Magnolia Oil & Gas Q3 adjusted net income jumps 114% on production growth

Overview

• U.S. oil and gas producer's Q3 adjusted net income more than doubled yr/yr, driven by WildFire integration

• Adjusted EBITDAX for Q3 rose 79% yr/yr

• Company repurchased 2.3 mln shares and increased buyback authorization by 15 mln shares

Outlook

• Company expects Q4 2026 production of 159-161 Mboe/d, with 49%-50% oil

• Magnolia sees Q4 2026 D&C capital spending at ~$235 mln

• Company expects 2027 production to grow 4-5% from Q2 2026 pro forma base

Result Drivers

• PRODUCTION GROWTH - Co said higher total and oil production, especially in Giddings, contributed to results

• WILDFIRE INTEGRATION - Co said early benefits from WildFire acquisition and synergy capture supported results

• AUSTIN CHALK WELLS - Co said positive well results on WildFire acreage supported outlook for further development

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 5 "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 $33.00, about 33.8% above its November 3 closing price of $24.66

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Nov 2 - Diamondback Energy Q3 revenue beats on higher oil output

• Nov 3 - Matador Q3 adjusted EPS and net income beat estimates on record production

• Nov 3 - SM Energy Q3 profit misses on operational downtime

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)