Magnolia Oil & Gas Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 1 October 2026: press release. Guidance figures: 21 new. The quarter’s numbers.

Key takeaways

Acquisition closed on schedule: WildFire Energy acquisition completed, creating a premier Eagle Ford and Austin Chalk operator with enhanced scale and contiguous South Texas asset base providing operational efficiencies. Source
Integration proceeding on track: Integration of WildFire assets and operations executing smoothly with teams closely aligned and dedicated to realizing substantial benefits from the combination. Source
Synergy targets established: Combination expected to generate greater than $100M annual run-rate synergies with at least one-third expected to be realized by year-end 2026. Source
Net debt ahead of target: Q3 net debt of approximately $1.9 billion achieved more than a year ahead of original plan due to strong cash flow and asset sale proceeds. Source
Leverage below target: At current strip pricing, leverage stands below 1.0x net debt to 2027E EBITDA, more than a year sooner than expected when WildFire acquisition was announced. Source
Disciplined reinvestment rate: Combined business expected to maintain D&C capital reinvestment rate well below 55% of adjusted EBITDAX while supporting organic growth targets. Source
Debt paydown alongside returns: After supporting dividend and buyback commitments, ample excess free cash flow directed toward reducing leverage to target of 0.5x net debt to EBITDA or below. Source

“We are very pleased to have closed the acquisition of WildFire Energy and are well on our way with integrating these attractive assets to begin realizing the substantial benefits of this highly complementary transaction”
Chris Stavros, Chairman, President and CEO

Guidance

Area	Period	Figure	Against last quarter
Production Source	third quarter 2026	116 to 118 Mboe/d (~42% oil)	New
Drilling & Completions Capital Source	third quarter 2026	$155 to $165 million	New
Production Source	fourth quarter 2026	159 to 161 Mboe/d	New
Oil Percentage Source	fourth quarter 2026	49% to 50%	New
Drilling & Completions Capital Source	fourth quarter 2026	approximately $235 million	New
Production Growth Source	2027	4 to 5 percent for both oil volumes and total production	New
Drilling & Completions Capital Source	2027	$900 to $950 million	New
Capital Reinvestment Rate Source	ongoing	well below 55 percent of adjusted EBITDAX	New
Operating Expense per Boe Source	fourth quarter 2026	$5.80 to $6.20	New
Gathering, Processing & Transportation per Boe Source	fourth quarter 2026	$1.80 to $2.10	New
Depreciation, Depletion & Amortization per Boe Source	fourth quarter 2026	$14.00 to $15.00	New
Production and Ad Valorem Taxes Source	fourth quarter 2026	5.5% to 6.5%	New
Interest Expense Source	fourth quarter 2026	$35 to $40 million	New
Cash Tax Rate Source	fourth quarter 2026	0% to 2%	New
Share Repurchases Source	quarterly	at least 1 percent of outstanding shares	New
Net Debt Target Source	ongoing	0.5x net debt to EBITDA or below	New
Net Debt at Quarter-End Source	third quarter 2026	approximately $1.9 billion	New
Leverage Ratio Source	third quarter 2026	below 1.0x net debt to 2027E EBITDA	New
Share Repurchases Executed Source	third quarter 2026	approximately 2.3 million shares	New
Synergies Source	annual run-rate	greater than $100 million	New
Non-Core Asset Sale Source	third quarter 2026	$47.5 million cash consideration plus 616 net acres	New

What changed from last quarter

New: WildFire Energy acquisition closed, integrating Eagle Ford and Austin Chalk assets into a large contiguous South Texas platform. Source
New guidance: 2027 production growth guidance of 4-5% for both oil and total volumes established as organic growth target. Source
New guidance: 2027 capital guidance of $900-950M provided, incorporating modest oil field service inflation assumptions. Source
New: Quarterly share buyback program formalized at minimum 1% of outstanding shares per quarter alongside dividend. Source
New: Debt target of 0.5x net debt to EBITDA or below established with achievement accelerated to more than a year ahead of original plan. Source
New: WildFire synergy target of greater than $100M annual run-rate established with expectation to realize at least one-third by year-end 2026. Source
New: Q4 2026 full-suite financial guidance provided including LOE, GP&T, DD&A, taxes, and interest expense. Source

WildFire Acquisition and Integration

Acquisition closed on schedule: WildFire Energy acquisition completed, creating a premier Eagle Ford and Austin Chalk operator with enhanced scale and contiguous South Texas asset base providing operational efficiencies. Source
Integration proceeding on track: Integration of WildFire assets and operations executing smoothly with teams closely aligned and dedicated to realizing substantial benefits from the combination. Source
Synergy targets established: Combination expected to generate greater than $100M annual run-rate synergies with at least one-third expected to be realized by year-end 2026. Source

