Company: MGY
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001698990-25-000021
Chunk: 22

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 22
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ified PSUs (unless an employee elects to retire under certain qualifying conditions), which will occur within 60 days following the end of the performance period. No equity-classified PSUs vested during the six months ended June 30, 2025. The aggregate fair value of equity-classified PSUs that vested during the six months ended June 30, 2024 was $0.1 million. Unrecognized compensation expense related to unvested equity-classified PSUs as of June 30, 2025 was $5.4 million, which the Company expects to recognize over a weighted average period of 1.7 years.

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The following table summarizes the Monte Carlo simulation assumptions used to calculate the grant date fair value of the equity-classified PSUs.Six Months EndedEquity-classified PSU Grant Date Fair Value AssumptionsJune 30, 2025June 30, 2024Expected term (in years)2.882.88Expected volatility38.62%45.09%Risk-free interest rate4.28%4.35%Dividend yield2.37%2.48%Liability-Classified Stock Based CompensationThe following table presents a summary of Magnolia’s unvested liability-classified PSU activity for the six months ended June 30, 2025.Performance Stock UnitsUnvested at December 31, 2024— Granted86,588 Modified193,871 Vested— Forfeited— Unvested at June 30, 2025280,459 Performance Stock UnitsThe Company grants liability-classified PSUs to certain employees. Each liability-classified PSU, to the extent earned, represents the contingent right to receive cash in lieu of each share of Class A Common Stock and the awardee may earn between zero and 150% of the target number of liability-classified PSUs granted based on the TSR of the Class A Common Stock relative to the TSR achieved by a specific industry peer group over a three-year performance period. In addition to the TSR conditions, vesting of the liability-classified PSUs is subject to the awardee’s continued employment through the date of settlement of the liability-classified PSUs (unless an employee elects to retire under certain qualifying conditions), which will occur within 60 days following the end of the performance period. No liability-classified PSUs vested during the six months ended June 30, 2025 and 2024. Unrecognized compensation expense related to unvested