MGYMEDIUM SIGNALOPERATIONAL10-K

Magnolia Oil & Gas shows mixed operational performance with strong production growth offset by declining profitability and reduced share count.

The company demonstrates solid operational execution with 11% production growth (89.7 to 99.8 Mboe/d) and significant reserve additions, but faces margin pressure evident in the 14% operating income decline despite higher output. The 4% reduction in outstanding shares suggests capital allocation toward buybacks, though the 21% drop in accounts receivable may indicate collection challenges or pricing pressures.

Comparing 2026-02-12 vs 2025-02-19View on EDGAR →
FINANCIAL ANALYSIS

MGY's financial performance reflects operational growth hampered by profitability headwinds, with operating income falling 14.2% to $439.2M and net income declining 11.1% to $325.3M despite production increases. The sharp 21.2% decline in accounts receivable to $116.5M could signal either improved collections or weakening commodity pricing dynamics. Overall, the results suggest a company successfully growing production but facing margin compression, typical of challenging commodity price environments.

FINANCIAL STATEMENT CHANGES
Accounts Receivable
Balance Sheet
-21.2%
$147.9M→$116.5M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Operating Income
P&L
-14.2%
$512.0M→$439.2M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

Net Income
P&L
-11.1%
$366.0M→$325.3M

Net income declined 11.1% — review whether driven by operations, interest costs, or non-recurring items.

LANGUAGE CHANGES
NEW — 2026-02-12
PRIOR — 2025-02-19
ADDED
As of February 9, 2026, there were 180,882,426 shares of Class A Common Stock, $0.0001 par value per share, and 5,523,479 shares of Class B Common Stock, $0.0001 par value per share, outstanding.
As of December 31, 2025, Magnolia owned a 97.0% interest in Magnolia LLC and the noncontrolling interest was 3.0%.
Properties As of December 31, 2025, Magnolia s assets consisted of a total leasehold position of 818,230 gross (613,360 net) acres, including 79,350 gross (55,370 net) acres in the Karnes area and 738,880 gross (557,990 net) acres in the Giddings area.
As of December 31, 2025, Magnolia had 2,867 gross (1,948 net) wells with total production of 99.8 Mboe/d for the year ended December 31, 2025.
Approximately 40%, 32%, and 28% of production from Magnolia s assets was attributable to oil, natural gas, and NGLs, respectively, for the year ended December 31, 2025.
December 31, 2025 Oil (MMBbls) Natural Gas (Bcf) NGLs (MMBbls) Total (MMboe) Proved reserves Total proved developed 64.6 317.3 49.1 166.6 Total proved undeveloped 15.2 86.8 13.9 43.6 Total proved reserves 79.8 404.1 63.0 210.2 7 Development of Proved Undeveloped Reserves As of December 31, 2025, the proved undeveloped reserves volumes are expected to be converted to proved developed reserves within one year.
The following table summarizes the changes in Magnolia s proved undeveloped reserves during the year ended December 31, 2025: Total (MMboe) Proved undeveloped reserves at December 31, 2024 42.4 Conversions into proved developed reserves (36.3) Extensions 34.5 Purchases of reserves in place 1.0 Revisions of previous estimates 2.0 Proved undeveloped reserves at December 31, 2025 43.6 As of December 31, 2025, Magnolia s assets contained approximately 43.6 MMboe of proved undeveloped reserves, consisting of 15.2 MMBbls of oil, 86.8 Bcf of natural gas, and 13.9 MMBbls of NGLs.
The Company s total estimated proved undeveloped reserves increased by 1.2 MMboe during the year ended December 31, 2025.
Magnolia converted 36.3 MMboe of proved undeveloped reserves to proved developed reserves as a result of drilling activities completed during 2025.
Extensions of 34.5 MMboe resulted from the planned drilling program.
REMOVED
As of February 14, 2025, there were 188,635,832 shares of Class A Common Stock, $0.0001 par value per share, and 5,523,479 shares of Class B Common Stock, $0.0001 par value per share, outstanding.
As of December 31, 2024, Magnolia owned an 97.2% interest in Magnolia LLC and the noncontrolling interest was 2.8%.
Properties As of December 31, 2024, Magnolia s assets consisted of a total leasehold position of 817,907 gross (604,057 net) acres, including 79,067 gross (54,936 net) acres in the Karnes area and 738,840 gross (549,121 net) acres in the Giddings area.
As of December 31, 2024, Magnolia had 2,674 gross (1,818 net) wells with total production of 89.7 Mboe/d for the year ended December 31, 2024.
Approximately 43%, 30%, and 27% of production from Magnolia s assets was attributable to oil, natural gas, and NGLs, respectively, for the year ended December 31, 2024.
December 31, 2024 Oil (MMBbls) Natural Gas (Bcf) NGLs (MMBbls) Total (MMboe) Proved reserves Total proved developed 63.0 258.4 43.2 149.3 Total proved undeveloped 14.2 78.4 15.1 42.4 Total proved reserves 77.2 336.8 58.3 191.7 7 Development of Proved Undeveloped Reserves As of December 31, 2024, the proved undeveloped reserves volumes are expected to be converted to proved developed reserves within one year.
The following table summarizes the changes in Magnolia s proved undeveloped reserves during the year ended December 31, 2024: Total (MMboe) Proved undeveloped reserves at January 1, 2024 34.6 Conversions into proved developed reserves (28.8) Extensions 30.6 Purchases of reserves in place 2.6 Revisions of previous estimates 3.4 Proved undeveloped reserves at December 31, 2024 42.4 As of December 31, 2024, Magnolia s assets contained approximately 42.4 MMboe of proved undeveloped reserves, consisting of 14.2 MMBbls of oil, 78.4 Bcf of natural gas, and 15.1 MMBbls of NGLs.
The Company s total estimated proved undeveloped reserves increased by 7.8 MMboe during the year ended December 31, 2024.
Magnolia converted 28.8 MMboe of proved undeveloped reserves to proved developed reserves as a result of drilling activities completed during 2024.
Extensions of 30.6 MMboe resulted from the planned drilling program.
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