Portfolio Optimization and Asset Management

Non-core asset sale completed: Divested non-core properties in Dimmit and Zavala counties for $47.5M cash plus received 616 net acres in Gonzales County to consolidate contiguous block. Source
Working interest increased in Karnes: Acreage received in Gonzales County (Karnes area) brings average operated working interest to 98 percent, providing significant duration complementing Giddings asset position. Source
Production from divested assets: Non-core asset divestiture removed approximately 1.4 Mboe/d with roughly 84% oil composition from next twelve-month production. Source

“The acquisition is an important new chapter for Magnolia in creating the premier Eagle Ford and Austin Chalk operator while enhancing our concentration of scale, adding high-quality durable resource opportunity, and providing operational efficiencies across a large, contiguous South Texas asset base”
Chris Stavros, Chairman, President and CEO

Balance Sheet and Debt Reduction

Net debt ahead of target: Q3 net debt of approximately $1.9 billion achieved more than a year ahead of original plan due to strong cash flow and asset sale proceeds. Source
Leverage below target: At current strip pricing, leverage stands below 1.0x net debt to 2027E EBITDA, more than a year sooner than expected when WildFire acquisition was announced. Source
Share repurchases in Q3: Repurchased approximately 2.3 million shares during Q3 (after period restriction lifted), bringing total outstanding shares to approximately 267 million. Source

Capital Expenditure and Efficiency

Q3 2026 capital guidance: D&C capital spending of $155-165 million expected for third quarter reflecting acquisition and divestiture impacts. Source
Q4 2026 capital guidance: Approximately $235 million in D&C capital expected for fourth quarter as first full quarter pro forma for acquisition. Source
2027 capital with inflation: 2027 D&C spending guided to $900-950 million, incorporating modest oil field service inflation assumptions. Source
Disciplined reinvestment rate: Combined business expected to maintain D&C capital reinvestment rate well below 55% of adjusted EBITDAX while supporting organic growth targets. Source

“We plan to consistently return a substantial portion of our free cash flow to shareholders through our safe, sustainable and growing dividend and through the execution of share repurchases of at least 1 percent of outstanding shares per quarter”

Shareholder Capital Allocation

Dividend characterized as growing: Dividend policy established as safe, sustainable and growing with consistent return of substantial free cash flow portion to shareholders. Source
Buyback program formalized: Share repurchase program established with minimum of 1% of outstanding shares per quarter executed as second pillar of shareholder returns. Source
Debt paydown alongside returns: After supporting dividend and buyback commitments, ample excess free cash flow directed toward reducing leverage to target of 0.5x net debt to EBITDA or below. Source

Operational Costs and Financial Metrics

Q4 lease operating expenses: Fourth quarter LOE guided at $5.80-$6.20 per barrel of oil equivalent for pro forma operations. Source
Q4 gathering and transport: GP&T costs for Q4 expected to range from $1.80-$2.10 per barrel of oil equivalent. Source
Q4 depreciation guidance: DD&A for fourth quarter estimated at $14.00-$15.00 per barrel of oil equivalent. Source
Q4 tax rate expectations: Effective tax rate of approximately 21% with cash tax rate of 0-2% expected for fourth quarter 2026. Source
Q4 interest expense: Fourth quarter interest expense expected to range from $35-40 million on combined debt portfolio. Source

Hedging and Price Protection

Inherited WildFire hedges: Acquired crude oil swap hedges from WildFire portfolio for multiple quarters at fixed price levels providing additional protection. Source
Hedged production volumes: More than half of oil production hedged through second quarter 2027 using combination of costless collars and inherited swaps with weighted average floor prices ranging from $70-$73.75 per barrel. Source

Coming up, per management

Conference call scheduled: Magnolia will host conference call and webcast to discuss Q3 2026 operational and financial results on November 5 at 10:00 a.m. Central Time. Source
Synergy realization timeline: Company expects to realize at least one-third of estimated greater than $100 million annual run-rate synergies by year-end 2026, with remainder coming in future periods. Source
Q4 2026 first full quarter: Fourth quarter 2026 to represent first full quarter pro forma for WildFire acquisition with 159-161 Mboe/d production guidance. Source

In management's words

“Thanks to the strong efforts, continued dedication and close alignment of our teams, the integration of the assets and operations is executing smoothly and proceeding on track”

Risks management discussed

Operational: Oil field service inflation incorporated into 2027 capital guidance assumptions, which could impact actual spending. Source
Financial: Oil price volatility addressed through hedging program with costless collar instruments structured to protect cash flow execution. Source

