Company: MGY
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001698990-25-000006
Chunk: 79

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 79
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, transportation, and processing39,832 44,327 Taxes other than income71,862 65,565 Exploration expenses1,374 5,445 Asset retirement obligations accretion6,729 4,039 Depreciation, depletion and amortization414,487 324,790 Impairment of oil and natural gas properties— 15,735 General and administrative expenses88,733 77,102 Total operating costs and expenses$803,898 $692,494 Other Income (Expense):Interest expense, net$(14,371)$(33)Loss on extinguishment of debt(8,796)— Other income, net4,322 15,360 Total other income (expense), net$(18,845)$15,327 Average Operating Costs per boe:Lease operating expenses$5.51 $5.17 Gathering, transportation, and processing1.21 1.47 Taxes other than income2.19 2.18 Exploration expenses0.04 0.18 Asset retirement obligations accretion0.20 0.13 Depreciation, depletion and amortization12.62 10.81 Impairment of oil and natural gas properties— 0.52 General and administrative expenses2.70 2.57 

Lease operating expenses are the costs incurred in the operation of producing properties, including expenses for utilities, direct labor, water disposal, workover rigs, workover expenses, materials, and supplies. Lease operating expenses for the year ended December 31, 2024 were $25.4 million, or $0.34 per boe, higher than the year ended December 31, 2023, due to an increase in chemicals, compression, operating and maintenance costs and payroll expense associated with a higher well count in addition to higher workover activity.

Gathering, transportation, and processing costs are costs incurred to deliver oil, natural gas, and NGLs to the market. These expenses can vary based on the volume of oil, natural gas, and NGLs produced as well as the cost of commodity processing. The Company is also party to a number of percent-of-proceeds arrangements that track closely to natural gas and NGL pricing and affect the cost of commodity processing. The gathering, transportation, and processing costs for the year ended December 31, 2024 were $4.5 million, or $0