MGY · Magnolia Oil & Gas Corporation

Magnolia Oil & Gas Corporation reported solid Q1 2026 results despite a 5% YoY decline in net income to $100.8 million, with diluted EPS holding steady at $0.54 due to a 4% reduction in diluted shares to 185.9 million. Adjusted EBITDAX rose 2% to $252.9 million, supported by 6% production growth to 102.6 Mboe/d (40.7 Mbbls/d oil), driven by 9% growth in Giddings representing 82% of volumes. D&C capital of $128.7 million equated to 51% reinvestment rate, generating $145.6 million free cash flow and $197.6 million operating cash flow. Operating margins remained strong at 36% pre-tax. Key strategic moves included $155 million bolt-on acquisitions in Karnes and Giddings, adding 6,200 net acres, 500 boe/d (~45% oil), boosting working interest to 93% in Karnes and creating a 10,000 gross acre block. These enhance inventory and leverage technical expertise in Eagle Ford and Austin Chalk. Shareholder returns totaled $83.3 million (57% of FCF): $51.9 million repurchasing 2.0 million shares (11.6 million Class A remaining authorized) and $0.165/share dividend. EnerVest sold remaining Class B shares, simplifying structure with no Class B outstanding. Cash ended at $124.4 million with $450 million undrawn credit. Guidance reaffirms 5% full-year production growth via two rigs/one completion crew, Q2 D&C $120-125 million, production ~105 Mboe/d, unhedged to capture oil price upside. CEO Stavros highlighted disciplined model delivering free cash flow amid weather impacts, positioning for sustained returns through low reinvestment, high margins, and bolt-ons.