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Magnolia to buy WildFire in $4.1 billion deal to expand South Texas position
The acquisition would add about 810,000 net acres, bring Magnolia's Giddings holdings to over 1.25 million net acres, and assumes $600 million of WildFire notes.
Magnolia Oil & Gas has agreed to acquire privately held WildFire Energy in a deal valued at about $4.1 billion, aiming to expand its Eagle Ford and Austin Chalk position in South Texas, according to Yahoo Finance.
The transaction would add roughly 810,000 net acres to Magnolia's existing Giddings area holdings, increasing the company's total Giddings position to more than 1.25 million net acres. The combined portfolio is expected to provide exposure to formations including the Austin Chalk, Eagle Ford and Woodbine.
Magnolia said the acquired assets currently produce about 53,000 barrels of oil equivalent per day, with around 70% of output coming from oil. The company expects the deal to increase cash flow, free cash flow and earnings per share, while lowering its corporate reinvestment rate.
The companies project more than $100 million in annual synergies through operational efficiencies, infrastructure integration and lower corporate costs. Magnolia plans to finance the purchase with a mix of stock, assumed debt, cash on hand, new debt and equity, WildFire owners will receive 32.2 million Magnolia shares, and Magnolia will assume $600 million of WildFire outstanding notes, with the deal expected to close in the third quarter of 2026 subject to customary conditions.