Company: MGY
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001698990-25-000006
Chunk: 116

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 116
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 at commencement date in determining the present value of lease payments.(In thousands)December 31, 2024December 31, 2023Operating LeasesOperating lease assets$17,056 $15,494 Operating lease liabilities - current$12,210 $9,576 Operating lease liabilities - long-term5,591 7,132 Total operating lease liabilities $17,801 $16,708 Weighted average remaining lease term (in years)1.51.8Weighted average discount rate7.1%6.6%For the years ended December 31, 2024 and 2023, the Company incurred $12.5 million and $7.9 million, respectively, of lease costs for operating leases included on the Company’s consolidated balance sheet, and $58.2 million and $51.9 million, respectively, for short-term lease costs. For the years ended December 31, 2024 and 2023, the Company did not incur any material expenses for variable lease costs. Cash paid for lease liabilities included in operating cash flows for the years ended December 31, 2024 and 2023 are $12.9 million and $7.9 million, respectively.Maturities of lease liabilities as of December 31, 2024 under the scope of ASC 842 are as follows:(In thousands)Maturity of Lease LiabilitiesOperating Leases2025$12,972 20265,352 2027262 2028109 202918 After 2029— Total lease payments$18,713 Less: Interest(912)Present value of lease liabilities$17,801 

9. Commitments and Contingencies

Legal MattersFrom time to time, the Company is or may become involved in litigation in the ordinary course of business.Certain of the Magnolia LLC Unit Holders and EnerVest Energy Institutional Fund XIV-C, L.P. (collectively the “Co-Defendants”) and the Company have been named as defendants in a lawsuit where the plaintiffs claim to be entitled to a minority working interest in certain Karnes County Assets. The litigation is in the pre-trial stage. The exposure related to this litigation is currently not reasonably estimable. The Co-Defendants retain all such liability.A mineral owner in a Magnolia operated well in Karnes County, Texas filed a complaint with the Texas Railroad Commission (the “Commission”) challenging the validity of the permit to drill such