Magnolia Oil & Gas

What Magnolia Oil & Gas does

Magnolia Oil & Gas is a publicly traded independent exploration and production company (NYSE: MGY) that develops and produces crude oil, natural gas, and natural gas liquids (NGLs) from the Eagle Ford Shale and Austin Chalk formations in South Texas. The company operates a consistent two-rig drilling and one-completion-crew program across approximately 240,000 net acres in the Giddings area, supplemented by activity in the Karnes area, and has achieved more than 50% total production growth over the past five years. Q1 2026 production averaged 102,564 BOE/day, with oil representing roughly 40% of volumes and 72% of revenues.

Magnolia's core technology stack centers on multi-well pad development drilling, horizontal drilling, and hydraulic fracturing applied to unconventional shale reservoirs. Approximately 75–80% of 2026 activity is structured around multi-well development pads in the Giddings area, leveraging accumulated subsurface knowledge to execute bolt-on acquisitions in adjacent areas. The company held approximately 210.2 MMboe of proved reserves at year-end 2025 and reinvests only about 51% of adjusted EBITDAX into drilling and completions capital, well below the 65–70% reinvestment rate typical of E&P peers.

Magnolia makes money by selling produced hydrocarbons at market-linked benchmark prices (WTI for oil, Henry Hub for gas) directly to downstream refiners and midstream purchasers. The company is fully unhedged, magnifying commodity-price sensitivity, but offsets this with a fortress balance sheet — zero net debt, $124.4 million in cash, and an undrawn $450 million revolving credit facility. Its go-to-market is fundamentally a capital-markets motion: Magnolia targets equity investors and sell-side analysts with a disciplined shareholder-return program consisting of a growing dividend (5 consecutive years of increases, $0.165/share quarterly as of Q1 2026) and ongoing share repurchases. In 2025 Magnolia returned roughly 75% of its $426.6 million in free cash flow to shareholders and generated an 18% return on capital employed, a sector-leading metric.

Name

Magnolia Oil & Gas

Legal name

Magnolia Oil & Gas Operating LLC

Website

https://magnoliaoilgas.com

Company type

Public

Founded year

2018

Operating status

Operating

Headcount range

251–500 employees

Short description

Magnolia Oil & Gas is a publicly traded independent oil and gas producer (NYSE: MGY) developing the Eagle Ford Shale and Austin Chalk in South Texas, selling oil, natural gas, and NGLs to refiners and midstream purchasers with disciplined capital allocation and shareholder returns.

Ownership category

akta.pro rank

Product category

Oil and Gas Exploration & Production

NAICS

Oil and Gas Extraction (2111), Crude Petroleum Extraction (21112), Natural Gas Extraction (21113), Drilling Oil and Gas Wells (213111)

SIC

Crude Petroleum & Natural Gas (1311), Drilling Oil & Gas Wells (1381)

akta.pro primary industry

Associated Gas Production (Oil-Linked) (EUAAAAAB)

akta.pro secondary industries

Conventional Natural Gas Exploration & Production (Dry Gas) (EUAAAAAA), Drilling & Well Construction (Rig Ops, Directional, Casing, Cementing) (EUAAAAAI)

Keywords

• Oil and gas exploration
• Upstream production
• Eagle Ford Shale
• Natural gas liquids
• Unconventional shale development

Headquarters

HQ city

Fort Worth

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Supply Chain, Personnel, Marketing or Sales, Infrastructure, Technology or R&D

Revenue model

1. Oil Sales: Magnolia sells crude oil production to downstream refiners and midstream purchasers at market-linked prices. In Q1 2026, oil revenues were $257.3 million, representing approximately 72% of total revenues ($358.5 million). Oil production averaged 40,678 barrels per day in Q1 2026, with oil representing approximately 40% of total production volumes and about 68% total liquids composition.
2. Natural Gas Sales: Magnolia sells natural gas production at market prices linked to Henry Hub benchmark. In Q1 2026, natural gas revenues were $51.8 million. Natural gas represented approximately 27% of total production volumes. Gas realizations averaged 60% of Henry Hub benchmark in Q1 2026, compared to 85% in Q1 2025.
3. Natural Gas Liquids (NGL) Sales: Magnolia sells NGL production at market prices. In Q1 2026, NGL revenues were $49.4 million, representing approximately 14% of total revenues. NGL production averaged 29,696 barrels per day in Q1 2026.

