Published • loading... • Updated
Magnolia Oil Agrees to Buy WildFire Energy in $4.1B Deal
The deal includes 32.2 million Magnolia shares and $600 million in notes as shale producers pursue scale and lower costs.
- Magnolia Oil & Gas agreed to acquire WildFire Energy for about $4.1 billion on July 20, marking the company's largest acquisition and expanding its Eagle Ford Shale position in Texas.
- The transaction includes 32.2 million Magnolia Class A shares plus assumption of $600 million in outstanding notes due in 2029, while WildFire operates more than 2,000 wells producing over 50,000 net barrels of oil equivalent daily.
- Shale companies are consolidating to gain scale and lower costs as prime drilling sites deplete, with WildFire's management team having previously operated WildHorse Resource Development Corp. before selling it to Chesapeake Energy Corp. in 2019 for $1.9 billion.
- Magnolia's shares have risen about 25% this year, giving the company a market value of around $5.2 billion, while WildFire is backed by private equity firms Warburg Pincus and Kayne Anderson Capital Advisors.
- Morgan Chase and Moelis advised Magnolia on the transaction, while Jefferies and Bank of America advised WildFire Energy, with closing expected late in the third quarter.
Insights by Ground AI
11 Articles
11 Articles
Magnolia Oil & Gas Bets Big on Eagle Ford With $4.06B WildFire Deal
Magnolia Oil & Gas (NYSE:MGY) said it has agreed to acquire WildFire Energy for approximately $4.06 billion, a transaction management described as a strategic bolt-on that will substantially expand Magnolia’s position in the Giddings field and create what it called the premier Eagle Ford/Austin
·Sioux Falls, United States
Read Full Article
Coverage Details
Total News Sources11
Leaning Left1Leaning Right1Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 17%
C 67%
R 16%
Factuality
To view factuality data please Upgrade to Premium
