Magnolia Oil & Gas delivered an 11% increase in average daily production for full year 2025, reaching 99.8 Mboe/d versus 89.7 Mboe/d in 2024, well above its initial guidance of 5%–7% growth. Fourth-quarter production set a new company record at 103.8 Mboe/d, driven by a 16% increase at Giddings to 83.6 Mboe/d and a quarterly oil record of 40.7 Mbbls/d. Full-year oil volumes rose 4% to 39.8 Mbbls/d. Strong well performance in existing areas and drilling in newly delineated zones underpinned these results, highlighting the efficiency of the company’s asset base.

Magnolia reported fourth-quarter net income of $71.4 million, down 20% year-over-year, with adjusted EBITDAX of $215.7 million. For the full year, net income was $337.3 million (down 15%) and adjusted EBITDAX totaled $906.1 million (down 5%), supporting a 51% reinvestment rate. The company generated $878.6 million of operating cash flow and $426.6 million of free cash flow in 2025. Cash on hand increased to $266.8 million at year-end, up from $260.0 million.

Capital expenditures for drilling and completions were $460.7 million in 2025, at the low end of guidance, and the 2026 capex plan remains at $460 million focused principally on Giddings. Magnolia repurchased 8.9 million common shares during the year (reducing share count by 4.4%), including 2.4 million shares for $53.4 million in the fourth quarter, and expanded its buyback authorization to 12.9 million shares. The board approved a quarterly cash dividend of $0.165 per share, up 10%, marking five consecutive annual increases and providing an annualized yield of $0.66 per share. In total, the company returned 75% of free cash flow to shareholders in 2025.

For 2026, Magnolia plans to maintain disciplined capital spending of $460 million, leveraging its low-cost Giddings position and continuing to pursue operational efficiencies. The company’s strategy of low leverage, no commodity hedges and a focus on capital efficiency is designed to provide downside protection in volatile price environments while preserving upside participation. Management emphasizes the goals of maximizing returns on best-in-class assets, minimizing drilling capital per well and sustaining a growing, secure dividend as core to long-term value creation.