Magnolia Oil & Gas Corporation has announced its financial and operational results for the third quarter of 2025.

Third Quarter 2025 Highlights:

• Magnolia reported third quarter 2025 net income attributable to Class A Common Stock of $75.5 million, or $0.40 per diluted share. Third quarter 2025 total net income was $78.2 million and total adjusted net income(1) was $77.8 million. Diluted weighted average total shares outstanding decreased by 4% to 190.3 million(2) compared to third quarter 2024.
• Adjusted EBITDAX(1) was $218.8 million during the third quarter of 2025. Total drilling and completions (“D&C”) capital was $118.4 million, and roughly in-line with our earlier guidance. The third quarter D&C capital represented approximately 54% of adjusted EBITDAX.
• Net cash provided by operating activities was $247.1 million during the third quarter of 2025 and the Company generated free cash flow(1) of $133.9 million. Magnolia generated operating income as a percentage of revenue (pre-tax margins) of 31% during the third quarter. Total revenue, adjusted EBITDAX and operating income were all supported by strong natural gas and NGL price realizations during the third quarter.
• Total production volumes in the third quarter of 2025 grew by 11% on a year-over-year basis to 100.5 thousand barrels of oil equivalent per day (“Mboe/d”), establishing a new quarterly record, and included 39.4 thousand barrels of oil per day (“Mbbls/d”). Total production in Giddings grew 15% year-over-year to 79.2 Mboe/d with oil volumes increasing 5%.
• The Company repurchased 2.15 million of its Class A Common Stock during the third quarter for $51.4 million. Magnolia has 5.2 million Class A Common shares remaining under its current share repurchase authorization, which are specifically allocated toward open market share repurchases.
• As previously announced, the Board of Directors declared a cash dividend of $0.15 per share of Class A common stock, and a cash distribution of $0.15 per Class B unit, payable on December 1, 2025 to shareholders of record as of November 10, 2025.
• Magnolia returned $80.3 million(3), or 60% of the Company’s free cash flow(1), to shareholders during the third quarter through a combination of share repurchases and dividends. Inclusive of the significant return of cash to shareholders, Magnolia ended the third quarter with $280.5 million of cash on the balance sheet and an undrawn $450 million revolving credit facility.

“When we ask some of our larger shareholders why they are invested in Magnolia, a common reply is, ‘because you do what you say you’re going to do.’ Since our founding more than seven years ago, Magnolia has consistently executed around the principles of its differentiated business model which includes our strong balance sheet and discipline capital spending philosophy designed to maximize free cash flow generation from our high-quality assets,” said Chairman, President and CEO Chris Stavros. “We often remind the financial community that Magnolia’s primary goals and objectives are to be the most efficient operator of best-in-class oil and gas assets, generate the highest returns on those assets, while employing the least amount of capital for drilling and completing wells. A substantial portion of our free cash flow is returned to investors through our secure and growing cash dividend and ongoing share repurchases, and we continue to enhance and expand our asset base through bolt-on acquisitions near areas where we operate and understand well."

“Our third quarter and year to date performance demonstrates Magnolia’s ability to execute our business model despite the decline in product prices. Continued strong well performance during the year is expected to provide us with total production growth of 10 percent in 2025. Our Giddings wells results have not only outperformed our expectations but have exceeded levels of the last couple of years and despite a similar drilling program. This outperformance has also allowed us to defer the completion of several wells into next year leading to a 5 percent savings of capital during the year. The third quarter saw relatively strong price realizations for both our natural gas and NGL production. Our capital spending for the quarter remained at less than 55 percent of our adjusted EBITDAX, while delivering modest sequential total production growth and providing cash for our dividend, and the repurchase of more than 2 million Magnolia shares. We ended the quarter with $28 million more cash, and with cash on the balance sheet at the highest level this year."

“As we near the end of 2025 and looking ahead to 2026, we expect to close this year on a strong note anticipating both record total production and oil production in the fourth quarter. We remain steadfast around our business model and our core philosophy and strategy that has helped compound per share value for Magnolia shareholders. We operate a focused business with an emphasis on driving financial returns and do not plan to add incremental activity at current product prices. Our efforts and initiatives to improve the efficiency of our capital program and reduce our operating costs over the last several years have improved our flexibility within a volatile product price environment. Assuming current product prices, we expect that our 2026 program would deliver mid-single digit production growth while spending within 55 percent of our adjusted EBITDAX and allowing for significant free cash flow generation in support of our growing dividend and consistent share repurchases.”

Operational Update

Total Company production volumes in the third quarter of 2025 grew by 11 percent on a year-over-year basis to 100.5 Mboe/d including 39.4 Mbbls/d. Third quarter Giddings total production increased by 15 percent, compared to the prior year period with Giddings oil production growing by 5 percent compared to the third quarter of 2024. Giddings production represented 79 percent of total Company volumes during the third quarter. The Company’s total production has continued to benefit from strong overall well performance throughout the year. Magnolia’s third quarter 2025 capital spending on drilling, completions, and associated facilities was $118.4 million. Third quarter revenue and operating income metrics were supported by strong natural gas and NGL price realizations.

Magnolia plans to continue to operate two drilling rigs and one completion crew during 2025 and expects to maintain this level of activity through the remainder of the year. The Company’s two operated rigs and one completion crew development program has been in place consistently for the last four years driving total Company production growth of approximately 50 percent and more than doubling our production volumes in Giddings. Approximately 75 to 80 percent of the 2025 activity is expected to consist of multi-well development pads in the Giddings area and to further de-risk our sizable acreage position. The development program at Giddings consists of drilling multi-well pads throughout our core 240,000 net acre development area. This creates a balanced and efficient program providing more consistent year-over-year results. Magnolia continues to allocate a modest amount of capital toward appraisal activities within our large acreage footprint designed to further enhance our resource opportunity set.

Additional Guidance

Fourth quarter 2025 D&C capital spending is estimated to be roughly $110 million, bringing the Company’s estimated total capital spending for the year and near the midpoint of our earlier guidance of approximately $450 million. This includes an estimate of non-operated capital that is similar to 2024 levels. As Magnolia has continued to benefit from strong overall well performance throughout this year, we are reiterating our full-year 2025 outlook for total production growth of approximately 10 percent, compared to our guidance at the beginning of the year of 5 to 7 percent. Total production for the fourth quarter is estimated to be approximately 101 Mboe/d, and we expect that both total production and oil production for the quarter to be at their highest levels of the year. We expect LOE to decline slightly to approximately $5.20 per boe in the fourth quarter and with full-year 2025 LOE anticipated to be at least 5 percent lower than levels seen in 2024.

Oil price differentials are anticipated to be approximately a $3 per barrel discount to Magellan East Houston and Magnolia remains completely unhedged for all its oil and natural gas production. The fully diluted share count for the fourth quarter of 2025 is expected to be approximately 189 million shares, which is approximately 4 percent lower than fourth quarter 2024 levels.

(1) Adjusted net income, adjusted EBITDAX, and free cash flow are non-GAAP financial measures.
(2) Weighted average total shares outstanding include diluted weighted average shares of Class A Common Stock outstanding during the period and shares of Class B Common Stock, which are anti-dilutive in the calculation of weighted average number of common shares outstanding.
(3) Includes $1.1 million of share repurchases incurred during the third quarter, but settled during the fourth quarter of 2025, and excludes $0.9 million of share repurchases incurred during the second quarter of 2025, but settled during the third quarter of 2025.

KeyFacts Energy Industry Directory: Magnolia Oil & Gas