Magnolia Oil & Gas Announces Final 2021 Dividend Payment

HOUSTON–(BUSINESS WIRE)–Magnolia Oil & Gas Corporation (NYSE: MGY) announced today that its Board of Directors declared the final semi-annual cash dividend of $0.20 per share of Class A common stock, and a cash distribution of $0.20 per Class B unit payable on March 1, 2022 to shareholders of record as of February 14, 2022.

We believe our first semi-annual dividend installment of $0.08 per share paid last September to be secure and sustainable with oil prices at less than half their current levels. The final dividend payment of $0.20 per share is based on our actual full-year 2021 financial results, recast using $55 for oil and $2.75 for natural gas, and which approximates our long-term view of product prices. The dividend was included as part of Magnolia’s total cash return to shareholders and done in an environment where we also reduced our fully diluted share count by 10 percent and completed some small bolt-on, accretive oil and gas property acquisitions.

“Our dividend framework is aligned with the characteristics of our business model and reinforces our plan,” said Steve Chazen, Magnolia’s Chairman, President and CEO. “These principles include maintaining our low leverage, limiting our capital spending to allow for consistent and sizable free cash flow generation while providing moderate volume growth and strong pre-tax margins. Part of Magnolia’s total shareholder return proposition is a differentiated approach toward dividends that is meant to appeal to long-term investors who seek dividend safety, dividend growth, and a dividend that is paid out of actual earnings generated by the business. We expect each of these regular dividend payments to grow annually as we continue to execute our business plan which includes mid-single digit annual production growth and the reduction of our outstanding shares.”

About Magnolia Oil & Gas

Magnolia is a publicly traded oil and gas exploration and production company with operations primarily in South Texas in the core of the Eagle Ford Shale and Austin Chalk formations. Magnolia focuses on generating value for shareholders through steady production growth, strong pre-tax margins, and free cash flow. For more information, visit www.magnoliaoilgas.com.

Contacts

Brian Corales

713-842-9036

bcorales@mgyoil.com