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Magnolia Oil & Gas to Acquire WildFire Energy for $4 Billion

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Magnolia Oil & Gas (MGY), an exploration and production company, will acquire WildFire Energy for about $4.06 billion, more than doubling its acreage in the Giddings Field in South Texas to more than 1.25 million net acres, it said on Monday.

After Magnolia produced 106,100 barrels of oil equivalent per day in Q2, output is now expected to increase by around 53,000 boe/d following the acquisition, according to the statement.

The deal also includes at least 500 miles of gathering pipelines and a sand mine. It is expected to expand development opportunities in the Eagle Ford, Austin Chalk, and Woodbine formations.

Magnolia said the transaction will be "immediately and highly accretive" to its financial metrics, with annual synergies and cost savings projected to exceed $100 million.

The deal, with expected closing in Q3, also allows for an immediate 9% increase in the quarterly dividend to $0.18 per share, payable in Q3, according to the company.

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