Item 1.02Termination of a Material Definitive Agreement.
On August 1, 2020, Magnolia Oil & Gas Corporation (the "Company") provided
written notice of its intent to terminate the Services Agreement (as heretofore
amended, the "Services Agreement"), dated as of July 31, 2018, by and between
the Company (formerly known as TPG Pace Energy Holdings Corp.), Magnolia Oil &
Gas Operating LLC (formerly known as TPG Pace Energy Operating LLC) and EnerVest
Operating, L.L.C. ("Service Provider"). Pursuant to the provisions of Section
4.2(a) of the Services Agreement, the termination thereof will be effective on
November 1, 2020, unless earlier withdrawn by the Company at its discretion.
The Service Provider is an affiliate of EnerVest, Ltd. Certain affiliates of
EnerVest, Ltd. collectively own approximately 47.8% of the Company's total
common stock. Pursuant to the Services Agreement, the Service Provider, under
the direction of the Company's management, has historically provided the Company
with certain services, including administrative, back office, and day-to-day
field level services reasonably necessary to operate the business of the Company
and its assets, subject to certain exceptions. As consideration for such
services, the Company has paid the Service Provider a fixed annual services fee
ranging from $20.0 million to $23.6 million. In addition, the Company has paid
industry standard per well overhead payments to the Service Provider and
reimbursed the Service Provider for certain costs incurred by the Service
Provider in performing the services.
© Edgar Online, source Glimpses