Magnolia Oil & Gas acquires Wild Fire Energy to expand Eagle Ford shale assets
Magnolia Oil & Gas announced on Monday that it has reached an agreement to acquire WildFire Energy in a deal valued at approximately $1.8 billion, including the assumption of debt. The acquisition will significantly expand Magnolia's core asset portfolio in the Eagle Ford Shale Basin. Magnolia said in a press release that WildFire Energy is a privately held oil and gas producer focused on the Eagle Ford Basin, with assets primarily located in South Texas and highly adjacent to Magnolia's existing operating areas. As of early 2026, WildFire Energy's average daily net production is approximately 35,000 barrels of oil equivalent, of which crude oil accounts for more than 60%, and it has approximately 45,000 acres of undeveloped land reserves. Magnolia's president and CEO said in a statement that the acquisition of WildFire Energy is consistent with the company's strategy of focusing on the core Eagle Ford area and achieving organic growth through mergers and acquisitions. He noted that the combined asset base will bring significant operating synergies, including lower unit production costs, optimized drilling schedules and shared infrastructure. Magnolia plans to fund the transaction through existing cash reserves, a revolving credit line with banks and approximately $1 billion in new debt financing. The company said that after the acquisition is completed, the ratio of net debt to EBITDA is expected to be approximately 1.8 times, which is within its target leverage range. Approximately 65% of WildFire Energy's assets have achieved well production, and the remainder represents untapped potential resources. Magnolia plans to use its capital budget to add approximately 15 horizontal wells in the area over the next two years to unlock the development value of these assets. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions. Magnolia expects the acquisition to be immediately accretive to its earnings per share, cash flow and free cash flow. Based on expected 2026 data, the combined average daily production is expected to reach approximately 120,000 barrels of oil equivalent, making Magnolia one of the largest producers in the Eagle Ford Basin.