JPM E&P Shale Well Watcher: Playing with Fire: Valuation Thoughts on a Potential Magnolia-Wildfire Combination in the East Texas Eagle Ford

Research evidence excerpt

JPM E&P Shale Well Watcher: Playing with Fire: Valuation Thoughts on a Potential Magnolia-Wildfire Combination in the East Texas Eagle Ford

J P M O R G A N North America Equity Research

06 July 2026

JPM E&P Shale Well Watcher

Playing with Fire: Valuation Thoughts on a Potential

Magnolia-Wildfire Combination in the East Texas Eagle

Ford

JPM View: In this week’s Well Watcher, we review the acreage and gross production Oil & Gas Exploration & Production

ACtrends for WildFire Energy on the back of media reports indicating that Magnolia Oil Arun Jayaram

& Gas is in advanced talks to acquire the company in a transaction that could be valued (1-212) 622-8541

at more than $4bn (see link). As background, WildFire has built a scaled Eagle Ford arun.jayaram@jpmchase.com

position through a combination of larger acquisitions and bolt-on activity, including Pankaj Bhatter, CFA

the Brazos Valley assets acquired from Chesapeake in 2023, Hawkwood Energy in (1-212) 622-3795

2021, and additional acreage acquired from APA in 2024, with the current asset base pankaj.bhatter@jpmchase.com

reportedly spanning ~800K acres, ~270 net operated locations, and ~210 net non- Jack Jerusalmi

operated locations, per Enverus. We show WildFire’s gross oil and total production (1-212) 622-6552

jack.jerusalmi@jpmorgan.com

trends in Figure 1WildFireEnergy-DailyOilProduction(MBo/d) and Figure 2WildFireEnergy-DailyTotalProduction(MBoe/d), with recent data showing total volumes rebounding J.P. Morgan Securities LLC

to ~54 MBoe/d of gross volumes in March 26 and gross oil volumes moving back into

the mid-40 MBo/d range. Assuming 40 MBoe/d of net volumes and a ~83% oil mix,

we estimate PDP valuation of $1.9bn assuming $50K per flowing Bo of oil and $4,000

per flowing Mcfe of gas/NGLs.