Magnolia Oil & Gas reported third‑quarter 2025 results showing net income of $78.2 million, a 26% decline from $105.9 million in the same period last year, and diluted earnings per share of $0.40. Total revenue for the quarter was $324.9 million, down from $333.1 million in 2024, while adjusted EBITDAX fell 10% to $218.8 million. Capital expenditures for drilling and completion rose 15% to $118.4 million.
Average daily production increased 11% year‑over‑year to 100.5 million barrels of oil equivalent per day. Production from the Giddings field grew 15% to 39.4 million barrels of oil equivalent, representing 79% of total output. The company’s cash balance stood at $280.5 million and the diluted share count was 190.3 million.
The company repurchased 2.15 million shares for $51.4 million during the quarter and declared a quarterly dividend of $0.15 per share, payable on December 1, 2025. Capital spending remained disciplined, with 55% of adjusted EBITDAX allocated to capital projects.
For the fourth quarter, Magnolia expects production of approximately 101 million barrels of oil equivalent per day and drilling and completion capital spending of about $110 million. Total 2025 capital expenditures are projected near $450 million, within the guidance range of $430‑$470 million. The company reiterated its 2025 production growth guidance of roughly 10%, an upward revision from the initial 5‑7% range announced earlier in the year.
Magnolia’s strategy focuses on disciplined capital allocation and shareholder returns. The company limits capital spending to 55% of annual adjusted EBITDAX, ensuring a substantial portion of free cash flow is available for dividends and share repurchases. Its long‑term dividend growth target is about 10% per year, and it has consistently increased the dividend since 2021. The Giddings field, which accounts for the majority of output, has been a key driver of production growth, reflecting the company’s emphasis on efficient development in the Eagle Ford Shale and Austin Chalk formations.
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