Magnolia Oil & Gas Corporation completed the acquisition of certain oil and gas producing properties including leasehold and mineral interests in Giddings.
November 29, 2023
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Magnolia Oil & Gas Corporation (NYSE:MGY) entered into a definitive purchase agreement to acquire certain oil and gas producing properties including leasehold and mineral interests in Giddings for $300 million on September 5, 2023. As for consideration, cash outlay at closing is estimated to be approximately $260 million, adjusted for the free cash flow generated by the assets between the effective date of July 1, 2023. The consideration will be funded with cash on hand, which was $677 million as of June 30, 2023. The seller may also receive up to a maximum of $40 million in additional contingent cash consideration through December 2025 based on future commodity prices. Transaction is expected to close Q4, 2023. Chris Heasley, Anthony Speier, Danny Nappier, Mark Dundon, Ryan Phelps, Jonathan Kidwell and Christie Alcala of Kirkland & Ellis LLP acted as legal advisor to Magnolia Oil & Gas Corporation.
Magnolia Oil & Gas Corporation (NYSE:MGY) completed the acquisition of certain oil and gas producing properties including leasehold and mineral interests in Giddings in November 2023. The consideration was approximately $264.1 million, subject to customary purchase price adjustments, and an additional contingent cash consideration of up to $40.0 million through January 2026 based on future commodity prices.
Magnolia Oil & Gas Corporation is an independent oil and natural gas company, which acquires, develops, explores and produces oil, natural gas and natural gas liquid (NGL) reserves. The Companyâs oil and natural gas properties are located primarily in the Karnes and Giddings areas in South Texas, where the Company targets the Eagle Ford Shale and Austin Chalk formations. The Companyâs assets consist of a total leasehold position of 789,719 gross (576,504 net) acres, including 72,503 gross (50,681 net) acres in the Karnes area and 717,216 gross (525,823 net) acres in the Giddings area. The Karnes area consists of oil and natural gas assets primarily located in Karnes, Dimmit, Gonzales, and Zavala Counties, Texas, in the core of the Eagle Ford Shale. The acreage comprising the Karnes area also includes the Austin Chalk formation overlying the Eagle Ford Shale. The Giddings Assets are located in Brazos, Burleson, Fayette, Grimes, Lee, Milam, Robertson and Washington Counties, Texas.
Magnolia Oil & Gas Corporation completed the acquisition of certain oil and gas producing properties including leasehold and mineral interests in Giddings.