Magnolia Oil & Gas Corporation (NYSE: MGY) announced today that its Board of Directors has declared a cash dividend of $0.10 per share of Class A common stock, and a cash distribution of $0.10 per Class B unit payable on September 1, 2022 to shareholders of record as of August 12, 2022. In addition, and beginning with this distribution, Magnolia will move to a quarterly dividend payment from a semi-annual distribution schedule. Today’s announcement represents a $0.40 per share annualized rate or a 43 percent increase to Magnolia’s dividend compared to the $0.28 per share distribution for full year 2021. Magnolia’s next quarterly dividend is expected to be declared in November and paid in December.

“Today’s increase to the base dividend reflects our ongoing confidence in the business and our continued strong operating and financial performance,” said Steve Chazen, Magnolia’s Chairman, 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 sizable free cash flow generation while providing moderate volume growth and strong pre-tax margins. So far this year, we have lowered our share count by more than 10 million shares and expect to reduce our outstanding shares by at least 1 percent per quarter going forward. We expect our total production to grow in excess of 10 percent this year.

“Part of Magnolia’s total shareholder return proposition is a differentiated approach toward dividends that is meant to appeal to long-term investors who seek dividend safety, dividend growth, and a dividend that is paid out of actual earnings generated by the business. We believe that the increased dividend payment level is secure and sustainable with product prices at less than half their current level and expect our dividend to grow annually as we continue to execute our business plan. This includes delivering mid-single digit annual production growth and the continued reduction of our outstanding shares. Magnolia plans to revisit the dividend payment rate next February based on our full-year 2022 financial results and recast in a $55 oil price environment.”

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.

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