Magnolia Oil & Gas Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income was $80.5 million ($0.35 per diluted share) compared to $78.2 million ($0.40 per diluted share) in the prior year quarter, a 3% increase in net income but a 13% decrease in diluted EPS.
• Adjusted net income was $166.3 million ($0.71 per diluted share), a 114% increase year-over-year, excluding transaction and integration costs related to the WildFire Energy acquisition and net unrealized losses on derivatives.
• Adjusted EBITDAX was $392.0 million, a 79% increase from $218.8 million in the prior year quarter.
• Net cash provided by operating activities was $369.0 million.
• Adjusted free cash flow was $223.7 million.
• Adjusted operating income margin (pre-tax) was 43% of revenue.
• Total revenues were $513.9 million compared to $324.9 million in the prior year quarter.
• Total operating expenses were $359.3 million, including $68.7 million in transaction and integration costs.
• Cash and cash equivalents ended the quarter at $17.5 million.
• Long-term debt, net was $1,937.8 million; net debt was approximately $1.9 billion.
• Outstanding borrowings on the revolving credit facility were $435 million.

Guidance and Future Outlook:

• Fourth quarter 2026 D&C capital spending is estimated at roughly $235 million.
• Fourth quarter 2026 production is expected to be 159 to 161 Mboe/d with an oil content of 49% to 50%.
• 2027 production is estimated to grow 4% to 5% for both oil and total production relative to a second quarter 2026 pro forma base of approximately 78 Mbbls/d (oil) and 158 Mboe/d.
• 2027 D&C capital spending is estimated between $900 million and $950 million.
• Fourth quarter 2026 guidance includes LOE of $5.80-$6.20 per Boe, GTP of $1.80-$2.10 per Boe, and DD&A of $14.00-$15.00 per Boe.
• 2027 company-wide drilling program is expected to allocate 65% of activity to the Austin Chalk and 35% to the Eagle Ford.
• Synergy capture is ahead of expectations, with more than one-third of anticipated annual synergies on track to be realized by year-end.

Business Segments and Product Lines:

• Total company production volumes grew 17% year-over-year to 117.3 Mboe/d, including 49.1 Mbbls/d of oil (a 24% increase).
• Giddings production increased 23% year-over-year to 97.7 Mboe/d, with oil volumes growing 39%.
• Giddings production represented 83% of total company volumes in the third quarter.
• The company's oil production mix was approximately 42% of total volumes in the third quarter, expected to rise to 49-50% in the fourth quarter.
• Recent Austin Chalk well results on WildFire operated acreage are described as encouraging and supportive of the geological model.
• Capital expenditures on drilling, completions, and associated facilities were $147.4 million, representing approximately 38% of adjusted EBITDAX.
• The company is running four rigs and two completion crews.

Market and Competitive Landscape:

• The company acquired WildFire Energy in the third quarter, expanding its net acre position in Giddings to 1.25 million acres.
• Early results from the acquisition suggest greater inventory potential than the earlier baseline acquisition analysis.
• The company is substituting equipment to capture further operational and capital efficiencies.

Risks and Challenges:

• Forward-looking statements regarding the integration of the WildFire Acquisition, synergy realization, and future operations are subject to risks including market prices of oil, natural gas, and NGLs.
• Risks include supply and demand impacts from OPEC actions, legal proceedings, legislative or policy changes, geopolitical conditions, cybersecurity threats, and inflation.
• Actual results may differ from projections due to the difficulty in predicting risks and uncertainties incident to oil and gas development and production.

Management Commentary and Tone:

• Chairman, President, and CEO Chris Stavros stated the company continues to execute at a high level and successfully integrate WildFire assets.
• Management noted that despite only a partial period of ownership in the third quarter, benefits of the combined asset base are evident.
• Management highlighted strong momentum carrying into the fourth quarter, the first full quarter as a combined company.
• The tone indicates confidence in the integration progress, meeting all planned milestones, and the ability to aggressively reduce leverage while maintaining dividend growth and share repurchases.

Other Key Points:

• The company repurchased 2.3 million shares of Class A Common Stock for $60.2 million during the quarter.
• The Board of Directors increased the share repurchase authorization by 15 million shares, bringing the total remaining authorization to 22.6 million shares (nearly 8.5% of current shares outstanding).
• Magnolia returned $103.3 million to shareholders (46% of adjusted free cash flow) through a combination of share repurchases and dividends.
• The Board declared a quarterly cash dividend of $0.18 per share, payable December 1, 2026, to shareholders of record as of November 10, 2026.
• The company achieved its goal of less than 1.0x net debt to forecasted EBITDAX more than a year sooner than originally planned.
• The company maintains a peer-leading program of repurchasing at least 1% of shares outstanding each quarter.
• The company implemented additional oil hedges during the quarter, supplementing those inherited from WildFire, structured as costless collars with attractive floor prices.
• As of September 30, 2026, outstanding derivative contracts included costless collars and fixed price swaps covering volumes through Q4 2027.