Magnolia Oil & Gas provided an interim operational update following the completion of its WildFire Energy acquisition, highlighting a significant step-up in production scale and accelerated deleveraging. The company expects the combined South Texas assets to drive pro forma production to approximately 161 Mboe/d by the fourth quarter of 2026, while targeting organic growth of 4% to 5% in 2027.
Key Highlights
- Achieved a net debt position of approximately $1.9 billion at the end of the third quarter 2026, reaching a leverage ratio below 1.0x EBITDA more than a full year ahead of the original plan.
- Optimized the portfolio by divesting non-core Dimmit and Zavala county assets for $47.5 million while increasing the operated working interest to 98% in a core Gonzales County block.
- Executed share repurchases of approximately 2.3 million shares during the third quarter, supported by a D&C capital reinvestment rate target of well below 55% of adjusted EBITDAX.