       (1,352 ) \n Stock based compensation     12,220       6,550   \n Other     843       353   \n Net change in operating assets and liabilities     (48,935 )     (7,992 ) \n Net cash provided by operating activities     197,616       224,490   \n           \n CASH FLOWS FROM INVESTING ACTIVITIES \n Acquisitions     (154,990 )     (24,144 ) \n Additions to oil and natural gas properties     (128,427 )     (131,168 ) \n Changes in working capital associated with additions to oil and natural gas     27,447       9,210   \n properties \n Other investing     8,352       30   \n Net cash used in investing activities     (247,618 )     (146,072 ) \n           \n CASH FLOW FROM FINANCING ACTIVITIES \n Class A Common Stock repurchases     (33,277 )     (52,393 ) \n Class B Common Stock purchases and cancellations     (19,793 )     —   \n Dividends paid     (30,473 )     (28,911 ) \n Distributions to noncontrolling interest owners     (911 )     (829 ) \n Other financing activities     (7,957 )     (8,776 ) \n Net cash used in financing activities     (92,411 )     (90,909 ) \n           \n NET CHANGE IN CASH AND CASH EQUIVALENTS     (142,413 )     (12,491 ) \n Cash and cash equivalents – Beginning of period     266,785       260,049   \n Cash and cash equivalents – End of period   $ 124,372     $ 247,558   \n\n Magnolia Oil & Gas Corporation \n \n \n \nSummary Balance Sheet Data \n \n \n \n(In thousands) \n   \n     March 31, 2026   December 31, 2025 \n Cash and cash equivalents   $ 124,372   $ 266,785 \n Other current assets     195,291       175,650   \n Property, plant and equipment, net     2,586,479       2,424,152   \n Other assets     38,336       36,505   \n Total assets   $ 2,944,478     $ 2,903,092   \n           \n Current liabilities   $ 290,530     $ 288,030   \n Long-term debt, net     393,442       393,251   \n Other long-term liabilities     224,625       222,638   \n Stockholders’ equity     2,035,881       1,939,958   \n Noncontrolling interest     —       59,215   \n Total liabilities and equity   $ 2,944,478     $ 2,903,092   \n\n\nMagnolia Oil & Gas Corporation\n\nNon-GAAP Financial Measures\n\nReconciliation of net income to adjusted EBITDAX\n\nIn this press release, we refer to adjusted EBITDAX, a supplemental non-GAAP\nfinancial measure that is used by management and external users of our\nconsolidated financial statements, such as industry analysts, investors,\nlenders, and rating agencies. We define adjusted EBITDAX as net income before\ninterest expense, income taxes, depreciation, depletion and amortization,\nexploration expenses, and accretion of asset retirement obligations, adjusted\nto exclude the effect of certain items included in net income. Adjusted\nEBITDAX is not a measure of net income in accordance with GAAP.\n\nOur management believes that adjusted EBITDAX is useful because it allows them\nto more effectively evaluate our operating performance and compare the results\nof our operations from period to period and against our peers without regard\nto our financing methods or capital structure. We also believe that securities\nanalysts, investors, and other interested parties may use adjusted EBITDAX in\nthe evaluation of our Company. We exclude the items listed above from net\nincome in arriving at adjusted EBITDAX because these amounts can vary\nsubstantially from company to company within our industry depending upon\naccounting methods and book values of assets, capital structures and the\nmethod by which the assets were acquired. Adjusted EBITDAX should not be\nconsidered as an alternative to, or more meaningful than, net income as\ndetermined in accordance with GAAP or as an indicator of our operating\nperformance or liquidity. Certain items excluded from adjusted EBITDAX are\nsignificant components in understanding and assessing a company’s financial\nperformance, such as a company’s cost of capital and tax structure, as well\nas the historic costs of depreciable assets, none of which are components of\nadjusted EBITDAX. Our presentation of adjusted EBITDAX should not be construed\nas an inference that our results will be unaffected by unusual or\nnon-recurring items. Our computations of adjusted EBITDAX may not be\ncomparable to other similarly titled measures of other companies.\n\nThe following table presents a reconciliation of net income to adjusted\nEBITDAX, our most directly comparable financial measure, calculated and\npresented in accordance with GAAP:\n     For the Quarters Ended \n (In thousands)   March 31, 2026   March 31, 2025 \n NET INCOME   $ 100,836     $ 106,648   \n Interest expense, net     6,004       5,252   \n Income tax expense     20,888       25,137   \n EBIT     127,728       137,037   \n Depreciation, depletion and amortization     113,359       105,853   \n Asset retirement obligations accretion     1,857       1,556   \n EBITDA     242,944       244,446   \n Exploration expenses     1,742       348   \n EBITDAX     244,686       244,794   \n Non-cash stock based compensation expense     8,168     4,946   \n Gain on revaluation of contingent consideration     —       (1,352 ) \n Adjusted EBITDAX   $ 252,854     $ 248,388   \n\n\nMagnolia Oil & Gas Corporation\n\nNon-GAAP Financial Measures\n\nReconciliation of net income to adjusted net income\n\nOur presentation of adjusted net income is a non-GAAP measures because it\nexcludes the effect of certain items included in net income. Management uses\nadjusted net income to evaluate our operating and financial performance\nbecause it eliminates the impact of certain items that management does not\nconsider to be representative of the Company’s on-going business operations.\nAs a performance measure, adjusted net income may be useful to investors in\nfacilitating comparisons to others in the Company’s industry because certain\nitems can vary substantially in the oil and gas industry from company to\ncompany depending upon accounting methods, book value of assets, and capital\nstructure, among other factors. Management believes adjusting these items\nfacilitates investors and analysts in evaluating and comparing the underlying\noperating and financial performance of our business from period to period by\neliminating differences caused by the existence and timing of certain expense\nand income items that would not otherwise be apparent on a GAAP basis.\nHowever, our presentation of adjusted net income may not be comparable to\nsimilar measures of other companies in our industry.