Magnolia Oil & Gas (MGY) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 ranged from $99.8 million to $101 million ($0.54 per diluted share), with strong and consistent financial and operational performance, disciplined capital allocation, and moderate production growth.

• Adjusted EBITDAX was $253 million, and free cash flow reached $146 million.

• Closed $155 million in bolt-on acquisitions, adding 6,200 net acres and 500 boe/d, expanding working and royalty interests in core areas.

• Returned $83 million to shareholders via dividends and share repurchases, representing 57% of free cash flow.

• Final private equity shareholder exit and elimination of Class B shares simplified the capital structure.

Financial highlights

• Q1 2026 revenue was $358.5–$359 million, up 2% year-over-year; net income declined 5% year-over-year to $99.8–$101 million; EPS was $0.54.

• Adjusted EBITDAX rose 2% to $253 million; free cash flow increased 32% year-over-year to $146 million.

• Drilling and completion capital expenditures were $128.7–$129 million, representing a 51% reinvestment rate.

• Operating income margin was 36%; adjusted cash operating margin was 70%.

• Ended the quarter with $124–$124.4 million in cash and total liquidity of $574 million.

Outlook and guidance

• Full-year 2026 production growth guidance reiterated at approximately 5%.

• Q2 2026 production expected to be about 105,000 boe/d; D&C capital spending projected at $120–$125 million.

• Full-year drilling and completion capital budget remains $440–$480 million.

• Oil price realizations anticipated to improve, benefiting from narrowed differentials and no hedging.

• Effective tax rate expected to be ~21% for 2026.