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Magnolia Oil & Gas Q3 Earnings Match Estimates, Revenues Beat
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Key Takeaways
Magnolia Oil & Gas reported Q3 EPS of $0.41, matching estimates despite higher operating expenses.
Revenues rose to $324.9M on stronger natural gas and liquids sales, offset by lower oil revenues.
The company returned $80.3M to shareholders via dividends and buybacks, equal to 60% of free cash flow.
Magnolia Oil & Gas Corporation (MGY - Free Report) reported a third-quarter 2025 net profit of 41 cents per share, which was in line with the Zacks Consensus Estimate. This can be attributed to a healthy increase in production volumes. However, the bottom line decreased from the year-ago quarter’s 52 cents due to a 9.5% increase in operating expenses.
The oil and gas exploration and production company reported total revenues of $324.9 million, beating the Zacks Consensus Estimate of $322 million, driven by higher year-over-year revenues from natural gas and natural gas liquids. However, the top line declined 2.5% from $333.1 million in the prior-year period, primarily due to lower oil revenues.
The company reported $230.5 million in revenues from oil, which decreased 13.2% from the year-ago quarter’s $265.7 million. However, it beat the model estimate of $224.6 million.
Magnolia Oil & Gas Corp Price, Consensus and EPS Surprise
The natural gas revenues of $43.2 million nearly doubled from the year-ago quarter’s $22.2 million, beating our estimate of $41.7 million. The natural gas liquids revenues of $51.2 million increased from the year-ago quarter’s $45.2 million, beating our estimate of $50.5 million.
In the quarter under review, the company posted $247.1 million in net cash from operating activities and achieved a free cash flow of $133.9 million.
On Oct. 28, South Texas-focused Magnolia declared a cash dividend of 15 cents per share of Class A Common stock and a cash distribution of 15 cents per Class B unit, payable on Dec. 1 to its shareholders of record as of Nov. 10, 2025.
During the third quarter, the company repurchased approximately 2.15 million shares of its Class A Common Stock for a total of $51.4 million. Magnolia still has 5.2 million Class A shares available under its current buyback program, designated specifically for open market transactions. In total, Magnolia returned $80.3 million to shareholders — representing 60% of its free cash flow for the quarter — through a mix of dividends and share repurchases.
MGY’s Production & Prices
Magnolia reported the average daily total output of 100,507 barrels of oil equivalent per day (boe/d), increasing 10.8% from the year-ago quarter’s 90,702 boe/d. The figure also beat the Zacks Consensus Estimate of 90,000 boe/d.
Oil volumes totaled 39,430 barrels per day (bpd), slightly up 1.4% from the year-ago quarter’s level. However, the figure came down from our estimate of 40,500 bpd.
Natural gas volumes reached 190,384 thousand cubic feet per day (Mcf/d), up 19.6% from the third quarter of 2024. Moreover, the figure also surpassed our expectation of 183,900 Mcf/d.
Natural Gas Liquids volumes totaled 29,347 bpd, up 16.1% from the year-ago quarter’s level. Moreover, the figure exceeded our estimate of 27,800 bpd.
The average realized crude oil price was $63.55 per barrel, indicating a 14.4% decrease from the year-ago period’s $74.23. However, the figure surpassed our expectation of $60.23 per barrel.
The average realized natural gas price of $2.46 per Mcf increased significantly from the year-ago period’s $1.52. Moreover, the figure was in line with our expectations.
However, the average realized natural gas liquids price was $18.98 per barrel, implying a 2.5% decrease from the year-ago period’s figure, which also came down from our estimate of $19.75.
MGY recorded an average sales price of $35.14 per boe compared with $39.92 a year ago. However, the figure came in above our projected estimate of $34.79 per boe.
MGY’s Balance Sheet & Capital Expenditure
As of Sept. 30, 2025, Magnolia had cash and cash equivalents of $280.5 million. The company had long-term debt of $393.1 million, reflecting a debt-to-capitalization of 16.1%.
MGY spent $118.4 million on its capital program in the reported quarter. Operating expenses increased to $223.5 million from $204.1 million in the year-ago period.
