Company: MGY
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001698990-25-000030
Chunk: 21

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 21
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 five-year performance period, the PRSUs will be forfeited and no shares of Class A Common Stock will be issued, even if the vesting conditions have been met. Compensation expense for the PRSU awards is based upon grant date fair market value of the award, calculated using a Monte Carlo simulation, and such costs are recorded on a straight-line basis over the requisite service period for each separately vesting portion of the award, as if the award was, in-substance, multiple awards, as applicable. The aggregate fair value of PRSUs that vested during the nine months ended September 30, 2025 and 2024 were $5.5 million and $15.1 million, respectively. Unrecognized compensation expense related to unvested PRSUs as of September 30, 2025 was insignificant.The Company grants equity-classified PSUs to certain employees. Each equity-classified PSU, to the extent earned, represents the contingent right to receive one share of Class A Common Stock and the awardee may earn between zero and 150% of the target number of the equity-classified PSUs granted based on the total shareholder return (“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 equity-classified PSUs is subject to the awardee’s continued employment through the date of settlement of the equity-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 equity-classified PSUs vested during the nine months ended September 30, 2025. The aggregate fair value of equity-classified PSUs that vested during the nine months ended September 30, 2024 was $0.1 million. Unrecognized compensation expense related to unvested equity-classified PSUs as of September 30, 2025 was $4.3 million, which the Company expects to recognize over a weighted average period of 1.6 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.Nine Months EndedEquity-classified PSU Grant Date Fair Value AssumptionsSeptember 30, 2025September 30, 2024Expected term (in years)2.882.88Expected volatility38.62%45.09%Risk-free interest rate4.28%4