Magnolia Oil & Gas Corp

Disciplined, low-leverage Eagle Ford/Austin Chalk E&P with top-decile margins, returns and cash generation.

Strengths

• Top-decile net margin 24.8% (92nd), OCF margin 67% (92.5th), operating margin 33.5% (85th) and ROA 11.2% (93rd)
• Strong balance sheet (current 1.54, $267M cash) funding consistent buybacks (47M shares) and dividends within cash flow

Risks

• Commodity-price exposure — oil realizations fell 15%, pressuring oil revenue
• Single-basin South Texas concentration and dependence on continued drilling efficiency

Notable findings

• Strong balance sheetStrong balance sheet — $267M cash & investments