Key insights
- Magnolia Oil & Gas (MGY) reported strong third-quarter results, exceeding analyst expectations for earnings and revenue. The company's shares rose following the announcement, driven by operational execution and the integration of WildFire Energy assets. MGY provided positive production and capital spending guidance for Q4 2026 and 2027, indicating continued growth post-acquisition.
Investing.com -- Magnolia Oil & Gas Corp (NYSE: MGY) reported third-quarter results that exceeded analyst expectations, with shares rising 3.8% in after-hours trading Wednesday as the company delivered strong earnings and revenue performance following its WildFire Energy acquisition.
The company posted adjusted earnings per share of $0.71, beating the analyst estimate of $0.59 by $0.12. Revenue reached $513.89 million, surpassing the consensus estimate of $466.09 million and marking a significant increase from the prior-year period. Adjusted net income surged 114% YoY to $166.3 million, while adjusted EBITDAX climbed 79% to $392.0 million. Total production volumes grew 17% YoY to 117.3 thousand barrels of oil equivalent per day, with oil production jumping 24% to 49.1 thousand barrels per day.
Shares gained 3.8% following the announcement, reflecting investor approval of the company's operational execution and integration of the WildFire assets.
"Magnolia continues to execute at a high level as we successfully integrate the WildFire assets," said Chairman, President and CEO Chris Stavros. "Although our third quarter results include only a partial period of ownership following the September closing, the benefits of the combined asset base are already clearly evident."
For the fourth quarter of 2026, Magnolia expects production of 159 to 161 Mboe/d with an oil mix of 49% to 50%, representing the first full quarter following the WildFire acquisition. The company projects drilling and completions capital spending of approximately $235 million. The midpoint of the production guidance at 160 Mboe/d represents a substantial sequential increase from third-quarter levels.
For 2027, Magnolia forecasts production growth of 4% to 5% for both oil and total volumes, with capital spending estimated between $900 million and $950 million.
The company returned $103.3 million to shareholders during the quarter through dividends and share repurchases, representing 46% of adjusted free cash flow. Magnolia's board increased the share repurchase authorization by 15 million shares, bringing total remaining authorization to 22.6 million shares.
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