Company: MGY
Filing Date: 2025-03-20
Form Type: DEF 14A
Source: 0001558370-25-003377
Chunk: 37

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-03-20
Form: DEF 14A
Chunk 37
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 titled “2024 Compensation Decisions—Target Total Direct Compensation.” |
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| Performance results for the quantitative and qualitative performance metrics under our 2024 Bonus Program (as described below) were strong |   | ◾We added an additional financial performance metric—Net Debt to EBITDAX—to the quantitative measures that collectively comprise 75 percent of our 2024 annual bonus awards. For 2024, this new metric, along with Operating Margin and Free Cash Flow Percentage, each comprised 25 percent of the total award opportunity.                                                                                                  
 ◾For 2024 Operating Margin, results remained strong despite lower commodity prices, primarily due to the impact of cost reduction initiatives and operating efficiencies achieved in Giddings and were near the midpoint of the performance level range, with a payout of 61 percent for this component.                                                                                                                      
 ◾For 2024 Free Cash Flow Percentage, results exceeded the maximum performance level due to our team’s proactive engagement with vendors to reduce costs, achieving operational efficiencies, and our ability to grow our business while managing capital reinvestment, with a payout of 100 percent for this component.                                                                                                       
 ◾For 2024 Net Debt to EBITDAX, results exceeded the maximum performance level despite Magnolia’s investment of $165 million of cash in acquisitions during 2024, reflecting our disciplined capital program, with a payout of 100 percent for this component.                                                                                                                                                                 
 ◾With respect to the 25 percent qualitative component, which is designed to focus the Named Executive Officers and other employees on executing on Company-wide performance goals, the Compensation Committee determined that the Company achieved significant success in several areas attributable to the Named Executive Officers’ leadership and contributions.                                                           |
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| Magnolia Oil & Gas | 32 | 2025 Proxy Statement |

Compensation Discussion and Analysis

| A significant majority of compensation awarded in 2024 aligns with stockholder interests through stock price and total stockholder return performance |   | ◾50 percent of each Named Executive Officer’s long term equity-based compensation granted in 2024 was in the form of RSUs, which vest ratably over three years subject to continued employment, to support sustaining and increasing stockholder value.                                                                                                  
 ◾The remaining 50 percent of