Magnolia Oil & Gas Corporation Class A

Good morning, everyone, and thank you for participating in Magnolia Oil and Gas Corporation's first quarter 2026 earnings conference call. My name is Danielle, and I will be your moderator for today's call. At this time, all participants will be placed in a listen-only mode as our call is being recorded. I would now turn the call over to Magnolia's management for the prepared remarks, which will be followed by a brief question-and-answer session.

Thank you, Danielle, and good morning, everyone. Welcome to Magnolia Oil and Gas's First Order Earnings Conference Call. Participating on the call today are Chris Stavros, Magnolia's Chairman, President, and Chief Executive Officer, and Brian Corrales, Senior Vice President and Chief Financial Officer. As a reminder, today's conference call contains certain projections and other forward-looking statements within the meaning of the federal securities laws. These statements are subjects subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in these statements. Additional information on risk factors that could cause results to differ is available in the company's annual report of Form 10-K filed with the SEC. A full safe harbor can be found on slide two of the conference call slide presentation with the supplemental data on our website. You can download Magnolia's first quarter Thank you, Tom, and good morning, everyone.

Thank you all for joining us today for discussion on our first quarter 2026 financial and operating results. I plan to briefly speak on our first quarter results, which provided a strong start to the year and consistent performance across our financial and operating metrics. I'll then highlight what turned out to be an active quarter for old bond oil and gas property acquisitions from Magnolia, adding to our working interest and royalty interest in both of our operating areas by closing several deals during the quarter. I'll finish up by speaking to Magnolia's 2026 capital and operating plan, which is well positioned during this period of product price volatility, driving incremental free cash flow and improving our financial flexibility. Brian will then review our financial results in greater detail and provide some additional guidance before we take your questions. Starting with slide three in our quarterly investor presentation, Magnolia delivered another strong and consistent quarter of execution across our financial and operating metrics. and centered around our disciplined business model characterized by a low reinvestment rate, high operating margins, and moderate production growth. For the first quarter of 2026, total company production volumes grew by 6% year-over-year to 102.6 thousand barrels of oil equivalent per day, with oil production growing by 4% and averaging 40.7 thousand barrels per day. Production in Giddings was the primary growth driver for the company with total Giddings production increasing 9% year over year and oil production showing growth of 8% over the same period. Giddings production volumes were a record for the company in the quarter. Giddings production currently accounts for approximately 82% of Magnolia's total company volumes. The quarter was equally solid around our financial metrics supported by growth in our oil and gas production entirely unhedged. Our first quarter net income was approximately $101 million, or 54 cents per diluted share, with adjusted EBITDAX coming in at $253 million. Journey and completion capital for the period was roughly $129 million, providing a reinvestment rate of 51% of our adjusted EBITDAX. Pre-tax operating margins averaged 36% for the quarter. Our low reinvestment rate and high operating margins demonstrate our capital spending discipline, proactive cost management, and further capture of operational efficiencies. Magnolia generated approximately $146 million of free cash flow during the first quarter and returned $83 million to our shareholders through accommodation of our base dividend on our share repurchase program, where we bought back just over 1% of Magnolia's outstanding shares during the period. Additionally, Enervest, Magnolia's original private equity shareholder completed the sale of their remaining ownership position during the quarter. This action simplifies our capital structure through the elimination of any remaining Class B shares outstanding at the end of the first quarter. As shown on slide four, the first quarter turned out to be a busy period for acquisitions as we completed the purchase of several small bolt-on oil and gas property acquisitions in both our Carnes area and Giddings, totaling $155 million. These transactions, which closed in the latter part of the first quarter, include roughly 6,200 net acres and approximately 500 PoE per day of low-decline PDP, about 45% of oil, and with significant undeveloped upside opportunities located in highly productive areas where we currently operate and understand well. In our Carnes area, the acquired acreage creates a sizable and largely contiguous 10,000 gross acre block of primarily undeveloped and highly attractive acreage in the core of the Eagle for Trent across both Carnes and Gonzales counties. The acquired tracts increase our working interest in the area to approximately 93% with an average NRI of around 80%. At our current development pace in the Carnes area, this acquisition adds multiple allowing for longer lateral development. In Giddings, our successful ground game continues to increase our working interest and royalty interest by acquiring new acreage in and around our current operating position. The Giddings transactions increased our interest in approximately 45,000 gross acres in addition to adding some new continuous acreage, furthering our strategy of buying more of what we already own. Each of these transactions leverage the deep technical knowledge we've gained from our drilling and completion activities in the field, while meaningfully extending our already robust inventory of high-return drilling locations, increasing our working interest in existing assets, and adding valuable duration to our overall resource portfolio. This further demonstrates our ability to deploy a portion of Magnolia's excess free cash flow into high-quality targeted opportunities. Our goal in pursuing these is intended to not simply replace produced reserves, but to expand our long-term opportunity set and reinforce the sustainability of our strong financial returns. We continue to actively seek out additional asset acquisition opportunities that improve our business using our technical experience in developing the Austin Chalk and Eagleford formations in South Texas that provide us with a clear competitive advantage. As I often mention, Magnolia's primary goals are to be the most efficient operator for our best-in-class oil and gas assets, to generate the highest return on those assets while spending the least amount of capital on drilling and completing wells. Magnolia's high-quality assets and the strategy of discipline around capital spending should continue to serve us well during periods of product price volatility. Our capital allocation priorities, which include a low reinvestment rate and returning a significant amount of our free cash flow to shareholders, remain unchanged. We are maintaining our original activity plan of running two rigs and one completion group, which is expected to deliver total production growth of approximately 5% in 2026, and within the same range of drilling and completion capital we outlined earlier this year. Some of this year's activity is expected to occur on the recently acquired acreage. Oil price differentials have narrowed significantly in recent weeks, which should provide us with higher oil price realizations in the second quarter, and similar to the Magellan East Houston benchmark, which is currently higher than the price of WTI. Beyond the benefit of higher oil prices, Magnolia is well positioned for success through the consistent execution of our business model. The absence of commodity hedges on all our production is expected to translate into higher earnings and free cash flow in the current quarter, adding to our significant financial flexibility. I'll now turn the call over to Brian to provide further details on the quarter and some additional guidance.