Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Magnolia Oil & Gas Corp (MGY - Free Report) , which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, could be a great candidate to consider.
When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 4.33%, on average, in the last two quarters.
For the most recent quarter, Magnolia Oil & Gas Corp was expected to post earnings of $0.51 per share, but it reported $0.54 per share instead, representing a surprise of 5.88%. For the previous quarter, the consensus estimate was $0.36 per share, while it actually produced $0.37 per share, a surprise of 2.78%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Magnolia Oil & Gas Corp lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Magnolia Oil & Gas Corp has an Earnings ESP of +4.28% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 5, 2026.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Key Takeaways Magnolia will acquire WildFire for about $4.06B, expanding its Giddings position to more than 1.25M net acres.MGY expects over $100M in annual synergies, stronger cash flow and improved operating efficiency.Magnolia raised its quarterly dividend 9% and reaffirmed plans to repurchase at least 1% of shares quarterly. Magnolia Oil & Gas Corporation (MGY - Free Report) has announced a landmark agreement to acquire WildFire Energy in a transaction valued at approximately $4.06 billion, including assumed debt and customary purchase price adjustments. The acquisition, unanimously approved by Magnolia's board of directors, marks one of the most significant strategic expansions and further strengthens its position in the prolific Giddings region of South Texas. By combining two complementary asset portfolios, MGY expects to enhance production capabilities, generate higher free cash flow, improve operating efficiencies and create greater long-term value for shareholders.
MGY Expands Its Giddings PositionThe acquisition significantly increases MGY's presence in the highly productive Giddings field by adding approximately 810,000 net acres. Following the completion of the transaction, Magnolia will control more than 1.25 million net acres, creating one of the largest and most concentrated acreage positions in South Texas. This expanded footprint provides substantial development opportunities across several proven formations, including the Austin Chalk, Eagle Ford and Woodbine, while also creating a more contiguous operating area that supports greater drilling efficiency and lower operating costs.
Magnolia's extensive technical knowledge and operational experience in the Giddings region have positioned it to maximize the value of these newly acquired assets. Management believes the combination will unlock additional resource potential while extending the company's inventory of high-return drilling locations for many years.
Strategic Benefits Strengthen Long-Term Growth ProspectsThe acquisition aligns closely with Magnolia's disciplined business strategy of acquiring high-quality assets that generate consistent profitability and sustainable free cash flow. Rather than pursuing aggressive production growth, the company intends to maintain its proven capital allocation model by limiting capital expenditures while steadily expanding production through efficient operations.
The additional acreage offers numerous future development opportunities across multiple geological benches, allowing Magnolia to optimize drilling schedules based on commodity prices and operational priorities. This flexibility supports long-term production stability while preserving strong operating margins and maintaining attractive financial returns.
High-Quality Production Enhances Cash Flow GenerationWildFire's assets contribute approximately 53,000 barrels of oil equivalent per day, with nearly 70% consisting of oil production. This oil-weighted production profile is particularly attractive because crude oil generally delivers stronger margins than natural gas. Furthermore, the acquired assets have a relatively low 29% base oil decline rate, reducing the amount of capital required to sustain production levels over time.
These characteristics complement Magnolia's existing operations by increasing cash flow generation while lowering the overall corporate reinvestment rate. As a result, the combined company expects to generate stronger operating margins and improved financial performance.
Operational Synergies Expected to Deliver Significant SavingsMGY expects the integration of WildFire's operations to generate more than $100 million in annual cost savings and operational synergies. These efficiencies are expected to result from longer horizontal drilling programs, shared infrastructure, improved logistics, lower procurement costs through increased purchasing scale, streamlined field operations and reduced corporate administrative expenses.
Management estimates that the net present value of these anticipated synergies is approximately $700 million, highlighting the substantial long-term economic benefits of combining the two businesses. The overlapping acreage positions further enhance these efficiencies by simplifying development planning and reducing infrastructure duplication.
Infrastructure Assets Add Additional ValueIn addition to valuable upstream assets, the transaction includes important infrastructure that further strengthens Magnolia's competitive position. Among the most notable assets is a sand mine capable of supplying approximately 80% of Magnolia's annual sand requirements, including all of WildFire's operational needs. The facility also generates additional revenues through third-party sand sales, creating another source of cash flow.
The acquisition also includes more than 500 miles of gas gathering pipelines throughout the Giddings region. Ownership of this infrastructure provides greater operational control, reduces transportation costs, improves production efficiency and contributes to stronger operating margins over the long term.
Higher Free Cash Flow Supports Increased Shareholder ReturnsOne of the primary financial benefits of the acquisition is its immediate positive impact on Magnolia's key financial metrics. Management expects the transaction to be highly accretive to cash flow per share, free cash flow per share, earnings per share, operating margins and overall capital efficiency.
Reflecting confidence in the company's enhanced financial outlook, Magnolia announced a 9% increase in its quarterly dividend, raising the payout from 16.5 cents to 18.0 cents per share, beginning in the third quarter of 2026. The company also reaffirmed ongoing commitment to repurchasing at least 1% of its outstanding shares every quarter, continuing the disciplined approach to returning capital to shareholders.
Financial Discipline Remains a Core PriorityAlthough MGY will temporarily increase leverage to finance the acquisition, management emphasized that its conservative financial strategy remains unchanged. The transaction will be funded through cash on hand, newly issued MGY equity, new debt financing, borrowings under the expanded revolving credit facility and the assumption of WildFire's outstanding notes.
Under the terms of the agreement, WildFire owners will receive approximately 32.2 million Magnolia Class A common shares, while MGY will assume roughly $600 million of WildFire's outstanding notes due in 2029. The company has also expanded its secured credit facility to support the acquisition and expects strong free cash flow generation to reduce leverage rapidly after closing.
Strong Q2 Updates Demonstrate Operational MomentumAlongside the acquisition announcement, Magnolia released its second-quarter 2026 operational update. The company reported average production of 106.1 thousand barrels of oil equivalent per day, including 41.9 thousand barrels, while drilling and completion capital expenditures totaled $125 million. MGY concluded the quarter with approximately $296 million in cash, reflecting its continued financial strength.
Supported by stronger-than-expected production performance, the company increased its standalone full-year 2026 production growth guidance from 5% to 6%. Updated production and capital guidance for the combined company will be provided after the WildFire acquisition closes, which is expected during the third quarter of 2026.
MGY Positions Itself for Long-Term SuccessThe acquisition of WildFire Energy represents a transformational milestone for MGY. By expanding its premier acreage position, increasing infrastructure ownership, strengthening future drilling opportunities and enhancing operational efficiencies, Magnolia has reinforced its long-term growth strategy. The combined company is expected to generate higher free cash flow, stronger financial returns, improved shareholder distributions and sustainable production growth while maintaining its disciplined approach to capital allocation. As the transaction moves toward completion, MGY is well-positioned to strengthen its competitive standing within the U.S. oil and gas industry while delivering lasting value to investors.
MGY's Zacks Rank & Key PicksCurrently, MGY has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might consider some better-ranked stocks, such as Par Pacific (PARR - Free Report) ,Cheniere Energy (LNG - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Delek US Holdings (DK - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Par Pacific is valued at 3.89 billion. It is a diversified energy company that owns and operates petroleum refineries, logistics assets and retail fuel businesses across the United States. Par Pacific focuses on refining, transporting and marketing fuel products while serving regional markets with reliable energy solutions.
Cheniere Energy is valued at $55.52 billion. It is a leading U.S. producer and exporter of liquefied natural gas (“LNG”), supplying energy to customers across more than 40 international markets. Cheniere Energy operates major LNG export terminals in Louisiana and Texas and focuses on providing reliable, lower-carbon energy solutions.
Delek US Holdings is valued at $3.96 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.
Magnolia Oil & Gas (NYSE:MGY) said it has agreed to acquire WildFire Energy for approximately $4.06 billion, a transaction management described as a strategic bolt-on that will substantially expand Magnolia’s position in the Giddings field and create what it called the premier Eagle Ford/Austin Chalk operator in South Texas.
Chris Stavros, Magnolia’s Chairman, President and Chief Executive Officer, said on a conference call that the WildFire acquisition “more than doubles” Magnolia’s existing acreage position in the Giddings field and reflects the company’s long-standing acquisition criteria, including operational overlap, financial attractiveness and resource upside.
“The WildFire acquisition greatly enhances Magnolia’s position by extending our runway of advantage to high return profitability and significant free cash flow generation,” Stavros said.
Deal Structure and Acreage Expansion The company said the purchase price will be funded with a mix of cash and equity, including 32.2 million shares of Magnolia Class A common stock issued to WildFire’s owners. Magnolia will also assume WildFire’s $600 million of outstanding notes due in 2029. The remaining amount is expected to be funded through cash on hand and a balanced mix of debt and new common equity.
Magnolia said it has obtained committed financing and amended and increased its secured credit facility to a $2 billion borrowing base, with elected commitments of $1.75 billion contingent upon closing. The transaction has been unanimously approved by Magnolia’s board and is expected to close late in the third quarter.
The acquisition adds roughly 810,000 net acres, bringing Magnolia’s pro forma acreage position to nearly 1.3 million net acres across more than 1.5 million gross acres. Stavros said the deal effectively consolidates most of the Giddings field and surrounding area. He added that, on a pro forma basis, Magnolia’s acreage position would be the largest in the South Texas Eagle Ford/Austin Chalk trend and almost 80% larger than the second-place operator.
Production, Reserves and Synergies WildFire’s assets produced approximately 53,000 barrels of oil equivalent per day in the second quarter of 2026, including 37,000 barrels per day of oil. Magnolia said total pro forma second-quarter production would have been 159,000 barrels of oil equivalent per day, including 79,000 barrels per day of oil, with an oil mix of about 50%.
