Magnolia Oil & Gas Corporation (MGY) AI Stock Analysis

Magnolia Oil & Gas Corporation is actively involved in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves in strategic regions of the United States. Its primary operational focus is centered in Karnes County and the Giddings Field in South Texas, primarily targeting the Eagle Ford Shale and the Austin Chalk formation. As of December 31, 2021, the company held 471,263 net acres, including 23,785 net acres in Karnes and 447,478 net acres in the Giddings area, along with 1,292 net wells providing production capacity of 66.0 thousand barrels of oil equivalent per day.

Magnolia's revenue expanded at a 5-year CAGR of 19.4% from FY2020 to FY2025. Annual revenue peaked in FY2022 at $1.69B with a net margin of 52.7%, before dropping to $1.23B in FY2023. In FY2025, revenue was $1.31B, down 0.3% year-over-year, while net income totaled $325.3M with an EPS of $1.74 and an operating margin of 33.5%. Growth accelerated in the latest quarter ending June 30, 2026, delivering quarterly revenue growth of 50.1% and quarterly earnings growth of 136.6% year-over-year. TTM revenue reached $1.48B with an operating margin of 50.7% and return on equity of 20.8%.

As of June 30, 2026, Magnolia held $295.9M in cash and short-term investments alongside total debt of $393.6M, resulting in net debt of $97.7M. The debt-to-equity ratio stood at 0.18 with shareholders' equity of $2.15B and a current ratio of 0.96. In FY2025, the company generated $878.6M in operating cash flow and $409.2M in free cash flow. Capital allocation in FY2025 included $469.5M in capital expenditures, $205.5M spent on share buybacks, and $113.1M disbursed in dividends.

MGY has a market cap of $6.96B and an enterprise value of $6.69B. The stock trades at a trailing P/E of 11.1x and a forward P/E of 9.2x, below the median of its US-listed Energy peers of 15.0x and 12.7x, respectively. Its EV/EBITDA is 6.6x compared to the peer median of 8.0x, though its price-to-sales multiple of 4.7x is above the peer median of 1.8x. Over the past year, MGY delivered a return of 14.7% compared to 16.8% for SPY, while its 5-year return of 39.2% trailed SPY's 83.0%.

Magnolia pays a quarterly dividend with an annual forward payout of $0.66, representing a dividend yield of 2.60% and a payout ratio of 28.3%. The company has paid dividends for 6 consecutive years, and its last ex-dividend date was August 10, 2026.

Wall Street coverage includes 12 Strong Buy, 2 Buy, and 5 Hold ratings, with no Sell or Strong Sell ratings. The mean price target is $32.78, indicating 29.3% upside from the last close of $25.35. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $2.03B and an EPS of $2.95, representing 69.1% earnings growth. Magnolia beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of Magnolia Oil & Gas Corporation (MGY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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