Magnolia (MGY) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 12:30 PM CDT 22 min read

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DATE

Thursday, May 7, 2026 astatine 11 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Christopher G. Stavros

• Chief Financial Officer — Brian Michael Corales

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Full Conference Call Transcript

Christopher G. Stavros: Thank you, Tom, and bully morning, everyone. Thank you each for joining america contiguous for this treatment connected our archetypal 4th 2026 fiscal and operating results. I program to concisely talk connected our archetypal 4th results, which provided a beardown commencement to the twelvemonth and accordant show crossed our fiscal and operating metrics. I volition past item what turned retired to beryllium a engaged 4th for bolt-on lipid and state spot acquisitions for Magnolia Oil & Gas Corporation, adding to our moving involvement and royalty involvement successful some of our operating areas by closing respective deals during the quarter.

I volition decorativeness by speaking to Magnolia Oil & Gas Corporation's 2026 superior and operating plan, which is good positioned during this play of merchandise terms volatility, driving incremental escaped currency travel and improving our fiscal flexibility. Brian volition past reappraisal our fiscal results successful greater item and supply immoderate further guidance earlier we instrumentality your questions. Starting with Slide 3 successful our quarterly capitalist presentation, Magnolia Oil & Gas Corporation delivered different beardown and accordant 4th of execution crossed our fiscal and operating metrics, centered astir our disciplined concern exemplary characterized by a debased reinvestment rate, precocious operating margins, and mean accumulation growth.

For the archetypal 4th 2026, full institution accumulation volumes grew by 6% twelvemonth implicit twelvemonth to 102,600 barrels of lipid equivalent per day, with lipid accumulation increasing by 4% and averaging 40,700 barrels per day. Production successful Giddings was the superior maturation operator for the institution with full Giddings accumulation expanding 9% twelvemonth implicit twelvemonth and lipid accumulation showing maturation of 8% implicit the aforesaid period. Giddings accumulation volumes were a grounds for the institution successful the quarter. Giddings accumulation presently accounts for astir 82% of Magnolia Oil & Gas Corporation's full institution volumes.

The 4th was arsenic coagulated astir our fiscal metrics, supported by maturation successful our lipid and state accumulation and higher lipid prices, for which our accumulation is wholly unhedged. Our archetypal 4th nett income was astir $101 cardinal oregon $0.54 per diluted stock with adjusted EBITDAX of $253 million. Drilling and completion superior for the play was astir $129 million, providing a reinvestment complaint of 51% of our adjusted EBITDAX. Pretax operating margins averaged 36% for the quarter. Our debased reinvestment complaint and precocious operating margins show our superior spending discipline, proactive outgo management, and further seizure of operational efficiencies.