Magnolia Oil & Gas (MGY) investor relations material

Executive summary

• Achieved Q2 2026 adjusted net income of $184 million ($0.99/share), with net income attributable to Class A Common Stock at $181.8 million and diluted EPS of $0.97; adjusted EBITDAX was $370 million, and production volumes grew 8% YoY to 106.1 Mboe/d, driven by Giddings asset performance and higher oil/NGL prices.

• Announced $4.06 billion WildFire Energy acquisition, adding 810,000 net acres and 53,000 BOE/d production, expected to close late Q3 2026, funded by cash, equity, and assumed debt.

• Returned $80 million to shareholders in Q2 via dividends and share repurchases, with a 9% dividend increase to $0.18/share and ongoing buybacks.

• Total revenues for Q2 2026 were $478.8 million, up 50% YoY, with operating income margin reaching 51%.

• Free cash flow was $235 million, with a focus on rapid debt reduction post-acquisition and robust liquidity maintained.

Financial highlights

• Adjusted net income: $184 million; adjusted EBITDAX: $370 million; Q2 2026 revenue: $478.8 million, up 50% YoY.

• Free cash flow: $235 million, up 118% YoY; capital reinvestment rate: 34% of adjusted EBITDAX.

• Pre-tax adjusted operating income margin: 51%; adjusted cash operating margin: $38.05/boe (77%).

• Ended Q2 with $296 million in cash and $450 million in undrawn credit facility.

• Annualized return on capital employed: 39%.

Outlook and guidance

• Raised full-year 2026 standalone production growth guidance to 6% from 5%.

• Q3 2026 D&C capital expected at $115 million; full-year capital spending guidance $440–$480 million; production to remain at ~106,000 BOE/d.

• Effective tax rate expected at 21% for 2026; minimal cash taxes anticipated.

• Dividend expected to compound at ~10% long-term; share repurchases to continue at 1% per quarter.

• Oil price differentials expected at a $3/bbl discount to Magellan East Houston in Q3.