Magnolia Oil & Gas Increases Quarterly Dividend 15 Percent

Magnolia Oil & Gas Corporation (NYSE: MGY) announced today that its Board of Directors has declared a cash dividend of $0.115 per share of Class A common stock, and a cash distribution of $0.115 per Class B unit payable on March 1, 2023 to shareholders of record as of February 10, 2023. Today’s announcement represents a 15 percent increase to Magnolia’s quarterly dividend rate and would provide an annualized dividend payout rate of $0.46 per share. Although still a young company, this action marks our third consecutive year with an increase in the annual dividend payout per share. Our next quarterly dividend is expected to be declared in May and paid in June.

“Today’s increase to the quarterly base dividend reflects our strong operating and financial performance achieved during 2022 and demonstrates our ongoing confidence in the outlook for the business,” said Chris Stavros, Magnolia’s President and CEO. “Our dividend framework is aligned with the characteristics of our business model and reinforces our plan. These principles include maintaining our low leverage, limiting our capital spending to allow for consistent and meaningful free cash flow generation while providing moderate volume growth and strong pre-tax margins. Magnolia’s efforts are geared toward improving the overall business while pursuing actions to increase our dividend per share payout capacity. Last year’s performance reinforced this capability. Our share repurchase activities led to the reduction of our diluted average outstanding shares by approximately 8 percent, and our total production growth exceeded 14 percent.

“Magnolia’s philosophy toward dividends is meant to appeal to long-term investors who seek dividend safety, consistent dividend growth, and a dividend that is paid out of actual earnings generated by the business. We believe that our dividend is secure at product prices below mid-cycle levels and expect the dividend to grow annually as we continue to execute our business plan. We expect to reduce our outstanding shares by at least 1 percent per quarter and estimate our total production to grow by approximately 10 percent in 2023. Our ongoing efforts toward reducing our outstanding shares and delivering moderate annual production growth are expected to support annual dividend growth of approximately 10 percent over time which is an important component of Magnolia’s total shareholder return proposition.”

About Magnolia Oil & Gas

Magnolia is a publicly traded oil and gas exploration and production company with operations primarily in South Texas in the core of the Eagle Ford Shale and Austin Chalk formations. Magnolia focuses on generating value for shareholders through steady production growth, strong pre-tax margins, and free cash flow. For more information, visit www.magnoliaoilgas.com.

Cautionary Note Regarding Forward-Looking Statements

The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Magnolia’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward looking statements. When used in this press release, the words could, should, will, may, believe, anticipate, intend, estimate, expect, project, the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events. Except as otherwise required by applicable law, Magnolia disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Magnolia cautions you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Magnolia, incident to the development, production, gathering and sale of oil, natural gas and natural gas liquids. In addition, Magnolia cautions you that the forward looking statements contained in this press release are subject to the following factors: (i) the economic effects of the COVID-19 pandemic and actions taken by federal, state and local governments and other third parties in response to the pandemic; (ii) the outcome of any legal proceedings that may be instituted against Magnolia; (iii) Magnolia’s ability to realize the anticipated benefits of its acquisitions, which may be affected by, among other things, competition and the ability of Magnolia to grow and manage growth profitably; (iv) changes in applicable laws or regulations; (v) geopolitical and business conditions in key regions of the world; and (vi) the possibility that Magnolia may be adversely affected by other economic, business, and/or competitive factors, including inflation. Should one or more of the risks or uncertainties described in this press release occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact the operations and projections discussed herein can be found in Magnolia’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Magnolia’s SEC filings are available publicly on the SEC’s website at www.sec.gov.

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