Magnolia Oil & Gas Reports Rising Production, Mixed Q2 Earnings

Magnolia Oil & Gas Corporation reported solid second-quarter 2025 results with a net profit of $0.43 per share, beating estimates despite a 23% year-over-year decline due to lower oil prices. The company achieved record production volumes, driven largely by its Giddings asset, with average daily production rising 9% to 98.2 Mboe/d and production growth guidance raised to approximately 10% for 2025. Revenues of $319 million surpassed expectations, supported by increased natural gas and NGL sales, although oil revenues declined 17.8% from the previous year. Magnolia returned 72% of free cash flow to shareholders through dividends and share repurchases, reflecting strong capital discipline and operational resilience. Roth Capital raised its price target for Magnolia from $26 to $27, citing improved production and tax efficiencies, while the company's financial metrics indicate robust profitability and balance sheet strength. Despite recent stock price weakness, Magnolia continues to expand its acreage and development in South Texas, aiming for long-term value through organic growth and strategic acquisitions.