Magnolia Oil & Gas reported third quarter 2026 revenue of $513.9 million, surpassing the $474.4 million estimate, and adjusted diluted EPS of $0.71, exceeding the $0.51 forecast. Results were bolstered by the initial integration of WildFire Energy assets and robust performance in the Giddings area, which saw 23% year-over-year production growth.
Key Highlights
- Total production grew 17% year-over-year to 117.3 Mboe/d, including oil production of 49.1 Mbbls/d which increased 24% over the prior year.
- The company generated $223.7 million in adjusted free cash flow, representing a disciplined reinvestment rate of only 38% of adjusted EBITDAX.
- Net debt was reduced to approximately $1.9 billion, achieving a leverage ratio of less than 1.0x net debt to forecasted EBITDAX more than a year ahead of the original acquisition plan.
- Synergy capture from the WildFire acquisition is tracking ahead of expectations, with one-third of the targeted $100 million annual run-rate synergies expected to be realized by year-end 2026.
- Management guided for fourth quarter 2026 production of 159 to 161 Mboe/d, marking the first full quarter of combined operations.