Magnolia Oil & Gas (MGY) Financials

Magnolia Oil & Gas (NYSE: MGY) delivered a strong second quarter of 2026, with significant acceleration in revenue, earnings and operating cash flow. Revenue increased to $478.8 million from $358.5 million in Q1 2026 and $319.0 million in Q2 2025. Net income attributable to common shareholders rose to $181.8 million, compared with $99.8 million in the prior quarter, while diluted EPS increased to $0.97 from $0.54.

The quarterly data indicates that MGY remains highly profitable, but results are subject to commodity-price volatility. The company has also consistently returned capital through dividends and share repurchases, while continuing to invest heavily in its property base.

• Strong Q2 2026 earnings acceleration: Revenue rose approximately 34% sequentially, while net income attributable to common shareholders increased approximately 82%. The $0.97 diluted EPS result was the strongest in the recent reporting period.
• Operating cash flow strengthened materially: Cash flow from operations reached $384.0 million in Q2 2026, up from $197.6 million in Q1 2026 and $198.7 million in Q2 2025. This provided substantial funding for capital spending and shareholder returns.
• Healthy quarterly free cash flow: Operating cash flow less property and equipment purchases was approximately $256.7 million in Q2 2026. That suggests the company generated enough internal cash to fund development activity, dividends and buybacks without relying heavily on new borrowing.
• Cash balance rebounded: Cash and equivalents increased to $295.9 million at June 30, 2026, from $124.4 million at March 31, 2026. The improvement followed a cash decline during much of 2024 and 2025, when capital investment and shareholder distributions exceeded operating cash generation in several quarters.
• Consistent shareholder distributions: MGY repurchased $49.3 million of common stock and paid $30.8 million in dividends during Q2 2026. Repurchases have generally remained near $50 million per quarter, potentially supporting per-share results over time.
• Asset base continues to expand: Total assets increased to $3.14 billion in Q2 2026 from $2.81 billion in Q3 2024 and $2.30 billion in Q3 2022. Net premises and equipment also increased substantially, reflecting continued investment in the company’s producing asset base.
• Debt has been relatively stable: Total reported debt was approximately $566.7 million in Q2 2026, consisting of $173.1 million of short-term debt and $393.6 million of long-term debt. Debt has remained broadly within the same range since 2022, although cash was below total debt at the latest quarter-end.
• Results remain cyclical: Quarterly revenue moved from $482.9 million in Q3 2022 to a low near $315.7 million in Q3 2023 before recovering to $478.8 million in Q2 2026. This pattern is consistent with the sensitivity of an oil and gas producer to commodity prices, production levels and realized volumes.
• Capital spending remains substantial: Property and equipment purchases totaled $127.4 million in Q2 2026, following $101.0 million in Q1 2026 and $106.7 million in Q2 2025. Although current operating cash flow covered this spending, sustained investment could pressure free cash flow during weaker commodity-price periods.
• Depreciation and operating costs continue to rise: Depreciation expense was $116.5 million in Q2 2026, compared with $97.1 million in Q1 2024 and $70.7 million in Q1 2023. Total non-interest expense also increased to $239.3 million in Q2 2026, including a $3.2 million restructuring charge, which could limit margin expansion if revenue weakens.

Overall, the statements show a company with strong recent operating momentum, meaningful cash generation and a long record of returning capital to shareholders. The main risks are the volatility of quarterly revenue, continued capital requirements and the fact that cash remains below total reported debt despite the Q2 rebound. Investors should also note that several historical income statement and cash flow figures were marked as restated or calculated in the supplied data, so comparisons should be interpreted with appropriate caution.