Magnolia Oil & Gas Reports Q2 2025 Financial Results with Revenue Decline

Magnolia Oil & Gas Corporation reported its financial results for the second quarter of 2025, revealing a total revenue of $318.98 million, a decrease from $336.73 million in the same period last year. The company's net income attributable to Class A common stock was $78.12 million, or $0.41 per diluted share, compared to $95.56 million, or $0.51 per diluted share, in the prior year. For the first half of 2025, total revenues reached $669.28 million, slightly up from $656.14 million in the first half of 2024, while net income attributable to Class A common stock was $181.04 million, compared to $180.65 million in the previous year.

The decline in quarterly revenue was primarily driven by a 22% drop in average oil prices, which reduced revenues by approximately $60.6 million, despite a 5% increase in oil production contributing an additional $11.6 million. In contrast, natural gas revenues surged by 106% due to higher average prices, resulting in a $24.3 million increase compared to the previous year. The company also reported a 10% increase in natural gas liquids (NGL) production, which contributed to a $7 million rise in NGL revenues.

Operationally, Magnolia's production for the second quarter averaged 98,229 barrels of oil equivalent per day, up from 90,207 boe/d in the same quarter of 2024. The company held interests in approximately 2,745 gross wells as of June 30, 2025, with total production of 98.2 thousand boe/d for the quarter. The company’s total assets increased to $2.86 billion, up from $2.82 billion at the end of 2024, reflecting ongoing investments in oil and natural gas properties, which totaled $231.46 million for the first half of 2025.

In terms of strategic developments, Magnolia completed various bolt-on property acquisitions totaling $39.7 million during the first half of 2025. The company also continued its share repurchase program, having repurchased 4.36 million shares of Class A common stock at a cost of approximately $100.93 million during the first half of the year. As of June 30, 2025, Magnolia had $251.76 million in cash and cash equivalents and no outstanding borrowings under its revolving credit facility, providing a strong liquidity position.

Looking ahead, Magnolia's management remains focused on maintaining financial stability and operational efficiency amid fluctuating commodity prices and market conditions. The company plans to continue its disciplined capital allocation strategy, prioritizing reinvestment in its operations while returning capital to shareholders through dividends and share repurchases. The board of directors has declared a quarterly cash dividend of $0.15 per share, payable on September 2, 2025, reflecting the company's commitment to returning value to its shareholders.