Stavros said WildFire’s production carries an estimated low base decline rate of approximately 29%. He also said Magnolia’s pro forma oil production increases by 89% to nearly 80,000 barrels per day, while total proved developed reserves rise 84% to more than 300 million barrels of oil equivalent. Proved developed oil reserves increase approximately 155%, with the overall proved developed oil mix rising to roughly 54%.
Magnolia expects annual cost savings and synergies of at least $100 million on a run-rate basis by the end of 2027, with an estimated present value of approximately $700 million. Stavros said the expected improvements fall into three areas:
Drilling, completions and facilities, representing about 60% of expected synergies; Field operations, representing about 20%; Corporate G&A, representing about 20%. He said corporate G&A and field operations savings are expected to approach their full run rate by mid-2027. Additional operational benefits are expected from longer lateral lengths, Magnolia’s supply chain and logistics pricing, shared infrastructure and Magnolia’s drilling and completion expertise.
The WildFire assets also include approximately 500 miles of gas gathering pipelines in Giddings and a local sand mine. Stavros said the sand mine currently supplies frac sand consumption for both Magnolia’s Giddings operations and WildFire, while also supporting third-party sales.
Capital Returns and Debt Reduction Magnolia said the transaction is expected to be highly accretive to key financial metrics, including cash flow and free cash flow per share, operating margins, earnings per share and net asset value. Citing the expected increase in free cash flow, Magnolia raised its quarterly dividend by 9% to $0.18 per share, payable in the third quarter. Stavros said this is the company’s second dividend increase of the year, following a 10% increase announced in January.
The company expects to continue repurchasing at least 1% of outstanding shares per quarter after the transaction closes. Stavros said Magnolia has returned approximately $2 billion to shareholders since its inception eight years ago, or roughly 40% of its market value.
Management said leverage will initially rise because of the acquisition, but Magnolia expects to use free cash flow beyond its shareholder return program to reduce debt. Stavros said the company expects to reach roughly 1x or less net debt to EBITDA by year-end 2027 and plans further debt reduction over time.
At recent strip prices, Magnolia estimates the combined business could generate more than $4.5 billion in cumulative free cash flow over the next 4.5 years through 2030.
Operational Outlook and Analyst Questions During the question-and-answer session, Stavros said Magnolia expects to initially take on WildFire’s two rigs and one completion crew after closing, effectively doubling Magnolia’s activity level in that respect. He said the company will evaluate whether it can improve efficiencies after the deal closes.
Asked about development targets, Stavros said Magnolia expects a broad mix of Austin Chalk and Eagle Ford activity, with Woodbine development potentially added later. He said WildFire’s Eagle Ford wells are shallower and lower cost, which should benefit Magnolia’s capital program.
On lateral lengths, Stavros said WildFire’s average laterals have been around 8,000 to 8,500 feet, while Magnolia expects many future wells could move toward 10,000 to 15,000 feet where acreage adjacency allows.
Stavros also said Magnolia inherited some hedges on a portion of WildFire’s oil production that provide “a comfortable floor” into 2027. He said Magnolia may opportunistically add hedges given recent oil-price volatility and the company’s increased debt position after the deal.
Magnolia also reported preliminary second-quarter standalone production of approximately 106,000 barrels of oil equivalent per day, with oil production of roughly 42,000 barrels per day. Drilling and completion capital for the quarter was $125 million, and the company ended the quarter with $296 million in cash. Based on stronger second-quarter production, Magnolia raised its full-year 2026 standalone production growth guidance to 6% from 5%.
About Magnolia Oil & Gas (NYSE:MGY) Magnolia Oil & Gas Corp (NYSE: MGY) is an independent exploration and production company focused on the acquisition, development and optimization of onshore oil and gas assets in South Texas. Headquartered in Houston, the company concentrates its efforts on the Eagle Ford Shale, where it holds significant working interests in key producing counties.
The company’s core operations center on horizontal drilling and multi-stage completions designed to extract light crude oil, natural gas and natural gas liquids (NGLs).
Magnolia Oil & Gas Corporation (NYSE: MGY) shares fell about 3% on Tuesday after the company announced a definitive agreement to acquire private equity-backed WildFire Energy for approximately $4 billion.
The transaction, which has been unanimously approved by Magnolia’s board of directors, is expected to expand the company’s position in South Texas and more than double its footprint in the Giddings field.
WildFire Energy, founded in partnership with Warburg Pincus, Kayne Anderson and its management team in 2019, is an independent oil and gas producer focused on assets in the Austin Chalk, Eagle Ford and Woodbine formations.
The company currently produces about 53,000 barrels of oil equivalent per day, with approximately 70% of production weighted toward oil, across roughly 810,000 net acres. WildFire has expanded through acquisitions, including the purchase of Hawkwood Energy in 2021, as well as organic development.
Magnolia said the acquisition will strengthen its position in the South Texas region by adding a large-scale asset base and increasing its development inventory.
WildFire CEO Anthony Bahr highlighted the company’s growth since its formation and said the transaction would create further opportunities for the combined business.
“We are excited for the opportunities ahead for Magnolia and believe this transaction positions the asset for continued success,” Bahr said.
Warburg Pincus Managing Director Ryan Dalton wrote that WildFire had developed into a large-scale energy platform through acquisitions and operational execution.
“WildFire represents a rare combination of high-quality underdeveloped assets, market opportunity and a strong management team with the unique capabilities to acquire, optimize and scale oil and gas assets,” Dalton said.
The transaction is expected to close in the third quarter.
Magnolia Oil & Gas Corporation (NYSE: MGY) shares fell about 3% on Tuesday after the company announced a definitive agreement to acquire private equity-backed WildFire Energy for approximately $4 billion.
The transaction, which has been unanimously approved by Magnolia’s board of directors, is expected to expand the company’s position in South Texas and more than double its footprint in the Giddings field.
WildFire Energy, founded in partnership with Warburg Pincus, Kayne Anderson and its management team in 2019, is an independent oil and gas producer focused on assets in the Austin Chalk, Eagle Ford and Woodbine formations.
The company currently produces about 53,000 barrels of oil equivalent per day, with approximately 70% of production weighted toward oil, across roughly 810,000 net acres. WildFire has expanded through acquisitions, including the purchase of Hawkwood Energy in 2021, as well as organic development.
Magnolia said the acquisition will strengthen its position in the South Texas region by adding a large-scale asset base and increasing its development inventory.
WildFire CEO Anthony Bahr highlighted the company’s growth since its formation and said the transaction would create further opportunities for the combined business.
“We are excited for the opportunities ahead for Magnolia and believe this transaction positions the asset for continued success,” Bahr said.
Warburg Pincus Managing Director Ryan Dalton wrote that WildFire had developed into a large-scale energy platform through acquisitions and operational execution.
“WildFire represents a rare combination of high-quality underdeveloped assets, market opportunity and a strong management team with the unique capabilities to acquire, optimize and scale oil and gas assets,” Dalton said.
The transaction is expected to close in the third quarter.
Founded in partnership with Kayne Anderson and Warburg Pincus in 2019, WildFire Energy has become a leading private, large-scale oil-weighted platform
, /PRNewswire/ -- Kayne Anderson and Warburg Pincus announced an agreement to sell WildFire Energy ("WildFire" or the "Company") to Magnolia Oil & Gas Corporation ("Magnolia") (NYSE: MGY) for approximately $4.06 billion. The acquisition has been unanimously approved by Magnolia's board of directors.
WildFire is an independent energy company focused on the acquisition, development and optimization of oil and gas assets in the Austin Chalk, Eagle Ford, and Woodbine formations of South Texas. Warburg Pincus, Kayne Anderson, and the WildFire management team partnered together in 2019 to form the Company, and since then, have grown the business into one of the largest privately owned oil & gas producers in the United States.
Over the course of the partnership, WildFire expanded its position through a series of strategic acquisitions, starting with the acquisition of Hawkwood Energy in 2021, as well as a highly effective organic growth strategy. Today, the Company produces 53 Mboe/d (~70% oil) across ~810,000 net acres and has built a leading platform characterized by top-tier well performance, inventory depth, capital efficiency, and strong free cash flow generation.
"Our team has worked hard to build a differentiated business with high-quality assets, disciplined operations and a strong culture of execution. We are excited for the opportunities ahead for Magnolia and believe this transaction positions the asset for continued success," said Anthony Bahr, Chief Executive Officer of WildFire. "We appreciate the support and partnership of Kayne Anderson and Warburg Pincus, which have been instrumental in helping WildFire grow into the platform it is today," added Steve Habachy, President and Chief Operating Officer of WildFire.
"WildFire represents a rare combination of high-quality underdeveloped assets, market opportunity and a strong management team with the unique capabilities to acquire, optimize and scale oil and gas assets," said Ryan Dalton, Managing Director at Warburg Pincus. "Anthony, Steve, Drew, and the broader WildFire team have executed that strategy with discipline and focus, building a differentiated platform with significant scale, strong performance and durable growth potential. We are proud to have supported WildFire's development and believe Magnolia is an excellent steward for the Company's next chapter," added Jeff Luse, Managing Director at Warburg Pincus.
"WildFire built one of the premier privately-owned upstream businesses in North America through thoughtful acquisitions, operational excellence and a relentless focus on long-term value creation. This extraordinary outcome reflects the vision, hard work and dedication of WildFire's management team and we are proud to have partnered with them at Kayne Anderson," said Danny Weingeist, Managing Partner at Kayne Anderson. "It has been a privilege to partner with Anthony, Steve, Drew and the entire WildFire team to build a truly differentiated company, and we are incredibly proud of what we accomplished together. We congratulate the entire WildFire organization on this outstanding achievement and wish Magnolia continued success with these exceptional assets," added Mark Teshoian, Managing Partner at Kayne Anderson.