\n   For the Quarters Ended \n (In thousands) March 31, 2026   March 31, 2025 \n NET INCOME $ 100,836     $ 106,648   \n Adjustments:       \n Gain on revaluation of contingent consideration   —       (1,352 ) \n Change in estimated income tax ((1))   —       274   \n ADJUSTED NET INCOME $ 100,836   $ 105,570   \n         \n Diluted weighted average shares of Class A Common Stock outstanding during the   183,279       188,664   \n period \n Weighted average shares of Class B Common Stock outstanding during the period   2,639       5,523   \n ((2)) \n Total weighted average shares of Class A and B Common Stock, including   185,918       194,187   \n dilutive impact of other securities ((2)) \n\n  (1) Represents corporate income taxes at an assumed annual effective tax rate of \n 20.3% for the quarter ended March 31, 2025. \n  (2) Shares of Class B Common Stock, and corresponding Magnolia LLC Units, are \n anti-dilutive in the calculation of weighted average number of common shares \n outstanding. \n\n\nMagnolia Oil & Gas Corporation\n\nNon-GAAP Financial Measures\n\nReconciliation of revenue to adjusted cash operating margin and operating\nincome margin\n\nOur presentation of adjusted cash operating margin and total adjusted cash\noperating costs are supplemental non-GAAP financial measures that are used by\nmanagement. Total adjusted cash operating costs exclude the impact of non-cash\nactivity. We define adjusted cash operating margin per boe as total revenues\nper boe less cash operating costs per boe. Management believes that total\nadjusted cash operating costs per boe and adjusted cash operating margin per\nboe provide relevant and useful information, which is used by our management\nin assessing the Company’s profitability and comparability of results to our\npeers.\n\nAs a performance measure, total adjusted cash operating costs and adjusted\ncash operating margin may be useful to investors in facilitating comparisons\nto others in the Company’s industry because certain items can vary\nsubstantially in the oil and gas industry from company to company depending\nupon accounting methods, book value of assets, and capital structure, among\nother factors. Management believes excluding these items facilitates investors\nand analysts in evaluating and comparing the underlying operating and\nfinancial performance of our business from period to period by eliminating\ndifferences caused by the existence and timing of certain expense and income\nitems that would not otherwise be apparent on a GAAP basis. However, our\npresentation of adjusted cash operating margin may not be comparable to\nsimilar measures of other companies in our industry.\n     For the Quarters Ended \n (in $/boe)   March 31, 2026   March 31, 2025 \n Revenue   $ 38.84     $ 40.31   \n Total cash operating costs:         \n Lease operating expenses ((1))     (5.07 )     (5.34 ) \n Gathering, transportation and processing     (1.97 )     (1.72 ) \n Taxes other than income     (1.78 )     (2.31 ) \n Exploration expenses ((2))     (0.12 )     (0.03 ) \n General and administrative expenses ((3))     (2.63 )     (2.34 ) \n Total adjusted cash operating costs     (11.57 )     (11.74 ) \n Adjusted cash operating margin   $ 27.27     $ 28.57   \n Margin (%)     70 %     71 % \n Non-cash costs:         \n Depreciation, depletion and amortization   $ (12.28 )   $ (12.18 ) \n Asset retirement obligations accretion     (0.20 )     (0.18 ) \n Non-cash stock based compensation     (0.88 )     (0.57 ) \n Non-cash exploration expenses     (0.07 )     (0.01 ) \n Total non-cash costs     (13.43 )     (12.94 ) \n Operating income margin   $ 13.84     $ 15.63   \n Margin (%)     36 %     39 % \n\n  (1) Lease operating expenses exclude non-cash stock based compensation of $0.9 \n million, or $0.10 per boe, and $0.7 million, or $0.08 per boe, for the \n quarters ended March 31, 2026 and 2025, respectively. \n  (2) Exploration expenses exclude non-cash exploration activity of $0.6 million, or \n $0.07 per boe, and $0.1 million, or $0.01 per boe for the quarters ended March \n 31, 2026 and 2025, respectively. \n  (3) General and administrative expenses exclude non-cash stock based compensation \n of $7.2 million, or $0.78 per boe, and $4.3 million, or $0.49 per boe, for the \n quarters ended March 31, 2026 and 2025, respectively.  \n\n\nMagnolia Oil & Gas Corporation\n\nNon-GAAP Financial Measures\n\nReconciliation of net cash provided by operating activities to free cash flow\n\nFree cash flow is a non-GAAP financial measure. Free cash flow is defined as\ncash flows from operations before net change in operating assets and\nliabilities less additions to oil and natural gas properties and changes in\nworking capital associated with additions to oil and natural gas properties.\nManagement believes free cash flow is useful for investors and widely accepted\nby those following the oil and gas industry as financial indicators of a\ncompany’s ability to generate cash to internally fund drilling and\ncompletion activities, fund acquisitions, and service debt. It is also used by\nresearch analysts to value and compare oil and gas exploration and production\ncompanies and are frequently included in published research when providing\ninvestment recommendations. Free cash flow is used by management as an\nadditional measure of liquidity. Free cash flow is not a measure of financial\nperformance under GAAP and should not be considered an alternative to cash\nflows from operating, investing, or financing activities.\n     For the Quarters Ended \n (In thousands)   March 31, 2026   March 31, 2025 \n Net cash provided by operating activities   $ 197,616     $ 224,490   \n Add back: net change in operating assets and liabilities     48,935       7,992   \n Cash flows from operations before net change in operating assets and     246,551       232,482   \n liabilities \n Additions to oil and natural gas properties     (128,427 )     (131,168 ) \n Changes in working capital associated with additions to oil and natural gas     27,447       9,210   \n properties \n Free cash flow   $ 145,571     $ 110,524   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260506183094/en/\n(https://www.businesswire.com/news/home/20260506183094/en/)\n\nContacts for Magnolia Oil & Gas Corporation\n\nInvestors\n\nTom Fitter\n\n(713) 331-4802\n\ntfitter@mgyoil.com (mailto:tfitter@mgyoil.com)\n\nMedia\n\nArt Pike\n\n(713) 842-9057\n\napike@mgyoil.com (mailto:apike@mgyoil.