Company: MGY
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001698990-25-000030
Chunk: 19

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 19
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 are generally new shares of Class A Common Stock. The Company’s awards provide for accelerated vesting upon retirement under specific conditions.Stock based compensation expense is recognized net of forfeitures within “General and administrative expenses” and “Lease operating expenses” on the consolidated statements of operations and was $7.3 million and $4.7 million for the three months ended September 30, 2025 and 2024, respectively, and $21.2 million and $14.2 million for the nine months ended September 30, 2025 and 2024, respectively. The Company has elected to account for forfeitures of awards granted under the Plan as they occur in determining compensation expense. The total income tax benefit recognized for stock that vested during the nine months ended September 30, 2025 and 2024 was $3.7 million and $5.6 million, respectively.On February 12, 2025, certain PSUs were modified to be 50% settled in cash. In accordance with ASC 718, the Company reclassified 50% of the impacted PSUs from equity-classified awards to liability-classified awards, resulting in a reclassification of $2.0 million from equity to liability. The modification resulted in additional compensation expense of $0.4 million recognized within “General and administrative expenses” on the consolidated statements of operations. The modification affected three grantees.

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Equity-Classified Stock Based CompensationThe following table presents a summary of Magnolia’s equity-classified unvested RSU, PRSU, and PSU activity for the nine months ended September 30, 2025.Restricted Stock UnitsPerformance Restricted Stock UnitsPerformance Stock UnitsUnitsWeighted Average Grant Date Fair ValueUnitsWeighted Average Grant Date Fair ValueUnitsWeighted Average Grant Date Fair ValueUnvested at December 31, 20241,408,980 $21.44 245,527 $19.25 528,281 $22.45 Granted798,495 22.83 — — 179,802 19.87 Modified— — — — (193,871)22.36 Vested (1)(551,897)21.71 (241,560)19.21 — — Forfeited(42,425)22.54 (362)19.19 — — Unvested at September 30, 20251,613,153