Citi reiterates Sell rating on Magnolia Oil & Gas stock ahead of earnings

Published 10/07/2025, 22:08
Citi reiterates Sell rating on Magnolia Oil & Gas stock ahead of earnings

Investing.com - Citi maintained its Sell rating and $19.00 price target on Magnolia Oil & Gas Corp. (NYSE:MGY) in a research note published ahead of the company’s upcoming earnings report.

The investment bank updated its model with revised estimates, projecting discretionary cash flow of approximately $203 million for the quarter, slightly below the consensus estimate of $208 million. InvestingPro analysis shows the company maintains strong financial health with a 10% free cash flow yield and has raised its dividend for 4 consecutive years.

Citi expects Magnolia’s production and capital spending to align with the company’s guidance, though it anticipates pricing will come in marginally below management’s estimates for the period.

The firm believes investor focus will center on Magnolia’s operational cadence throughout the year, potential adjustments to growth or capital spending plans, and upcoming land acquisition opportunities in the Giddings field as well as larger potential deals across the Eagle Ford region.

Citi noted that while Magnolia’s deal opportunities may be currently limited due to market volatility, it expects sentiment to stabilize in the near term, potentially leading to increased acquisition activity as the company utilizes its growing cash balance.

In other recent news, Magnolia Oil & Gas Corp reported its first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.54, slightly above the forecasted $0.53. The company’s revenue also exceeded projections, reaching $350.3 million against a forecast of $336.58 million. Additionally, Magnolia Oil & Gas held its 2025 Annual Meeting of Stockholders, confirming the election of all eight nominees for director and ratifying KPMG LLP as the independent registered public accounting firm for the fiscal year 2025. In analyst activity, UBS raised its price target for Magnolia Oil & Gas to $29.00 from $26.00, maintaining a Buy rating and highlighting the company’s consistent buybacks and capital-efficient growth at the Giddings field.

Meanwhile, ZenaTech, Inc. has filed a report as a foreign private issuer with the United States Securities and Exchange Commission (SEC), indicating its compliance with SEC rules and its commitment to providing financial information equivalent to that required of domestic issuers. This filing includes an acquisition stock purchase agreement, suggesting potential expansion or consolidation efforts by the company. Investors can access the full details of ZenaTech’s filing through the SEC’s EDGAR database. These developments reflect ongoing strategic moves and financial performance updates from both companies, providing investors with essential insights into their operations and future outlooks.

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