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

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1
Chunk 19
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Strategy

Magnolia’s business model prioritizes prudent and disciplined capital allocation, free cash flow, and financial stability. The Company’s ongoing plan is to spend well within cash flow on drilling and completing wells while maintaining low financial leverage. The Company is well positioned to reduce or increase operations given the significant flexibility within its capital program as the Company has no long-term service obligations.

The Company’s long-term strategy is centered around the following value creation principles:

•generate moderate annual organic production growth,

•maintain an efficient capital program with short economic paybacks,

•maintain a conservative financial leverage profile,

•generate high full-cycle operating margins, 

•generate significant free cash flow after capital expenditures, and

•effectively reinvest free cash flow to maximize shareholder returns.

For additional detail regarding the Company’s 2024 results, strategy, and its capital resources and liquidity, please see Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Annual Report on Form 10-K.

Segment Information and Geographic Area

The Company operates in one reportable segment engaged in the acquisition, development, exploration, and production of oil and natural gas properties located in the United States. Magnolia’s operations are conducted predominantly in one geographic area of the United States. Magnolia’s oil and natural gas properties are located primarily in the Karnes and Giddings areas in South Texas where the Company targets the Eagle Ford Shale and the Austin Chalk formations. For additional segment information please see Part 

5

II, Item 8, Note 1—Organization and Basis of Presentation in the notes to the consolidated financial statements included in this Annual Report on Form 10-K.

Properties

As of December 31, 2024, Magnolia’s assets consisted of a total leasehold position of 817,907 gross (604,057 net) acres, including 79,067 gross (54,936 net) acres in the Karnes area and 738,840 gross (549,121 net) acres in the Giddings area. As of December 31, 2024, Magnolia had 2,674 gross (1,818 net) wells with total production of 89.7 Mboe/d for the year ended December 31, 2024. During 2024, Magnolia operated two rigs. Approximately 43%, 30%, and 27% of production from Magnolia’s assets was attributable to oil, natural gas, and NGLs, respectively, for the year ended December