The proposed transaction is subject to customary closing conditions and regulatory approvals, with anticipated closing in late-Q3 2026.
In connection with the sale, WildFire has retained Jefferies LLC and BofA Securities, Inc. as financial advisors. Troutman Pepper Locke served as WildFire's legal advisor.
About WildFire Energy
WildFire Energy is an independent energy company headquartered in Houston, Texas, focused on the acquisition, development and optimization of oil and gas assets in the Austin Chalk, Eagle Ford and Woodbine formations. The Company was formed in 2019 with funding from Warburg Pincus, Kayne Anderson and management.
About Warburg Pincus
Warburg Pincus LLC is the pioneer of global growth investing. A private partnership since 1966, the firm has the flexibility and experience to focus on helping investors and management teams achieve enduring success across market cycles. Today, the firm has more than $105 billion in assets under management, and more than 225 companies in its active portfolio, diversified across stages, sectors, and geographies. Warburg Pincus has invested in more than 1,100 companies across its private equity, real estate, and capital solutions strategies.
The firm is headquartered in New York with more than 15 offices globally. For more information, please visit www.warburgpincus.com or follow us on LinkedIn and YouTube.
About Kayne Anderson
Kayne Anderson, founded in 1984, is a leading alternative investment management firm focused on real estate, credit, infrastructure, and energy. With a team defined by an entrepreneurial and resilient culture, Kayne Anderson's investment philosophy is to pursue cash flow-oriented niche strategies where knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. Kayne manages $41 billion in assets (as of 3/31/2026) for institutional investors, family offices, high net worth and retail clients and employs 350 professionals. For more information, please visit www.kaynecapital.com.
About Magnolia Oil & Gas
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.
Media Contacts
Warburg Pincus
Sarah Bloom, Director, Communications
[email protected]
Kayne Anderson
Gracie Hanson, Managing Director, Marketing
[email protected]
3 Top Energy Stocks to Buy in 2022Magnolia Oil & Gas NYSE: MGY said it has agreed to acquire WildFire Energy for approximately $4.06 billion, a transaction management described as a strategic bolt-on that will substantially expand Magnolia’s position in the Giddings field and create what it called the premier Eagle Ford/Austin Chalk operator in South Texas.
Chris Stavros, Magnolia’s Chairman, President and Chief Executive Officer, said on a conference call that the WildFire acquisition “more than doubles” Magnolia’s existing acreage position in the Giddings field and reflects the company’s long-standing acquisition criteria, including operational overlap, financial attractiveness and resource upside.
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3 Small Caps Ready to Make a Run“The WildFire acquisition greatly enhances Magnolia’s position by extending our runway of advantage to high return profitability and significant free cash flow generation,” Stavros said.
Deal Structure and Acreage Expansion The company said the purchase price will be funded with a mix of cash and equity, including 32.2 million shares of Magnolia Class A common stock issued to WildFire’s owners. Magnolia will also assume WildFire’s $600 million of outstanding notes due in 2029. The remaining amount is expected to be funded through cash on hand and a balanced mix of debt and new common equity.
Magnolia said it has obtained committed financing and amended and increased its secured credit facility to a $2 billion borrowing base, with elected commitments of $1.75 billion contingent upon closing. The transaction has been unanimously approved by Magnolia’s board and is expected to close late in the third quarter.
The acquisition adds roughly 810,000 net acres, bringing Magnolia’s pro forma acreage position to nearly 1.3 million net acres across more than 1.5 million gross acres. Stavros said the deal effectively consolidates most of the Giddings field and surrounding area. He added that, on a pro forma basis, Magnolia’s acreage position would be the largest in the South Texas Eagle Ford/Austin Chalk trend and almost 80% larger than the second-place operator.
Production, Reserves and Synergies WildFire’s assets produced approximately 53,000 barrels of oil equivalent per day in the second quarter of 2026, including 37,000 barrels per day of oil. Magnolia said total pro forma second-quarter production would have been 159,000 barrels of oil equivalent per day, including 79,000 barrels per day of oil, with an oil mix of about 50%.
Stavros said WildFire’s production carries an estimated low base decline rate of approximately 29%. He also said Magnolia’s pro forma oil production increases by 89% to nearly 80,000 barrels per day, while total proved developed reserves rise 84% to more than 300 million barrels of oil equivalent. Proved developed oil reserves increase approximately 155%, with the overall proved developed oil mix rising to roughly 54%.
Magnolia expects annual cost savings and synergies of at least $100 million on a run-rate basis by the end of 2027, with an estimated present value of approximately $700 million. Stavros said the expected improvements fall into three areas:
Drilling, completions and facilities, representing about 60% of expected synergies; Field operations, representing about 20%; Corporate G&A, representing about 20%. He said corporate G&A and field operations savings are expected to approach their full run rate by mid-2027. Additional operational benefits are expected from longer lateral lengths, Magnolia’s supply chain and logistics pricing, shared infrastructure and Magnolia’s drilling and completion expertise.
The WildFire assets also include approximately 500 miles of gas gathering pipelines in Giddings and a local sand mine. Stavros said the sand mine currently supplies frac sand consumption for both Magnolia’s Giddings operations and WildFire, while also supporting third-party sales.
Capital Returns and Debt Reduction Magnolia said the transaction is expected to be highly accretive to key financial metrics, including cash flow and free cash flow per share, operating margins, earnings per share and net asset value. Citing the expected increase in free cash flow, Magnolia raised its quarterly dividend by 9% to $0.18 per share, payable in the third quarter. Stavros said this is the company’s second dividend increase of the year, following a 10% increase announced in January.
The company expects to continue repurchasing at least 1% of outstanding shares per quarter after the transaction closes. Stavros said Magnolia has returned approximately $2 billion to shareholders since its inception eight years ago, or roughly 40% of its market value.
Management said leverage will initially rise because of the acquisition, but Magnolia expects to use free cash flow beyond its shareholder return program to reduce debt. Stavros said the company expects to reach roughly 1x or less net debt to EBITDA by year-end 2027 and plans further debt reduction over time.
At recent strip prices, Magnolia estimates the combined business could generate more than $4.5 billion in cumulative free cash flow over the next 4.5 years through 2030.
Operational Outlook and Analyst Questions During the question-and-answer session, Stavros said Magnolia expects to initially take on WildFire’s two rigs and one completion crew after closing, effectively doubling Magnolia’s activity level in that respect. He said the company will evaluate whether it can improve efficiencies after the deal closes.
Asked about development targets, Stavros said Magnolia expects a broad mix of Austin Chalk and Eagle Ford activity, with Woodbine development potentially added later. He said WildFire’s Eagle Ford wells are shallower and lower cost, which should benefit Magnolia’s capital program.
On lateral lengths, Stavros said WildFire’s average laterals have been around 8,000 to 8,500 feet, while Magnolia expects many future wells could move toward 10,000 to 15,000 feet where acreage adjacency allows.
Stavros also said Magnolia inherited some hedges on a portion of WildFire’s oil production that provide “a comfortable floor” into 2027. He said Magnolia may opportunistically add hedges given recent oil-price volatility and the company’s increased debt position after the deal.
Magnolia also reported preliminary second-quarter standalone production of approximately 106,000 barrels of oil equivalent per day, with oil production of roughly 42,000 barrels per day. Drilling and completion capital for the quarter was $125 million, and the company ended the quarter with $296 million in cash. Based on stronger second-quarter production, Magnolia raised its full-year 2026 standalone production growth guidance to 6% from 5%.
About Magnolia Oil & Gas (NYSE:MGY)Magnolia Oil & Gas Corp NYSE: MGY is an independent exploration and production company focused on the acquisition, development and optimization of onshore oil and gas assets in South Texas. Headquartered in Houston, the company concentrates its efforts on the Eagle Ford Shale, where it holds significant working interests in key producing counties.
The company's core operations center on horizontal drilling and multi-stage completions designed to extract light crude oil, natural gas and natural gas liquids (NGLs).
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Key Takeaways CRGY posted record Q1 2026 production and exceeded Permian synergy targets after acquisitions.Magnolia combines disciplined capital allocation with strong free cash flow and low leverage.MGY targets 5% production growth in 2026 while expanding drilling opportunities in South Texas. Choosing the right exploration and production (E&P) stock requires balancing growth potential, financial strength and resilience across commodity cycles. Crescent Energy Company (CRGY - Free Report) and Magnolia Oil & Gas Corporation (MGY - Free Report) have emerged as attractive independent U.S. producers, but they follow distinctly different strategies to create shareholder value. Crescent Energy has built its business through disciplined acquisitions, operational improvements and a diversified asset portfolio, while Magnolia emphasizes organic growth, capital discipline and a conservative balance sheet anchored by high-quality South Texas assets. Both companies generate healthy free cash flow and maintain shareholder-friendly capital allocation policies, yet they differ in their approaches to growth, leverage and risk management. This comparison evaluates their operational strengths, financial positioning, growth opportunities and key challenges to determine which stock offers the more compelling long-term investment opportunity.
The Case for Crescent Energy StockCrescent Energy's biggest strength lies in its disciplined, free cash flow-focused operating model and its ability to improve acquired assets. The company delivered record first-quarter 2026 production of 341,000 barrels of oil equivalent per day while generating $192 million of levered free cash flow. Management has also executed well on integrating the Permian acquisition, capturing $120 million in synergies from the Vital Energy acquisition — already exceeding its initial target — through lower well costs, faster drilling cycle times and operational efficiencies. A diversified asset base across the Permian, Eagle Ford, Uinta and minerals business, coupled with a lower-decline production profile, supports stable cash flows and reduces the capital required to sustain production.
