Company: MGY
Filing Date: 2025-03-20
Form Type: DEF 14A
Source: 0001558370-25-003377
Chunk: 47

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-03-20
Form: DEF 14A
Chunk 47
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| Magnolia Oil & Gas | 41 | 2025 Proxy Statement |

Compensation Discussion and Analysis

In connection with performing the qualitative performance assessment for the Named Executive Officers, the Compensation Committee recognized that the Company achieved significant success in several areas, including:

| ◾ | We substantially improved the business through the completion of bolt-on oil and gas property acquisitions totaling $165 million. |

| ◾ | We achieved year-over-year total production growth of 9 percent. |

| ◾ | In Giddings, we made meaningful improvements in our operating efficiencies, including reductions in our average days to drill a well for the fifth consecutive year. |

| ◾ | We realized operational efficiency gains, coupled with vendor cost reduction activities, that resulted in an approximately 7 percent decrease in well costs throughout the year. |

| ◾ | Through ongoing cost savings and optimization efforts, we achieved a 10 percent reduction in our lease operating expenses (“LOE”) for 2024. |

| ◾ | We increased our annual cash dividend by 15 percent, supported by executing on our business plan and strategy. |

| ◾ | We repurchased 11 million shares during 2024, reducing our diluted weighted average share count outstanding by 5 percent. |

| ◾ | We returned nearly $380 million to our stockholders during 2024—or 88 percent of our total free cash flow(1)—including $107 million in the form of cash dividends and $273 million through share repurchases. |

| ◾ | We successfully refinanced our credit facility and senior unsecured notes, providing additional runway on our maturity profile while also providing additional flexibility to the business. |

| (1) | A reconciliation of free cash flow to the nearest GAAP measure is set forth in Annex A. Full year 2024 return to stockholders includes $272.5 million of share repurchases, $97.6 million of dividends to Class A stockholders, and $7.8 million of distributions to Class B stockholders. |

After assessing the Named Executive Officers’ respective leadership and contributions in these areas, the Compensation Committee determined that it was appropriate to certify the following payout amounts for each Named Executive Officer (other than Mr. Millican) under the 2024 Bonus Program. Mr. Millican’s employment with the Company ended on October 28, 2024, so he received no payout under the 2024 Bonus Program.

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