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw5Xvb0Ga","title":"Magnolia Oil & Gas Corporation Announces First Quarter 2026 Results","author":"Business Wire","ticker":"MGY","created":"2026-05-06T20:01:00.735Z","tickers":["MGY"],"exchange":"NYSE","article_body":"Magnolia Oil & Gas Corporation Announces First Quarter 2026 Results\n\nMagnolia Oil & Gas Corporation (“Magnolia,” “we,” “our,” or\nthe “Company”) (NYSE: MGY) today announced its financial and operational\nresults for the first quarter of 2026.\n\nFirst Quarter 2026 Highlights:\n (In millions, except per share data) For the For the Percentage increase (decrease) \n \nQuarter Ended \nQuarter Ended \n \nMarch 31, 2026 \nMarch 31, 2025 \n Net income $ 100.8 $ 106.6 (5 )% \n Earnings per share - diluted $ 0.54 $ 0.54 — % \n Adjusted EBITDAX((1)) $ 252.9 $ 248.4 2 % \n Capital expenditures - D&C $ 128.7 $ 130.4 (1 )% \n Average daily production (Mboe/d)   102.6   96.5 6 % \n Average daily oil production (Mbbls/d)   40.7   39.1 4 % \n Cash balance as of period end $ 124.4 $ 247.6 (50 )% \n Diluted weighted average total shares outstanding((2))   185.9   194.2 (4 )% \n\n\nFirst Quarter 2026 Highlights:\n\n\n * Magnolia reported first quarter 2026 net income attributable to Class A Common\nStock of $99.8 million, or $0.54 per diluted share. First quarter 2026 total\nnet income was $100.8 million. Diluted weighted average total shares\noutstanding decreased by 4% to 185.9 million((2) )compared to first quarter\n2025.\n\n\n * Adjusted EBITDAX((1)) was $252.9 million during the first quarter of 2026.\nTotal drilling and completions (“D&C”) capital was $128.7 million,\nrepresenting approximately 51% of adjusted EBITDAX.\n\n\n * Net cash provided by operating activities was $197.6 million during the first\nquarter of 2026 and the Company generated free cash flow((1)) of $145.6\nmillion. Magnolia generated operating income as a percentage of revenue\n(pre-tax margins) of 36% during the first quarter.\n\n\n * Total Company production volumes in the first quarter of 2026 grew by 6% on a\nyear-over-year basis to 102.6 thousand barrels of oil equivalent per day\n(“Mboe/d”) and included 40.7 thousand barrels of oil per day\n(“Mbbls/d”) which grew by 4% compared to the prior year period. Total\nproduction in Giddings grew 9% year-over-year to 83.9 Mboe/d with oil volumes\nincreasing 8%.\n\n\n * During the first quarter, Magnolia closed multiple bolt-on oil and gas\nproperty acquisitions from private operators in both the Karnes area and\nGiddings for approximately $155 million, encompassing roughly 6,200 net acres.\nThese assets included total production of approximately 500 boe/d (~45% oil),\nwith the majority of the production closing in the latter portion of the first\nquarter. These acquisitions significantly increase Magnolia’s working\ninterest in future high-return development areas in both the Company’s asset\nareas and adding multiple years of development in the Karnes area at\nMagnolia’s current development pace.\n\n\n * The Company repurchased 2.0 million of its Class A and Class B Common Stock\nduring the first quarter for $51.9 million. Magnolia has 11.6 million Class A\nCommon shares remaining under its current share repurchase authorization,\nwhich are specifically allocated toward open market share repurchases.\nEnerVest, the Company’s private equity shareholder, completed the sale of\nits remaining interest in both Magnolia’s Class A and Class B Common Stock\nduring the first quarter.\n\n\n * As previously announced, the Board of Directors declared a cash dividend of\n$0.165 per share of Class A common stock payable on June 1, 2026 to\nshareholders of record as of May 12, 2026.\n\n\n * Magnolia returned $83.3 million((3)), or 57% of the Company’s free cash\nflow((1)), to shareholders during the first quarter through a combination of\nshare repurchases and dividends. Inclusive of the significant return of cash\nto shareholders and bolt-on acquisitions, Magnolia ended the first quarter\nwith $124.4 million of cash on the balance sheet and an undrawn $450 million\nrevolving credit facility.\n\n“Magnolia’s first quarter financial and operating metrics delivered a\nstrong start to 2026,” said Chairman, President and CEO Chris Stavros.\n“Our consistent and disciplined business model, characterized by a low\nreinvestment rate, high operating margins and moderate production growth\ndelivered over $145 million of free cash flow during the quarter. Our\noperations rebounded nicely after being affected by the freezing weather in\nJanuary showing total year-over-year production growth of 6 percent and oil\nproduction growth of 4 percent during the quarter. Magnolia returned $83\nmillion of this free cash flow back to shareholders through our dividend and\nshare repurchase program in addition to closing several bolt-on oil and gas\nproperty acquisitions in areas where we operate.\n\n“These numerous bolt-on purchases comprised approximately 6,200 net acres,\nencompassing acreage in both the Karnes area and in Giddings for what turned\nout to be a flurry of acquisition activity in the quarter. These assets were\nacquired for a total of $155 million and included approximately 500 boe per\nday of low decline production with significant undeveloped upside\nopportunities located in highly productive areas. In the Karnes area, the\nacquired acreage creates a large, contiguous block of approximately 10,000\ngross acres across Karnes and Gonzales counties, increasing the working\ninterest to 93 percent in existing Magnolia and acquired tracts and in\nprimarily undeveloped acreage. In Giddings, we were able to increase our\nworking interest in approximately 45,000 gross acres, along with purchasing\nsome additional contiguous acreage, and continuing with our strategy of buying\nmore of what we already own.\n\n“These transactions leverage the deep technical knowledge we’ve gained\nfrom our drilling and completion activities in the field, while meaningfully\nextending our already robust inventory of high-return drilling locations,\nincreasing our working interest in select existing assets, and adding valuable\nduration to our overall resource portfolio. These actions further demonstrate\nour ability to deploy a portion of Magnolia’s excess cash flow into\nhigh-quality and targeted opportunities. Our goal in pursuing these is\nintended not simply to replace produced reserves, but to expand our long-term\nopportunity set and reinforce the sustainability of our strong financial\nreturns. We continue to actively seek out additional asset acquisition\nopportunities that improve our business and where our technical experience in\ndeveloping the Austin Chalk and Eagle Ford formations in south Texas provide\nus with a clear competitive advantage.