Magnolia Oil & Gas Announces $1 Billion Share Offering
Magnolia Oil & Gas Corporation (NYSE:MGY) saw its shares decline 5.1% in after‑hours trading on Monday following the announcement of a $1 billion underwritten public offering of its Class A common stock. The company launched the offering to finance the acquisition of 100% of the issued and outstanding limited‑liability company interests of WildFire Intermediate Holdings, LLC from WildFire Energy I LLC. Underwriters have been granted a 30‑day option to purchase up to an additional $150 million of shares.
The net proceeds from the offering, together with proceeds from a concurrent senior notes issuance by Magnolia’s wholly‑owned subsidiaries—Magnolia Oil & Gas Operating LLC and Magnolia Oil & Gas Finance Corp.—as well as borrowings under its revolving credit facility and existing cash on hand, will be used to fund the cash consideration required for the acquisition.
J.P. Morgan and Goldman Sachs & Co. LLC are serving as joint book‑running managers for the offering. Additional joint book‑running managers include Citigroup, Wells Fargo Securities, BofA Securities, Capital One Securities, Fifth Third Securities, KeyBanc Capital Markets, MUFG, PNC Capital Markets LLC, Regions Securities LLC, Scotiabank, and Truist Securities.
The offering is subject to market and other conditions, and the company provides no assurance that the offering will be completed, nor on the final size or terms of the transaction.