The company also has multiple growth opportunities that could enhance long-term shareholder value. Crescent Energy continues to identify additional efficiency gains in the Permian, including longer laterals, optimized well spacing and lower service costs, indicating further synergy potential beyond current expectations. In the Uinta Basin, improving well economics and ongoing delineation of additional formations could expand the resource base. Its high-margin minerals and royalties portfolio is expected to generate approximately $200 million of EBITDA in 2026, while strong projected free cash flow provides flexibility to reduce debt, pursue value-accretive acquisitions, repurchase shares and maintain shareholder distributions.
Despite these positives, Crescent Energy faces several challenges that could affect future performance. The company remains exposed to commodity price volatility, inflation in oilfield service costs and evolving environmental and regulatory requirements that can influence drilling economics and profitability. Continued execution of its acquisition-led growth strategy also carries integration risks, as realizing expected synergies and maintaining operational performance across expanding assets remain critical. Additionally, Crescent Energy operates with significant debt, making sustained free cash flow generation essential for deleveraging and preserving financial flexibility. The business is further subject to reserve replacement risks, supply chain constraints, geopolitical uncertainty and dependence on external management arrangements — all of which could impact long-term growth and returns if market conditions weaken.
The Case for Magnolia StockMagnolia has built a differentiated business model around high-quality, low-risk assets in South Texas, disciplined capital allocation and consistent free cash flow generation. Its core positions in the Eagle Ford and Austin Chalk formations provide a strong production base with relatively low decline rates, enabling the company to sustain moderate production growth while maintaining a low capital reinvestment rate. Magnolia's conservative balance sheet, minimal leverage and focus on returning excess cash through dividends and share repurchases further strengthen its financial flexibility. Operational efficiencies, high working interests across its acreage and a disciplined approach to bolt-on acquisitions have helped the company improve returns while expanding its inventory of high-quality drilling locations.
Magnolia also has several attractive development opportunities that can support long-term growth. The company continues to expand its acreage through targeted bolt-on acquisitions within its existing operating footprint, allowing it to leverage its technical expertise while extending its development inventory at attractive costs. Recent acquisitions in the Karnes and Giddings areas added contiguous acreage, increased working interests and created opportunities for longer lateral drilling, which should improve well economics. Management also expects approximately 5% production growth in 2026 while preserving capital discipline. With substantial free cash flow, Magnolia retains the flexibility to pursue additional acquisitions, invest in high-return projects and continue rewarding shareholders.
Despite these strengths, Magnolia faces several challenges that investors should monitor. Like other upstream producers, its earnings remain highly sensitive to fluctuations in crude oil, natural gas and NGL prices. The company has chosen to keep production unhedged, allowing greater upside during strong commodity markets but exposing cash flows to periods of weaker pricing. Growth also depends on successfully integrating acquisitions, efficiently developing newly acquired acreage and consistently replacing produced reserves. Inflationary pressures, supply-chain disruptions, regulatory changes, geopolitical developments and cybersecurity risks could increase operating costs or delay development activities. Additionally, Magnolia's concentrated asset base in South Texas limits geographic diversification, making operational performance closely tied to conditions in its core producing regions.
Price Performance ComparisonIn the past six months, shares of CRGY and MGY have gained 31.1% and 20.4%, respectively.
Image Source: Zacks Investment Research
Valuation ComparisonFrom a valuation perspective — in terms of Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA) ratio — Crescent Energy is trading at a discount of 3.85X compared with Magnolia’s 6.07X.
Image Source: Zacks Investment Research
EPS EstimatesAccording to the Zacks Consensus Estimate, CRGY’s earnings are set to rise 25.6% in 2026.
Image Source: Zacks Investment Research
The same for MGY’s 2026 EPS indicates a year-over-year increase of 49.2%.
Image Source: Zacks Investment Research
Summing UpWhile both companies present compelling investment cases, Magnolia appears better positioned for long-term investors, backed by its balanced combination of operational consistency, financial discipline and shareholder-friendly capital allocation.
While Crescent Energy offers attractive production growth and trades at a lower valuation, its acquisition-driven strategy and relatively higher debt profile introduce greater execution and financial risks, justifying its Zacks Rank #4 (Sell).
In contrast, Magnolia's low-leverage balance sheet, high-quality Eagle Ford and Austin Chalk assets, disciplined bolt-on acquisition strategy and strong free cash flow generation provide greater resilience across commodity cycles, supporting its Zacks Rank #3 (Hold). The company also expects stronger earnings growth in 2026, supported by efficient capital deployment and expanding high-return drilling opportunities.
Although Magnolia's concentrated asset base and unhedged production remain risks, its conservative operating model, financial flexibility and consistent shareholder returns make it the stronger and more dependable investment opportunity between the two.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A pump jack operates near a gas turbine power plant in the Permian Basin oil field outside of Odessa, Texas, U.S. February 18, 2025. REUTERS/Eli Hartman/File Photo Purchase Licensing Rights, opens new tab
CompaniesJuly 20 (Reuters) - Magnolia Oil & Gas (MGY.N), opens new tab said on Monday it had agreed to acquire WildFire Energy for about $4.06 billion, including debt, to expand its position in the Giddings field in South Texas.
The deal includes about 810,000 net acres in Giddings, more than doubling Magnolia's position there to over 1.25 million net acres, strengthening its position across the Austin Chalk, Eagle Ford and Woodbine formations.
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The acquisition also includes a sand mine that supplies about 80% of Magnolia's annual sand needs, along with more than 500 miles of gas gathering pipelines.
Shale producers are pursuing consolidation in core operating areas to secure long-life drilling inventory, lower development costs and support shareholder returns, even as the pace of industry megamergers has slowed.
The company said the larger, contiguous acreage position is expected to generate more than $100 million in annual cost savings and operational synergies.
"WildFire is not only a hand-in-glove fit for Magnolia, but it also offers unmatched benefits while meeting several important characteristics we look for — focused, high-quality assets with concentrated scale, a low capital reinvestment rate providing moderate production growth, high operating margins, and steady free cash flow," Magnolia CEO Chris Stavros said.
Stavros added that these qualities would allow Magnolia to deliver consistent and significant shareholder returns.
Under the agreement, WildFire owners will receive 32.2 million Magnolia Class A shares, while Magnolia will assume $600 million of WildFire notes due in 2029.
Magnolia also raised its quarterly dividend by 9% to 18 cents per share, citing confidence in the acquired assets' ability to generate higher free cash flow.
Separately, Magnolia said second-quarter production averaged 106,100 barrels of oil equivalent per day and raised its standalone 2026 production growth forecast to 6% from 5%.
The deal is expected to close late in the third quarter of 2026.
Reporting by Pranav Mathur in Bengaluru; Editing by Anil D'Silva and Shreya Biswas
Our Standards: The Thomson Reuters Trust Principles., opens new tab
HOUSTON--(BUSINESS WIRE)--Magnolia Oil & Gas Corporation (NYSE: MGY) will host a conference call and webcast to discuss operational and financial results for the second quarter 2026 on Thursday, August 6th at 10:00 a.m. Central Time (11:00 a.m. Eastern Time).
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. Materials related to Magnolia’s second quarter 2026 financial results to be discussed during the webcast will be made available in the Investors section of the website prior to the call. The company will post a replay of the webcast on its website following the call.
About Magnolia Oil & Gas
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.
Key Takeaways Magnolia Oil & Gas reportedly leads bidding for WildFire Energy in a deal valued at more than $4 billion.MGY's potential purchase would be its largest acquisition and would expand its shale asset portfolio.WildFire operates 2,000 wells producing over 50,000 boe/d, making it an attractive acquisition target. Magnolia Oil & Gas Corporation (MGY - Free Report) is reportedly emerging as the leading contender to acquire privately held WildFire Energy in a deal valued at more than $4 billion. According to a Bloomberg report cited by SeekingAlpha, the acquisition would be the largest in MGY's history and signal a significant shift from its traditionally conservative growth strategy.
If finalized, the transaction would further underscore the ongoing consolidation trend in the U.S. oil and gas industry, where producers are seeking larger, higher-quality asset portfolios to strengthen long-term competitiveness.
Magnolia Oil & Gas Reportedly Leads the Bidding ProcessAccording to reports, Magnolia Oil & Gas is poised to win the auction for Texas-based WildFire, which is backed by private equity firms Warburg Pincus and Kayne Anderson. While the companies have not officially confirmed the transaction, sources indicate that negotiations are at an advanced stage and an announcement could come within weeks.
The acquisition process remains competitive, meaning another bidder could still emerge before a final agreement is reached.
A Major Strategic Shift for Magnolia Oil & GasA transaction exceeding $4 billion would represent a notable departure from Magnolia Oil & Gas' long-standing strategy of disciplined capital allocation and smaller, bolt-on acquisitions.
The company has built its reputation on maintaining capital efficiency, preserving a strong balance sheet and returning value to shareholders. Acquiring WildFire would significantly expand MGY's operational footprint while demonstrating a greater willingness to pursue transformative growth opportunities.
If completed, the deal would become Magnolia Oil & Gas' largest acquisition to date and could redefine its position among independent U.S. exploration and production companies.
WildFire Brings High-Quality Shale AssetsWildFire has become an attractive acquisition target thanks to its sizable portfolio of producing assets. The company operates more than 2,000 wells that collectively produce over 50,000 barrels of oil equivalent per day (boe/d).
Its management team also brings substantial industry experience, having previously led WildHorse Resource Development before selling that company to Chesapeake Energy in 2019.
These established operations and experienced leadership make WildFire a valuable asset for companies seeking immediate production growth.