\n\n“Beyond the benefit of higher oil prices, Magnolia is well-positioned for\nsuccess through the disciplined execution of our business model. Our\nhigh-quality assets and strategy of continued capital spending discipline,\nproactive cost management and pursuit of further operational efficiencies\ncontinue to serve us well during periods of product price volatility. Our\ncapital allocation priorities, which include a low reinvestment rate, remain\nunchanged. We are maintaining our original activity plan of running two rigs\nand one completion crew, which is expected to deliver total production growth\nof approximately 5 percent in 2026 and within the same range of D&C\ncapital we outlined earlier this year. Our assets continue to generate\nmoderate annual production growth, with high pre-tax margins, allowing for a\nsteady and consistent stream of free cash flow to be returned to shareholders.\nThe absence of commodity hedges on all our production is expected to translate\ninto higher earnings and free cash flow in the current quarter, adding to our\nsignificant financial flexibility.”\n\nOperational Update\n\nTotal Company production volumes in the first quarter of 2026 grew by 6\npercent on a year-over-year basis to 102.6 Mboe/d including 40.7 Mbbls/d.\nFirst quarter Giddings total production increased by 9 percent, compared to\nthe prior year period with Giddings oil production growing by 8 percent\ncompared to the first quarter of 2025, and driven by continued strong well\nperformance. Giddings production represented 82 percent of total Company\nvolumes during the first quarter. Magnolia’s first quarter 2026 capital\nspending on drilling, completions, and associated facilities was $128.7\nmillion.\n\nMagnolia plans to continue to operate two drilling rigs and one completion\ncrew during 2026 and expects to maintain this level of activity through the\nremainder of the year. The Company’s two operated rigs and one completion\ncrew development program has been in place consistently for the last five\nyears driving total Company production growth of more than 50 percent and more\nthan doubling our production volumes in Giddings. Approximately 75 to 80\npercent of the 2026 activity is expected to consist of multi-well development\npads in the Giddings area with the remainder focused in the Karnes area and is\nexpected to include some activity on recently acquired acreage. The\ndevelopment program at Giddings consists of drilling multi-well pads\nthroughout our core 240,000 net acre development area. This creates a balanced\nand efficient program providing more consistent year-over-year results.\nMagnolia plans to continue to allocate a modest amount of capital toward\nappraisal activities throughout our large acreage footprint in south Texas\ndesigned to enhance our resource opportunity set and to further de-risk our\nsizable acreage position particularly in Giddings.\n\nAdditional Guidance\n\nWe estimate our second quarter 2026 D&C capital spending to be roughly\n$120 to $125 million, with total capital spending for the year reiterated in\nthe range of $440 to $480 million. This includes an estimate of non-operated\ncapital that is similar to 2025 levels. Our total production for the second\nquarter is estimated to be approximately 105 Mboe/d and we are reiterating our\nfull-year 2026 production growth guidance of approximately 5 percent.\n\nOil price differentials have narrowed significantly in recent weeks, which\nshould provide us with higher oil price realizations in the second quarter and\nsimilar to the Magellan East Houston benchmark which is currently higher than\nthe price for WTI. Magnolia remains completely unhedged for all its oil and\nnatural gas production. The fully diluted share count for the second quarter\nof 2026 is expected to be approximately 185 million shares, which is\napproximately 4 percent lower than second quarter 2025 levels.\n\nQuarterly Report on Form 10-Q\n\nMagnolia's financial statements and related notes will be available in its\nQuarterly Report on Form 10-Q for the three months ended March 31, 2026, which\nis expected to be filed with the U.S. Securities and Exchange Commission\n(“SEC”) on May 7, 2026.\n\nConference Call and Webcast\n\nMagnolia will host an investor conference call on Thursday, May 7, 2026 at\n10:00 a.m. Central (11:00 a.m. Eastern) to discuss these operating and\nfinancial results. Interested parties may join the webcast by visiting\nMagnolia's website at\nwww.magnoliaoilgas.com/investors/events-and-presentations\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.magnoliaoilgas.com%2Finvestors%2Fevents-and-presentations&esheet=54530225&newsitemid=20260506183094&lan=en-US&anchor=www.magnoliaoilgas.com%2Finvestors%2Fevents-and-presentations&index=1&md5=deb974a542e27a683235b53e1168a2fe)\nand clicking on the webcast link or by dialing 1-844-701-1059. A replay of the\nwebcast will be posted on Magnolia's website following completion of the call.\n\nAbout Magnolia Oil & Gas Corporation\n\nMagnolia (MGY) is a publicly traded oil and gas exploration and production\ncompany with operations primarily in South Texas in the core of the Eagle Ford\nShale and Austin Chalk formations. Magnolia focuses on generating value for\nshareholders by delivering steady, moderate annual production growth resulting\nfrom its disciplined and efficient philosophy toward capital spending. The\nCompany strives to generate high pre‐tax margins and consistent free cash\nflow allowing for strong cash returns to our shareholders. For more\ninformation, visit www.magnoliaoilgas.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.magnoliaoilgas.com&esheet=54530225&newsitemid=20260506183094&lan=en-US&anchor=www.magnoliaoilgas.com&index=2&md5=57e42429c8bcaf6f9f7b70db1666a718)\n.\n (1) Adjusted EBITDAX, and free cash flow are non-GAAP financial measures. For \n reconciliations to the most comparable GAAP measures, please see “Non-GAAP \n Financial Measures” at the end of this press release. \n (2) Weighted average total shares outstanding include diluted weighted average \n shares of Class A Common Stock outstanding during the period and shares of \n Class B Common Stock, which are anti-dilutive in the calculation of weighted \n average number of common shares outstanding. \n (3) Excludes $1.2 million of share repurchases incurred during the fourth quarter \n of 2025, but settled during the first quarter of 2026. \n\n\nCautionary Note Regarding Forward-Looking Statements\n\nThe information in this press release includes forward-looking statements\nwithin the meaning of Section 27A of the Securities Act of 1933, as amended,\nand Section 21E of the Securities Exchange Act of 1934, as amended. All\nstatements, other than statements of present or historical fact included in\nthis press release, regarding Magnolia’s strategy, future operations,\nfinancial position, estimated revenues and losses, projected costs, prospects,\nplans and objectives of management are forward looking statements. When used\nin this press release, the words could, should, will, may, believe,\nanticipate, intend, estimate, expect, project, the negative of such terms and\nother similar expressions are intended to identify forward-looking statements,\nalthough not all forward-looking statements contain such identifying words.