Magnolia Oil & Gas Corp - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.30%.
Did MGY Beat Earnings? Q2 2025 Results
Magnolia Oil & Gas delivered a modest beat in its second quarter of 2025, posting earnings of $0.41 per share against a consensus estimate of $0.40 and revenue of $318.98 million, edging past the $314.00 million expectation by 1.59%, even as total revenue slipped 5.3% from a year ago. The central tension of the quarter was a familiar one for the energy sector: record production volumes running headlong into weaker commodity prices. Total output reached 98.2 Mboe/d, up 9% year-over-year, yet realized oil prices collapsed to $62.20 per barrel from $79.74 in Q2 2024, compressing operating margins and dragging net income down 23% to $81.03 million. The Giddings asset, which contributed 79% of total volumes, remained the primary growth engine, and its continued strong well performance prompted management to lift full-year production growth guidance to roughly 10%, up from the prior 7-9% range. Capital discipline held firm, with D&C spending consuming just 43% of adjusted EBITDAX, well below the company's self-imposed 55% ceiling, and free cash flow of $107.47 million funded $77.90 million in shareholder returns, including a recently declared $0.15 quarterly dividend.
- Record total and oil production driven by strong well performance and productivity at Giddings
- Giddings total production grew 11% year-over-year to 77.4 Mboe/d
- D&C capital reinvestment rate of 43% of adjusted EBITDAX, well below 55% self-imposed ceiling
- Lease operating expenses declined sharply to $4.88/boe from $5.40/boe year-over-year
- Lower commodity prices: realized oil at $62.20/bbl vs $79.74/bbl year-ago
- Total adjusted cash operating costs declined to $10.70/boe from $11.10/boe
“Magnolia delivered another strong period of quarterly results, and we continued to execute on our business model as demonstrated by our financial and operating performance. The Company's total production and oil production set a new quarterly record supported by solid ongoing well performance notably at our Giddings asset. We now expect that our resilient well productivity to help drive our full-year 2025 production growth to approximately 10 percent.”
Magnolia Oil & Gas CEO, on the earnings call
Forward Guidance & Outlook
Magnolia raised its full-year 2025 production growth guidance to approximately 10%, up from the prior range of 7-9%, driven by continued strong well performance and productivity. D&C capital spending is maintained in the range of $430 to $470 million. Third quarter 2025 guidance includes production of approximately 99 Mboe/d (inclusive of small bolt-on acquisition volumes), D&C capital spending of approximately $115 million, oil price differentials of approximately $3/bbl discount to Magellan East Houston, and a fully diluted share count of approximately 191 million shares (4% lower year-over-year). LOE is expected to normalize to roughly $5.25/boe in Q3, approximately 5% below 2024 levels. The company plans to continue operating two drilling rigs and one completion crew through the remainder of 2025, with 75-80% of activity in the Giddings area. Magnolia expects its 2025 annual dividend per share to be approximately $0.60, targeting long-term annual dividend growth of approximately 10%.
MGY YoY Financials
MGY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.