Industry Consolidation ContinuesThe reported acquisition reflects a broader trend reshaping the U.S. upstream energy sector. Over the past two years, oil and gas companies have increasingly pursued mergers and acquisitions to secure premium shale acreage, improve operating efficiencies and achieve greater economies of scale.
Strong commodity prices have generated substantial cash flows, allowing many producers to pursue strategic acquisitions while positioning themselves for long-term competitiveness against larger integrated energy companies.
Private equity-backed producers such as WildFire have become especially attractive targets as public companies look to expand through acquisitions rather than organic development alone.
Investors to Watch Financing and Capital AllocationAlthough Magnolia Oil & Gasappears to be the leading bidder, investors are likely to focus on how the company finances a transaction of this size.
The acquisition could have implications for Magnolia Oil & Gas' capital allocation strategy, including shareholder returns programs such as dividends and share repurchases that have been central to its investment appeal.
Market participants will also evaluate whether the expected operational synergies and production growth justify the scale of the investment.
What the Deal Could Mean for Magnolia Oil & GasWhile the reported acquisition has not yet been finalized, Magnolia Oil & Gas appears to be positioning itself for a transformational expansion. If the company successfully acquires WildFire, it would gain a significant portfolio of shale assets while joining the growing list of independent producers pursuing larger-scale consolidation.
As the energy industry continues to evolve, the outcome of this potential deal could shape MGY's long-term growth strategy and further accelerate consolidation across the U.S. upstream sector.
MGY’s Zacks Rank & Key PicksMagnolia Oil & Gas is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Currently, MGY carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some top-ranked stocks like Global Partners LP (GLP - Free Report) , Delek US Holdings, Inc. (DK - Free Report) and Liberty Energy Inc. (LBRT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Global Partners is a Delaware limited partnership formed by affiliates of the Slifka family. It owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The Zacks Consensus Estimate for GLP’s 2026 earnings indicates 113.1% year-over-year growth.
TN-based Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. The company’s operations are organized into two reportable segments: Refining and Logistics. The Zacks Consensus Estimate for DK’s 2026 revenues indicates 5.9% year-over-year growth.
Liberty Energy is a leading North American oilfield services company, specializing in hydraulic fracturing and completion solutions. The company provides differentiated services through advanced technology integration and real-time data analytics. The Zacks Consensus Estimate for LBRT’s 2026 earnings indicates 66.7% year-over-year growth.
Magnolia Oil & Gas Corp (NYSE:MGY – Get Free Report) shares were down 7% on Friday . The company traded as low as $26.57 and last traded at $26.5350. Approximately 163,312 shares traded hands during mid-day trading, a decline of 95% from the average daily volume of 2,977,866 shares. The stock had previously closed at $28.54.
Analyst Upgrades and Downgrades A number of equities research analysts recently weighed in on MGY shares. The Goldman Sachs Group increased their price target on Magnolia Oil & Gas from $23.00 to $26.00 and gave the company a “neutral” rating in a research note on Wednesday, February 11th. Roth Mkm restated a “neutral” rating and issued a $32.00 price target (up from $29.00) on shares of Magnolia Oil & Gas in a research note on Wednesday, April 8th. Citigroup dropped their price target on Magnolia Oil & Gas from $35.00 to $32.00 and set a “neutral” rating on the stock in a research note on Monday, April 13th. Weiss Ratings reiterated a “hold (c)” rating on shares of Magnolia Oil & Gas in a research report on Thursday, January 22nd. Finally, BMO Capital Markets assumed coverage on Magnolia Oil & Gas in a research report on Friday, January 9th. They set an “outperform” rating and a $27.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $31.00.
Read Our Latest Analysis on MGY
Magnolia Oil & Gas Trading Down 3.3% The company has a market capitalization of $5.15 billion, a price-to-earnings ratio of 16.05, a price-to-earnings-growth ratio of 1.70 and a beta of 0.83. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.54 and a current ratio of 1.54. The firm has a fifty day moving average price of $29.05 and a 200-day moving average price of $25.11.
Magnolia Oil & Gas (NYSE:MGY – Get Free Report) last released its earnings results on Thursday, February 5th. The company reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.01. The company had revenue of $317.63 million for the quarter, compared to analyst estimates of $322.18 million. Magnolia Oil & Gas had a return on equity of 16.67% and a net margin of 24.79%.Magnolia Oil & Gas’s quarterly revenue was down 2.8% on a year-over-year basis. During the same period in the prior year, the firm posted $0.44 EPS. As a group, equities analysts anticipate that Magnolia Oil & Gas Corp will post 2.1 EPS for the current year.
Magnolia Oil & Gas Increases Dividend The business also recently announced a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Tuesday, February 10th were issued a dividend of $0.165 per share. This is an increase from Magnolia Oil & Gas’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend was Tuesday, February 10th. This represents a $0.66 annualized dividend and a dividend yield of 2.4%. Magnolia Oil & Gas’s payout ratio is currently 38.37%.
Insider Activity at Magnolia Oil & Gas In other news, Director Dan F. Smith sold 18,000 shares of the stock in a transaction on Monday, March 9th. The stock was sold at an average price of $29.01, for a total transaction of $522,180.00. Following the sale, the director directly owned 119,204 shares of the company’s stock, valued at approximately $3,458,108.04. This represents a 13.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Edward P. Djerejian sold 18,000 shares of the stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $28.98, for a total value of $521,640.00. Following the sale, the director directly owned 110,425 shares in the company, valued at approximately $3,200,116.50. This trade represents a 14.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 338,954 shares of company stock worth $9,911,733 in the last quarter. 0.92% of the stock is currently owned by corporate insiders.
Institutional Trading of Magnolia Oil & Gas Large investors have recently modified their holdings of the stock. Mather Group LLC. acquired a new stake in shares of Magnolia Oil & Gas during the 3rd quarter worth $31,000. Salomon & Ludwin LLC boosted its stake in Magnolia Oil & Gas by 130.1% in the fourth quarter. Salomon & Ludwin LLC now owns 1,344 shares of the company’s stock valued at $29,000 after buying an additional 760 shares in the last quarter. EverSource Wealth Advisors LLC boosted its stake in Magnolia Oil & Gas by 165.5% in the second quarter. EverSource Wealth Advisors LLC now owns 1,386 shares of the company’s stock valued at $31,000 after buying an additional 864 shares in the last quarter. Torren Management LLC acquired a new stake in Magnolia Oil & Gas in the fourth quarter valued at about $38,000. Finally, Parallel Advisors LLC boosted its stake in Magnolia Oil & Gas by 79.8% in the fourth quarter. Parallel Advisors LLC now owns 1,769 shares of the company’s stock valued at $39,000 after buying an additional 785 shares in the last quarter. 94.73% of the stock is owned by institutional investors and hedge funds.
Magnolia Oil & Gas Company Profile (Get Free Report)
Magnolia Oil & Gas Corp (NYSE: MGY) is an independent exploration and production company focused on the acquisition, development and optimization of onshore oil and gas assets in South Texas. Headquartered in Houston, the company concentrates its efforts on the Eagle Ford Shale, where it holds significant working interests in key producing counties.
The company’s core operations center on horizontal drilling and multi-stage completions designed to extract light crude oil, natural gas and natural gas liquids (NGLs).
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Osage Exploration and Development (OTCMKTS:OEDVQ – Get Free Report) and Magnolia Oil & Gas (NYSE:MGY – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.
Earnings & Valuation This table compares Osage Exploration and Development and Magnolia Oil & Gas”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Osage Exploration and Development N/A N/A N/A N/A N/A Magnolia Oil & Gas $1.31 billion 4.21 $325.25 million $1.72 17.23 Magnolia Oil & Gas has higher revenue and earnings than Osage Exploration and Development.
Analyst Recommendations This is a summary of recent ratings and target prices for Osage Exploration and Development and Magnolia Oil & Gas, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Osage Exploration and Development 0 0 0 0 0.00 Magnolia Oil & Gas 0 9 7 1 2.53 Magnolia Oil & Gas has a consensus target price of $31.00, suggesting a potential upside of 4.61%. Given Magnolia Oil & Gas’ stronger consensus rating and higher probable upside, analysts plainly believe Magnolia Oil & Gas is more favorable than Osage Exploration and Development.
Profitability This table compares Osage Exploration and Development and Magnolia Oil & Gas’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Osage Exploration and Development N/A N/A N/A Magnolia Oil & Gas 24.79% 16.67% 11.53% Institutional and Insider Ownership 94.7% of Magnolia Oil & Gas shares are owned by institutional investors. 0.9% of Magnolia Oil & Gas shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary Magnolia Oil & Gas beats Osage Exploration and Development on 10 of the 10 factors compared between the two stocks.
About Osage Exploration and Development (Get Free Report)
Osage Exploration & Development, Inc. is an exploration and production company, which interests in oil and gas wells and prospects. It is focused on the Horizontal Mississippian and Woodford plays in Oklahoma. The company was founded on February 24, 2003 and is headquartered in San Diego, CA.
About Magnolia Oil & Gas (Get Free Report)
Magnolia Oil & Gas Corp. engages in the acquisition, development, exploration, and production of oil and natural gas properties. It operates assets located in the Eagle Ford Shale and Austin Chalk formations in South Texas. The company was founded on February 14, 2017 and is headquartered in Houston, TX.
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Wall Street expects a year-over-year decline in earnings on lower revenues when Magnolia Oil & Gas Corp (MGY - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on May 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of -10.9%.
