Magnolia Oil & Gas: East Texas Expansion: Updating Forecasts for WildFire Acquisition; Raising Dec-26 PT to $32 from $29 per Share

研报英文原文证据摘录

Magnolia Oil & Gas: East Texas Expansion: Updating Forecasts for WildFire Acquisition; Raising Dec-26 PT to $32 from $29 per Share

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

29 July 2026

Magnolia Oil & Gas

East Texas Expansion: Updating Forecasts for WildFire Neutral

Acquisition; Raising Dec-26 PT to $32 from $29 per MGY, MGY US

Share Price (28 Jul 26):$23.40

▲Price Target (Dec-26):$32.00

Prior (Dec-26):$29.00

JPM View: MGY announced its largest acquisition to date on July 20, entering into

an agreement to acquire WildFire Energy for $4.06bn (inclusive of WildFire’s Oil & Gas Exploration & Production

debt), a deal that more than doubles MGY’s Giddings position. The transaction, Arun Jayaram AC

which is expected to close late in 3Q26, adds ~810K net acres in Giddings, bringing (1-212) 622-8541

MGY’s pro forma Giddings position to more than 1.25 MM net acres with arun.jayaram@jpmchase.com

development opportunities across the Austin Chalk, Eagle Ford, and Woodbine Pankaj Bhatter, CFA

formations. The acquired assets contribute ~53 MBoe/d of production (~70% oil, (1-212) 622-3795

pankaj.bhatter@jpmchase.com

~29% base oil decline rate) and include a sand mine supplying ~80% of MGY’s

Jack Jerusalmi

annual sand consumption, inclusive of 100% of WildFire’s sand requirements

(1-212) 622-6552

together with other third-party sand sales. The acquisition also includes >500 miles jack.jerusalmi@jpmorgan.com

of Giddings gas gathering pipelines. We view the deal as a natural, in-basin bolt-on J.P. Morgan Securities LLC

that fits neatly within MGY’s acreage position and aligns with management’s

M&A criteria and capital allocation priorities. MGY expects D&C capex to remain

≤55% of EBITDAX and is targeting net debt/EBITDA at ≤0.5x, with leverage Key Changes (FYE Dec)