Magnolia sells non-core South Texas assets, adds Karnes-area acreage during WildFire integration
Magnolia Oil & Gas Corp., Houston, has sold non-core assets in Dimmit and Zavala counties, Tex., for $47.5 million plus receipt of 616 net acres in Gonzales County, increasing its average operated working interest to 98% in a consolidated Karnes-area acreage block.
The transaction, completed in this year's third quarter, included divestment of assets producing about 1,400 boe/d (84% oil) on a next-12-month basis.
Magnolia said the Gonzales County acreage lies within a largely undeveloped Karnes-Gonzales position assembled through bolt-on acquisitions completed with private operators earlier this year. In first-quarter 2026, Magnolia acquired about 6,200 net acres across its Karnes-area and Giddings positions for about $155 million. In the Karnes area, the acquisitions created a largely contiguous 10,000-acre block of primarily undeveloped acreage spanning Karnes and Gonzales counties.
Map showing both Magnolia and WildFire Energy oil and gas assets on Texas map.The company disclosed the transaction as part of an operational update following the recent closing of its acquisition of WildFire Energy.
Chris Stavros, Magnolia chairman, president, and chief executive officer, said integration of the WildFire assets is progressing as planned as the company works to build a larger Eagle Ford and Austin Chalk position across South Texas.
Production, capital outlook
Third-quarter 2026 production is expected to average 116,000-118,000 boe/d (about 42% oil), reflecting the WildFire acquisition and the impact of the divested properties, Magnolia said.
Drilling and completion (D&C) capital spending for the quarter is expected to total $155-165 million.
For fourth-quarter 2026, the first full quarter reflecting the WildFire acquisition, production is forecast at 159,000-161,000 boe/d with oil accounting for 49-50% of volumes. D&C spending is expected to be about $235 million.
For 2027, Magnolia expects both oil production and total production to grow 4-5% from a second-quarter 2026 pro forma base of about 78,000 bo/d and 158,000 boe/d, respectively, after accounting for volumes associated with the asset sale.
The company currently estimates 2027 D&C capital spending of $900-950 million, including the impact of modest oilfield service cost inflation.
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Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was later named Managing Editor - News. Her role has expanded into content strategy. She holds a degree from Texas Tech University.