Magnolia Oil & Gas Corp (MGY): Results of Operations and Financial Condition
Magnolia Oil & Gas Corp (MGY) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Magnolia Oil & Gas Corporation Announces Second Quarter 2026 Results HOUSTON, TX, August 5, 2026 - Magnolia Oil & Gas Corporation (“Magnolia,” “we,” “our,” or the “Company”) (NYSE: MGY) today announced its financial and operational results for the second quarter of 2
How this was made
The 30-second read
Why it matters
The filing provides fresh earnings datapoints, a guidance increase, and a definitive acquisition agreement with stated funding and expected close timing, all of which can drive near-term repricing and positioning.
Market read
MGY’s Q2 beat-like financials, raised production growth guidance, and disclosed acquisition financing create multiple tradable catalysts around capital allocation, dilution/leverage, and 2026 growth expectations.
What to watch
Traders may focus on the implied leverage and dilution from the 53.3M share offering and $500M senior notes, and on how the $3/bbl differential assumption affects realized margins versus consensus expectations.
Magnolia reported sharply higher second-quarter earnings and free cash flow, increased standalone full-year production growth guidance, and outlined financing for the WildFire Energy acquisition.
Net income, adjusted net income, diluted earnings per share, adjusted EBITDAX, production, and free cash flow increased year over year, while the Company raised standalone full-year 2026 production growth guidance to 6 percent from 5 percent.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net incomeGAAP | $181.8 million | – | 124 % |
| Adjusted net incomenon-GAAP | $184.3 million | – | 128 % |
| Earnings per share - dilutedGAAP | $0.97 | – | 137 % |
| Adjusted earnings per sharenon-GAAP | $0.99 per diluted share | – | – |
| Adjusted EBITDAXnon-GAAP | $370.3 million | – | 66 % |
| Capital expenditures - D&Cother | $125.0 million | – | 31 % |
| Average daily productionother | 106.1 Mboe/d | – | 8 % |
| Average daily oil productionother | 41.9 Mbbls/d | – | 5 % |
| Cash balance as of period endother | $295.9 million | – | 18 % |
| Diluted weighted average total shares outstandingother | 184.6 million | – | (4) % |
| Net cash provided by operating activitiesGAAP | $384.0 million | – | – |
| Free cash flownon-GAAP | $234.6 million | – | more than doubling year-over-year |
| Operating income as a percentage of revenue (pre-tax margins)GAAP | 50% | – | – |
| Giddings productionother | 85.5 Mboe/d | – | 10 percent |
| Giddings oil productionother | – | 7 percent | |
| Giddings production as a percentage of total Company volumesother | 81 percent | – | – |
third quarter 2026 and full year 2026, standalone basis outlook
- NoteThird quarter 2026 D&C capital spending is estimated to be approximately $115 million.
- NoteTotal estimated standalone company capital spending for the year reiterated in the range of $440 to $480 million.
- NoteTotal production for the standalone company in the third quarter is estimated to be similar to second quarter levels.
- NoteFull year 2026 production growth guidance on a standalone company basis to 6 percent from 5 percent.
- NoteFor the third quarter 2026, oil price differentials are expected to be approximately a $3 per barrel discount to Magellan East Houston.
Capital returns
- The Company repurchased 1.7 million shares of its Class A Common Stock during the second quarter for $49.3 million.
- Magnolia has 9.9 million Class A common shares remaining under its current share repurchase authorization.
- The Board declared a quarterly cash dividend of $0.18 per share, payable on September 1, 2026 to shareholders of record as of August 10, 2026.
- The quarterly dividend payment is a 9% increase compared to the previous rate, providing an annualized dividend of $0.72 per share.
- Magnolia returned $80.1 million, or 34% of the Company’s free cash flow, to shareholders during the second quarter through a combination of share repurchases and dividends.
What drove it
- Higher oil and NGL prices and growth in overall production volumes primarily drove the year-over-year increases in net income, adjusted net income, and earnings per diluted share.
- Total Company production grew by 8 percent year over year to 106.1 Mboe/d, including 41.9 Mbbls/d of oil production.
- Giddings production increased 10 percent year over year and Giddings oil production grew by 7 percent, driven by continued strong well performance.
- Total D&C capital of $125.0 million represented approximately 34% of adjusted EBITDAX.
- Production exceeded earlier guidance, according to the Company.
Concerns
- Third-quarter oil price differentials are expected to be approximately a $3 per barrel discount to Magellan East Houston.
- The WildFire acquisition is expected to close late in the third quarter of 2026.
- The acquisition financing includes $500 million of senior notes at 6.625% due in 2034 and 53.3 million newly issued shares.
- The filing did not report total revenue, gross profit, gross margin, operating income in dollars, or a total debt balance.
What to watch
- Whether standalone third-quarter total production remains similar to second-quarter levels.
- Execution against full-year standalone capital spending guidance of $440 to $480 million and third-quarter D&C capital spending of approximately $115 million.
- Progress toward the expected late-third-quarter closing of the WildFire acquisition.
- The effect of the expected approximately $3 per barrel discount to Magellan East Houston on third-quarter realized pricing.
- Integration and capital-allocation implications of funding the acquisition with approximately half equity and half debt.
Balance sheet and cash flow
- Cash balance as of period end was $295.9 million.
