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A focused Pioneer Natural Resources, specializing in South Texas oil and gas.

The EOG Resources of the Eagle Ford Shale.

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• Oil: A hydrocarbon liquid extracted from underground reserves, primarily used as fuel or for manufacturing petrochemicals.
• Natural Gas: A gaseous hydrocarbon mixture extracted from underground, primarily used for energy generation and heating.
• Natural Gas Liquids (NGLs): Hydrocarbon components separated from natural gas, used as fuel, feedstock for plastics, and other products.

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Magnolia Oil & Gas (symbol: MGY) is an upstream oil and gas company that engages in the acquisition, development, exploration, and production of crude oil, natural gas, and natural gas liquids (NGLs).

Given the commodity nature of its products, Magnolia Oil & Gas primarily sells to other companies within the energy value chain, rather than directly to individuals. The company typically sells its crude oil, natural gas, and NGLs to a diverse group of purchasers under various contractual arrangements (both short-term and long-term).

Due to the competitive and commodity-based nature of the oil and gas market, Magnolia Oil & Gas does not publicly disclose specific names of its major customer companies, nor does it typically have individual customers that account for a significant portion of its revenue (e.g., 10% or more) that would necessitate such disclosure in its public filings. Therefore, it is not possible to list specific company names and symbols as major customers.

However, the categories of companies that purchase Magnolia Oil & Gas's products include:

1. Midstream Companies: These companies purchase raw crude oil, natural gas, and NGLs at the wellhead for gathering, processing (e.g., separating natural gas into dry gas and NGLs), and transportation through pipelines to market hubs or end-users.
2. Refiners: Companies that purchase crude oil as a feedstock to convert it into various refined products, such as gasoline, diesel, jet fuel, and other petrochemical feedstocks.
3. Natural Gas Marketers and Utilities: Companies that purchase natural gas for resale to industrial, commercial, and residential customers, or for use in power generation.
4. Petrochemical Companies: Companies that utilize NGLs (such as ethane, propane, and butane) as feedstocks for producing plastics, chemicals, and other industrial products.

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Christopher G. Stavros, President, Chief Executive Officer, and Chairman of the Board

Mr. Stavros was appointed President and Chief Executive Officer of Magnolia Oil & Gas in September 2022, and also became Chairman of the Board in July 2025. Prior to this, he served as Magnolia's Executive Vice President and Chief Financial Officer since July 2018. Before joining Magnolia, Mr. Stavros was the Senior Vice President and Chief Financial Officer of Occidental Petroleum Corporation, where he began in 2005 and was named CFO in 2014, having previously held roles as Vice President, Investor Relations, and Treasurer. He retired from Occidental in May 2017. Earlier in his career, Mr. Stavros was a Senior Analyst at UBS, covering the Oil and Gas sector. He has 30 years of experience in the energy and financial industries. Magnolia Oil & Gas was formed through a strategic combination of TPG Pace Energy Holdings Corp. (a SPAC) and Magnolia Oil & Gas, LLC, an entity controlled by Stephen Chazen; the SPAC acquired South Texas properties from Enervest, a private equity firm, in 2018, at which point Mr. Stavros became CFO of Magnolia.

Brian M. Corales, Senior Vice President and Chief Financial Officer

Mr. Corales was appointed Senior Vice President and Chief Financial Officer of Magnolia Oil & Gas on November 3, 2022. He previously served as Magnolia's Vice President, Investor Relations, since November 2018. Mr. Corales is a Certified Public Accountant. Before joining Magnolia, he was a senior analyst at Johnson Rice & Co. and spent 15 years in various investment banking roles, including as a director at Scotia Howard Weil, where he covered exploration and production companies from October 2009 to February 2018. He began his career in 2001 in the Assurance practice at Ernst & Young, focusing on energy companies.

