MGY
Magnolia Oil & Gas Corporation (NYSE: MGY) shares fell about 3% on Tuesday after Magnolia Oil & Gas...
Article Summary
BUY- Magnolia Oil & Gas Corporation (NYSE: MGY) shares fell about 3% on Tuesday after Magnolia Oil & Gas announced a definitive agreement to acquire private equity-backed WildFire Energy for approximately $4 billion.
- The transaction is expected to expand Magnolia Oil & Gas's position in South Texas and more than double its footprint in the Giddings field, with WildFire currently producing about 53,000 barrels of oil equivalent per day with approximately 70% of production weighted toward oil across roughly 810,000 net acres.
- WildFire has expanded through acquisitions including the purchase of Hawkwood Energy in 2021 as well as organic development, and the acquisition will strengthen its position in the South Texas region by adding large-scale asset base and increasing development inventory.
- Warburg Pincus Managing Director Ryan Dalton wrote that WildFire represents a rare combination of high-quality underdeveloped assets, market opportunity, and strong management team with unique capabilities to acquire, optimize and scale oil and gas assets.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | -2.0% | 25% | 0.0 ptsDeclining (-2.0%) - NOT a growth stock |
| EPS Growth Next 5Y ? | 18.7% | 25% | 50.0 ptsMeets Minimum (18.7%) - Passes screener |
| Target Price Upside ? | 30.9% | 20% | 85.0 ptsLarge Upside (30.9%) - Target: $32.83 vs Current: $25.08 |
| Gross Margin % ? | 46.0% | 15% | 60.0 ptsSolid (46.0%) - Decent margins |
| Drawdown from 52-Wk High ? | -23.5% | 15% | 40.0 ptsMild Pullback (-23.5%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About MGY
- Magnolia Oil & Gas Corporation, an independent oil and natural gas company, engages in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves in the United States.
- The company's properties are located primarily in Karnes County and the Giddings area in South Texas comprising the Eagle Ford Shale and the Austin Chalk formation.
- The company was incorporated in 2017 and is headquartered in Houston, Texas.