Magnolia Oil & Gas (MGY) Q3 2026 Earnings
Adjusted EPS excludes transaction and integration costs of $68,743 thousand ($0.30 per share) related to the WildFire Energy acquisition and net unrealized losses on derivatives of $39,874 thousand ($0.17 per share), partially offset by a $(22,810) thousand ($(0.10) per share) change in estimated income tax; GAAP diluted EPS was $0.35.
How Did MGY Stock React to Q3 2026 Earnings?
Did MGY Beat Earnings? Q3 2026 Results
Yes. Magnolia Oil & Gas reported Q3 2026 earnings of $0.71 a share on Nov 4, 2026, beating the $0.59 consensus estimate by 21.3%. Revenue was $513.9M against a $475.3M estimate.
Magnolia Oil & Gas Corp delivered a strong third-quarter 2026 beat, posting adjusted EPS of $0.71 against a consensus estimate of $0.59, a 21.33% beat, while revenue of $513.89 million exceeded estimates by 8.11% and surged 58.1% year over year. The defining event of the quarter was the September closing of the WildFire Energy acquisition, which added roughly 53 Mboe/d of production and expanded Magnolia's Giddings footprint to more than 1.25 million net acres, though results reflect only a partial period of ownership. Total production grew 17% year over year to 117.3 Mboe/d, with oil volumes up 24%, while a realized oil price of $87.18 per barrel, compared to $63.55 a year earlier, provided meaningful revenue lift. GAAP EPS of $0.35 was weighed down by $68.74 million in transaction and integration costs and $39.87 million in unrealized derivative losses tied to the deal. Looking ahead, Magnolia guided Q4 production of 159 to 161 Mboe/d, the first full combined quarter, and projected 2027 D&C capital of $900 to $950 million alongside 4% to 5% production growth.
- Partial-quarter contribution from the WildFire Energy acquisition, which closed in September 2026.
- Total production up 17% YoY to 117.3 Mboe/d; oil production up 24% to 49.1 Mbbls/d.
- Giddings production up 23% YoY to 97.7 Mboe/d, with Giddings oil up 39%.
- Average realized oil price of $87.18/Bbl vs $63.55/Bbl a year earlier; oil realization of 102% of WTI.
- NGL realized price of $24.84/Bbl vs $18.98/Bbl.
- D&C capital of $147.4 million came in below guidance, a 38% reinvestment rate of adjusted EBITDAX.
- Adjusted operating income margin of 43% vs 31% a year earlier.
- Transaction and integration costs of $68.7 million and unrealized derivative losses of $39.9 million weighed on GAAP net income.
“Magnolia continues to execute at a high level as we successfully integrate the WildFire assets. Although our third quarter results include only a partial period of ownership following the September closing, the benefits of the combined asset base are already clearly evident. Our business generated $224 million of adjusted free cash flow during the quarter, with a reinvestment rate of just 38 percent of adjusted EBITDAX.”
Magnolia Oil & Gas CEO, on the earnings call
What Is Magnolia Oil & Gas's Outlook?
**Q4 2026** is the first full quarter pro forma for the WildFire acquisition. Guidance: - Total production of 159–161 Mboe/d, with oil at 49%–50% of volumes. - D&C capital of about $235 million. - LOE of $5.80–$6.20 per boe and GTP of $1.80–$2.10 per boe. - DD&A of $14.00–$15.00 per boe. - Production and ad valorem taxes of 5.5%–6.5%. - Interest expense of $35–$40 million. - Effective tax rate of about 21% and cash tax rate of 0%–2%. - Pre-hedge oil realization of $(2.00) to MEH. - Fully diluted share count of about 266 million. **2027:** - Production growth of 4%–5% for both oil and total volumes, off a Q2 2026 pro forma base of about 78 Mbbls/d and 158 Mboe/d (after the non-core asset sale). - D&C capital of $900–$950 million, including modest oilfield service inflation. - Activity of about 4 rigs and 2 completion crews. - Capital split of about 88–90% Giddings and 10–12% Karnes. - Drilling targets weighted about 65% Austin Chalk and 35% Eagle Ford. **Synergies:** Magnolia expects at least one-third of more than $100 million in annual run-rate synergies by year-end 2026 and more than three-quarters by mid-2027. **Capital allocation:** The company plans to continue reducing debt, keep repurchasing at least 1% of shares each quarter, and grow the dividend.
MGY YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $513.9M | $324.9M | +58.2% |
| Operating Income | $154.6M | $101.5M | +52.4% |
| Net Income | $80.5M | $75.5M | +6.7% |
MGY Revenue by Segment
When Does Magnolia Oil & Gas Report Next?
Figures from SEC filings and company reports. Not investment advice.