Magnolia Oil & Gas Increases Share Repurchase Authorization

Magnolia Oil & Gas Corporation (NYSE: MGY) announced today that its Board of Directors raised the Company’s share repurchase authorization by an additional 10 million shares of Class A common stock. Including this additional authority, Magnolia currently has approximately 15.8 million shares available for repurchase under the authorization which pertains only to open market purchases for shares of Class A common stock. Any purchases by Magnolia of Class B units from EnerVest are approved separately by Magnolia’s board with these units cancelled upon execution.

During 2021, Magnolia reduced its total diluted shares outstanding by 25.3 million shares resulting in a 10 percent decrease to our fully diluted share count. This was accomplished through a combination of open market share repurchases and direct transactions with EnerVest as shown in the table below.

“Together with the initiation of a dividend payment and our share reduction efforts, Magnolia returned $358 million to its shareholders last year or approximately 65 percent of our full-year 2021 free cash flow,” said Steve Chazen, Magnolia’s Chairman, President and CEO. “Magnolia’s total shareholder return proposition includes allocating a portion of our free cash flow toward the payment of a secure and growing dividend, as well as actions that improve our per share metrics such as small bolt-on, accretive oil and gas property acquisitions, and share repurchases. The increase in the share repurchase authorization is aligned with our plan to repurchase at least 1 percent of our outstanding shares per quarter.”