MGY’s Q4 & Full-Year 2025 Guidance
During the fourth quarter of 2025, this Zacks Rank #3 (Hold) company expects drilling and completion (D&C) capital spending to be approximately $110 million, bringing full-year capital expenditures near the midpoint of the previously guided range of $430-$470 million. This includes non-operated capital that remains consistent with 2024 levels. Supported by continued strong well performance, Magnolia is reiterating its full-year 2025 production growth outlook of approximately 10%, up from the initial guidance of 5-7% at the beginning of the year. Total company production for the fourth quarter is anticipated to be around 101 Mboe/d, with both total and oil production expected to reach their highest levels of the year.
Operating costs per boe are expected to ease modestly in the fourth quarter, with estimates pointing to a level of around $5.20. Full-year 2025 Lease Operating Expense is expected to be at least 5% lower than 2024 levels, indicating continued operational efficiencies.
Oil price differentials are anticipated to reflect a $3 per barrel discount to Magellan East Houston and Magnolia remains fully unhedged across its oil and natural gas production. The fully diluted share count for the fourth quarter is estimated at 189 million, representing a 4% year-over-year decline compared with the fourth quarter of 2024.
Magnolia expects to operate two drilling rigs and one completion crew, and maintain this level of activity through year-end. This development program has been consistently in place for the past four years, supporting total company production growth of approximately 50% and more than doubling volumes in Giddings. Approximately 75-80% of Magnolia’s 2025 activity is expected to be focused on multi-well development pads in the Giddings area, further de-risking the company’s sizable acreage position.
The Giddings development program spans a core 240,000 net acre area, enabling a balanced and efficient approach that delivers consistent year-over-year results. Magnolia also expects to allocate modest capital toward appraisal activities across its broader acreage footprint to further enhance long-term resource opportunity set.
While we have discussed MGY’s third-quarter results in detail, let us take a look at three other key reports in this space.
Liberty Energy Inc. (LBRT - Free Report) , a leading pressure pumping and oilfield services firm headquartered in Denver, posted a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. The company's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.
As of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.
San Antonio-based Valero Energy Corporation (VLO - Free Report) , a leading independent refiner and marketer of transportation fuels and petrochemical products, reported third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16 per share. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.
The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.
Houston-based Halliburton Company (HAL - Free Report) , one of the world’s largest oilfield services providers specializing in drilling and well completions, posted third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in North America.
As of Sept. 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 41.1.
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Magnolia Oil & Gas Q3 Earnings Match Estimates, Revenues Beat
Key Takeaways
Magnolia Oil & Gas Corporation (MGY - Free Report) reported a third-quarter 2025 net profit of 41 cents per share, which was in line with the Zacks Consensus Estimate. This can be attributed to a healthy increase in production volumes. However, the bottom line decreased from the year-ago quarter’s 52 cents due to a 9.5% increase in operating expenses.
The oil and gas exploration and production company reported total revenues of $324.9 million, beating the Zacks Consensus Estimate of $322 million, driven by higher year-over-year revenues from natural gas and natural gas liquids. However, the top line declined 2.5% from $333.1 million in the prior-year period, primarily due to lower oil revenues.
The company reported $230.5 million in revenues from oil, which decreased 13.2% from the year-ago quarter’s $265.7 million. However, it beat the model estimate of $224.6 million.
Magnolia Oil & Gas Corp Price, Consensus and EPS Surprise
Magnolia Oil & Gas Corp price-consensus-eps-surprise-chart | Magnolia Oil & Gas Corp Quote
The natural gas revenues of $43.2 million nearly doubled from the year-ago quarter’s $22.2 million, beating our estimate of $41.7 million. The natural gas liquids revenues of $51.2 million increased from the year-ago quarter’s $45.2 million, beating our estimate of $50.5 million.
In the quarter under review, the company posted $247.1 million in net cash from operating activities and achieved a free cash flow of $133.9 million.
On Oct. 28, South Texas-focused Magnolia declared a cash dividend of 15 cents per share of Class A Common stock and a cash distribution of 15 cents per Class B unit, payable on Dec. 1 to its shareholders of record as of Nov. 10, 2025.
During the third quarter, the company repurchased approximately 2.15 million shares of its Class A Common Stock for a total of $51.4 million. Magnolia still has 5.2 million Class A shares available under its current buyback program, designated specifically for open market transactions. In total, Magnolia returned $80.3 million to shareholders — representing 60% of its free cash flow for the quarter — through a mix of dividends and share repurchases.
