Commodity price volatility
Revenue, margins, and cash flow move with oil, gas, and NGL prices that Magnolia cannot control.
- Scope
- Oil, natural gas, and NGL sales
- Materiality
- high
Magnolia Oil & Gas Corp
Magnolia Oil & Gas Corp is an independent U.S. oil and natural gas producer focused on acquiring, developing, exploring, and producing crude oil, natural gas, and NGL reserves. Its core asset base is concentrated in South Texas, where it targets the Eagle Ford Shale and Austin Chalk formations and runs a capital-light, free-cash-flow-oriented operating model.
66,8 %
24,8 %
−0,3 %
1.54
1.54
| % | |
|---|---|
| Oil production | 55% Production and sale of crude oil from Magnolia's South Texas asset base. |
| Natural gas production | 25% Sales of produced natural gas from operated wells and acreage positions. |
| NGL production | 10% Sales of natural gas liquids recovered alongside oil and gas production. |
| Development and drilling services | 10% Capital deployment into drilling, completions, and well development on owned acreage. |
Magnolia sells production into commodity markets through a relatively small number of purchasers, which is typical for...
- Commodity purchasersprimary
Buy Magnolia's oil, natural gas, and NGL production for resale, processing, or downstream use.
- Refiners and marketersprimary
Purchase crude oil volumes from Magnolia's producing properties and move them into downstream supply chains.
- Midstream and processing counterpartiessecondary
Handle gathering, transportation, and processing of produced volumes and support market access.
Magnolia's operations are concentrated in the United States, with essentially all activity tied to one reportable...
- •All operations are in the United States
- •Core asset base is concentrated in South Texas
- •Karnes and Giddings are the main operating areas
- •Eagle Ford Shale and Austin Chalk are the key formations
- •Regional weather and infrastructure disruptions can curtail output
Magnolia's strategy is to grow production organically while preserving high full-cycle margins and strong free cash...
01
Disciplined organic production growthmedium-term
Supports predictable volume growth without relying on large acquisitions or aggressive leverage.
02
Free cash flow generationshort-term
Free cash flow funds shareholder returns and reduces dependence on external capital.
03
Shareholder returnsshort-term
Dividends and buybacks are part of the capital allocation framework and support total return.
Magnolia is exposed to commodity price volatility, customer concentration, and operational concentration in South Texas...
Customer concentration
A small number of purchasers buy most production, so losing a major buyer could quickly reduce sales.
- Scope
- Two purchasers represented 61% of revenue attributable to assets in 2025
- Materiality
- high
Regional weather and infrastructure disruption
Concentrated South Texas assets are vulnerable to hurricanes, winter storms, and transport outages.
- Scope
- Karnes and Giddings areas in Texas
- Materiality
- high
Operational and service-cost inflation
Shortages or high costs for rigs, equipment, personnel, and oilfield services can delay development.
- Scope
- Drilling and completion program
- Materiality
- medium
Cybersecurity and systems disruption
The company relies on information systems and third-party infrastructure to operate wells and manage data.
- Scope
- IT systems, field operations, and third-party providers
- Materiality
- medium
Reserve estimates
Higher or lower reserve estimates change DD&A and asset carrying values
Income taxes and deferred tax assets
Adjustments can change tax expense and balance sheet deferred tax balances
Noncontrolling interests
Affects net income attributable to Class A common stock
: 28.4.2026