Go-to-market motion1 record

Distribution channels3 records

Marketing channels8 records

Core offering

Magnolia Oil & Gas is an independent upstream oil and gas producer that develops and produces crude oil, natural gas, and natural gas liquids (NGLs) from its acreage in the Eagle Ford Shale and Austin Chalk formations in South Texas. The company runs a consistent two-rig drilling and one-completion-crew development program focused on multi-well pads in its core 240,000 net acre Giddings area, selling production to downstream refiners and midstream purchasers at market-linked benchmark prices.

Product overview

Magnolia Oil & Gas Corporation is a publicly traded oil and gas exploration and production company operating in South Texas within the Eagle Ford Shale and Austin Chalk formations. The company focuses on extracting and producing crude oil, natural gas, and natural gas liquids (NGLs) from its properties in Karnes and Giddings areas. Magnolia's business model emphasizes disciplined capital spending, high pre-tax margins, and consistent free cash flow generation, with operations conducted using two drilling rigs and one completion crew. The company does not offer distinct branded products or modules but rather delivers its commodity outputs (oil, natural gas, NGLs) directly to market.

Differentiator

Problem solved

Functional benefit

Products and services

• Crude Oil Production
• Natural Gas Production
• Natural Gas Liquids (NGL) Production

Quantifiable outcome

• Free cash flow of $426.6 million in FY 2025, representing 75% of operating cash flow returned to shareholders
• +6 more outcomes

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

One partnership is on record.

• WildFire EnergyminorOthersMagnolia Oil & Gas has emerged as the front-runner to acquire privately held WildFire Energy for more than $4 billion, with a deal potentially being announced within weeks. WildFire Energy is backed by private equity firms Warburg Pincus and Kayne Anderson. If completed, the acquisition would rank as Magnolia Oil & Gas's largest-ever transaction, significantly expanding Magnolia's asset base in South Texas.

Scale indicators13 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• EOG Resources: EOG Resources is a large-cap independent E&P with significant Eagle Ford and South Texas operations alongside its broader multi-basin portfolio. It is directly comparable to Magnolia as a capital-disciplined operator with low reinvestment rates and premium return-on-capital metrics.
• Range Resources: Range Resources is a natural gas-weighted independent E&P operating in the Appalachian Basin with similar focus on capital returns and balance sheet discipline. Comparable to Magnolia in capital allocation philosophy though different commodity mix.
• Diamondback Energy: Diamondback Energy is a Permian-focused independent E&P pursuing similar capital-return-driven strategy with low leverage, buybacks, and shareholder returns. Comparable to Magnolia in business model emphasis on FCF over growth, though basin-focused in the Permian rather than Eagle Ford.
• Murphy Oil: Murphy Oil is a small-to-mid cap independent E&P with onshore U.S. operations and an emphasis on free cash flow and capital returns. Comparable to Magnolia in scale, capital allocation approach, and emphasis on dividend sustainability.
• Devon Energy: Devon Energy is a large independent E&P with meaningful Eagle Ford exposure, a similar focus on free cash flow generation, variable dividend model, and disciplined reinvestment. Directly comparable to Magnolia in capital allocation philosophy and investor return orientation.
• Crescent Energy: Crescent Energy is a recently public mid-cap E&P with a similar focus on free cash flow, capital discipline, and shareholder returns, operating in Texas and adjacent basins. Closely comparable to Magnolia in size, strategy, and capital return profile.
• Coterra Energy: Coterra Energy is a multi-basin independent E&P with similar scale to Magnolia, emphasizing low leverage, consistent shareholder returns, and free cash flow generation. Comparable in size, capital allocation philosophy, and E&P operating model.

Broad incumbents

• EQT Corporation: EQT is the largest U.S. natural gas producer with operations in the Appalachian Basin, sharing a similar capital-disciplined philosophy and emphasis on shareholder returns. Comparable in capital allocation framework though focused on natural gas rather than oil.
• Occidental Petroleum: Occidental Petroleum is a large diversified oil and gas major that historically operated in the Eagle Ford (and acquired Anadarko in 2019, adding further Eagle Ford exposure). Comparable to Magnolia through overlapping operational footprint and as the prior employer of Magnolia's CEO Chris Stavros.
• Pioneer Natural Resources: Pioneer Natural Resources was a Permian-focused independent E&P acquired by ExxonMobil in 2024, representing a comparable independent model with similar capital return emphasis and operational discipline prior to its acquisition. Relevant as a comparable for Magnolia's potential strategic exit trajectory.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/magnolia-oil-gas

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Funding overview

Funding rounds4 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Magnolia Oil & Gas