\nThese forward-looking statements are based on management’s current\nexpectations and assumptions about future events. Except as otherwise required\nby applicable law, Magnolia disclaims any duty to update any forward-looking\nstatements, all of which are expressly qualified by the statements in this\nsection, to reflect events or circumstances after the date of this press\nrelease. Magnolia cautions you that these forward-looking statements are\nsubject to all of the risks and uncertainties, most of which are difficult to\npredict and many of which are beyond the control of Magnolia, incident to the\ndevelopment, production, gathering and sale of oil, natural gas and natural\ngas liquids. In addition, Magnolia cautions you that the forward looking\nstatements contained in this press release are subject to the following\nfactors: (i) the market prices of oil, natural gas, NGLs, and other products\nor services; (ii) the supply and demand for oil, natural gas, NGLs, and other\nproducts or services, including impacts of actions taken by OPEC and other\nstate-controlled oil companies; (iii) the outcome of any legal proceedings\nthat may be instituted against Magnolia; (iv) Magnolia’s ability to realize\nthe anticipated benefits of its acquisitions, which may be affected by, among\nother things, competition and the ability of Magnolia to grow and manage\ngrowth profitably; (v) legislative, regulatory, or policy changes, including\nthose following the change in presidential administrations; (vi) geopolitical\nand business conditions in key regions of the world; (vii) cybersecurity\nthreats, including increased use of artificial intelligence technologies; and\n(viii) the possibility that Magnolia may be adversely affected by other\neconomic, business, and/or competitive factors, including inflation. Should\none or more of the risks or uncertainties described in this press release\noccur, or should underlying assumptions prove incorrect, actual results and\nplans could differ materially from those expressed in any forward-looking\nstatements. Additional information concerning these and other factors that may\nimpact the operations and projections discussed herein can be found in\nMagnolia’s filings with the SEC, including its Annual Report on Form 10-K\nfor the fiscal year ended December 31, 2025. Magnolia’s SEC filings are\navailable publicly on the SEC’s website at www.sec.gov\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sec.gov&esheet=54530225&newsitemid=20260506183094&lan=en-US&anchor=www.sec.gov&index=3&md5=343e017a76d28fe66cafb145c1709c26)\n.\n Magnolia Oil & Gas Corporation \n Operating Highlights \n           \n     For the Quarters Ended \n     March 31, 2026   March 31, 2025 \n Production:         \n Oil (MBbls)     3,661       3,517   \n Natural gas (MMcf)     17,383       16,492   \n Natural gas liquids (MBbls)     2,673       2,424   \n Total (Mboe)     9,231       8,689   \n           \n Average daily production:         \n Oil (Bbls/d)     40,678       39,078   \n Natural gas (Mcf/d)     193,143       183,248   \n Natural gas liquids (Bbls/d)     29,696       26,930   \n Total (boe/d)     102,564       96,549   \n           \n Revenues (in thousands):         \n Oil revenues   $ 257,329     $ 245,534   \n Natural gas revenues     51,800       51,367   \n Natural gas liquids revenues     49,382       53,399   \n Total Revenues   $ 358,511     $ 350,300   \n           \n Average sales price:         \n Oil (per Bbl)   $ 70.29     $ 69.81   \n Natural gas (per Mcf)     2.98       3.11   \n Natural gas liquids (per Bbl)     18.48       22.03   \n Total (per boe)   $ 38.84     $ 40.31   \n           \n NYMEX WTI (per Bbl)   $ 72.17     $ 71.42   \n NYMEX Henry Hub (per MMBtu)   $ 4.97     $ 3.66   \n Realization to benchmark:         \n Oil (% of WTI)     97 %     98 % \n Natural Gas (% of Henry Hub)     60 %     85 % \n           \n Operating expenses (in thousands):         \n Lease operating expenses   $ 47,751     $ 47,075   \n Gathering, transportation and processing     18,207       14,953   \n Taxes other than income     16,387       20,105   \n Depreciation, depletion and amortization     113,359       105,853   \n           \n Operating costs per boe:         \n Lease operating expenses   $ 5.17     $ 5.42   \n Gathering, transportation and processing     1.97       1.72   \n Taxes other than income     1.78       2.31   \n Depreciation, depletion and amortization     12.28       12.18   \n\n Magnolia Oil & Gas Corporation \n \n \n \nConsolidated Statements of Operations \n \n \n \n(In thousands, except per share data) \n   \n     For the Quarters Ended \n     March 31, 2026   March 31, 2025 \n REVENUES         \n Oil revenues   $ 257,329     $ 245,534   \n Natural gas revenues     51,800       51,367   \n Natural gas liquids revenues     49,382       53,399   \n Total revenues     358,511       350,300   \n OPERATING EXPENSES         \n Lease operating expenses     47,751       47,075   \n Gathering, transportation and processing     18,207       14,953   \n Taxes other than income     16,387       20,105   \n Exploration expenses     1,742       348   \n Asset retirement obligations accretion     1,857       1,556   \n Depreciation, depletion and amortization     113,359       105,853   \n General and administrative expenses     31,444       24,588   \n Total operating expenses     230,747       214,478   \n           \n OPERATING INCOME     127,764       135,822   \n           \n OTHER EXPENSE         \n Interest expense, net     (6,004 )     (5,252 ) \n Other income (expense), net     (36 )     1,215   \n Total other expense, net     (6,040 )     (4,037 ) \n           \n INCOME BEFORE INCOME TAXES     121,724       131,785   \n           \n Current income tax expense     3,998       12,795   \n