The EPS beat and strong FCF generation are positive, but net income decline and margin compression limit upside. Monitor Q2 2026 production (guided ~105 Mboed) and capex trends. With no consensus for FY2026, focus on commodity price realizations and the impact of bolt-on acquisitions.
Price Chart
Executive Summary
Magnolia Oil & Gas reported Q1 2026 EPS of $0.54, beating the $0.51 Street consensus, on revenue of $358.5M (+2% YoY). Net income declined 5% YoY to $100.8M, but adjusted EBITDAX rose 2% to $252.9M. Production grew 6% YoY to 102.6 Mboed, and the company generated $145.6M in free cash flow, returning 57% to shareholders. FY2026 guidance was reiterated: ~5% production growth and $440-480M capex. The EPS beat and strong free cash flow are positive, but net income contraction and margin compression temper the outlook.
Key Financial Metrics
Key Facts
- Q1 2026 EPS of $0.54 vs consensus $0.51 (beat ~5.9%)
- Net income $100.8M, down 5% YoY from $106.6M
- Revenue $358.5M, up 2% from $350.3M
- Adjusted EBITDAX $252.9M, up 2% from $248.4M
- Free cash flow $145.6M, up 32% from $110.5M
- Production 102.6 Mboed, up 6% YoY; oil production up 4%
- FY2026 guidance maintained: ~5% production growth, capex $440-480M
- Bolt-on acquisitions closed for ~$155M (6,200 net acres)
- Share repurchases of $51.9M (2M shares); dividend $0.165/quarter
- Operating income margin 36%, down from 39% in Q1 2025
- Cash balance $124.4M, down from $247.6M due to acquisitions and buybacks
Financial Impact
EPS beat of ~5.9% vs consensus, FCF up 32% YoY
Risk Factors
- Net income declined 5% YoY despite production growth, signaling margin pressure
- Cash balance halved to $124.4M due to acquisitions and buybacks; leverage remains low
- Commodity price volatility and narrowing oil differentials could affect Q2 results
- Execution risk on bolt-on acquisitions and integration
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001698990-26-000007 |
| Document: mgy_1q26xearningspresent.htm | 0001698990-26-000007 |
| Document: mgy-20260506.htm | 0001698990-26-000007 |
| Document: 0001698990-26-000007-index-headers.html | 0001698990-26-000007 |
| Document: 0001698990-26-000007-index.html | 0001698990-26-000007 |
| Document: 0001698990-26-000007.txt | 0001698990-26-000007 |
| 8-K Data (Synthetic) | 0001698990-26-000007 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 11, 2026 7w ago | Insider Cluster | $26.01 $27.79 | ▲ +6.84% | ▲ +7.90% | $24.25 (−6.79%) |
Aug 5, 2026 8w ago | 8-K | $24.75 $27.21 | ▲ +9.94% | ▲ +9.34% | $24.25 (−2.04%) |
Jul 22, 2026 10w ago | 8-K | $25.60 $27.49 | ▲ +7.38% | ▲ +4.49% | $24.25 (−5.29%) |
Jul 20, 2026 10w ago | 424B5 | $25.09 $26.90 | ▼ −7.21% | ▼ −4.65% | $24.25 (+3.37%) |
Jul 20, 2026 10w ago | 8-K | $25.53 $26.79 | ▲ +4.94% | ▲ +0.81% | $24.25 (−5.03%) |
May 6, 2026 21w ago | 8-K | $27.99 $27.96 | ▼ −0.09% | ▼ −3.23% | $24.25 (−13.37%) |
Mar 24, 2026 27w ago | DEFA14A | $31.26 $29.62 | ▼ −5.23% | ▼ −13.10% | $24.25 (−22.43%) |
US Market Status
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