Magnolia Oil & Gas Posts Strong Q2 Earnings, Raises Production Guidance

Magnolia Oil & Gas Corp reported strong Q2 2025 financial results with adjusted net income of $81 million and adjusted EBITDAX of $223 million. The company achieved a record quarterly production rate of 98.2 thousand barrels of oil equivalent per day, representing a 9% YoY growth. Magnolia generated $107 million in free cash flow and completed bolt-on acquisitions totaling $40 million. The company increased its full-year 2025 production growth guidance to approximately 10%. However, total revenue per BOE declined approximately 13% YoY due to a decrease in oil prices, and the company remains unhedged for all of its oil and natural gas production.

Magnolia Oil & Gas Corp (MGY) reported robust financial results for the second quarter of 2025, highlighting its strong operational performance and strategic acquisitions. The company achieved an adjusted net income of $81 million and an adjusted EBITDAX of $223 million, showcasing its efficient capital program and high operating margins [1].

Key highlights from the quarter include:

- Record Quarterly Production: Magnolia Oil & Gas set a new record for quarterly production, reaching 98,200 barrels of oil equivalent per day, representing a 9% year-over-year (YoY) growth. This growth was driven by strong well performance and strategic acquisitions [1].

- Free Cash Flow: The company generated $107 million in free cash flow, with a significant portion of this amount returned to shareholders through dividends and share repurchases [1].

- Acquisitions: Magnolia completed bolt-on acquisitions totaling $40 million, expanding its acreage in the Giddings development area by approximately 18,000 net acres. These acquisitions added roughly 500 barrels of oil equivalent per day of production, further strengthening the company's position [1].

- Production Growth Guidance: The company increased its full-year 2025 production growth guidance to approximately 10%, reflecting its confidence in operational efficiency and strategic acquisitions [1].

However, the company faced a significant challenge in total revenue per barrel of oil equivalent (BOE) declining by approximately 13% YoY due to a decrease in oil prices. Despite this, Magnolia remains unhedged for all of its oil and natural gas production [1].

Looking ahead, Magnolia Oil & Gas continues to focus on capital discipline and operational efficiency. The company plans to maintain its capital spending estimates for 2025 in the range of $430-$470 million and projects Q3 2025 total production to reach 99,000 barrels of oil equivalent per day [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-magnolia-oil--gas-q2-2025-revenue-beats-forecast-93CH-4164241