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Magnolia Oil & Gas Corporation MGY reported a second-quarter 2025 net profit of 43 cents per share, which beat the Zacks Consensus Estimate of 40 cents. This outperformance can be attributed to a healthy increase in production volumes driven by strong well productivity in the company’s Giddings asset. However, the bottom line decreased from the year-ago quarter’s 56 cents.
The oil and gas exploration and production company’s total revenues were $319 million, which beat the Zacks Consensus Estimate of $314 million, driven by higher revenues from natural gas and natural gas liquids (“NGL”). However, the top line decreased 5.3% from $337 million recorded in the year-ago period, caused by lower oil revenues.
The company reported $226.3 million in revenues from oil, which decreased 17.8% from the year-ago quarter’s $275.3 million. however, it beat the consensus estimate of $221 million. The natural gas revenues of $42.9 million more than doubled from the year-ago quarter’s $18.6 million, missing the consensus estimate of $46.3 million. The natural gas liquids revenues of $49.8 million increased from the year-ago quarter’s $42.8 million, beating the consensus estimate of $46.4 million.
Magnolia Oil & Gas Corp price-consensus-eps-surprise-chart | Magnolia Oil & Gas Corp Quote
In the quarter under review, the company recorded $198.7 million in net cash from operating activities and achieved a free cash flow of $107.5 million.
On July 29, South Texas-focused Magnolia declared a cash dividend of 15 cents per share of Class A Common stock and a cash distribution of 15 cents per Class B unit, payable on Sept. 2 to its shareholders of record as of Aug. 11, 2025.
In the second quarter, Magnolia repurchased 2.2 million Class A Common shares for $48.7 million. The company has 7.4 million Class A Common shares still available under its current repurchase authorization, specifically allocated for open market share buybacks. During the quarter, Magnolia returned 72% of free cash flow to its shareholders through a combination of share repurchases and dividends.
Magnolia reported the average daily total output of 98,229 barrels of oil equivalent per day (boe/d), increasing 8.9% from the year-ago quarter’s 90,207 boe/d. The figure also beat the Zacks Consensus Estimate of 96,517 boe/d.
Oil volumes totaled 39,990 barrels per day (bpd), up 5.4% from the year-ago quarter’s level. Moreover, the figure exceeded our estimate of 39,804 bpd.
Natural gas volumes reached 184,840 thousand cubic feet per day (Mcf/d), up 12.3% from the second quarter of 2024. The figure also surpassed our expectation of 178,147 Mcf/d.
Natural Gas Liquids volumes totaled 27,432 bpd, up 10.5% from the year-ago quarter’s level. Moreover, the figure exceeded our estimate of 26,959 bpd.
The average realized crude oil price was $62.20 per barrel, indicating a 22% decrease from the year-ago period’s $79.74. However, the figure surpassed our expectation of $61 per barrel.
The average realized natural gas price of $2.55 per Mcf increased significantly from the year-ago period’s $1.24. However, the figure was below our expectation of $2.82 per Mcf. Additionally, the average realized natural gas liquids price was $19.94 per barrel, implying a 5.2% increase from the year-ago period’s figure, surpassing our estimate of $19.35.
MGY recorded an average sales price of $35.68 per boe compared with $41.02 a year ago.
As of June 30, 2025, Magnolia had cash and cash equivalents of $251.8 million. The company had long-term debt of $392.9 million, reflecting a debt-to-capitalization of 16.4%.
MGY spent $95.2 million on its capital program in the reported quarter. Operating expenses increased to $211.2 million from $202.4 million in the year-ago period.
During 2025, Magnolia raised its year-over-year production growth guidance from the initial 7-9% to 10%, driven by strong well performance. The company expects its drilling and completion (D&C) 2025 capital spending to be in the range of $430-$470 million.
For the third quarter of 2025, Magnolia anticipates its D&C capital spending to be about $115 million. The production volume for the upcoming quarter is anticipated to be around 99 Mboe/d, inclusive of the volume associated with the recent bolt-on acquisitions.
Total company lease operating expenses ("LOE") averaged $4.88 per boe in second-quarter 2025, down notably from $5.40 in first-quarter 2025 and second-quarter 2024. The decline was mainly due to reduced workover costs. In the third quarter of 2025, LOE is expected to normalize to around $5.25 per boe, approximately 5% lower than 2024 levels.
Oil price differentials are expected to reflect a $3 per bbl discount to Magellan East Houston, and Magnolia remains fully unhedged across its oil and gas production. The fully diluted share count for the upcoming quarter is estimated at 191 million, marking a 4% decline year over year.
MGY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While we have discussed MGY’s second-quarter results in detail, let us take a look at three other key reports in this space.
The leading U.S.-based natural gas producer, Expand Energy Corporation EXE, reported second-quarter 2025 adjusted earnings per share of $1.10, which missed the Zacks Consensus Estimate of $1.14. However, the company’s bottom line surpassed the year-ago adjusted profit of 1 cent, fueled by strong production and higher natural gas price realization.
Expand Energy’s ‘natural gas, oil and NGL’ revenues of $2 billion missed the Zacks Consensus Estimate by $74 million. However, the top line was outstandingly higher than the year-ago figure of $378 million.
As of June 30, 2025, the company had $731 million in cash and cash equivalents. Expand Energy had a long-term debt of $5.1 billion, reflecting a debt-to-capitalization of 22.2%.
The Denver, CO-based oil and gas exploration and production company,Ovintiv Inc. OVV, reported second-quarter 2025 adjusted earnings per share of $1.02, which missed the Zacks Consensus Estimate of $1.04. The bottom line also decreased from the year-ago level of $1.24. This underperformance was due to weaker oil price realizations and a 4% year-over-year increase in expenses during the quarter.
The company’s total revenues of $2.3 billion increased 1.3% from the year-ago quarter’s figure and beat the Zacks Consensus Estimate by 18.8%. Higher contributions from sales of purchased products and strong gains from hedging drove the revenue growth.
As of June 30, the company had cash and cash equivalents worth $20 million and long-term debt of $4.4 billion. Its debt-to-capitalization was 29.7%.
The Houston, TX-based oil and gas equipment and services company,Oceaneering International, Inc. OII, reported an adjusted profit of 49 cents per share for the second quarter of 2025, beating the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line surpassed the year-ago quarter’s reported figure of 28 cents. This was due to year-over-year strong operating income from its segments.
Total revenues were $698.2 million, which was in line with the Zacks Consensus Estimate. The top line increased approximately 4.4% from the year-ago quarter’s $668.8 million, due to the strong revenue contribution from its segments.
As of June 30, 2025, OII had cash and cash equivalents worth $434 million and $497.5 million, respectively, along with a long-term debt of about $484.6 million. The debt-to-total capital was 36.4%.
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This article originally published on Zacks Investment Research (zacks.com).
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