Key Highlights

  • Third-quarter GAAP Net Income totaled USD 80.5 million, or USD 0.35 per diluted share, versus USD 0.40 last year, and adjusted Earnings more than doubled to USD 166.3 million.
  • Adjusted EBITDAX, a non-GAAP measure, climbed 79% to USD 392.0 million, and output averaged 117.3 thousand barrels of oil equivalent daily, a 17% increase.
  • Cash generated from operations hit USD 369.0 million and adjusted free Cash Flow reached USD 223.7 million, with USD 103.3 million, roughly 46%, sent back to holders through repurchases and dividends.
  • Fourth-quarter output is expected between 159 and 161 thousand barrels of oil equivalent daily, with about USD 235 million of drilling spending for Magnolia Oil & Gas (NYSE:MGY).

WildFire Costs Separate GAAP From Adjusted Profit

Magnolia Oil & Gas (NYSE:MGY) released third-quarter 2026 figures on November 4, 2026. GAAP net income edged up 3% from USD 78.2 million to USD 80.5 million, yet Diluted Earnings per Share slid 13% to USD 0.35, because the share count rose 21% to 230.6 million after the WildFire Energy Acquisition closed in September. Adjusted net income reached USD 166.3 million, or USD 0.71 a share, a 114% increase. Management says its adjusted measures strip out special items, mainly WildFire transaction and integration costs and net unrealized losses on derivative contracts. A USD 0.18 per-share quarterly Dividend will be paid December 1, 2026 to shareholders registered as of November 10, 2026.

Oil Output Climbs 24% as Giddings Carries Volumes

Total output averaged 117.3 thousand barrels of oil equivalent per day, compared with 100.5 thousand a year earlier, while oil climbed 24% to 49.1 thousand barrels daily. The Giddings area expanded 23%, with its oil up 39%, and accounted for 83% of company volumes. Because WildFire was owned for only part of the quarter, management anticipates oil will make up 49% to 50% of fourth-quarter output, compared with about 42% in the third quarter. Drilling and completion Capital came in at USD 147.4 million, below earlier guidance and roughly 38% of adjusted EBITDAX. Oil Revenue was USD 393.7 million, compared with USD 230.5 million, and the adjusted Operating Income Margin was 43%.

Leverage Drops Below 1.0x and Buyback Authorization Grows

Net Debt fell to about USD 1.9 billion, and the company reached its target of net debt below 1.0 times forecast EBITDAX more than a year ahead of schedule. It finished September with USD 17.5 million of cash and USD 435 million borrowed under its revolver. The company repurchased 2.3 million Class A shares for USD 60.2 million, and directors raised the authorization by 15 million shares, leaving 22.6 million available. Output in 2027 is projected to climb 4% to 5% from a pro forma base, with a drilling and completion budget of USD 900 million to USD 950 million. Key hazards are Commodity price volatility, field service cost Inflation and getting the integration done.

Where Things Stand

Deal accounting, rather than weaker operations, accounts for the gap. GAAP earnings of USD 0.35 absorbed WildFire transaction and integration costs and unrealized derivative losses, while the adjusted USD 0.71 reflects cash earnings power once those items are removed. A bigger share base also weighed on the per-share figure for Magnolia Oil & Gas (NYSE:MGY). Next up: the first full combined quarter, the 159 to 161 thousand barrels per day output goal, synergy capture and buyback pace. The release contains no market reaction and no consensus comparison.