Exploring a Possible Magnolia / WildFire Combination

Research evidence excerpt

Exploring a Possible Magnolia / WildFire Combination

June 29, 2026 | 17:06 ET~

Magnolia Oil & Gas

MGY-NYSE Rating Price: Jun-29 Target Total Rtn US E&P

Outperform $25.73 $35.00 38%

Phillip Jungwirth, CFA Analyst

phillip.jungwirth@bmo.com (303) 436-1127

Jack Kindregan, CFA VP Associate

Exploring a Possible Magnolia / WildFire Jack.Kindregan@bmo.com (303) 436-1115

Ajay Bakshani, CFA Senior AssociateCombination

ajay.bakshani@bmo.com (332) 268-6994

Bottom Line: Legal Entity: BMO Capital Markets Corp.

We’re exploring a Magnolia/WildFire combination following press reports that Magnolia

2YR Price Volume Chart

is the front-runner, while the acreage positions are highly complimentary. MGY shares 34

underperformed today, as any deal nearly doubles Magnolia’s size and likely requires 3230

equity. That said, MGY’s premium valuation and minimal debt, aids financial accretion, 28

while WildFire has one of the deepest inventories among privates. Our asset level 26 30

24 20comparison shows WildFire returns are likely lower but still attractive with improving 22

productivity and likely enhanced by synergies. Magnolia management has also 20 10

demonstrated a track-record of discipline and leading corporate returns. 18 Dec Jun Dec Jun 0

LHS: Price ($) / RHS: Volume (mm) Source: FactSet

Key Points Company Data in $

Dividend $0.63 Shares O/S (mm) 190.5Bloomberg reported that Magnolia emerged as the front-runner to acquire private

WildFire Energy for >$4Bn, with a deal possibly announced in weeks. The combination Yield 2.4% Market Cap (mm) $0

isn’t confirmed, but also wouldn't be a surprise with Magnolia and WildFire having EV (mm) $5,514 Net Debt (mm) $269

offsetting acreage positions across East Texas Eagle Ford. Reuters reported WildFire was BMO Estimates in $