Magnolia Oil & Gas (MGY) investor relations material

Executive summary

• Achieved Q2 2026 adjusted net income of $184 million, net income of $181.8 million, and adjusted EBITDAX of $370 million, with 8% year-over-year production growth to 106.1 Mboe/d and record production volumes, driven by Giddings asset performance and higher oil/NGL prices.

• Announced a $4.06 billion definitive agreement to acquire WildFire Energy, adding approximately 810,000 net acres and 53,000 BOE/d production, expected to close late Q3 2026 and be highly accretive to key per-share metrics.

• Returned over $80 million to shareholders in Q2 2026 via dividends and share repurchases, with a 9% increase in the quarterly dividend to $0.18/share.

• Raised full-year 2026 standalone production growth guidance to 6% from 5% due to strong Q2 production outperformance.

• Free cash flow more than doubled to $235 million, with a focus on rapid debt reduction and continued shareholder returns.

Financial highlights

• Q2 2026 revenue reached $478.8 million, up 50% year-over-year, with adjusted EBITDAX of $370 million and adjusted net income of $184 million, both up over 120% year-over-year.

• Free cash flow was $235 million, up 118% year-over-year; return on capital employed annualized at 39%.

• Cash balance at quarter-end was $296 million, up 18% year-over-year.

• Drilling and completion capital was $125 million, representing a 34% reinvestment rate, the lowest since 2022.

• Lease operating expenses per boe were $5.01, and total adjusted cash operating margin was $38.05/boe (77% margin).

Outlook and guidance

• Full-year 2026 standalone production growth guidance raised to 6%; Q3 2026 D&C capital spending estimated at $115 million, with production expected to remain near Q2 levels (~106,000 BOE/d).

• Fully diluted share count post-WildFire close projected at ~269 million.

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

• Effective tax rate projected at 21% with minimal cash taxes for 2026.

• Expanded RBL Facility to $2.25 billion and completed $1.2 billion equity offering and $500 million senior notes issuance to fund the acquisition.