Magnolia Buys WildFire Energy in $4.06 Billion Deal, Adds 500 Miles of Pipelines
Magnolia Oil & Gas has agreed to acquire WildFire Energy in a $4.06 billion deal that more than doubles its Giddings acreage and adds more than 500 miles of gas gathering pipelines.
(P&GJ) — Magnolia Oil & Gas has agreed to acquire privately held WildFire Energy for approximately $4.06 billion, expanding its position in the Eagle Ford and Austin Chalk while adding more than 500 miles of gas gathering pipelines in South Texas.
The transaction includes WildFire's debt and has been unanimously approved by Magnolia's board of directors. Once completed, the acquisition will more than double Magnolia's acreage in the Giddings area, bringing its total position to more than 1.25 million net acres across the Eagle Ford, Austin Chalk and Woodbine formations.
WildFire's assets produce about 53,000 boe/d, approximately 70% of which is oil, and include a low-decline production base that Magnolia said complements its existing operations. The acquisition also includes a sand mine supplying much of Magnolia's annual sand demand and more than 500 miles of gas gathering pipelines, which the company expects will improve operating efficiencies.
Magnolia said it expects the combination to generate more than $100 million in annual cost savings and operational synergies through longer laterals, shared infrastructure, streamlined field operations and reduced corporate overhead.
Chairman, President and CEO Chris Stavros said the acquisition strengthens the company's long-term development inventory while maintaining its disciplined operating strategy.
"The acquisition of the WildFire oil and gas properties and acreage is a natural and strategic fit... it makes our business better by extending our runway of advantaged profitability and significant free cash flow generation."
Stavros said the combined acreage creates a larger, contiguous operating position that is expected to enhance free cash flow while supporting additional shareholder returns.
"Together with the acquired WildFire assets, Magnolia's adjacent and overlapping acreage creates a larger, contiguous position with additional infrastructure benefits, estimated to provide at least $100 million in cost savings and annual synergies."
Magnolia also announced a 9% increase in its quarterly dividend to $0.18 per share, citing confidence in the acquired assets and the transaction's expected free cash flow generation.
The company said it expects the acquisition to close late in the third quarter of 2026, subject to customary closing conditions. Under the agreement, WildFire owners will receive 32.2 million shares of Magnolia common stock, while Magnolia will assume $600 million of WildFire's outstanding notes and finance the remaining purchase price through cash, debt and equity.