Company: MGY
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001698990-25-000030
Chunk: 15

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 15
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Three Months EndedNine Months Ended (In thousands)September 30, 2025September 30, 2024September 30, 2025September 30, 2024Current:Federal$(31,997)$(910)$(15,998)$19,948 State(291)430 631 1,728 Total current(32,288)(480)(15,367)21,676 Deferred:Federal49,253 26,180 77,172 50,125 State243 830 1,478 1,833 Total deferred49,496 27,010 78,650 51,958 Income tax expense$17,208 $26,530 $63,283 $73,634 The Company is subject to U.S. federal income tax and margin tax in the state of Texas. The Company estimates its annual effective tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which it operates. The Company’s effective tax rates for the three months ended September 30, 2025 and 2024 were 18.0% and 20.0%, respectively, and 19.2% and 19.3% for the nine months ended September 30, 2025 and 2024, respectively. The primary differences between the annual effective tax rate and the statutory rate of 21.0% are income attributable to noncontrolling interest, state taxes, and tax credits.

11

On July 4, 2025, the U.S. enacted legislation referred to as the One Big Beautiful Bill Act, which contains certain significant changes to U.S. corporate income tax laws and is generally effective for tax years beginning after December 31, 2024. These changes include, among others, the immediate deduction of domestic research and development (“R&D”) expenses, the option to retroactively deduct previously capitalized R&D expenses, and 100% bonus depreciation for property acquired after January 19, 2025. The impacts are reflected in the Company’s income tax provision for the quarter ended September 30, 2025, which resulted in a decrease in current tax expense offset by an increase in deferred tax expense.

10. Stockholders’ Equity 

Class A Common Stock At September 30, 2025, there were 228.9 million shares of Class A Common Stock issued and 183.6 million shares of Class A Common Stock outstanding. The holders of Class A Common Stock and