Magnolia Oil & Gas Q4 net income falls 20%

Overview

• Oil and gas producer's Q4 2025 net income fell 20% yr/yr

• Q4 production rose 11% yr/yr, setting a new quarterly record

• Company repurchased 2.4 mln shares in Q4, boosting buyback authorization

Outlook

• Magnolia estimates 2026 D&C capital spending between $440 mln and $480 mln

• Company expects 2026 production growth of approximately 5%

• Magnolia plans first-quarter 2026 D&C spending at approximately $125 mln

Result Drivers

• PRODUCTION GROWTH - Magnolia achieved a record production level with 11% increase in average daily production, driven by strong well performance, particularly in Giddings area

• CAPITAL EFFICIENCY - Magnolia reported lower capital spending due to stronger than expected well performance, allowing deferral of several completions into 2026

• GIDDINGS PERFORMANCE - Giddings production increased by 16% in Q4 2025, supported by strong well performance and new development areas

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Magnolia Oil & Gas Corp is $28.00, about 6.1% above its February 4 closing price of $26.39

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw9NTftfa

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