Revenues are expected to be $335.12 million, down 4.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 31.99% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Magnolia Oil & Gas Corp?For Magnolia Oil & Gas Corp, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.38%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination indicates that Magnolia Oil & Gas Corp will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Magnolia Oil & Gas Corp would post earnings of $0.36 per share when it actually produced earnings of $0.37, delivering a surprise of +2.78%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Magnolia Oil & Gas Corp appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Oil and Gas - Exploration and Production - United States industry, Talos Energy (TALO - Free Report) , is soon expected to post loss of $0.09 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of -250%. Revenues for the quarter are expected to be $433.71 million, down 15.5% from the year-ago quarter.
The consensus EPS estimate for Talos Energy has been revised 155.1% higher over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Talos Energy will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Wall Street expects a year-over-year increase in earnings on higher revenues when Cheniere Energy (LNG - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis natural gas company is expected to post quarterly earnings of $3.91 per share in its upcoming report, which represents a year-over-year change of +149%.
Revenues are expected to be $5.7 billion, up 4.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 16.29% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Cheniere Energy?For Cheniere Energy, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -5.79%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Cheniere Energy will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Cheniere Energy would post earnings of $3.83 per share when it actually produced earnings of $2.87, delivering a surprise of -25.07%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Cheniere Energy doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Oil and Gas - Exploration and Production - United States industry, Magnolia Oil & Gas Corp (MGY - Free Report) , is soon expected to post earnings of $0.49 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of -10.9%. Revenues for the quarter are expected to be $335.12 million, down 4.3% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Magnolia Oil & Gas Corp has been revised 32.6% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
When combined with a Zacks Rank of #1 (Strong Buy), this Earnings ESP makes it difficult to conclusively predict that Magnolia Oil & Gas Corp will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways Magnolia Oil & Gas will report Q1 earnings May 6, with EPS projected at 49 cents and revenues at $335M.MGY may benefit from higher oil prices, unhedged exposure and rising production volumes.MGY faces revenue declines and higher operating costs, including rising expenses across key segments. Magnolia Oil & Gas Corporation (MGY - Free Report) is set to report first-quarter 2026 earnings on May 6. The Zacks Consensus Estimate for earnings is pegged at 49 cents per share and the same for revenues is pinned at $335.12 million.
Let us delve into the factors that might have influenced MGY’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of MGY’s Q4 Earnings & Surprise HistoryIn the last quarter, the Houston, TX-based oil and gas exploration and production company reported net profit of 37 cents per share, which marginally beat the Zacks Consensus Estimate of 36 cents. This was primarily driven by record quarterly production volumes attributed to strong well productivity in the company’s Giddings asset. The company’s total revenues were $318 million, which beat the Zacks Consensus Estimate of $312 million, driven by higher revenues from natural gas. MGY’s earnings beat the consensus estimate in each of the trailing four quarters, delivering an average surprise of 3.51%.
This is depicted in the graph below:
Trend in MGY’s Estimate RevisionThe Zacks Consensus Estimate for first-quarter 2026 earnings has remained unchanged, with a downward revision recorded in the past seven days. The estimated figure indicates a 10.91% year-over-year decrease. Additionally, the Zacks Consensus Estimate for revenues indicates a decline of 4.33% from the year-ago period’s level.
Factors to Consider Ahead of MGY’s Q1 ReleaseMGY makes revenues by acquiring land or leases with oil and natural gas reserves, primarily in South Texas. The company explores these properties, drills wells to extract the oil and gas and sells the resources to other energy companies. By focusing on areas such as the Eagle Ford Shale and Austin Chalk, MGY profits from the difference between the costs of drilling and production and the income from selling the extracted oil and gas.
The company is likely to have benefited from stronger oil prices toward the end of the to-be-reported quarter, as the month of March witnessed a sharp rally driven by geopolitical disruptions, which is expected to have lifted average realized prices sequentially.
Magnolia's largely unhedged position is expected to have allowed it to fully capture the upside in commodity prices, supporting higher revenues, margins and operating cash flows. Steady production growth is likely to have provided incremental volume support, which, combined with improved pricing, might have driven earnings expansion on both a sequential and year-over-year basis. As per our model, we expect MGY to report higher daily production volumes.
Oil production, in thousand barrels per day (MBbls/d), is projected to increase 3.7% year over year, while natural gas liquids production, in MBbls/d, is expected to rise 8.9%. Gas production, in million cubic feet per day (Mmcf/d), is anticipated to grow 5.2% year over year. Additionally, Magnolia’s disciplined capital spending strategy is expected to have enhanced operating efficiency and free cash flow generation, particularly in a higher price environment.
On the bearish side, MGY’s revenues are likely to have come under pressure in the quarter to be reported. The Zacks Consensus Estimate for first-quarter revenues is expected to be down from the year-ago quarter’s $350 million. According to our model, we expect the company’s oil, natural gas liquids and natural gas revenues to decrease 17.6%, 2.3% and 6.4%, respectively, from the year-ago quarter. Additionally. The appreciation in MGY’s costs is expected to have dented its bottom line.
To begin with, MGY’s total operating expenses are expected to reach $218.9 million in the first quarter, which is 2.1% up from last quarter’s level of $214.5 million. According to our model, the company’s lease operating expenses, gathering, transportation and processing costs, and depreciation, depletion and amortization expenses are expected to increase 9.8%, 3.9% and 9%, respectively, from the year-ago quarter.
What Does Our Model Say About MGY Stock?Our proven model predicts an earnings beat for Magnolia this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. This is exactly the case here.
MGY’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +5.38%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MGY’s Zacks Rank: Magnolia currently sports a Zacks Rank #1.
Other Stocks to ConsiderHere are some other firms from the energy space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Shell (SHEL - Free Report) is scheduled to release earnings on May 7. The firm has an Earnings ESP of +3.56% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the Zacks Consensus Estimate for SHEL’s 2026 earnings per share indicates 52.38% year-over-year growth. Valued at around $248.04 billion, SHEL’s shares have risen 37.9% in a year.
Ovintiv (OVV - Free Report) has an Earnings ESP of +21.28% and a Zacks Rank #2. The firm is scheduled to release earnings on May 11.
Notably, the Zacks Consensus Estimate for Ovintiv’s 2026 earnings per share indicates 32.64% year-over-year growth. Valued at around $16.56 billion, Ovintiv’s shares have risen 81.9% in a year.
Venture Global, Inc. (VG - Free Report) has an Earnings ESP of +9.36% and a Zacks Rank #2. The firm is scheduled to release earnings on May 12.
Notably, the Zacks Consensus Estimate for Venture Global’s 2026 earnings per share indicates 25% year-over-year growth. Valued at around $29.88 billion, Venture Global’s shares have risen 56.9% in a year.
Magnolia Oil & Gas Corp (MGY - Free Report) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.20%. A quarter ago, it was expected that this company would post earnings of $0.36 per share when it actually produced earnings of $0.37, delivering a surprise of +2.78%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Magnolia Oil & Gas Corp, which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $358.51 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 6.98%. This compares to year-ago revenues of $350.3 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Magnolia Oil & Gas Corp shares have added about 41% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for Magnolia Oil & Gas Corp?While Magnolia Oil & Gas Corp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Magnolia Oil & Gas Corp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.71 on $371.73 million in revenues for the coming quarter and $2.80 on $1.47 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - United States is currently in the top 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Evolution Petroleum (EPM - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 12.
This oil and gas company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 185.7% higher over the last 30 days to the current level.
Evolution Petroleum's revenues are expected to be $22.97 million, up 1.8% from the year-ago quarter.
Magnolia Oil & Gas Corp (MGY - Free Report) reported $358.51 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 2.3%. EPS of $0.54 for the same period compares to $0.55 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $335.12 million, representing a surprise of +6.98%. The company delivered an EPS surprise of +5.2%, with the consensus EPS estimate being $0.51.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Magnolia Oil & Gas Corp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average daily production - Total: 102,564.00 BOE/D compared to the 102,117.00 BOE/D average estimate based on six analysts.Average daily production - Natural Gas: 193,143.00 Mcf/D compared to the 193,842.90 Mcf/D average estimate based on six analysts.Average daily production - Natural gas liquids: 29,696.00 BBL/D versus the six-analyst average estimate of 29,551.43 BBL/D.Average daily production - Oil: 40,678.00 BBL/D versus 40,047.31 BBL/D estimated by six analysts on average.Average sales prices - Natural gas: $2.98 compared to the $2.94 average estimate based on five analysts.Average sales prices - Natural gas liquids: $18.48 versus $19.51 estimated by four analysts on average.Average sales prices - Oil: $70.29 versus the four-analyst average estimate of $66.79.Total Production: 9,231.00 MBOE compared to the 9,174.52 MBOE average estimate based on two analysts.Revenues- Natural gas: $51.8 million compared to the $51.39 million average estimate based on five analysts. The reported number represents a change of +0.8% year over year.Revenues- Natural gas liquids: $49.38 million versus the four-analyst average estimate of $52.46 million. The reported number represents a year-over-year change of -7.5%.Revenues- Oil: $257.33 million versus the four-analyst average estimate of $240.83 million. The reported number represents a year-over-year change of +4.8%.View all Key Company Metrics for Magnolia Oil & Gas Corp here>>>
Shares of Magnolia Oil & Gas Corp have returned -3.4% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
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Published in earnings earnings-estimates-revisions earnings-surprise
Church & Dwight (NYSE:CHD) Director Robert Shearer Sells 8,600 SharesChurch & Dwight Co., Inc. (NYSE:CHD - Get Free Report) Director Robert Shearer sold 8,600 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $97.97, for a total transaction of $842,542.00. Following the completion of the sale, the director directly owned 30,678 shares in the company, valued at $3,005,523.66. This trade represents a 21.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.
