Magnolia Oil & Gas drops on $1.1 bln stock sale for WildFire Energy acquisition

Magnolia Oil & Gas

21/07/2026 11:27

** Shares of Magnolia Oil & Gas MGY.N down 6.1% at $23.97 premarket on Tues after $1.1 bln M&A-related follow-on priced
** Houston, Texas-based E&P firm sold ~46.3 mln shares at $23.75 to fund purchase of WildFire Energy
** Offering size increased from $1 bln and priced at 7% discount to stock's last sale on Mon
** MGY early Mon said it agreed to buy WildFire for about $4 bln, including debt, to expand its position in the Giddings field in South Texas
** MGY shares finished down 6.3% on Mon, trimming YTD gain to ~17%
** Co has ~184.95 mln shares outstanding for $4.7 bln market cap
** JP Morgan and Goldman Sachs are joint bookrunners for the stock offering, among others
** 11 of 19 analysts rate MGY stock "strong buy" or "buy", 8 "hold"; median PT $32.50, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))