Magnolia Oil & Gas Reports $106.6 Million Net Income in Q1 2025

Magnolia Oil & Gas Corporation reported a net income of $106.6 million for the first quarter of 2025, reflecting an increase from $97.6 million in the same period of the previous year. The net income attributable to Class A Common Stock was $102.9 million, or $0.54 per diluted share, compared to $85.1 million, or $0.46 per diluted share, in the first quarter of 2024. Total revenues for the quarter reached $350.3 million, up from $319.4 million year-over-year, driven by a significant increase in natural gas and natural gas liquids revenues, which rose to $51.4 million and $53.4 million, respectively, compared to $21.1 million and $39.1 million in the prior year.

The company experienced a decline in oil revenues, which fell to $245.5 million from $259.2 million, primarily due to an 8% decrease in average oil prices. However, this was offset by a 20% increase in natural gas production and a 21% increase in NGL production, contributing to overall revenue growth. Operating expenses also increased, totaling $214.5 million, compared to $194.9 million in the previous year, largely due to higher gathering, transportation, and processing costs, which rose to $15 million from $8.5 million.

In terms of strategic developments, Magnolia completed various bolt-on property acquisitions totaling $24.1 million during the first quarter of 2025. The company continues to focus on its operational efficiency and capital allocation, with a commitment to reinvesting in its business while returning capital to shareholders through dividends and share repurchases. The board of directors declared a cash dividend of $0.15 per share, totaling $28.9 million for the quarter, and authorized a share repurchase program of up to 50 million shares, of which 40.4 million shares have been repurchased to date.

Operationally, Magnolia reported production of 96.5 thousand barrels of oil equivalent per day for the quarter, an increase from 84.8 thousand boe/d in the prior year. The company held interests in approximately 2,684 gross wells, with total production driven by its assets primarily located in the Karnes and Giddings areas of South Texas. As of March 31, 2025, Magnolia had $247.6 million in cash and cash equivalents and no outstanding borrowings under its reserve-based revolving credit facility, providing a strong liquidity position.

Looking ahead, Magnolia remains focused on maintaining financial stability and operational efficiency amid ongoing market volatility. The company plans to continue its disciplined capital spending strategy, prioritizing cash flow management and shareholder returns while navigating the complexities of the current economic environment, including inflationary pressures and fluctuating commodity prices.