- Magnolia ended the second quarter with an undrawn $450 million revolving credit facility.
- Net cash provided by operating activities was $384.0 million during the second quarter of 2026.
- Free cash flow generated by the Company was $234.6 million.
- The Company issued 53.3 million new shares in a public offering for net proceeds of $1.23 billion.
- Magnolia issued $500 million of senior notes at 6.625% due in 2034.
- The public offering and senior-notes transactions closed on July 22nd and August 5th, respectively.
- The Acquisition will be funded with approximately half equity and half debt.
Analysis
Magnolia delivered a strong second quarter of 2026. GAAP net income was $181.8 million, compared with $81.0 million, while diluted earnings per share was $0.97, compared with $0.41. Adjusted net income was $184.3 million and adjusted EBITDAX was $370.3 million. The Company attributed the earnings improvement primarily to higher oil and NGL prices and growth in overall production volumes.
Operational performance supported the financial result. Average daily production increased to 106.1 Mboe/d from 98.2 Mboe/d, while average daily oil production rose to 41.9 Mbbls/d from 40.0 Mbbls/d. Giddings production reached 85.5 Mboe/d and represented 81 percent of total Company volumes. The Company cited continued strong well performance as the driver of Giddings growth and stated that overall production exceeded earlier guidance.
Cash generation and capital efficiency were central features of the quarter. Net cash provided by operating activities was $384.0 million and free cash flow was $234.6 million. Total D&C capital was $125.0 million, representing approximately 34% of adjusted EBITDAX. Magnolia reported operating income as a percentage of revenue, or pre-tax margins, of 50%. The Company repurchased 1.7 million Class A Common shares for $49.3 million and returned $80.1 million to shareholders through repurchases and dividends.
The outlook raises standalone full-year 2026 production growth guidance to 6 percent from 5 percent. Third-quarter standalone production is expected to be similar to second-quarter levels, while third-quarter D&C capital spending is estimated at approximately $115 million. Full-year standalone capital spending was reiterated at $440 to $480 million. Third-quarter pricing is an area of attention because the Company expects oil price differentials to be approximately a $3 per barrel discount to Magellan East Houston.
The WildFire acquisition is the major strategic and financing development. Magnolia expects the transaction to close late in the third quarter of 2026 and stated it will more than double its Giddings acreage. To partially fund the acquisition, the Company issued 53.3 million shares for net proceeds of $1.23 billion and issued $500 million of senior notes at 6.625% due in 2034. The Company stated that the acquisition will be funded with approximately half equity and half debt.
Management, verbatim
Our second quarter results continue to underscore the strength of Magnolia's differentiated business model and the quality of our asset base.
Chris Stavros, Chairman, President and CEO
Strongեր than expected overall oil and gas production totaling 106.1 thousand barrels of oil equivalent per day and oil production of 41.9 thousand barrels of oil per day further supported our quarterly financial results and enabled us to increase Magnolia’s standalone full-year 2026 production growth guidance to 6 percent from 5 percent.
Chris Stavros, Chairman, President and CEO
Not in the filing
stated, not guessed- Total revenue
- Revenue by product or segment
- Gross profit
- Gross margin
- Operating income in dollars
- Net income attributable to common stockholders, if different from reported net income
- Adjusted EBITDAX reconciliation details
- Prior-year adjusted earnings per share
- Prior-year free cash flow
- Prior-year net cash provided by operating activities
- Prior-quarter comparisons for reported financial and operating metrics
- Total debt balance as of period end
- Cash-flow statement items beyond net cash provided by operating activities and free cash flow
- Tax rate
- Production guidance stated as an absolute volume
- Third-quarter revenue guidance
- Gross-margin guidance
- Operating-expense guidance
- Tax-rate guidance
- Previous-release outlook required for comparison against prior guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Magnolia Oil & Gas Corp’s SEC Form 8-K reporting Q2 2026 results and financial condition, including an acquisition update and updated standalone production guidance.
Ticker impact
Magnolia reported Q2 2026 net income of $181.8M, raised 2026 standalone production growth guidance to 6% from 5%, and disclosed a WildFire acquisition to close late Q3.
Likely positive bias for the next few sessions as traders price in higher 2026 growth guidance and acquisition-driven free-cash-flow narrative, with volatility around the equity and debt issuance details.
The filing contains fresh, decision-relevant disclosures: Q2 results, explicit guidance change, and a definitive acquisition agreement with stated funding mix and timing (late Q3 2026).
Market effects
Upstream E&P names may see read-across interest as MGY highlights strong oil/NGL pricing, production growth, and shareholder return discipline.
South Texas (Giddings, Eagle Ford/Austin Chalk) acreage consolidation could attract attention from peers with similar basins and capital allocation models.
Limited direct global impact, but it reinforces the US shale capital discipline theme tied to oil price differentials and free-cash-flow generation.
Counterpoint
The acquisition is funded with a large equity issuance plus notes, which can pressure valuation and increase dilution risk even if management calls it accretive.
Key entities
- public_companyMagnolia Oil & Gas Corporation
NYSE-listed operator reporting Q2 2026 results, raising 2026 standalone production growth guidance, and announcing the WildFire acquisition.
- targetWildFire Energy
The company Magnolia agreed to acquire, expanding its Giddings acreage and Eagle Ford/Austin Chalk position in South Texas.
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