Magnolia Oil & Gas Reports Fourth Quarter and Full-Year 2025 Financial and Operational Results
Magnolia Oil & Gas Corporation (NYSE: MGY) today announced its financial and operational performance for the fourth quarter and full year ended December 31, 2025, highlighting strong production growth, disciplined capital management, and shareholder returns.
Fourth Quarter 2025 Financial Highlights:
- Net income: $71.4 million, down 20% from $88.7 million in Q4 2024
- Adjusted net income: $71.4 million, down 25% from $95.4 million
- Diluted EPS: $0.37, down 16% from $0.44
- Adjusted EBITDAX: $215.7 million, down 9% from $235.8 million
- Capital expenditures (D&C): $116.5 million, down 11%
- Average daily production: 103.8 Mboe/d, up 11%
- Cash balance: $266.8 million, up 3%
- Diluted weighted average shares outstanding: 188.0 million, down 4%
Full-Year 2025 Financial Highlights:
- Net income: $337.3 million, down 15% from $397.3 million in 2024
- Adjusted net income: $335.7 million, down 16%
- Diluted EPS: $1.73, down 11%
- Adjusted EBITDAX: $906.1 million, down 5%
- Capital expenditures (D&C): $460.7 million, down 3%
- Average daily production: 99.8 Mboe/d, up 11%
- Cash balance: $266.8 million, up 3%
- Diluted weighted average shares outstanding: 191.1 million, down 4%
Operational Performance and Growth
Magnolia achieved record production in 2025, with fourth-quarter volumes reaching 103.8 Mboe/d, exceeding guidance, and full-year production averaging 99.8 Mboe/d—an 11% increase year-over-year. Oil production also set quarterly and annual records, reaching 40.7 Mbbls/d in Q4 and 39.8 Mbbls/d for the year, reflecting approximately 4% growth.
The Giddings field, Magnolia’s largest asset, contributed 79% of total company production. Fourth-quarter Giddings production rose 16% year-over-year, supported by strong well performance and newly delineated areas.
During 2025, Magnolia added 49.8 MMboe of proved developed reserves through its drilling program, achieving a reserve replacement ratio of 137% and organic proved developed finding and development (F&D) costs of $9.25 per boe. Total proved reserves increased 10% to 210.2 MMboe, with 79% classified as developed.
Capital Allocation and Shareholder Returns
Magnolia maintained disciplined capital spending, with D&C expenditures of $460.7 million in 2025, reinvesting 51% of adjusted EBITDAX. Free cash flow totaled $426.6 million for the year, with 75% returned to shareholders through dividends and share repurchases. In 2025, the Company repurchased 8.9 million shares, reducing diluted shares by 4%, and declared a 10% increase in its quarterly dividend to $0.165 per Class A share, marking the fifth consecutive annual dividend increase.
Operational Efficiency and Cost Management
The Company’s capital efficiency improved in 2025, with year-over-year gains in drilling and completions productivity: an 8% increase in drilling feet per day and a 6% increase in completed feet per day at Giddings. Lease operating expenses declined 7% to $5.12 per boe, reflecting effective cost management across Magnolia’s operations.
2026 Outlook
For 2026, Magnolia plans to operate two drilling rigs and one completion crew, maintaining disciplined capital deployment while targeting approximately 5% total production growth. D&C capital spending is projected at $440–480 million, with first-quarter spending estimated at $125 million. Total production for Q1 2026 is expected to reach 102 Mboe/d, including minor downtime from a recent winter storm, which has since been fully restored. The fully diluted share count for Q1 is projected at 187 million, reflecting a 4% year-over-year reduction.
Oil price differentials are expected to approximate a $3 per barrel discount to Magellan East Houston, and Magnolia remains unhedged on all oil and natural gas production.
CEO Commentary
Chris Stavros, Chairman, President, and CEO, stated:
“Magnolia delivered another year of exceptional and consistent performance in 2025, marked by disciplined capital execution, strong operational efficiency, and record production growth. Our strategy of focusing on high-quality assets, operational excellence, and shareholder returns remains central to our approach. We returned 75% of our free cash flow to shareholders, achieved double-digit production growth organically, completed strategic bolt-on acquisitions, and increased our dividend for the fifth consecutive year. As we move into 2026, our capital discipline, cost management, and high-quality asset base position us well to navigate market volatility and continue delivering value to our shareholders.”
Conference Call
Magnolia will host a webcast and conference call on Friday, February 6, 2026, at 10:00 a.m. Central (11:00 a.m. Eastern) to discuss the results. The call can be accessed via Magnolia’s investor website at www.magnoliaoilgas.com/investors/events-and-presentations or by dialing 1-844-701-1059. A replay will be available following the call.
About Magnolia Oil & Gas Corporation
Magnolia (MGY) is a publicly traded oil and gas exploration and production company with operations primarily in South Texas in the core of the Eagle Ford Shale and Austin Chalk formations. Magnolia focuses on generating value for shareholders by delivering steady, moderate annual production growth resulting from its disciplined and efficient philosophy toward capital spending. The Company strives to generate high pre‐tax margins and consistent free cash flow allowing for strong cash returns to our shareholders.
