Magnolia Oil & Gas Agrees To Acquire WildFire Energy For ~$4.06B, Inclusive Of WildFire’s Debt And Subject To Customary Purchase Price Adjus
Magnolia Oil & Gas Announces Acquisition of WildFire Energy, More than Doubling Giddings Acreage Highly Accretive Acquisition Creates Dominant Eagle Ford/Austin Chalk Position in South Texas By Combining Two High-Quality, Complementary Assets Magnolia’s Differentiated, Proven and Highly Investable Business Model Remains Unchanged Sustainable Asset Quality & Improved Free Cash Flow Supports Immediate 9% Dividend Increase Magnolia Oil & Gas Corporation (NYSE: MGY ) ("Magnolia" or "the Company") announced today that the Company has entered into a definitive purchase agreement to acquire WildFire Energy ("WildFire") for approximately $4.06 billion, inclusive of WildFire’s debt and subject to customary purchase price adjustments (the "Acquisition"). The Acquisition has been unanimously approved by Magnolia’s board of directors. "The acquisition of the WildFire oil and gas properties and ac...
06 billion, inclusive of WildFire’s debt and subject to customary purchase price adjustments (the "Acquisition"). The Acquisition has been unanimously approved by Magnolia’s board of directors. "The acquisition of the WildFire oil and gas properties and acreage is a natural and strategic fit and most notably, it makes our business better by extending our runway of advantaged profitability and significant free cash flow generation," said Magnolia’s Chairman, President and CEO Chris Stavros. "This transaction is the culmination of our extensive subsurface understanding, experience, and the demonstration of our proven resource capture in the Giddings field.
25 million net acres and upside development opportunities across multiple benches including the Austin Chalk, Eagle Ford and Woodbine, this transaction creates a premier position in South Texas by combining two high-quality and complementary assets near Gulf Coast markets which offer premium pricing for our products. As we are acquiring a large position with similar financial and operating characteristics that we understand well, importantly this allows Magnolia to continue to execute on its differentiated and successful business model. 9 Mbo/d.
D&C capital for the second quarter was $125 million, and the Company ended the quarter with $296 million of cash on the balance sheet. Based on Magnolia’s strong second quarter production, the Company is increasing its full year 2026 annual production growth guidance (Magnolia standalone) to 6 percent from 5 percent. Further details on the impact of the Acquisition to Magnolia’s 2026 production and capital spending will be provided after closing, which is expected to occur late in the third quarter of 2026. 06 billion.
2 million shares of Magnolia’s Class A Common Stock and Magnolia is assuming WildFire’s $600 million of outstanding notes due in 2029. The Company intends to fund the remaining amount through a combination of cash on hand, and a balanced mix of debt and new Common equity. , Citigroup Global Markets Inc. A.
75 billion contingent upon closing the transaction.