Magnolia Oil & Gas (MGY) Financials

Magnolia Oil & Gas (NYSE:MGY) continues to show a sturdy cash-generating profile, but the latest quarter also shows some pressure on liquidity and a balance sheet that has become a bit less flexible than it was a year ago.

In Q1 2026, Magnolia posted $358.5 million in revenue and $99.8 million in net income attributable to common shareholders, with EPS of $0.54. Cash from operations was strong at $197.6 million, but the company spent heavily on capex, investments, buybacks, and dividends, resulting in a $142.4 million decline in cash during the quarter.

Looking at the last several years, Magnolia has generally delivered consistent profitability and strong operating cash flow. However, revenue has been choppy quarter to quarter, non-operating costs remain meaningful, and cash balances have fallen from much higher levels in 2023.

• Operating cash flow remains robust. Q1 2026 operating cash flow was $197.6 million, showing the business still converts earnings into cash effectively.
• Profitability is still intact. The company generated $100.8 million in quarterly net income, or $0.54 per share.
• Revenue growth improved versus late 2025. Q1 2026 revenue of $358.5 million was above Q4 2025 revenue of $317.6 million.
• Retained earnings continue to build. Retained earnings rose to $1.04 billion in Q1 2026 from $925.7 million in Q3 2025.
• Share repurchases remain a capital-return priority. MGY spent $53.1 million on buybacks in Q1 2026, signaling management still sees value in returning capital to shareholders.
• Capex remains high but manageable. The company spent $101.0 million on property and equipment in Q1 2026, consistent with an asset-intensive business model.
• Debt levels are not excessive relative to equity, but they are persistent. Total liabilities were $908.6 million versus total equity of $2.04 billion at quarter-end.
• Depreciation is a recurring drag on reported earnings. Q1 2026 depreciation expense was $113.4 million, a sizable non-cash charge that reflects the capital-heavy nature of the business.
• Cash declined sharply in Q1 2026. Cash and equivalents fell to $124.4 million from $280.5 million in Q3 2025 and $247.6 million in Q1 2025.
• Free cash flow is being pressured by capital returns and investment spending. After capex, securities purchases, dividends, and buybacks, MGY posted a $142.4 million net cash outflow in Q1 2026.

Over the trailing four-year period in this dataset, Magnolia’s quarterly earnings have been fairly resilient, typically landing near or above the $0.40 to $0.54 EPS range in more recent quarters. Revenue has also generally stayed strong, with quarterly sales often between $280 million and $360 million recently, though it was higher in some 2022 periods. That said, the company’s cash balance has trended lower from the $600 million to $700 million range in 2022-2023 down to the $124 million level in Q1 2026.

Bottom line: Magnolia Oil & Gas still looks like a profitable, cash-generative energy company with disciplined capital returns, but investors should note the decline in cash and the ongoing need to fund capex, buybacks, and dividends. The key question going forward is whether operating cash flow stays strong enough to support that capital-return model without further tightening liquidity.