Magnolia Oil & Gas price target raised to $29 from $26 at UBS

UBS raised its price target on Magnolia Oil & Gas Corp. (NYSE:MGY) stock to $29.00 from $26.00 on Monday, while maintaining a Buy rating on the shares. The firm also reiterated Magnolia as a Top Pick within its SMID Cap exploration and production coverage.

The price target increase followed investor meetings this week with Magnolia’s executive team, including CEO and President Christopher Stavros, SVP and CFO Brian Corales, and Director of Investor Relations Tom Fitter. Key discussion topics included the company’s 2025 outlook, merger and acquisition strategy, and new well performance at its Giddings field. The company’s strong financial position is evident in its impressive 83% gross margin and 21% return on equity, according to InvestingPro data.

UBS highlighted Magnolia’s "consistent durable buybacks, even amidst lower oil prices" as a significant factor in its positive outlook for the company. The firm also pointed to capital-efficient growth at the Giddings field as another key catalyst for Magnolia heading into the second half of 2025. Supporting this positive outlook, InvestingPro data shows the company maintains a moderate debt level with a healthy current ratio of 1.33x and has consistently raised its dividend for four consecutive years, currently yielding 2.54%.

The meetings also addressed service cost dynamics affecting Magnolia’s operations, though specific details about these discussions were not provided in the analyst note. New well outperformance at the Giddings field was another focus area during the executive meetings.

Magnolia Oil & Gas, an independent oil producer focused on the Eagle Ford Shale and Austin Chalk formations in South Texas, has maintained its buyback program despite fluctuations in oil prices, a strategy that UBS views favorably in its investment thesis.

In other recent news, Magnolia Oil & Gas Corp reported its Q1 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.54, slightly above the forecasted $0.53. The company’s revenue for the quarter also surpassed projections, reaching $350.3 million compared to the anticipated $336.58 million. Additionally, Magnolia Oil & Gas achieved record production rates, with a 14% increase in total production year-over-year. In corporate governance developments, Magnolia Oil & Gas held its 2025 Annual Meeting of Stockholders, where all eight director nominees were elected for a one-year term, and the compensation of executive officers was approved. Furthermore, KPMG LLP was ratified as the company’s independent auditor for the fiscal year 2025.

Meanwhile, ZenaTech, Inc. filed as a foreign private issuer with the U.S. Securities and Exchange Commission, indicating its compliance with SEC rules and the potential involvement in an acquisition. This filing includes financial statements and an acquisition stock purchase agreement, though specific transaction details were not disclosed. These developments provide investors with key insights into the strategic directions and financial performance of both companies.

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