Earlier plans management reported on

On track: Management confirms WildFire integration of assets and operations is executing smoothly and on schedule. Source
Ahead: Achievement of below 1.0x net debt to 2027E EBITDA leverage accomplished more than one year sooner than originally anticipated. Source
On track: Company expects to realize at least one-third of estimated greater than $100M annual run-rate synergies by year-end 2026. Source

Summarised with AI from the documents the company filed with the SEC. Every point carries a quote that is checked word for word against the filing; a point whose quote is not found is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Exhibit 99.1

Magnolia Oil & Gas Provides Interim Financial and Operations Update

After Closing the Acquisition of WildFire Energy

Schedules Conference Call for Third Quarter 2026 Results

Houston, TX, October 1, 2026 - Magnolia Oil & Gas Corporation (NYSE: MGY) announced today an interim financial and operational update following the recent completion of its acquisition of WildFire Energy.

“We are very pleased to have closed the acquisition of WildFire Energy and are well on our way with integrating these attractive assets to begin realizing the substantial benefits of this highly complementary transaction,” stated Magnolia’s Chairman, President and CEO Chris Stavros. “The acquisition is an important new chapter for Magnolia in creating the premier Eagle Ford and Austin Chalk operator while enhancing our concentration of scale, adding high-quality durable resource opportunity, and providing operational efficiencies across a large, contiguous South Texas asset base. The resulting expected improvement in free cash flow further reinforces Magnolia’s differentiated business model by improving our financial returns and expanding our capacity for the return of capital to our shareholders.

“Thanks to the strong efforts, continued dedication and close alignment of our teams, the integration of the assets and operations is executing smoothly and proceeding on track. As we noted when announcing the acquisition, we anticipate the combined business would generate mid-single digit organic annual growth of 4 to 5 percent for both oil volumes and total production, which is above our peer company average growth, and with a D&C capital reinvestment rate of well below 55 percent of adjusted EBITDAX. We plan to consistently return a substantial portion of our free cash flow to shareholders through our safe, sustainable and growing dividend and through the execution of share repurchases of at least 1 percent of outstanding shares per quarter. Ample excess free cash flow will go toward reducing debt to our target of 0.5x net debt to EBITDA or below, and we have already made meaningful progress on this goal. Highlighted below are several key milestones we have already achieved in the short period since announcing the WildFire acquisition in late July.”

Key Milestones Achieved

●	Sold non-core assets for total consideration of $47.5 million plus received 616 net acres in Gonzales County increasing our working interest in a contiguous block of undeveloped acreage acquired earlier this year
●	Ended the third quarter 2026 with approximately $1.9 billion of net debt, which is below 1.0x net debt to 2027E EBITDA at current strip prices, and more than a full year ahead of our original plan
●	Implemented additional hedges at attractive pricing using costless collars with more than half our oil production hedged through second quarter 2027. These instruments protect the execution of our business model, allowing us to continue to reduce debt while retaining exposure to higher prices
●	Expect to realize at least one-third of estimated >$100 million annual run-rate synergies by year-end 2026

Portfolio Optimization

During the third quarter, Magnolia closed the sale of non-core assets in Dimmit and Zavala counties for total consideration of $47.5 million plus 616 net acres in Gonzales County (Karnes area). The acreage received in Gonzales County is inside the contiguous block of primarily undeveloped acreage Magnolia consolidated during the first quarter of 2026. This addition increases Magnolia’s average operated working interest in this acreage to 98 percent helping provide significant duration in the Karnes area that complements our Giddings asset position. The assets divested in Dimmit and Zavala included approximately 1.4 Mboe/d (~84% oil) of next twelve-month production.

Increased Working Interest in Gonzales County

Strong Progress on Reducing Debt and Strengthening the Balance Sheet

Magnolia ended the third quarter with approximately $1.9 billion of net debt, lower than expected due to strong cash flow and proceeds received from the non-core asset sale. At current strip pricing, Magnolia’s leverage is below 1.0x net debt to 2027E EBITDA, more than a year sooner than expected at the time of announcing the WildFire acquisition. Magnolia can consistently pay its safe and growing dividend, repurchase at least 1 percent of its outstanding shares each quarter while continuing to reduce its leverage. During the third quarter, the Company purchased approximately 2.3 million shares after being restricted for a portion of the quarter. Total shares outstanding at the end of the third quarter are approximately 267 million shares.

Production and Capital Outlook

Estimated production for the third quarter 2026 is expected to be 116 to 118 Mboe/d (~42% oil) after factoring in the closing of WildFire and the impact of divested non-core properties. D&C capital spending is expected to be in the range of $155 to $165 million during the third quarter reflecting the same considerations.

