Magnolia Oil & Gas Strikes $4.06B WildFire Deal to Build South Texas Shale Platform

Magnolia Oil & Gas has agreed to acquire WildFire Energy for approximately $4.06 billion, including assumed debt, in a deal that creates what the company describes as a premier position in South Texas by combining two complementary Giddings field operators with overlapping acreage across the Austin Chalk, Eagle Ford, and Woodbine formations.

WildFire owners will receive 32.2 million shares of Magnolia Class A common stock, with Magnolia assuming WildFire’s $600 million in outstanding notes due 2029 and funding the remainder through cash on hand and a balanced mix of debt and new equity. JPMorgan Chase, Citigroup, and Wells Fargo have provided committed financing. Magnolia has also amended its secured credit facility to a $2 billion borrowing base with elected commitments of $1.75 billion, contingent on closing. The deal is expected to close in late third quarter 2026.

The acquisition adds approximately 810,000 net acres in Giddings, expanding Magnolia’s pro forma position in the field to more than 1.25 million net acres. The acquired assets produce approximately 53,000 barrels of oil equivalent per day with a roughly 70% oil weighting and a 29% base decline rate. The transaction also includes a sand mine supplying approximately 80% of Magnolia’s annual sand consumption and more than 500 miles of gas gathering pipelines.

Magnolia projects more than $100 million in annual synergies and cost savings, with an estimated net present value of approximately $700 million.

Magnolia has retained J.P. Morgan Securities LLC and Moelis & Company LLC as lead financial advisors and Citigroup as a financial advisor. Kirkland & Ellis LLP acted as Magnolia’s legal advisor. WildFire has retained Jefferies LLC as lead financial advisor and BofA Securities, Inc. as a financial advisor. Troutman Pepper Locke acted as WildFire’s legal advisor.