Magnolia Oil & Gas Operating LLC Announces Proposed Offering of $400 Million Senior Notes
Magnolia Oil & Gas Operating and its subsidiary announced plans to offer $400 million in senior unsecured notes due 2032 through a private placement to eligible purchasers. The proceeds will be used to repurchase and redeem the outstanding 6.00% Senior Notes due 2026. The notes will be offered exclusively to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S. Magnolia (MGY) operates primarily in South Texas, focusing on the Eagle Ford Shale and Austin Chalk formations, with a strategy centered on delivering steady production growth and consistent free cash flow.
Magnolia Oil & Gas Operating e la sua controllata hanno annunciato piani per offrire 400 milioni di dollari in note senior non garantite con scadenza nel 2032 tramite un collocamento privato a compratori idonei. I proventi saranno utilizzati per riacquistare e riscattare le note senior al 6,00% in scadenza nel 2026. Le note saranno offerte esclusivamente a investitori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi secondo la Regolazione S. Magnolia (MGY) opera principalmente nel sud del Texas, concentrandosi sulle formazioni di Eagle Ford Shale e Austin Chalk, con una strategia incentrata sulla crescita costante della produzione e su un flusso di cassa libero coerente.
Magnolia Oil & Gas Operating y su filial anunciaron planes para ofrecer 400 millones de dólares en notas senior no garantizadas que vencen en 2032 a través de una colocación privada a compradores elegibles. Los ingresos se utilizarán para recomprar y canjear las Notas Senior al 6,00% que vencen en 2026. Las notas se ofrecerán exclusivamente a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S. Magnolia (MGY) opera principalmente en el sur de Texas, centrándose en las formaciones Eagle Ford Shale y Austin Chalk, con una estrategia centrada en ofrecer un crecimiento constante de la producción y un flujo de caja libre consistente.
매그놀리아 오일 & 가스 운영과 그 자회사는 4억 달러의 만기 2032년의 선순위 무담보 채권을 적격 구매자를 대상으로 비공식적으로 제공할 계획을 발표했습니다. 이 자금은 2026년 만기 6.00% 선순위 채권을 재매입하고 상환하는 데 사용될 예정입니다. 이 채권은 규칙 144A에 의거하여 자격이 있는 기관 투자자에게 그리고 규정 S에 의거하여 비미국인에게만 제공됩니다. 매그놀리아(MGY)는 주로 남부 텍사스에서 활동하며, 이글 포드 셰일과 오스틴 칠크 층을 중심으로 안정적인 생산 성장과 일관된 자유 현금 흐름을 제공하는 전략에 초점을 맞추고 있습니다.
Magnolia Oil & Gas Operating et sa filiale ont annoncé des plans pour offrir 400 millions de dollars en obligations senior non garanties arrivant à échéance en 2032 par le biais d'un placement privé destiné aux acheteurs éligibles. Les produits seront utilisés pour racheter et rembourser les notes senior à 6,00% arrivant à échéance en 2026. Les notes seront offertes exclusivement à des acheteurs institutionnels qualifiés selon la règle 144A et à des personnes non américaines selon la réglementation S. Magnolia (MGY) opère principalement dans le sud du Texas, en se concentrant sur les formations Eagle Ford Shale et Austin Chalk, avec une stratégie axée sur une croissance continue de la production et un flux de trésorerie libre constant.
Magnolia Oil & Gas Operating und ihre Tochtergesellschaft haben Pläne angekündigt, 400 Millionen Dollar an unbesicherten Senior-Anleihen mit Fälligkeit 2032 durch eine Privatplatzierung an berechtigte Käufer anzubieten. Die Erlöse werden verwendet, um die ausstehenden 6,00% Senior Notes mit Fälligkeit 2026 zurückzukaufen und einzulösen. Die Anleihen werden ausschließlich qualifizierten institutionellen Käufern gemäß Regel 144A und nicht US-Personen gemäß Regulation S angeboten. Magnolia (MGY) ist hauptsächlich in Südtexas tätig und konzentriert sich auf die Eagle Ford Shale und Austin Chalk Formationen, mit einer Strategie, die auf stetigem Produktionswachstum und konstantem freien Cashflow basiert.
- Company is refinancing existing debt, potentially improving debt structure
- Strong market position in Eagle Ford Shale and Austin Chalk formations
- Business model focused on generating high pre-tax margins and consistent free cash flow
- Taking on $400 million in new debt obligations
- Current 6.00% Notes being replaced before 2026 maturity, potentially indicating higher interest costs
Insights
This debt refinancing initiative demonstrates strong financial management. The company is leveraging current market conditions to potentially secure better terms by replacing its
The private placement to qualified institutional buyers suggests strong institutional interest in MGY's debt, reflecting confidence in the company's business model focused on the Eagle Ford Shale and Austin Chalk formations. Their strategy of maintaining disciplined capital spending while generating consistent free cash flow makes this debt offering particularly attractive to institutional investors.
The timing of this refinancing aligns with broader market trends where companies are proactively managing their debt structures ahead of potential interest rate changes. This could result in improved cash flow metrics and enhanced shareholder returns in line with MGY's stated focus on delivering value to shareholders.
The Issuers intend to use the net proceeds from the offering to repurchase and redeem the outstanding
The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and, unless so registered, may not be offered or sold in
This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other security of the Issuers, and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale, of the Notes or any other security of the Issuers in any jurisdiction in which such offer, solicitation or sale is unlawful. This press release does not constitute a notice of redemption under the optional redemption provisions of the indenture governing the 2026 Notes. The Notes Offering is being made solely pursuant to a private offering memorandum and only to such persons and in such jurisdictions as are permitted under applicable law.
About Magnolia
Magnolia (MGY) is a publicly traded oil and gas exploration and production company with operations primarily in
Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act 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, without limitation, the proposed offering and the intended use of proceeds, including to fund the redemption of the 2026 Notes, Magnolia Oil & Gas Corporation’s (“Magnolia”) strategy, future operations, budgets, projected revenues, 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,” “believe,” “plan,” “continue,” 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, as well as information currently available to our management. 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) changes in applicable laws, regulations or policy, including those following the change in presidential administrations; (ii) the market prices of oil, natural gas, NGLs and other products or services; (iii) the supply and demand for oil, natural gas, NGLs and other products or services, including impacts of actions taken by OPEC and other state-controlled oil companies; (iv) production and reserve levels; (v) the timing and extent of Magnolia’s success in discovering, developing, producing and estimating reserves; (vi) geopolitical and business conditions in key regions of the world; (vii) drilling risks; (viii) economic and competitive conditions; (ix) the availability of capital resources; (x) capital expenditures and other contractual obligations; (xi) weather conditions; (xii) inflation rates; (xiii) the availability of goods and services; (xiv) cyber attacks; (xv) the occurrence of property acquisitions or divestitures; (xvi) the integration of acquisitions; (xvii) the securities or capital markets and related risks such as general credit, liquidity, market and interest-rate risks; (xviii) the outcome of any legal proceedings that may be instituted against Magnolia; and (xix) the impact of any natural disasters or public health emergencies. 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 Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Magnolia’s SEC filings are available publicly on the SEC’s website at www.sec.gov.
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Investors
Tom Fitter
713-331-4802
tfitter@mgyoil.com
Media
Art Pike
713-842-9057
apike@mgyoil.com
Source: Magnolia Oil & Gas Operating LLC
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