Key Takeaways MGY beat Q1 estimates as production rose 6% year over year to 102.6 Mboe/d on Giddings strength.Magnolia generated $145.6M in free cash flow and returned 57% through dividends and buybacks.MGY spent $155M on bolt-on deals in Karnes and Giddings, adding acreage and low-decline output. Magnolia Oil & Gas Corporation (MGY - Free Report) posted first-quarter 2026 net profit of 54 cents per share, beating the Zacks Consensus Estimate of 51 cents by 5.9%. This outperformance can be attributed to higher production, led by Giddings, alongside disciplined spending that supported sizable free cash flow generation. Total output increased 6% year over year to 102.6 thousand barrels of oil equivalent per day (Mboe/d), which also exceeded the consensus estimate by 0.44%, providing a key operating tailwind. However, the bottom line declined from the year-ago quarter’s 55 cents mainly because operating expenses increased nearly 8% during the quarter, compressing margins.
The oil and gas exploration and production company’s total revenues of $358.5 million rose 2.3% from the year-ago quarter and topped the consensus mark of $335 million by about 7%, driven by a higher year-over-year contribution from oil revenues.
MGY's Volumes Rise on Giddings StrengthMagnolia reported the average daily total output of 102,564 barrels of oil equivalent per day (boe/d), increasing 6.2% from the year-ago quarter’s 96,549 boe/d. The figure also beat the model estimate of 102,000 boe/d.
Magnolia’s oil volumes averaged 40,678 barrels per day (bpd) in the quarter, up from 39,078 bpd a year ago. Moreover, the figure topped our estimate of 40,500 bpd. Natural gas volumes improved to 193,143 thousand cubic feet (Mcf) per day from 183,248 Mcf/d. The figure also surpassed our estimate of 192,700 Mcf/d. NGL volumes increased to 29,696 bpd from 26,930 bpd. Moreover, the figure beat our estimate of 29,300 bpd.
Management highlighted that Giddings continued to drive the company’s growth profile, with its production representing 82% of total volumes during the quarter. Giddings total production increased 9% year over year, with oil volumes up 8%, supported by strong well performance.
Magnolia's Revenue Mix Reflects Strong Oil PricingOil remained the largest revenue contributor, with oil revenues of $257.3 million compared with $245.5 million in the year-ago period. Natural gas revenues were $51.8 million, modestly higher year over year, while NGL revenues declined to $49.4 million from $53.4 million.
Realizations were mixed across products. The average realized crude oil price was $70.29 per barrel, indicating a 0.7% increase from the year-ago period’s $69.81 and beating our estimate of $55.49. The average realized natural gas price of $2.98 per Mcf decreased from the year-ago period’s $3.11. However, it beat our estimate of $2.77 per Mcf. Additionally, the average realized natural gas liquids price was $18.48 per barrel, implying a 16.1% decrease from the year-ago period’s figure and missing our estimate of $19.75.
MGY recorded an average sales price of $38.84 per boe, unchanged from the year-ago level and beating our estimate of $32.97. Oil realized 97% of WTI, while natural gas realized 60% of Henry Hub, indicating weaker relative gas pricing capture in the quarter.
MGY's Costs, Firm and Operating Margin HeadwindsOperating expenses increased to $230.7 million from $214.5 million a year ago, reflecting higher general and administrative expense and higher gathering, transportation and processing costs. Lease operating expense was $47.8 million, essentially flat year over year, while gathering, transportation and processing rose to $18.2 million from $15 million.
Operating income was $127.8 million compared with $135.8 million in the prior-year quarter. The company’s pre-tax operating income margin was 36% in the quarter, down from 39% a year ago, alongside total adjusted cash operating costs of $11.57 per boe, which decreased slightly from $11.74.
Magnolia Converts Cash Flow Into Shareholder ReturnsNet cash provided by operating activities totaled $197.6 million. Free cash flow was $145.6 million, supported by a drilling and completion capital program of $128.7 million, which represented about 51% of adjusted EBITDAX.
Magnolia returned $83.3 million to its shareholders during the quarter, or 57% of free cash flow, through a combination of dividends and share repurchases. The company repurchased 2 million shares across Class A and Class B for $51.9 million, and it declared a quarterly dividend of 16.5 cents per Class A share payable June 1, 2026.
MGY Expands Position With Bolt-On AcquisitionsA notable corporate development in the quarter was a series of bolt-on acquisitions in both Karnes area and Giddings. The company spent approximately $155 million in cash to add about 6,200 net acres and roughly 500 boe/d of low-decline production, about 45% oil, with the majority closing late in the quarter.
On the earnings call, management framed the Karnes purchase as creating a largely contiguous 10,000-gross-acre block that adds multiple years of drilling inventory at Magnolia’s pace, while the Giddings deals increased working and royalty interests around existing operations.
MGY’s Balance SheetThe balance sheet remained conservative following the quarter’s capital returns and acquisitions. Cash and cash equivalents ended at $124.4 million. The company had long-term debt of $393.4 million, reflecting a debt-to-capitalization of 16.2%. Magnolia noted an undrawn $450 million revolving credit facility, supporting total liquidity of about $574 million.
GuidanceFor second-quarter 2026, the company expects production of approximately 105 Mboe/d. Drilling and Completion (D&C) capital spending is anticipated to be in the range of $120-$125 million. Fully diluted share count is projected to be approximately 185 million.
This Zacks Rank #1 (Strong Buy) company reiterated its two-rig and one-completion-crew operating cadence and expects total production growth of about 5% in 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.
Looking ahead, the company expects fiscal 2026 total production growth of approximately 5%. For 2026, D&C capital expenditures are projected in the range of $440-$480 million. The 2026 operating plan includes running approximately two rigs and one completion crew. Regarding the 2026 capital allocation plan, roughly 75-80% of capital is expected to be directed toward Giddings, while approximately 20-25% is allocated to Karnes.
Important Earnings at a GlanceWhile we have discussed MGY’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company (HAL - Free Report) , a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. (KMI - Free Report) , a Houston, TX-based oil and gas storage and transportation company,posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Range Resources Corporation (RRC - Free Report) , a Fort Worth, TX-based oil and gas exploration and production company, posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.
Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.
The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Magnolia Oil & Gas Corp (MGY - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question.
Magnolia Oil & Gas Corp is one of 238 companies in the Oils-Energy group. The Oils-Energy group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Magnolia Oil & Gas Corp is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for MGY's full-year earnings has moved 84.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, MGY has returned 30.8% so far this year. In comparison, Oils-Energy companies have returned an average of 29%. This means that Magnolia Oil & Gas Corp is outperforming the sector as a whole this year.
Another stock in the Oils-Energy sector, Talos Energy (TALO - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 39.3%.
The consensus estimate for Talos Energy's current year EPS has increased 112.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Magnolia Oil & Gas Corp belongs to the Oil and Gas - Exploration and Production - United States industry, a group that includes 34 individual stocks and currently sits at #9 in the Zacks Industry Rank. On average, stocks in this group have gained 25.9% this year, meaning that MGY is performing better in terms of year-to-date returns. Talos Energy is also part of the same industry.
Investors with an interest in Oils-Energy stocks should continue to track Magnolia Oil & Gas Corp and Talos Energy. These stocks will be looking to continue their solid performance.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
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#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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Stock to Watch: Magnolia Oil & Gas Corp (MGY - Free Report) Magnolia Oil & Gas is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Headquartered in Houston, TX, the firm is focused on the Eagle Ford Shale and Austin Chalk formations in South Texas.
MGY is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Oils-Energy stock. MGY has a Momentum Style Score of A, and shares are up 0.1% over the past four weeks.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.20 to $2.86 per share. MGY boasts an average earnings surprise of +4%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MGY should be on investors' short list.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Magnolia Oil & Gas Corp (MGY - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Magnolia Oil & Gas Corp currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if MGY is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For MGY, shares are up 6.33% over the past week while the Zacks Oil and Gas - Exploration and Production - United States industry is up 2.68% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.02% compares favorably with the industry's 4.12% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Magnolia Oil & Gas Corp have risen 9.04%, and are up 30.57% in the last year. On the other hand, the S&P 500 has only moved 8.69% and 26.52%, respectively.
Investors should also pay attention to MGY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. MGY is currently averaging 2,294,858 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with MGY.
Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost MGY's consensus estimate, increasing from $1.83 to $2.91 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that MGY is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Magnolia Oil & Gas Corp on your short list.
Magnolia Oil & Gas Corp (MGY - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Magnolia Oil & Gas Corp, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe earnings estimate of $0.76 per share for the current quarter represents a change of +76.7% from the number reported a year ago.
Over the last 30 days, the Zacks Consensus Estimate for Magnolia Oil & Gas Corp has increased 7.95% because four estimates have moved higher compared to no negative revisions.
Current-Year Estimate RevisionsThe company is expected to earn $2.91 per share for the full year, which represents a change of +62.6% from the prior-year number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Magnolia Oil & Gas Corp. Over the past month, four estimates have moved higher compared to one negative revision, helping the consensus estimate increase 8.88%.
Favorable Zacks RankThe promising estimate revisions have helped Magnolia Oil & Gas Corp earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineWhile strong estimate revisions for Magnolia Oil & Gas Corp have attracted decent investments and pushed the stock 7% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
Energy sector M&A is hot again. With West Texas Intermediate (WTI) crude recently trading at $94.77 per barrel and the EIA’s May 2026 Short-Term Energy Outlook projecting continued growth in Permian output, larger operators are hunting for accretive bolt-ons, scarcity acreage, and discounted offshore portfolios. Onshore consolidation in the Permian and Eagle Ford continues, and offshore/liquefied natural gas (LNG) M&A has accelerated as majors pursue long-life barrels.
To rank acquisition candidates, we focused on four criteria:
Small-to-mid-cap size Scarcity or premium asset quality Balance-sheet pressure or debt-free profiles Cheap valuations against peers Three names stand out.
