Magnolia Oil & Gas Q2 net income more than doubles on higher prices, production

Magnolia Oil & Gas

05/08/2026 21:14

Overview
U.S. oil and gas producer's Q2 net income and EPS more than doubled yr/yr on higher prices
Company's Q2 production volumes rose 8% yr/yr, exceeding earlier guidance
Magnolia to acquire WildFire Energy, more than doubling Giddings acreage

Outlook
Magnolia raises full-year 2026 standalone production growth guidance to 6% from 5%
Company expects Q3 production to be similar to Q2 levels
Magnolia estimates Q3 2026 D&C capital spending at about $115 mln

Result Drivers
HIGHER PRICES - Co said net income and EPS more than doubled yr/yr primarily due to higher oil and NGL prices
PRODUCTION GROWTH - Co said Q2 production volumes grew 8% yr/yr, exceeding earlier guidance, due to continued strong well performance
CAPITAL DISCIPLINE - Co said consistent capital allocation discipline and operational execution helped generate meaningful free cash flow

Company press release: ID:nBw4143jMa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
 
$0.97
 
Q2 Net Income
 
$181.80 mln
 
Q2 Adjusted EBITDA
 
$370.30 mln
 
Q2 Capex
 
$125 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 6 "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 34.3% above its August 4 closing price of $24.58
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

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Aug 3 - Diamondback rides on higher oil prices to top profit estimates, raise output forecast

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)