(WO) — Magnolia Oil & Gas Corp. has agreed to acquire WildFire Energy for approximately $4.06 billion, creating a significantly larger position across the Eagle Ford and Austin Chalk in South Texas and more than doubling Magnolia’s acreage in the Giddings field.
The transaction will add approximately 810,000 net acres and 53,000 boed of production, roughly 70% weighted to oil. Following closing, Magnolia will control more than 1.25 million net acres in Giddings, with development opportunities across the Austin Chalk, Eagle Ford and Woodbine formations.
“The acquisition of the WildFire oil and gas properties and acreage is a natural and strategic fit,” Magnolia Chairman, President and CEO Chris Stavros said. “It makes our business better by extending our runway of advantaged profitability and significant free cash flow generation.”
Magnolia said WildFire’s acreage is adjacent to and overlaps portions of its existing Giddings position, creating a larger contiguous operating footprint. The company expects the combination to generate more than $100 million in annual cost savings and synergies through longer laterals, shared infrastructure, lower corporate expenses and streamlined field operations.
The acquired assets include more than 500 miles of gas gathering pipelines and a sand mine that supplies approximately 80% of Magnolia’s annual sand requirements, including all of WildFire’s current needs.
WildFire’s production base has an estimated 29% oil decline rate and benefits from access to Gulf Coast markets. Magnolia said the acquisition should immediately increase cash flow, free cash flow and earnings per share while lowering the company’s overall capital reinvestment rate.
“WildFire is not only a hand-in-glove fit for Magnolia, but it also offers unmatched benefits,” Stavros said. “Our technical teams see extensive future potential in the Austin Chalk, with further upside in the Woodbine as well as other appraisal opportunities.”
Under the agreement, WildFire’s owners will receive 32.2 million shares of Magnolia Class A common stock. Magnolia will also assume $600 million of WildFire notes due in 2029. The remaining consideration will be funded through cash, debt and new common equity.
Magnolia has secured committed financing from JPMorgan Chase Bank, Citigroup Global Markets and Wells Fargo. The company also increased its secured credit facility to a $2 billion borrowing base, with $1.75 billion in elected commitments contingent on closing.
The acquisition is expected to close late in the third quarter of 2026, subject to customary approvals and closing conditions.
Separately, Magnolia reported second-quarter production of 106,100 boed, including 41,900 bpd of oil. The company raised its standalone 2026 production growth guidance to 6% from 5%.
Magnolia also increased its quarterly dividend by 9% to $0.18 per share, citing the expected increase in free cash flow from the WildFire acquisition.
About The Author
