Company: MGY
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001698990-25-000006
Chunk: 118

Company: Magnolia Oil & Gas Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 118
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 $127 $— (1)Amounts represent any agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms. These include minimum commitments associated with firm transportation and delivery contracts, as well as operations- and IT-related service commitments. The costs incurred under these obligations were $2.2 million, $1.7 million, and $1.6 million for the years ended December 31, 2024, 2023, and 2022, respectively.(2)Amounts include long-term lease payments for office space, vehicles, and equipment related to exploration, development, and production activities. ContingenciesIn November 2023, the Company completed the acquisition of certain oil and natural gas producing properties and mineral interests located in the Giddings area. The seller may also receive up to a maximum of $40 million in additional contingent cash consideration through January 2026 based on future commodity prices. The first tranche was settled for $2.7 million in January 2024. The remaining maximum contingent cash consideration as of December 31, 2024 is $37.3 million, of which $2.8 million was paid in January 2025. Refer to Note 3—Acquisitions and Note 4—Fair Value Measurements for additional information.

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10. Income Taxes

The Company’s income tax provision consists of the following components:         Years Ended (In thousands)December 31, 2024December 31, 2023December 31, 2022Current:Federal$23,738 $30,166 $66,540 State1,803 1,686 5,818  Total current25,541 31,852 72,358 Deferred:Federal67,531 73,672 (62,826)State2,741 1,684 (2,894) Total deferred70,272 75,356 (65,720)Income tax expense$95,813 $107,208 $6,638     The Company is subject to U.S. federal income tax, margin tax in the state of Texas, and Louisiana corporate income tax. The Company’s effective tax rates for the years ended December 31, 2024, 2023, and 2022, were 19.4%, 19.5%, and 0.6%, respectively. The primary differences