Deferred income tax expense     16,890       12,342   \n Total income tax expense     20,888       25,137   \n           \n NET INCOME     100,836       106,648   \n LESS: Net income attributable to noncontrolling interest     1,011       3,721   \n NET INCOME ATTRIBUTABLE TO CLASS A COMMON STOCK   $ 99,825     $ 102,927   \n           \n NET INCOME PER COMMON SHARE \n Basic   $ 0.54     $ 0.54   \n Diluted   $ 0.54     $ 0.54   \n WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING \n Basic     183,267       188,653   \n Diluted     183,279       188,664   \n WEIGHTED AVERAGE NUMBER OF CLASS B SHARES OUTSTANDING ((1))     2,639       5,523   \n DILUTED WEIGHTED AVERAGE TOTAL SHARES OUTSTANDING ((1))     185,918       194,187   \n\n  (1) Shares of Class B Common Stock, and corresponding Magnolia LLC Units, are \n anti-dilutive in the calculation of weighted average number of common shares \n outstanding. \n\n Magnolia Oil & Gas Corporation \n \n \n \nSummary Cash Flow Data \n \n \n \n(In thousands) \n   \n     For the Quarters Ended \n     March 31, 2026   March 31, 2025 \n CASH FLOWS FROM OPERATING ACTIVITIES \n NET INCOME   $ 100,836     $ 106,648   \n Adjustments to reconcile net income to net cash provided by operating         \n activities: \n Depreciation, depletion and amortization     113,359       105,853   \n Asset retirement obligations accretion     1,857       1,556   \n Amortization of deferred financing costs     546       532   \n Deferred income tax expense     16,890       12,342   \n Gain on revaluation of contingent consideration     —       (1,352 ) \n Stock based compensation     12,220       6,550   \n Other     843       353   \n Net change in operating assets and liabilities     (48,935 )     (7,992 ) \n Net cash provided by operating activities     197,616       224,490   \n           \n CASH FLOWS FROM INVESTING ACTIVITIES \n Acquisitions     (154,990 )     (24,144 ) \n Additions to oil and natural gas properties     (128,427 )     (131,168 ) \n Changes in working capital associated with additions to oil and natural gas     27,447       9,210   \n properties \n Other investing     8,352       30   \n Net cash used in investing activities     (247,618 )     (146,072 ) \n           \n CASH FLOW FROM FINANCING ACTIVITIES \n Class A Common Stock repurchases     (33,277 )     (52,393 ) \n Class B Common Stock purchases and cancellations     (19,793 )     —   \n Dividends paid     (30,473 )     (28,911 ) \n Distributions to noncontrolling interest owners     (911 )     (829 ) \n Other financing activities     (7,957 )     (8,776 ) \n Net cash used in financing activities     (92,411 )     (90,909 ) \n           \n NET CHANGE IN CASH AND CASH EQUIVALENTS     (142,413 )     (12,491 ) \n Cash and cash equivalents – Beginning of period     266,785       260,049   \n Cash and cash equivalents – End of period   $ 124,372     $ 247,558   \n\n Magnolia Oil & Gas Corporation \n \n \n \nSummary Balance Sheet Data \n \n \n \n(In thousands) \n   \n     March 31, 2026   December 31, 2025 \n Cash and cash equivalents   $ 124,372   $ 266,785 \n Other current assets     195,291       175,650   \n Property, plant and equipment, net     2,586,479       2,424,152   \n Other assets     38,336       36,505   \n Total assets   $ 2,944,478     $ 2,903,092   \n           \n Current liabilities   $ 290,530     $ 288,030   \n Long-term debt, net     393,442       393,251   \n Other long-term liabilities     224,625       222,638   \n Stockholders’ equity     2,035,881       1,939,958   \n Noncontrolling interest     —       59,215   \n Total liabilities and equity   $ 2,944,478     $ 2,903,092   \n\n\nMagnolia Oil & Gas Corporation\n\nNon-GAAP Financial Measures\n\nReconciliation of net income to adjusted EBITDAX\n\nIn this press release, we refer to adjusted EBITDAX, a supplemental non-GAAP\nfinancial measure that is used by management and external users of our\nconsolidated financial statements, such as industry analysts, investors,\nlenders, and rating agencies. We define adjusted EBITDAX as net income before\ninterest expense, income taxes, depreciation, depletion and amortization,\nexploration expenses, and accretion of asset retirement obligations, adjusted\nto exclude the effect of certain items included in net income. Adjusted\nEBITDAX is not a measure of net income in accordance with GAAP.\n\nOur management believes that adjusted EBITDAX is useful because it allows them\nto more effectively evaluate our operating performance and compare the results\nof our operations from period to period and against our peers without regard\nto our financing methods or capital structure. We also believe that securities\nanalysts, investors, and other interested parties may use adjusted EBITDAX in\nthe evaluation of our Company. We exclude the items listed above from net\nincome in arriving at adjusted EBITDAX because these amounts can vary\nsubstantially from company to company within our industry depending upon\naccounting methods and book values of assets, capital structures and the\nmethod by which the assets were acquired. Adjusted EBITDAX should not be\nconsidered as an alternative to, or more meaningful than, net income as\ndetermined in accordance with GAAP or as an indicator of our operating\nperformance or liquidity. Certain items excluded from adjusted EBITDAX are\nsignificant components in understanding and assessing a company’s financial\nperformance, such as a company’s cost of capital and tax structure, as well\nas the historic costs of depreciable assets, none of which are components of\nadjusted EBITDAX. Our presentation of adjusted EBITDAX should not be construed\nas an inference that our results will be unaffected by unusual or\nnon-recurring items. Our computations of adjusted EBITDAX may not be\ncomparable to other similarly titled measures of other companies.\n\nThe following table presents a reconciliation of net income to adjusted\nEBITDAX, our most directly comparable financial measure, calculated and\npresented in accordance with GAAP:\n     For the Quarters Ended \n (In thousands)   March 31, 2026   March 31, 2025 \n NET INCOME   $ 100,836     $ 106,648   \n Interest expense, net     6,004       5,252   \n Income tax expense     20,888       25,137   \n EBIT     127,728       137,037   \n Depreciation, depletion and amortization     113,359       105,853   \n Asset retirement obligations accretion     1,857       1,556   \n EBITDA     242,944       244,446   \n Exploration expenses     1,742       348   \n EBITDAX     244,686       244,794   \n Non-cash stock based compensation expense     8,168     4,946   \n Gain on revaluation of contingent consideration     —       (1,352 ) \n Adjusted EBITDAX   $ 252,854     $ 248,388   \n\n\nMagnolia Oil & Gas Corporation\n\nNon-GAAP Financial Measures\n\nReconciliation of net income to adjusted net income\n\nOur presentation of adjusted net income is a non-GAAP measures because it\nexcludes the effect of certain items included in net income. Management uses\nadjusted net income to evaluate our operating and financial performance\nbecause it eliminates the impact of certain items that management does not\nconsider to be representative of the Company’s on-going business operations.