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Energy · Oil & Gas E&P · MGY

What Magnolia Oil & Gas Does & How It Makes Money (MGY)

Updated October 2026 · reflects Magnolia Oil & Gas's latest reported financials

Independent oil and gas producer focused on South Texas. The company makes money by pumping crude oil, natural gas, and natural gas liquids from its South Texas wells and selling them, so its revenue moves with how much it produces and with energy prices.

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How Magnolia Oil & Gas makes money

The company makes money by pumping crude oil, natural gas, and natural gas liquids from its South Texas wells and selling them, so its revenue moves with how much it produces and with energy prices. It also buys and develops new reserves to keep production going.

What Magnolia Oil & Gas does

Magnolia Oil & Gas Corporation is an independent U.S. exploration and production (E&P) company that acquires, develops, explores, and produces oil, natural gas, and natural gas liquids reserves. It was incorporated in 2017 and is based in Houston, Texas. Its assets are concentrated in South Texas, mainly in Karnes County and the Giddings area, which cover the Eagle Ford Shale and the Austin Chalk formation. Because it is a pure upstream producer in one region, its results depend mostly on production volumes, how well it drills, and oil and gas prices.

Products & services

What is Magnolia Oil & Gas worth?

On an owner-earnings DCF, Magnolia Oil & Gas's most-likely value is about $25 versus a recent price near $24 (5% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$18) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Fairly priced — no edge
Owner-earnings fair value · recent price ≈ $24
Fair value (most likely)
$25
Range
$20–$32
No-growth floor
$18
Price
~$24

Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

Sector Energy Industry Oil & Gas E&P HQ United States Ticker MGY Official site

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