MGY’s Production & Prices
Magnolia reported the average daily total output of 100,507 barrels of oil equivalent per day (boe/d), increasing 10.8% from the year-ago quarter’s 90,702 boe/d. The figure also beat the Zacks Consensus Estimate of 90,000 boe/d.
Oil volumes totaled 39,430 barrels per day (bpd), slightly up 1.4% from the year-ago quarter’s level. However, the figure came down from our estimate of 40,500 bpd.
Natural gas volumes reached 190,384 thousand cubic feet per day (Mcf/d), up 19.6% from the third quarter of 2024. Moreover, the figure also surpassed our expectation of 183,900 Mcf/d.
Natural Gas Liquids volumes totaled 29,347 bpd, up 16.1% from the year-ago quarter’s level. Moreover, the figure exceeded our estimate of 27,800 bpd.
The average realized crude oil price was $63.55 per barrel, indicating a 14.4% decrease from the year-ago period’s $74.23. However, the figure surpassed our expectation of $60.23 per barrel.
The average realized natural gas price of $2.46 per Mcf increased significantly from the year-ago period’s $1.52. Moreover, the figure was in line with our expectations.
However, the average realized natural gas liquids price was $18.98 per barrel, implying a 2.5% decrease from the year-ago period’s figure, which also came down from our estimate of $19.75.
MGY recorded an average sales price of $35.14 per boe compared with $39.92 a year ago. However, the figure came in above our projected estimate of $34.79 per boe.
MGY’s Balance Sheet & Capital Expenditure
As of Sept. 30, 2025, Magnolia had cash and cash equivalents of $280.5 million. The company had long-term debt of $393.1 million, reflecting a debt-to-capitalization of 16.1%.
MGY spent $118.4 million on its capital program in the reported quarter. Operating expenses increased to $223.5 million from $204.1 million in the year-ago period.
MGY’s Q4 & Full-Year 2025 Guidance
During the fourth quarter of 2025, this Zacks Rank #3 (Hold) company expects drilling and completion (D&C) capital spending to be approximately $110 million, bringing full-year capital expenditures near the midpoint of the previously guided range of $430-$470 million. This includes non-operated capital that remains consistent with 2024 levels. Supported by continued strong well performance, Magnolia is reiterating its full-year 2025 production growth outlook of approximately 10%, up from the initial guidance of 5-7% at the beginning of the year. Total company production for the fourth quarter is anticipated to be around 101 Mboe/d, with both total and oil production expected to reach their highest levels of the year.
Operating costs per boe are expected to ease modestly in the fourth quarter, with estimates pointing to a level of around $5.20. Full-year 2025 Lease Operating Expense is expected to be at least 5% lower than 2024 levels, indicating continued operational efficiencies.
Oil price differentials are anticipated to reflect a $3 per barrel discount to Magellan East Houston and Magnolia remains fully unhedged across its oil and natural gas production. The fully diluted share count for the fourth quarter is estimated at 189 million, representing a 4% year-over-year decline compared with the fourth quarter of 2024.
Magnolia expects to operate two drilling rigs and one completion crew, and maintain this level of activity through year-end. This development program has been consistently in place for the past four years, supporting total company production growth of approximately 50% and more than doubling volumes in Giddings. Approximately 75-80% of Magnolia’s 2025 activity is expected to be focused on multi-well development pads in the Giddings area, further de-risking the company’s sizable acreage position.
The Giddings development program spans a core 240,000 net acre area, enabling a balanced and efficient approach that delivers consistent year-over-year results. Magnolia also expects to allocate modest capital toward appraisal activities across its broader acreage footprint to further enhance long-term resource opportunity set.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed MGY’s third-quarter results in detail, let us take a look at three other key reports in this space.
Liberty Energy Inc. (LBRT - Free Report) , a leading pressure pumping and oilfield services firm headquartered in Denver, posted a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. The company's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.
As of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.
San Antonio-based Valero Energy Corporation (VLO - Free Report) , a leading independent refiner and marketer of transportation fuels and petrochemical products, reported third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16 per share. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.
The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.
Houston-based Halliburton Company (HAL - Free Report) , one of the world’s largest oilfield services providers specializing in drilling and well completions, posted third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in North America.
As of Sept. 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 41.1.