Key Highlights

● Second-quarter net income rose to $181.8 million from $81.0 million a year earlier.

● Production rose 8 per cent to 106.1 thousand barrels of oil equivalent a day.

● Free cash flow more than doubled to $234.6 million on higher realised oil prices.

● The company completed its roughly $4.06 billion acquisition of WildFire Energy on 10 September.

Magnolia Oil & Gas (NYSE:MGY), an independent producer focused on the Giddings area of South Texas, reported second-quarter 2026 results on 5 August 2026. Production was 106.1 thousand barrels of oil equivalent per day (Mboe/d), up 8% from 98.2 a year earlier, with oil at 41.9 thousand barrels per day. Giddings accounted for 81% of volumes. Net income was $181.8 million, or $0.97 per diluted share, against $81.0 million, or $0.41. Revenue was $478.8 million, against $319.0 million. Adjusted EBITDAX, a non-GAAP measure, rose 66% to $370.3 million, and free cash flow more than doubled to $234.6 million.

Prices Did Much of the Work

The release shows a realised oil price of $98.13 per barrel, compared with $62.20 a year earlier, against a WTI average of $92.85. Realised natural gas fell to $2.18 per thousand cubic feet from $2.55. Our reading is that higher oil prices explain a large part of the earnings jump, alongside the production rise, so the comparison is flattered by the commodity backdrop. Adjusted cash operating margin was $38.05 per boe, or 77%. Drilling and completion capital was $125.0 million, about 34% of adjusted EBITDAX. The company returned $80.1 million to shareholders, including $49.3 million of buybacks, and lifted its quarterly dividend 9% to $0.18 per share. Before the deal, cash was $295.9 million and net long-term debt $393.6 million at 30 June, with a $450 million revolving credit facility undrawn.

The WildFire Acquisition

On 20 July 2026 Magnolia announced a deal to buy WildFire Energy for about $4.06 billion, according to market data. WildFire's owners were to receive 32.2 million Magnolia shares, and the buyer would assume $600 million of notes due 2029. Reported WildFire output was about 53,000 barrels of oil equivalent per day, roughly 70% oil, with about 810,000 net acres added, taking the combined Giddings position above 1.25 million net acres. Financing included an equity raise of 53.3 million shares for $1.23 billion of net proceeds, closed on 22 July, and $500 million of 6.625% senior notes due 2034, closed on 5 August. The company completed the acquisition on 10 September 2026. A separate headline described the completed value as $2.6 billion, which conflicts with the announced figure, so we do not rely on it.

Share Count Jumps as the Deal Reshapes the Business

Magnolia's standalone quarter was flattered significantly by a realised oil price of $98.13 a barrel versus $62.20 a year earlier, so the commodity backdrop explains much of the earnings jump alongside genuine production growth from its Giddings acreage. The completed WildFire Energy acquisition, funded partly through a 53.3-million-share equity raise, pushed shares outstanding to roughly 267 million and is expected to add more than $100 million of annual synergies, with management estimating pro forma fourth-quarter production of 159-161 thousand barrels of oil equivalent a day.