Company: MGY
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001698990-25-000013
Chunk: 9

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 9
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 at closing with cash on hand.Additionally, during the three months ended March 31, 2024, the Company completed various bolt-on property acquisitions of certain oil and natural gas assets totaling $13.4 million.The Company accounted for the aforementioned acquisitions as asset acquisitions.

6

5. Fair Value Measurements

Certain of the Company’s assets and liabilities are carried at fair value and measured either on a recurring or nonrecurring basis. The Company’s fair value measurements are based either on actual market data or assumptions that other market participants would use in pricing an asset or liability in an orderly transaction, using the valuation hierarchy prescribed by GAAP under Accounting Standards Codification (“ASC”) 820.The three levels of the fair value hierarchy under ASC 820 are as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical investments at the measurement date are used.Level 2 - Pricing inputs are other than quoted prices included within Level 1 that are observable for the investment, either directly or indirectly. Level 2 pricing inputs include quoted prices for similar investments in active markets, quoted prices for identical or similar investments in markets that are not active, inputs other than quoted prices that are observable for the investment, and inputs that are derived principally from or corroborated by observable market data by correlation or other means.Level 3 - Pricing inputs are unobservable and include situations where there is little, if any, market activity for the investment. The inputs used in determination of fair value require significant judgment and estimation.The Company has other financial instruments consisting primarily of receivables, payables, and other current assets and liabilities that approximate fair value due to the nature of the instruments and their relatively short maturities. Non-financial assets and liabilities initially measured at fair value include assets acquired and liabilities assumed in business combinations and asset retirement obligations.Recurring Fair Value MeasurementsFair value at March 31, 2025(In thousands)Level 1Level 2Level 3TotalLiabilitiesLong-term debt (see Note 7)$399,200 $— $— $399,200 Contingent consideration (see Note 8)— 3,159 — 3,159 Liability-classified stock based compensation (see Note 11)— 3,509 — 3,509 Fair value at December 31, 2024(In thousands)Level 1Level 2Level 3TotalLiabilitiesLong-term debt (see Note 7)$396,808 $— $—