Magnolia Oil & Gas (MGY) Q1 2025 earnings summary

Executive summary

• Q1 2025 production reached a record 96.5 Mboe/d, up 14% year-over-year, with oil production up 4%, driven by strong Giddings asset performance and new multi-well pads showing shallower decline rates.

• Adjusted net income was $106 million and adjusted EBITDA/EBITDAX $248 million, both up 9% year-over-year, with a 39% operating income margin.

• Free cash flow was $111 million, with 74% returned to shareholders via dividends and share repurchases, totaling $81.7 million in Q1.

• Increased 2025 production growth guidance to 7%-9% (from 5%-7%) and lowered capital spending guidance by over 5% to $430-$470 million.

• Disciplined capital allocation and cost control maintained, with a focus on high-return projects and operational efficiency.

Financial highlights

• Q1 2025 revenues were $350.3 million, up 10% year-over-year, with net income of $106.6 million and operating income of $135.8 million.

• Adjusted EBITDAX margin was 71% for Q1 2025; annualized ROCE was 23%.

• Cash balance at quarter-end was $247.6 million; total liquidity was ~$698 million, including a fully undrawn $450 million revolver.

• Diluted weighted average shares outstanding declined by 5% year-over-year to 194.2 million.

• Net cash from operating activities was $224.5 million; capital expenditures for D&C were $130.4 million.

Outlook and guidance

• 2025 production growth guidance raised to 7%-9% and capital spending guidance lowered to $430-$470 million.

• Q2 2025 production expected to be ~97 Mboe/d; D&C capital spending estimated at ~$110 million.

• Effective tax rate expected at 21%; cash tax 7%-9% for 2025.

• Fully diluted share count for Q2 2025 expected to be ~193 million, 4% lower year-over-year.

• Reinvestment rate capped at 55% of gross cash flow/EBITDA.