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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Magnolia Oil and Gas Corporation | NYSE:MGY | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.015 | -0.06% | 24.345 | 24.41 | 24.06 | 24.21 | 87,299 | 15:22:18 |
Magnolia Oil & Gas Corporation (NYSE: MGY) (“Magnolia” or “the Company”) announced today that the Company has entered into a definitive purchase agreement to acquire certain oil and gas producing properties including leasehold and mineral interests in Giddings for $300 million, subject to customary purchase price adjustments. The cash outlay at closing is estimated to be approximately $260 million, adjusted for the free cash flow generated by the assets between the effective date of July 1, 2023, and the anticipated closing date in the fourth quarter of 2023. The consideration will be funded with cash on hand, which was $677 million as of June 30, 2023. The seller may also receive up to a maximum of $40 million in additional contingent cash consideration through December 2025 based on future commodity prices.
Transaction Highlights:
Magnolia President and CEO Chris Stavros stated, “We continue to leverage our accumulated knowledge and advanced understanding of Giddings by adding bolt-on oil and gas properties to expand our portfolio of high-quality opportunities and improve the overall business. Today’s transaction is a natural strategic fit for Magnolia and meets both the financial and operational characteristics we look for in a bolt-on acquisition that can be easily integrated into our Giddings development program. Magnolia’s acreage in Giddings now totals more than half a million net acres, with a development area of more than 150,000 net acres. Our business model is reinforced by capital discipline and provides for significant free cash flow generation through the cycle. This acquisition allows us to opportunistically deploy some of our additional cash into assets that generate high financial returns, increase our dividend per share payout capacity, and enhance value for our shareholders.”
About Magnolia Oil & Gas
Magnolia is a publicly traded oil and gas exploration and production company with operations primarily in South Texas in the core of the Eagle Ford Shale and Austin Chalk formations. Magnolia focuses on generating value for shareholders by delivering steady, moderate annual production growth resulting from its disciplined and efficient philosophy toward capital spending. The Company strives to generate high pre-tax margins, and consistent free cash flow allowing for strong cash returns to our shareholders. For more information, visit www.magnoliaoilgas.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230905134306/en/
Investors Jim Johnson 713-842-9033 jjohnson@mgyoil.com
Tom Fitter 713-331-4802 tfitter@mgyoil.com
Media Art Pike 713-842-9057 apike@mgyoil.com
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