Magnolia Provides First Post-Acquisition Update After Closing $4.1B WildFire Deal
MGY is trading near its 52-week low of $21.065 (12% above the low).
Summary
Magnolia issued an interim financial and operations update following the September 14 close of its $4.1 billion WildFire Energy acquisition. This is the first look at combined results since the deal closed, giving traders a read on integration progress and pro forma performance. Estimated production for the third quarter is expected to be 116 to 118 Mboe/d (42% oil) after factoring in the closing of WildFire and the impact of divested non-core properties. D&C capital spending is expected to be $155 million to $165 million during the third quarter. Fourth quarter production guidance is 159-161 Mboe/d (49-50% oil), with D&C capex of approximately $235 million, net debt of approximately $1.9 billion below 1.0x 2027E EBITDA, and added oil hedges. The update follows the equity and debt offerings that funded the acquisition, including the $1.27 billion equity raise and $500 million notes. The next scheduled earnings release will provide a fuller picture.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Q4 production guidance is 159-161 Mboe/d (49-50% oil), D&C capex ~$235M, net debt ~$1.9B below 1.0x 2027E EBITDA, and added oil hedges.
At the time of this announcement, MGY was trading at $23.54 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $5.6B. The 52-week trading range was $21.07 to $32.76. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.