Magnolia Oil & Gas (MGY) Q4 2025 earnings summary

Executive summary

• Achieved record production in Q4 2025, averaging 103.8–104,000 BOE/d, with full-year production up 11% to 99,800 BOE/d, driven by strong Giddings performance.

• Adjusted net income for 2025 was $336 million, with adjusted EBITDAX of $906 million and operating income margin of 33%.

• Returned 75% of free cash flow to shareholders via dividends and share repurchases, including a 10% dividend increase and a 4–4.4% reduction in diluted shares.

• Ended 2025 with a robust balance sheet, $267 million in cash, and an undrawn $450 million credit facility.

• Giddings asset delivered 16% total production growth and 9–10% oil growth year-over-year.

Financial highlights

• 2025 revenue was $1.31–$1.312 billion, flat year-over-year; Q4 revenue was $317.6–$318 million, down 3%.

• Adjusted net income for 2025 was $336 million; Q4 adjusted net income was $71 million.

• Full-year adjusted EBITDA/EBITDAX was $906 million; D&C capital was 51% of EBITDA.

• Free cash flow for 2025 was $426.6–$427 million; Q4 free cash flow was $74.7–$75 million.

• Pre-tax/operating income margins averaged 33% for the year, with adjusted cash operating margin at 69%.

Outlook and guidance

• 2026 capital spending expected at $440–$480 million, with production growth targeted at ~5%.

• Q1 2026 production estimated at 102,000 BOE/d, including winter weather impact.

• Oil price differentials for 2026 expected at ~$3/bbl discount to Magellan East Houston; company remains unhedged.

• Effective tax rate for 2026 expected at 21%, all deferred.

• Plan to operate two drilling rigs and one completion crew, focusing 75–80% of activity in Giddings.