Magnolia Oil & Gas Bets Big on Eagle Ford With $4.06B WildFire Deal

3 weeks ago 16

MarketBeat

Mon, July 20, 2026 astatine 12:02 PM CDT 7 min read

Key Points

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Magnolia Oil & Gas agreed to bargain WildFire Energy for astir $4.06 billion, a woody that would marque it the premier Eagle Ford/Austin Chalk relation successful South Texas and much than treble its Giddings tract acreage.
The acquisition adds astir 810,000 nett acres and boosts pro forma accumulation to astir 159,000 barrels of lipid equivalent per day, portion proved developed reserves emergence materially and Magnolia expects the assets to assistance its lipid mix.
Magnolia expects astatine slightest $100 million successful yearly synergies by the extremity of 2027 and plans to support returning currency to shareholders, including a 9% dividend increase and ongoing stock repurchases, portion reducing indebtedness implicit time.

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Magnolia Oil & Gas (NYSE:MGY) said it has agreed to get WildFire Energy for astir $4.06 billion, a transaction absorption described arsenic a strategical bolt-on that volition substantially grow Magnolia's presumption successful the Giddings tract and make what it called the premier Eagle Ford/Austin Chalk relation successful South Texas.

Chris Stavros, Magnolia's Chairman, President and Chief Executive Officer, said connected a league telephone that the WildFire acquisition "more than doubles" Magnolia's existing acreage presumption successful the Giddings tract and reflects the company's long-standing acquisition criteria, including operational overlap, fiscal attractiveness and assets upside.

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"The WildFire acquisition greatly enhances Magnolia's presumption by extending our runway of vantage to precocious instrumentality profitability and important escaped currency travel generation," Stavros said.

Deal Structure and Acreage Expansion

The institution said the acquisition terms volition beryllium funded with a premix of currency and equity, including 32.2 cardinal shares of Magnolia Class A communal banal issued to WildFire's owners. Magnolia volition besides presume WildFire's $600 cardinal of outstanding notes owed successful 2029. The remaining magnitude is expected to beryllium funded done currency connected manus and a balanced premix of indebtedness and caller communal equity.

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Magnolia said it has obtained committed financing and amended and accrued its secured recognition installation to a $2 cardinal borrowing base, with elected commitments of $1.75 cardinal contingent upon closing. The transaction has been unanimously approved by Magnolia's committee and is expected to adjacent precocious successful the 3rd quarter.

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