Magnolia Oil & Gas Closes WildFire Acquisition, Guides Q4 Output to 35% Jump

Magnolia Oil & Gas Corporation (NYSE: MGY) has finalized its acquisition of WildFire Energy, setting the stage for significant growth in the fourth quarter. On a pro forma basis, Magnolia estimates Q4 production will reach 159 to 161 million barrels of oil equivalent per day (Mboe/d), with oil accounting for 49% to 50%. This marks a 35% increase from the third-quarter levels.

The company's drilling and completion (D&C) capital spending is expected to reach approximately $235 million in Q4. For 2027, Magnolia projects production growth of 4% to 5%, with D&C capital spending estimated at $900 million to $950 million.

Notably, the acquisition has already led to a reduction in debt, which now stands at around $1.9 billion, below expectations. The company's leverage is also below its stated comfort threshold, more than a year ahead of schedule.