Company: MGY
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001698990-25-000030
Chunk: 22

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 22
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.35%Dividend yield2.37%2.48%Liability-Classified Stock Based CompensationThe following table presents a summary of Magnolia’s unvested liability-classified PSU activity for the nine months ended September 30, 2025.Performance Stock UnitsUnvested at December 31, 2024— Granted86,588 Modified193,871 Vested— Forfeited— Unvested at September 30, 2025280,459 Performance Stock UnitsThe Company grants liability-classified PSUs to certain employees. Each liability-classified PSU, to the extent earned, represents the contingent right to receive cash in lieu of each share of Class A Common Stock and the awardee may earn between zero and 150% of the target number of liability-classified PSUs granted based on the TSR of the Class A Common Stock relative to the TSR achieved by a specific industry peer group over a three-year performance period. In addition to the TSR conditions, vesting of the liability-classified PSUs is subject to the awardee’s continued employment through the date of settlement of the liability-classified PSUs (unless an employee elects to retire under certain qualifying conditions), which will occur within 60 days following the end of the performance period. No liability-classified PSUs vested during the nine months ended September 30, 2025 and 2024. Unrecognized compensation expense related to unvested liability-classified PSUs as of September 30, 2025 was $5.2 million, which the Company expects to recognize over a weighted average period of 1.0 years.The following table summarizes the Monte Carlo simulation assumptions used to remeasure the fair value of the liability-classified PSUs as of September 30, 2025.Liability-classified PSU Remeasurement Fair Value AssumptionsSeptember 30, 2025Expected term (in years)0.25 - 2.25Expected volatility32.16% - 37.26%Risk-free interest rate3.54% - 3.94%Dividend yield2.51%

12. Earnings Per Share

The Company’s unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are deemed participating securities, and therefore dividends and net income allocated to such awards have been deducted from earnings in computing basic and diluted net income per share under the two-class method. Diluted net income per share attributable to