\nAs a performance measure, adjusted net income may be useful to investors in\nfacilitating comparisons to others in the Company’s industry because certain\nitems can vary substantially in the oil and gas industry from company to\ncompany depending upon accounting methods, book value of assets, and capital\nstructure, among other factors. Management believes adjusting these items\nfacilitates investors and analysts in evaluating and comparing the underlying\noperating and financial performance of our business from period to period by\neliminating differences caused by the existence and timing of certain expense\nand income items that would not otherwise be apparent on a GAAP basis.\nHowever, our presentation of adjusted net income may not be comparable to\nsimilar measures of other companies in our industry.\n   For the Quarters Ended \n (In thousands) March 31, 2026   March 31, 2025 \n NET INCOME $ 100,836     $ 106,648   \n Adjustments:       \n Gain on revaluation of contingent consideration   —       (1,352 ) \n Change in estimated income tax ((1))   —       274   \n ADJUSTED NET INCOME $ 100,836   $ 105,570   \n         \n Diluted weighted average shares of Class A Common Stock outstanding during the   183,279       188,664   \n period \n Weighted average shares of Class B Common Stock outstanding during the period   2,639       5,523   \n ((2)) \n Total weighted average shares of Class A and B Common Stock, including   185,918       194,187   \n dilutive impact of other securities ((2)) \n\n  (1) Represents corporate income taxes at an assumed annual effective tax rate of \n 20.3% for the quarter ended March 31, 2025. \n  (2) Shares of Class B Common Stock, and corresponding Magnolia LLC Units, are \n anti-dilutive in the calculation of weighted average number of common shares \n outstanding. \n\n\nMagnolia Oil & Gas Corporation\n\nNon-GAAP Financial Measures\n\nReconciliation of revenue to adjusted cash operating margin and operating\nincome margin\n\nOur presentation of adjusted cash operating margin and total adjusted cash\noperating costs are supplemental non-GAAP financial measures that are used by\nmanagement. Total adjusted cash operating costs exclude the impact of non-cash\nactivity. We define adjusted cash operating margin per boe as total revenues\nper boe less cash operating costs per boe. Management believes that total\nadjusted cash operating costs per boe and adjusted cash operating margin per\nboe provide relevant and useful information, which is used by our management\nin assessing the Company’s profitability and comparability of results to our\npeers.\n\nAs a performance measure, total adjusted cash operating costs and adjusted\ncash operating margin may be useful to investors in facilitating comparisons\nto others in the Company’s industry because certain items can vary\nsubstantially in the oil and gas industry from company to company depending\nupon accounting methods, book value of assets, and capital structure, among\nother factors. Management believes excluding these items facilitates investors\nand analysts in evaluating and comparing the underlying operating and\nfinancial performance of our business from period to period by eliminating\ndifferences caused by the existence and timing of certain expense and income\nitems that would not otherwise be apparent on a GAAP basis. However, our\npresentation of adjusted cash operating margin may not be comparable to\nsimilar measures of other companies in our industry.\n     For the Quarters Ended \n (in $/boe)   March 31, 2026   March 31, 2025 \n Revenue   $ 38.84     $ 40.31   \n Total cash operating costs:         \n Lease operating expenses ((1))     (5.07 )     (5.34 ) \n Gathering, transportation and processing     (1.97 )     (1.72 ) \n Taxes other than income     (1.78 )     (2.31 ) \n Exploration expenses ((2))     (0.12 )     (0.03 ) \n General and administrative expenses ((3))     (2.63 )     (2.34 ) \n Total adjusted cash operating costs     (11.57 )     (11.74 ) \n Adjusted cash operating margin   $ 27.27     $ 28.57   \n Margin (%)     70 %     71 % \n Non-cash costs:         \n Depreciation, depletion and amortization   $ (12.28 )   $ (12.18 ) \n Asset retirement obligations accretion     (0.20 )     (0.18 ) \n Non-cash stock based compensation     (0.88 )     (0.57 ) \n Non-cash exploration expenses     (0.07 )     (0.01 ) \n Total non-cash costs     (13.43 )     (12.94 ) \n Operating income margin   $ 13.84     $ 15.63   \n Margin (%)     36 %     39 % \n\n  (1) Lease operating expenses exclude non-cash stock based compensation of $0.9 \n million, or $0.10 per boe, and $0.7 million, or $0.08 per boe, for the \n quarters ended March 31, 2026 and 2025, respectively. \n  (2) Exploration expenses exclude non-cash exploration activity of $0.6 million, or \n $0.07 per boe, and $0.1 million, or $0.01 per boe for the quarters ended March \n 31, 2026 and 2025, respectively. \n  (3) General and administrative expenses exclude non-cash stock based compensation \n of $7.2 million, or $0.78 per boe, and $4.3 million, or $0.49 per boe, for the \n quarters ended March 31, 2026 and 2025, respectively.  \n\n\nMagnolia Oil & Gas Corporation\n\nNon-GAAP Financial Measures\n\nReconciliation of net cash provided by operating activities to free cash flow\n\nFree cash flow is a non-GAAP financial measure. Free cash flow is defined as\ncash flows from operations before net change in operating assets and\nliabilities less additions to oil and natural gas properties and changes in\nworking capital associated with additions to oil and natural gas properties.