Timothy D. Yang, Executive Vice President, General Counsel, Corporate Secretary and Land

Mr. Yang joined Magnolia Oil & Gas in September 2018 as Executive Vice President, General Counsel, and Secretary, with his role expanding to include authority over Land in February 2022. Prior to Magnolia, he served as General Counsel and Corporate Secretary of Newfield Exploration Company from July 2015 to September 2018. His previous experience includes roles as Senior Vice President, Land & Legal, General Counsel, Chief Compliance Officer, and Secretary at Sabine Oil & Gas Corporation from 2013 to 2015. Mr. Yang's legal background encompasses both public and private companies in the energy and investment sectors, including Invesco Ltd./AIM Investments, Pogo Producing Company, and Eagle Rock Energy Partners, L.P.

Stephen I. Chazen, Founder (Deceased)

Mr. Chazen founded Magnolia Oil & Gas Corporation and served as its Chairman, President, and Chief Executive Officer from its inception in 2017/2018 until his resignation due to health reasons in September 2022, shortly before his passing. Prior to founding Magnolia, he had a distinguished career at Occidental Petroleum Corporation, serving as its Chief Executive Officer from 2011 to 2016, and in various other leadership positions, including Chief Financial Officer, President, and Chief Operating Officer, since joining the company in 1994. He was also on Occidental's Board of Directors from 2010 to 2017 and was elected Chairman of Occidental's board in 2020. Before his tenure at Occidental, Mr. Chazen worked as a Managing Director in the investment banking division of Merrill Lynch, focusing on corporate finance and mergers and acquisitions. Magnolia's formation involved a Special Purpose Acquisition Company (SPAC), TPG Pace Energy Holdings Corp., and the acquisition of South Texas properties from Enervest, a private equity firm, demonstrating his involvement in managing companies backed by private equity.

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Key Risks for Magnolia Oil & Gas (MGY)

1. Commodity Price Volatility: Magnolia Oil & Gas's financial performance is highly susceptible to the volatile prices of oil, natural gas, and natural gas liquids (NGLs). Fluctuations in these commodity prices directly impact the company's revenue, profitability, and ability to fund operations. For instance, a decline in oil prices has already been identified as a challenge to revenue growth.
2. Regulatory and ESG Risks: The company faces significant risks related to evolving environmental regulations, climate change policies, and broader Environmental, Social, and Governance (ESG) concerns. These regulatory changes can lead to increased compliance costs and may disproportionately affect smaller operators like Magnolia, which might have fewer resources to adapt. Furthermore, the global push towards renewable energy sources poses a long-term challenge to the demand for hydrocarbons.
3. Operational and Geological Risks with Concentrated Asset Base: Magnolia Oil & Gas is exposed to the inherent operational and geological risks associated with oil and gas exploration and production, including potential cost overruns or production delays related to advanced drilling techniques. A significant portion of its operations is concentrated in specific areas, primarily the Eagle Ford Shale and Austin Chalk formations in South Texas. This concentrated asset base exposes the company to localized operational and financial risks, and a limited scale can affect its negotiating power and cost efficiencies compared to larger competitors.

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Magnolia Oil & Gas Corporation (MGY) engages in the acquisition, development, exploration, and production of crude oil, natural gas, and natural gas liquids primarily in the Eagle Ford Shale and Austin Chalk formations in South Texas, United States. The addressable markets for their main products are substantial within the United States.

For their main products, the market sizes in the U.S. or North America are:

• Crude Oil: The global crude oil market was valued at approximately USD 755.3 billion in 2024 and is projected to reach around USD 929.8 billion by 2034. North America, encompassing the U.S., held about 52% of the global market share in 2022.
• Natural Gas: The U.S. natural gas market was valued at approximately USD 454.5 billion in 2024 and is expected to increase to USD 577.9 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 3.2% from 2025 to 2032.
• Natural Gas Liquids (NGLs): The North American Natural Gas Liquids (NGL) market is estimated to grow from USD 7.08 billion in 2024 to USD 11.53 billion in 2033, demonstrating a CAGR of 5.57%. The U.S. NGL production is a significant component of this, with field production totaling 7,041 thousand barrels per day in 2024.

