Magnolia (MGY) Q4 2025 Earnings Call Transcript

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Date

Friday, Feb. 6, 2026 astatine 11 a.m. ET

Call participants

• President & CEO — Christopher Stavros

• Executive Vice President & CFO — Brian Corales

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Full Conference Call Transcript

Christopher Stavros: Thank you, Tom, and bully morning, everyone. We admit you joining america contiguous for a treatment of our 4th fourth and afloat twelvemonth 2025 fiscal and operating results. I program to concisely talk to past year's results, which closed retired different twelvemonth of strong, accordant show and execution showing the beneficial characteristics and merits of our differentiated concern exemplary and during a twelvemonth of elevated merchandise terms volatility. Our exemplary has allowed america to present beardown escaped currency travel and currency returns to our shareholders resulting from superior plus show and our continued absorption connected superior discipline, outgo containment and disposable ratio improvements.

I'll reason by providing an outlook of Magnolia's 2026 superior and operating program which is expected to present mean maturation with a akin level of superior spending that provides america with further opportunities to seizure low-cost assets crossed our acreage position. Brian volition past reappraisal our fiscal results successful greater item and supply immoderate further guidance earlier we instrumentality your questions. Beginning connected Slide 3 of our quarterly capitalist presumption and looking astatine the highlights, Magnolia delivered different coagulated 4th and twelvemonth of show marked by dependable execution of our capital-efficient concern exemplary and our high-quality assets. I'm peculiarly arrogant of our ongoing dedication and absorption shown by some our operating teams successful the tract and our Houston staff.

Their continued hard enactment and diligence is simply a important origin down Magnolia's success. Our concern performed exceptionally good passim the year, driven by stronger-than-expected good results, improved efficiencies, little portion costs and our committed -- committedness to superior discipline, arsenic I mentioned. For the afloat twelvemonth 2025, full institution accumulation grew by 11% to astir 100,000 barrels of lipid equivalent per time with lipid accumulation increasing by 4% and averaging astir 40,000 barrels per day. Operationally, we proceed to marque strides successful reducing our tract level currency operating expenses, which declined by 7% to $5.12 per BOE during 2025.

The better-than-expected good productivity we experienced during the archetypal fractional of past twelvemonth not lone provided america with higher accumulation maturation successful 2025, but besides allowed america to prevention superior by deferring immoderate good completions into this year. Our teams were besides capable to thrust a much businesslike drilling and completions programme past twelvemonth successful Giddings with our mean drilled feet per time expanding by 8% and with completed feet per time improving by 6%. Turning specifically to the 4th quarter, we achieved a caller institution grounds for our production, averaging astir 104,000 barrels of lipid equivalent per time and 40,700 barrels of lipid per day.