3. Magnolia Oil & Gas (Least Likely) Magnolia Oil & Gas (NYSE: MGY | MGY Price Prediction) is the least-pressured but most premium candidate. At a market cap of roughly $5.3 billion and a trailing P/E of 16x, Magnolia is a pure-play Eagle Ford and Giddings operator with a fortress balance sheet.
Q1 2026 delivered EPS of $0.54 against a $0.52 estimate. Revenue totaled $358.51 million, and free cash flow was $145.57 million, up 32% year over year. Production hit 102.6 Mboe/d (thousand barrels of oil equivalent per day), with Giddings volumes up 9%. Magnolia closed roughly $155 million in bolt-on acquisitions across Karnes and Giddings during the quarter.
Magnolia would be a good fit for a Permian-heavy major or large Eagle Ford consolidator seeking south Texas scale without integration complexity. CEO Chris Stavros runs an unhedged, low-leverage model with $124.4 million in cash. Analysts carry a $33.88 price target, against a June 2 close of $27.75. This is a premium asset with no urgency.
2. Northern Oil & Gas Northern Oil & Gas (NYSE: NOG) offers a different angle: the non-operator model. It owns working interests across the Williston, Permian, and Appalachia/Utica after closing a $464.6 million Joint Ohio Utica acquisition from Antero Resources in February 2026.
Q1 2026 adjusted EPS came in at $0.74 versus a $0.68 estimate, with production of 148,303 Boe/d. The GAAP number was a $522.85 million net loss driven by mark-to-market derivative losses. Northern also raised $227.9 million net via an 8.3 million share offering, diluting holders.
At a market cap near $2.4 billion, a forward P/E of 5x, and an 8.2% dividend yield, Northern screens cheap. Non-op working interests are valued and integrated differently than operated acreage, but a larger non-op aggregator or basin consolidator could find value. Analyst targets stand at $34.44, well above the $22.04 June 2 close. Recent dilution and impairments could push management toward strategic alternatives.
1. Kosmos Energy (Most Likely) Kosmos Energy (NYSE: KOS) checks every box. The Dallas-based deepwater operator runs assets in Ghana (Jubilee, TEN), the Gulf of Mexico (Odd Job, Kodiak, Winterfell, Tiberius), and the GTA LNG project across Mauritania and Senegal. Its market cap stands at $1.7 billion, with a forward P/E of 6x.
Q1 2026 posted a loss of $0.07 versus a $0.02 estimate, a 450% earnings miss versus estimates, marking five straight quarters of negative GAAP earnings. Net debt entered 2026 at approximately $3 billion, and CEO Andrew Inglis has aggressively pivoted toward deleveraging. On the Q1 call, he told investors: “We remain focused on increasing our financial resilience and utilizing our free cash flow to accelerate debt paydown with deleveraging.” Management doubled the 2026 net-debt reduction target from 10% to roughly 20%. It plans to sell its Equatorial Guinea assets around mid-year and targets EBITDAX north of $1 billion in 2026. Q1 production hit a record 75,000 BOE/d, up 25% year over year, with operating costs down 47% year over year.
The likely acquirer is a supermajor or national oil company seeking long-life deepwater barrels plus LNG optionality at a distressed entry price. Shell is already a Gulf of Mexico alliance partner. BP operates GTA. Either could make a move. Despite a 226.4% year-to-date rally to $2.97, the stock trades below its $3.11 consensus analyst target and well below 2024 highs.
The Consolidation Setup Scarcity, balance-sheet pressure, and discounted valuations make small and mid-cap plays credible takeout targets in 2026. Magnolia offers premium Eagle Ford assets with no urgency. Northern offers cheap, diversified non-op exposure complicated by structure. Kosmos offers globally rare deepwater plus LNG at distressed multiples, with management actively reshaping the balance sheet. Against a backdrop of onshore basin rollups and renewed offshore and LNG dealmaking, Kosmos is the most likely 2026 acquisition target of this trio. Watch the Equatorial Guinea asset sale, the RBL facility extension process, and any Shell alliance developments as the next catalysts.
A month has gone by since the last earnings report for Magnolia Oil & Gas Corp (MGY - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Magnolia Oil & Gas Corp due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Magnolia Oil & Gas Corp before we dive into how investors and analysts have reacted as of late.
MGY Q1 Earnings Beat Estimates on Higher Volumes and Bolt-On DealsMagnolia Oil & Gas posted first-quarter 2026 net profit of 54 cents per share, beating the Zacks Consensus Estimate of 51 cents by 5.9%. This outperformance can be attributed to higher production, led by Giddings, alongside disciplined spending that supported sizable free cash flow generation. Total output increased 6% year over year to 102.6 thousand barrels of oil equivalent per day (Mboe/d), which also exceeded the consensus estimate by 0.44%, providing a key operating tailwind. However, the bottom line declined from the year-ago quarter’s 55 cents mainly because operating expenses increased nearly 8% during the quarter, compressing margins.
The oil and gas exploration and production company’s total revenues of $358.5 million rose 2.3% from the year-ago quarter and topped the consensus mark of $335 million by about 7%, driven by a higher year-over-year contribution from oil revenues.
Production and PriceMagnolia reported the average daily total output of 102,564 barrels of oil equivalent per day (boe/d), increasing 6.2% from the year-ago quarter’s 96,549 boe/d. The figure also beat the model estimate of 102,000 boe/d.
Magnolia’s oil volumes averaged 40,678 barrels per day (bpd) in the quarter, up from 39,078 bpd a year ago. Moreover, the figure topped our estimate of 40,500 bpd. Natural gas volumes improved to 193,143 thousand cubic feet (Mcf) per day from 183,248 Mcf/d. The figure also surpassed our estimate of 192,700 Mcf/d. NGL volumes increased to 29,696 bpd from 26,930 bpd. Moreover, the figure beat our estimate of 29,300 bpd.
Management highlighted that Giddings continued to drive the company’s growth profile, with its production representing 82% of total volumes during the quarter. Giddings total production increased 9% year over year, with oil volumes up 8%, supported by strong well performance.
Oil remained the largest revenue contributor, with oil revenues of $257.3 million compared with $245.5 million in the year-ago period. Natural gas revenues were $51.8 million, modestly higher year over year, while NGL revenues declined to $49.4 million from $53.4 million.
Realizations were mixed across products. The average realized crude oil price was $70.29 per barrel, indicating a 0.7% increase from the year-ago period’s $69.81 and beating our estimate of $55.49. The average realized natural gas price of $2.98 per Mcf decreased from the year-ago period’s $3.11. However, it beat our estimate of $2.77 per Mcf. Additionally, the average realized natural gas liquids price was $18.48 per barrel, implying a 16.1% decrease from the year-ago period’s figure and missing our estimate of $19.75.
MGY recorded an average sales price of $38.84 per boe, unchanged from the year-ago level and beating our estimate of $32.97. Oil realized 97% of WTI, while natural gas realized 60% of Henry Hub, indicating weaker relative gas pricing capture in the quarter.
Costs and Operating Margin Operating expenses increased to $230.7 million from $214.5 million a year ago, reflecting higher general and administrative expense and higher gathering, transportation and processing costs. Lease operating expense was $47.8 million, essentially flat year over year, while gathering, transportation and processing rose to $18.2 million from $15 million.
Operating income was $127.8 million compared with $135.8 million in the prior-year quarter. The company’s pre-tax operating income margin was 36% in the quarter, down from 39% a year ago, alongside total adjusted cash operating costs of $11.57 per boe, which decreased slightly from $11.74.
Net cash provided by operating activities totaled $197.6 million. Free cash flow was $145.6 million, supported by a drilling and completion capital program of $128.7 million, which represented about 51% of adjusted EBITDAX.
Magnolia returned $83.3 million to its shareholders during the quarter, or 57% of free cash flow, through a combination of dividends and share repurchases. The company repurchased 2 million shares across Class A and Class B for $51.9 million, and it declared a quarterly dividend of 16.5 cents per Class A share payable June 1, 2026.
A notable corporate development in the quarter was a series of bolt-on acquisitions in both Karnes area and Giddings. The company spent approximately $155 million in cash to add about 6,200 net acres and roughly 500 boe/d of low-decline production, about 45% oil, with the majority closing late in the quarter.
On the earnings call, management framed the Karnes purchase as creating a largely contiguous 10,000-gross-acre block that adds multiple years of drilling inventory at Magnolia’s pace, while the Giddings deals increased working and royalty interests around existing operations.
Balance SheetThe balance sheet remained conservative following the quarter’s capital returns and acquisitions. Cash and cash equivalents ended at $124.4 million. The company had long-term debt of $393.4 million, reflecting a debt-to-capitalization of 16.2%. Magnolia noted an undrawn $450 million revolving credit facility, supporting total liquidity of about $574 million.
GuidanceFor second-quarter 2026, the company expects production of approximately 105 Mboe/d. Drilling and Completion (D&C) capital spending is anticipated to be in the range of $120-$125 million. Fully diluted share count is projected to be approximately 185 million.
This company reiterated its two-rig and one-completion-crew operating cadence and expects total production growth of about 5% in 2026.
Looking ahead, the company expects fiscal 2026 total production growth of approximately 5%. For 2026, D&C capital expenditures are projected in the range of $440-$480 million. The 2026 operating plan includes running approximately two rigs and one completion crew. Regarding the 2026 capital allocation plan, roughly 75-80% of capital is expected to be directed toward Giddings, while approximately 20-25% is allocated to Karnes.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 14.29% due to these changes.
VGM ScoresCurrently, Magnolia Oil & Gas Corp has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Magnolia Oil & Gas Corp has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
