Company: MGY
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001698990-25-000030
Chunk: 35

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 35
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 paid(85,341)(72,524)Distributions to noncontrolling interest owners(2,671)(8,190)Other(3,189)(8,213)Net uses of cash and cash equivalents(649,807)(823,205)NET CHANGE IN CASH AND CASH EQUIVALENTS$20,436 $(124,982)

Sources of Cash and Cash Equivalents

Net Cash Provided by Operating Activities

Operating cash flows are the Company’s primary source of liquidity and are impacted, in the short-term and long-term, by oil and natural gas prices. The factors that determine operating cash flows are largely the same as those that affect net earnings, with the exception of certain non-cash expenses such as DD&A, stock based compensation, amortization of deferred financing costs, revaluation of contingent consideration, impairment of oil and natural gas properties, asset retirement obligations accretion, and deferred taxes.

23

Net cash provided by operating activities totaled $670.2 million and $698.2 million for the nine months ended September 30, 2025 and 2024, respectively. During the nine months ended September 30, 2025, cash provided by operating activities was negatively impacted by the timing of receipts and a decrease in realized oil prices, partially offset by the timing of payments, increased production, and an increase in realized natural gas prices. 

Uses of Cash and Cash Equivalents

Acquisitions

The Company made individually insignificant bolt-on acquisitions during each of the nine months ended September 30, 2025 and 2024. 

Additions to Oil and Natural Gas Properties 

The following table sets forth the Company’s capital expenditures for the periods presented:

Three Months EndedNine Months Ended(In thousands)September 30, 2025September 30, 2024September 30, 2025September 30, 2024Drilling and completion$118,441 $103,057 $344,128 $345,406 Leasehold acquisition costs607 1,815 6,375 6,529 Total capital expenditures$119,048 $104,872 $350,503 $351,935 

During the third quarter of 2025, Magnolia operated two rigs. The activity during the third quarter of 2025 was largely driven by the number of operated and non-operated drilling rigs. The number of operated drilling rigs is largely dependent on commodity prices and the Company’s strategy of