Production for the fourth quarter of 2026 (the first full quarter pro forma for the acquisition) is expected to be 159 to 161 Mboe/d (49% to 50% oil), reflecting the divested volumes. D&C capital spending is estimated to be approximately $235 million during the fourth quarter.

2027 production is estimated to grow 4 to 5 percent for both oil and total production off a second quarter 2026 pro forma production base of approximately 78 Mbo/d and 158 Mboe/d after accounting for the production volumes from the non-core asset sale. D&C capital spending is currently estimated to be in the range of $900 to $950 million during 2027 which incorporates a modest amount of oil field service inflation.

Additional Financial and Operational Considerations

Magnolia has provided updated guidance for the fourth quarter of 2026 (the first full quarter pro forma for the acquisition) for several financial and operating metrics in the table below. Additionally, the Company expects to realize one-time transaction and integration-related costs of approximately $65 to $75 million during the third quarter. Magnolia also purchased 3D seismic over the newly acquired acreage during the third quarter for approximately $14 million which will be reflected as exploration expense during the period.

Financial and Operating Metric	Q4 2026 Guidance
Production (Boe/d)	159 - 161
Oil Percent (%)	49% - 50%
D&C Capital Spending ($millions)	~$235
LOE (per Boe)	$5.80 - $6.20
GP&T (per Boe)	$1.80 - $2.10
DD&A (per Boe)	$14.00 - $15.00
Production and Ad Valorem Taxes (%)	5.5% - 6.5%
Interest Expense ($millions)	$35 - $40
Effective Tax Rate	~21%
Cash Tax Rate	0% - 2%
Pre-Hedge Oil Realization (to MEH)	$(2.00)

Oil Price Volatility Allowed for Opportunistic Short-term Hedging

Magnolia implemented oil hedges during the third quarter, and supplementing those inherited in the WildFire acquisition. These additional hedges are structured as costless collars with attractive floor prices intended to provide ample cash flow to protect the execution of our consistent business model while supporting continuous debt reduction. The updated derivative table is provided below:

Recently Added Magnolia Hedges:

Crude Oil Costless Collars:	Sep-26	Q4 2026	Q1 2027	Q2 2027	Q3 2027	Q4 2027
Notional volume (Bbls)	900,000	3,680,000	2,700,000	2,275,000	920,000	-
Weighted average floor price ($/Bbl)	$72.50	$73.75	$70.83	$70.00	$70.00	-
Weighted average ceiling price ($/Bbl)	$98.09	$90.97	$88.68	$82.31	$80.08	-

Hedges Inherited from WildFire Acquisition:

Crude Oil Swaps:	Sep-26	Q4 2026	Q1 2027	Q2 2027	Q3 2027	Q4 2027
Notional volume (Bbls)	773,754	2,261,947	2,066,605	1,982,790	893,666	866,955
Weighted average price ($/Bbl)	$64.16	$63.85	$63.46	$65.02	$67.37	$66.34

Conference Call for Third Quarter 2026 Results

Magnolia will host a conference call and webcast to discuss operational and financial results for the third quarter 2026 on Thursday, November 5 th 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 third 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 concentrated 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 operating margins and consistent free cash flow allowing for strong cash returns to our shareholders. For more information, visit www.magnoliaoilgas.com .

Cautionary Note Regarding Forward-Looking Statements

The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Magnolia’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, the words could, should, will, may, believe, anticipate, intend, estimate, expect, project, the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events. Except as otherwise required by applicable law, Magnolia disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Magnolia cautions you that these forward-looking statements are subject to all of the risk and uncertainties, most of which are difficult to predict and many of which are beyond the control of Magnolia, incident to the development, production, gathering and sale of oil, natural gas and natural gas liquids. In addition, Magnolia cautions you that the forward looking statements contained in this press release are subject to the following factors: (i) the market prices of oil, natural gas, NGLs, and other products or services; (ii) the supply and demand for oil, natural gas, NGLs, and other products or services, including impacts of actions taken by OPEC and other state-controlled oil companies; (iii) the outcome of any legal proceedings that may be instituted against Magnolia; (iv) Magnolia’s ability to realize the anticipated benefits of its acquisitions, which may be affected by, among other things, competition and the ability of Magnolia to grow and manage growth profitably; (v) legislative, regulatory, or policy changes, including those following the change in presidential administrations; (vi) geopolitical and business conditions in key regions of the world; (vii) cybersecurity threats, including increased use of artificial intelligence technologies; and (viii) the possibility that Magnolia may be adversely affected by other economic, business, and/or competitive factors, including inflation. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in Magnolia’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Magnolia’s SEC filings are available publicly on the SEC’s website at www.sec.gov.

Contacts

Investors

Tom Fitter

tfitter@mgyoil.com

Media

Christina Kuhl

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