Magnolia Oil & Gas Provides Interim Financial and Operations Update After Closing the Acquisition of WildFire Energy
Key Highlights
- ➤WildFire acquisition closed, expanding Magnolia Oil & Gas (MGY) South Texas asset base
- ➤Net debt $1.9 billion, below 1.0x 2027E EBITDA at current strip prices
- ➤Q4 2026 production guided to 159-161 Mboe/d, 49%-50% oil
- ➤2027 oil and total production growth guided to 4%-5%
- ➤At least one-third of estimated >$100 million annual synergies expected by year-end 2026
Expert Statements
Chris Stavros, Chairman, President and CEO of Magnolia Oil & Gas
“We are very pleased to have closed the acquisition of WildFire Energy and are well on our way with integrating these attractive assets to begin realizing the substantial benefits of this highly complementary transaction.”
Chris Stavros, Chairman, President and CEO of Magnolia Oil & Gas
“The acquisition is an important new chapter for Magnolia in creating the premier Eagle Ford and Austin Chalk operator while enhancing our concentration of scale, adding high-quality durable resource opportunity, and providing operational efficiencies across a large, contiguous South Texas asset base.”
Chris Stavros, Chairman, President and CEO of Magnolia Oil & Gas
“The resulting expected improvement in free cash flow further reinforces Magnolia’s differentiated business model by improving our financial returns and expanding our capacity for the return of capital to our shareholders.”
Chris Stavros, Chairman, President and CEO of Magnolia Oil & Gas
“Thanks to the strong efforts, continued dedication and close alignment of our teams, the integration of the assets and operations is executing smoothly and proceeding on track.”
Chris Stavros, Chairman, President and CEO of Magnolia Oil & Gas
“As we noted when announcing the acquisition, we anticipate the combined business would generate mid-single digit organic annual growth of 4 to 5 percent for both oil volumes and total production, which is above our peer company average growth, and with a D&C capital reinvestment rate of well below 55 percent of adjusted EBITDAX.”
Chris Stavros, Chairman, President and CEO of Magnolia Oil & Gas
“We plan to consistently return a substantial portion of our free cash flow to shareholders through our safe, sustainable and growing dividend and through the execution of share repurchases of at least 1 percent of outstanding shares per quarter.”
Chris Stavros, Chairman, President and CEO of Magnolia Oil & Gas
“Ample excess free cash flow will go toward reducing debt to our target of 0.5x net debt to EBITDA or below, and we have already made meaningful progress on this goal.”
Magnolia Oil & Gas Provides Interim Financial and Operations Update After Closing the Acquisition of WildFire Energy
Magnolia Oil & Gas Corporation (NYSE: MGY) announced today an interim financial and operational update following the recent completion of its acquisition of WildFire Energy.
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