Within Magnolia's primary operating regions in South Texas, the Eagle Ford Shale and Austin Chalk plays also show significant production volumes:

• Eagle Ford Shale: Natural gas production in the Eagle Ford region is projected to increase from 6.8 billion cubic feet per day (Bcf/d) in 2024 to 7.0 Bcf/d by 2026. Oil production in the Eagle Ford has remained stable at approximately 1.1 million barrels per day (b/d) since 2020, with this trend expected to continue through 2026. The region is estimated to contain 8.5 billion barrels of oil, 66 trillion cubic feet (TcF) of natural gas, and 1.9 billion barrels of natural gas liquids in technically recoverable resources.
• Austin Chalk Formation: Gas output from the Austin Chalk has nearly tripled since 2020, reaching 1.8 Bcf/d, while oil output has increased by 26,000 barrels per day (bbl/d). As of April 2025, the Austin Chalk play contributed 23% (1.8 Bcf/d) of the Eagle Ford region's natural gas production and 11% (125,000 b/d) of its oil production. The U.S. Geological Survey estimates the Austin Chalk to hold 6.9 billion barrels of oil and 41.5 trillion cubic feet of natural gas.

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1. Consistent Production Growth from Core Assets: Magnolia Oil & Gas anticipates continued growth in its oil and natural gas production volumes, primarily from its established positions in the Eagle Ford Shale and Austin Chalk formations in South Texas. The company projects high single-digit total production growth and similar oil production growth on an annual basis for 2024. Looking ahead to 2025, total production growth is expected to be in the range of 5% to 7%, with low single-digit annual growth in oil production. In Q1 2024, total production volumes already increased by 7% year-over-year. The company achieved record quarterly production of 93,100 barrels of oil equivalent per day in Q4 2024, leading to a 9% annual growth in total production for the full year 2024, with oil growth at 11%. This trend is expected to continue, with a 5% production growth target for 2026.

2. Strategic Bolt-on Acquisitions: Magnolia's business strategy includes utilizing generated free cash flow to pursue attractive bolt-on oil and gas property acquisitions. For example, in Q1 2024, the company spent $27 million on such acquisitions, primarily in the Giddings area. One acquisition in Q1 2024 encompassed over 80,000 gross acres, providing both new operated development opportunities and increasing the company's working interest in existing high-return locations. These strategic additions to its asset base are expected to contribute to overall production and revenue expansion.

3. Enhanced Operational Efficiencies and Cost Optimization: The company is focused on improving field operations and efficiencies, particularly in the Giddings area, which is expected to lead to lower unit operating costs and higher margins. These efficiencies include fewer drilling days per well and significant gains in stimulation stages per day. Furthermore, lower overall well costs combined with these improved operating efficiencies are anticipated to enable the drilling and completion of more wells without increasing capital expenditures, thereby supporting high-margin growth.

4. Favorable Commodity Price Environment: As Magnolia Oil & Gas remains un-hedged for all its oil and natural gas production, fluctuations in commodity prices will directly impact its revenue. A sustained period of favorable crude oil and natural gas prices would serve as a significant driver for increased revenue. While the company's operational strength provides a buffer, higher market prices for oil and gas would directly translate to greater top-line performance.

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Share Repurchases

• Magnolia Oil & Gas expanded its share repurchase authorization to 60 million shares on February 5, 2026.
• The company repurchased 8.9 million Class A Common shares during 2025, resulting in a 4.4% to 4.5% reduction in the diluted weighted average total shares outstanding compared to the prior year.
• Magnolia returned approximately 88% of the free cash flow generated during 2024 to shareholders through a combination of share repurchases and dividends.

Share Issuance

• The fully diluted share count for the first quarter of 2026 is expected to be approximately 187 million shares, marking a 4% reduction from first quarter 2025 levels.
• The diluted weighted average total shares outstanding for the third quarter of 2024 fell by 5% to 198.4 million compared to the third quarter of 2023, indicating a net reduction in shares.

Outbound Investments

• Magnolia completed several small bolt-on oil and gas property acquisitions during 2025, totaling $66.6 million.

Capital Expenditures

• Magnolia's full-year 2025 capital spending on drilling, completions, and associated facilities was $460.7 million, with an estimated range of $440 million to $480 million for 2026.
• The company's drilling and completion capital for 2024 was $477.0 million.
• Capital spending is primarily focused on the high-growth Giddings area (75-80%) and Karnes (20-25%), and includes appraisal activities in South Texas to enhance resource opportunities.