\nManagement believes free cash flow is useful for investors and widely accepted\nby those following the oil and gas industry as financial indicators of a\ncompany’s ability to generate cash to internally fund drilling and\ncompletion activities, fund acquisitions, and service debt. It is also used by\nresearch analysts to value and compare oil and gas exploration and production\ncompanies and are frequently included in published research when providing\ninvestment recommendations. Free cash flow is used by management as an\nadditional measure of liquidity. Free cash flow is not a measure of financial\nperformance under GAAP and should not be considered an alternative to cash\nflows from operating, investing, or financing activities.\n     For the Quarters Ended \n (In thousands)   March 31, 2026   March 31, 2025 \n Net cash provided by operating activities   $ 197,616     $ 224,490   \n Add back: net change in operating assets and liabilities     48,935       7,992   \n Cash flows from operations before net change in operating assets and     246,551       232,482   \n liabilities \n Additions to oil and natural gas properties     (128,427 )     (131,168 ) \n Changes in working capital associated with additions to oil and natural gas     27,447       9,210   \n properties \n Free cash flow   $ 145,571     $ 110,524   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260506183094/en/\n(https://www.businesswire.com/news/home/20260506183094/en/)\n\nContacts for Magnolia Oil & Gas Corporation\n\nInvestors\n\nTom Fitter\n\n(713) 331-4802\n\ntfitter@mgyoil.com (mailto:tfitter@mgyoil.com)\n\nMedia\n\nArt Pike\n\n(713) 842-9057\n\napike@mgyoil.com (mailto:apike@mgyoil.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-05-06T20:01:00.882209826Z","server_sent_at_ms":1778097660882},"received_at":"2026-05-06T20:01:00.952Z","source_url":"https://www.businesswire.com/news/home/20260506183094/en/"},"analysis":{"id":"18421","press_release_id":"23955","analysis_json":{"industry":{"label":"Energy","sector":"Energy"},"redFlags":[],"eventType":"earnings","narrative":"Magnolia Oil & Gas reported Q1 2026 net income of $100.8 million, or $0.54 per share, with adjusted EBITDAX of $252.9 million and free cash flow of $145.6 million.\n\nTotal production grew 6% year-over-year to 102.6 Mboe/d, supported by $128.7 million in drilling and completions capital.\n\nThe company returned $83.3 million to shareholders through buybacks and dividends, while closing $155 million in bolt-on acquisitions to bolster its asset base.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Strong FCF generation enables aggressive shareholder returns and strategic bolt-on acquisitions."},"keyFigures":{"eps":0.54,"revenue":358511000,"guidance":"FY 2026 production growth approx. 5%; FY 2026 D&C capital $440-$480 million; Q2 2026 production est. 105 Mboe/d","revenueYoy":"2.3%","customDimensions":{"fcf":145600000,"capex_dnc":128700000,"net_income":100800000,"adjusted_ebitdax":252900000,"avg_daily_production_mboe":102.6,"avg_daily_oil_production_mbbls":40.7}},"quotedText":"Magnolia’s first quarter financial and operating metrics delivered a strong start to 2026","namedEntities":{"people":[{"name":"Chris Stavros","role":"Chairman, President and CEO"},{"name":"Tom Fitter","role":"Investor Contact"},{"name":"Art Pike","role":"Media Contact"}],"products":[],"companies":[{"name":"Magnolia Oil & Gas Corporation","ticker":"MGY"},{"name":"EnerVest","relationship":"shareholder"}],"dollarAmounts":[{"amount":"$358.5 million","context":"Q1 2026 Total Revenues"},{"amount":"$100.8 million","context":"Q1 2026 Net Income"},{"amount":"$252.9 million","context":"Q1 2026 Adjusted EBITDAX"},{"amount":"$145.6 million","context":"Q1 2026 Free Cash Flow"},{"amount":"$128.7 million","context":"Q1 2026 Capital expenditures - D&C"},{"amount":"$155 million","context":"bolt-on acquisitions"},{"amount":"$51.9 million","context":"share repurchases"},{"amount":"$83.3 million","context":"total cash returned to shareholders"},{"amount":"$0.165 per share","context":"dividend declared"}]},"materialImpact":{"score":4,"reasoning":"Solid operational execution with 6% production growth and strong free cash flow generation of $145.6 million (up 32% YoY). The company returned 57% of FCF to shareholders and closed accretive bolt-on acquisitions, reaffirming its capital-efficient strategy."},"tickerRelevance":{"others":[],"primary":"MGY"},"globalImportance":30,"audienceRelevance":25,"eventTypeSecondary":["buyback","dividend"],"importanceComponents":{"tickerTier":"mid-cap","fcfStrength":"high","eventGravity":"solid-quarter-with-returns","sectorWeight":"Energy"}},"event_type":"earnings","event_type_secondary":["buyback","dividend"],"sentiment":"bullish","material_impact_score":4,"narrative":"Magnolia Oil & Gas reported Q1 2026 net income of $100.8 million, or $0.54 per share, with adjusted EBITDAX of $252.9 million and free cash flow of $145.6 million.\n\nTotal production grew 6% year-over-year to 102.6 Mboe/d, supported by $128.7 million in drilling and completions capital.\n\nThe company returned $83.3 million to shareholders through buybacks and dividends, while closing $155 million in bolt-on acquisitions to bolster its asset base.","key_figures":{"eps":0.54,"revenue":358511000,"guidance":"FY 2026 production growth approx. 5%; FY 2026 D&C capital $440-$480 million; Q2 2026 production est. 105 Mboe/d","revenueYoy":"2.3%","customDimensions":{"fcf":145600000,"capex_dnc":128700000,"net_income":100800000,"adjusted_ebitdax":252900000,"avg_daily_production_mboe":102.6,"avg_daily_oil_production_mbbls":40.7}},"named_entities":{"people":[{"name":"Chris Stavros","role":"Chairman, President and CEO"},{"name":"Tom Fitter","role":"Investor Contact"},{"name":"Art Pike","role":"Media Contact"}],"products":[],"companies":[{"name":"Magnolia Oil & Gas Corporation","ticker":"MGY"},{"name":"EnerVest","relationship":"shareholder"}],"dollarAmounts":[{"amount":"$358.5 million","context":"Q1 2026 Total Revenues"},{"amount":"$100.8 million","context":"Q1 2026 Net Income"},{"amount":"$252.9 million","context":"Q1 2026 Adjusted EBITDAX"},{"amount":"$145.6 million","context":"Q1 2026 Free Cash Flow"},{"amount":"$128.7 million","context":"Q1 2026 Capital expenditures - D&C"},{"amount":"$155 million","context":"bolt-on acquisitions"},{"amount":"$51.9 million","context":"share repurchases"},{"amount":"$83.3 million","context":"total cash returned to shareholders"},{"amount":"$0.165 per share","context":"dividend declared"}]},"model_name":"glm-4.7","prompt_hash":"sha256:6c7fa2f5e3b62e83","schema_hash":"sha256:ee8f711bc9bfba0d","created_at":"2026-05-07T06:40:34.939Z","global_importance":30,"audience_relevance":25,"importance_components":{"tickerTier":"mid-cap","fcfStrength":"high","eventGravity":"solid-quarter-with-returns","sectorWeight":"Energy"}},"durationMs":null,"modelName":"glm-4.7"}}