Magnolia Oil & Gas has agreed to acquire Houston-based WildFire Energy in a transaction valued at approximately $4.06 billion, including debt. The purchase will add about 810,000 net acres in the Giddings area, increasing Magnolia’s position there to more than 1.25 million net acres across the Austin Chalk, Eagle Ford and Woodbine formations. The expanded acreage strengthens the company’s presence in one of the key regions supporting oil production in Texas.
The acquisition also includes more than 500 miles of natural gas gathering pipelines and a sand mine that supplies roughly 80% of Magnolia’s annual sand requirements. Magnolia expects the larger, connected asset base to generate more than $100 million in annual operating efficiencies and cost savings. WildFire’s owners will receive 32.2 million shares of Magnolia Class A stock, while Magnolia will assume $600 million in notes due in 2029.
The agreement reflects continued consolidation within the upstream oil and gas sector as producers seek additional drilling inventory and greater operating scale. Magnolia also increased its quarterly dividend by 9% to $0.18 per share, reported second-quarter production of 106,100 barrels of oil equivalent per day and raised its expected standalone production growth for 2026 from 5% to 6%. The transaction is expected to close late in the third quarter of 2026.
Source: Houston Business Journal
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