(RTTNews) – Magnolia Oil & Gas Corp. (MGY), an independent oil and gas company, on Monday agreed to acquire WildFire Energy for approximately $4.06 billion. The company also increased its quarterly dividend by 9% to $0.18 per share, supported by higher expected free cash flow, and raised its standalone full-year 2026 production growth guidance to 6% from 5%.
The transaction is expected to close late in the third quarter of 2026.
Under the agreement, WildFire owners will receive 32.2 million shares of Magnolia Class A common stock, while the company will assume $600 million of WildFire’s notes due in 2029.
The company said that the remaining consideration will be funded through a combination of cash on hand, debt, and newly issued equity.
The company expects the transaction to be immediately accretive to cash flow, free cash flow, earnings, operating margins, and key per-share financial metrics.
The company also expects to generate more than $100 million in annual synergies and cost savings, with an estimated net present value of approximately $700 million.
The acquisition will add approximately 810,000 net acres in the Giddings area, increasing Magnolia’s total position to more than 1.25 million net acres.
The acquired assets produce approximately 53,000 barrels of oil equivalent per day, with about 70% oil weighting and a 29% base oil decline rate.
Further, supported by higher expected free cash flow, the company increased its quarterly dividend by 9% to $0.18 per share from $0.165 per share, payable in the third quarter of 2026.
Separately, the company said second-quarter production averaged 106.1 Mboe/d, including 41.9 Mbo/d of oil, and raised its standalone full-year 2026 production growth guidance to 6% from 5%.
In the pre-market trading, Magnolia Oil & Gas is 1.54% higher at $27.69 on the New York Stock Exchange.
