Magnolia Oil & Gas — Third Quarter 2026 Earnings Summary

Financial Performance

• Ended Q3 2026 with approximately $1.9 billion in net debt, representing leverage below 1.0x net debt to 2027E EBITDA at current strip prices, more than a year ahead of the original plan.
• Sold non-core assets in Dimmit and Zavala counties for $47.5 million in cash plus 616 net acres in Gonzales County.
• Purchased approximately 2.3 million shares during Q3 2026 after a portion of the quarter was restricted.
• Total shares outstanding at the end of Q3 2026 were approximately 267 million.
• Incurred approximately $14 million in exploration expense for 3D seismic purchased over newly acquired acreage.
• Q4 2026 guidance includes one-time transaction and integration-related costs of $65 to $75 million.
• Q4 2026 guidance indicates Interest Expense of $35 to $40 million and an Effective Tax Rate of approximately 21% with a Cash Tax Rate of 0% to 2%.

Guidance and Future Outlook

• Anticipates mid-single digit organic annual growth of 4% to 5% for both oil volumes and total production, exceeding peer averages.
• Q3 2026 estimated production guidance is 116 to 118 Mboe/d (~42% oil).
• Q4 2026 estimated production guidance is 159 to 161 Mboe/d (49% to 50% oil), representing the first full pro forma quarter post-acquisition.
• 2027 production is estimated to grow 4% to 5% off a Q2 2026 pro forma base of approximately 78 Mbo/d (oil) and 158 Mboe/d.
• 2027 D&C capital spending is estimated at $900 to $950 million.
• Q4 2026 D&C capital spending is estimated at approximately $235 million.
• Targets a D&C capital reinvestment rate of well below 55% of adjusted EBITDAX.
• Plans to return capital via a safe, sustainable, and growing dividend and share repurchases of at least 1% of outstanding shares per quarter.
• Aims to reduce net debt to a target of 0.5x net debt to EBITDA or below.

Business Segments and Product Lines

• Completed the acquisition of WildFire Energy, creating a premier Eagle Ford and Austin Chalk operator with a large, contiguous South Texas asset base.
• Divested approximately 1.4 Mboe/d (~84% oil) of next twelve-month production from non-core assets in Dimmit and Zavala counties.
• Increased average operated working interest in the Gonzales County (Karnes area) acreage to 98% following the receipt of 616 net acres.
• Expects to realize at least one-third of estimated >$100 million in annual run-rate synergies by year-end 2026.
• Implemented additional costless collar hedges covering more than half of oil production through Q2 2027.

Market and Competitive Landscape

• The company operates primarily in the core of the Eagle Ford Shale and Austin Chalk formations in South Texas.
• Management states the combined business growth rate is above the peer company average.
• Hedges are structured to protect the execution of the business model while retaining exposure to higher prices in a volatile market.

Risks and Challenges

• Forward-looking statements are subject to risks including oil, natural gas, and NGL price volatility, OPEC actions, and supply/demand fluctuations.
• Risks include the ability to realize anticipated acquisition benefits, competition, and the ability to grow and manage growth profitably.
• Potential impacts from legislative, regulatory, or policy changes, geopolitical conditions, cybersecurity threats, and inflation.
• Actual results may differ from projections due to legal proceedings or other economic and business factors.

Management Commentary and Tone

• Chairman, President, and CEO Chris Stavros expressed pleasure at closing the WildFire acquisition and noted integration is proceeding on track.
• Management highlighted the transaction as an important chapter for creating a premier operator with enhanced scale and operational efficiencies.
• The tone indicates confidence in the differentiated business model, citing expected improvements in free cash flow and financial returns.
• Management emphasized that ample excess free cash flow will support debt reduction and capital returns to shareholders.

Analyst Questions and Answers

• No analyst questions and answers section is included in the provided press release text.

Other Key Points

• Magnolia will host a conference call and webcast for Q3 2026 results on Thursday, November 5, 2026, at 10:00 a.m. Central Time.
• The company purchased 3D seismic over newly acquired acreage for approximately $14 million during Q3 2026.
• Q4 2026 guidance includes specific per Boe metrics: LOE ($5.80-$6.20), GP&T ($1.80-$2.10), DD&A ($14.00-$15.00), and Production and Ad Valorem Taxes (5.5%-6.5%).
• Pre-hedge oil realization is guided at $(2.00) per barrel to MEH for Q4 2026.
• Recent hedges include costless collars with weighted average floor prices ranging from $70.00 to $73.75 and ceiling prices from $80.08 to $98.09 for the period through Q4 2027.
• Inherited hedges from WildFire include crude oil swaps with weighted average prices ranging from $63.46 to $67.37 for the period through Q4 2027.