Company: MGY
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001698990-25-000006
Chunk: 111

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 111
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 31, 2024 and 2023 is as follows:December 31, 2024December 31, 2023(In thousands)Carrying Value Fair ValueCarrying Value Fair Value Long-term debt$392,513 $396,808 $392,839 $394,356 The fair values of the 2032 Senior Notes as of December 31, 2024 and the 2026 Senior Notes as of December 31, 2023 are based on unadjusted quoted prices in an active market, which are considered a Level 1 input in the fair value hierarchy.In November 2023, the Company acquired certain oil and gas producing properties including leasehold and mineral interests in the Giddings area. As part of this transaction, the seller may receive up to $40.0 million in contingent cash consideration based on future commodity prices. The contingent consideration is payable in three tranches based on average NYMEX WTI prices for (i) the period beginning July 1, 2023 through December 31, 2023, (ii) the year ending December 31, 2024, and (iii) the year ending December 31, 2025. The fair value of the contingent consideration is estimated using observable market data (NYMEX WTI forward price curve) and Monte Carlo simulation models, which are considered Level 2 inputs in the fair value hierarchy. As of the acquisition date, the fair value of the contingent consideration was approximately $21.9 million. The fair value was recorded in oil and natural gas properties with a corresponding liability.The fair value of the remaining contingent consideration as of December 31, 2024 and 2023 was $7.3 million and $14.3 million, respectively. The current portion of the liability included in “Other current liabilities” on the Company’s consolidated balance sheet as of December 31, 2024 and 2023 was $7.3 million and $6.7 million, respectively. The long-term portion of the liability included in “Other long-term liabilities” on the Company’s consolidated balance sheet as of December 31, 2023 was $7.6 million.The first tranche was settled for $2.7 million in January 2024. The second tranche was settled for $2.8 million in January 2025. The Company recognized a gain of $4.3 million and $7.6