Magnolia Oil & Gas Announces Bolt-On Asset Acquisition In Giddings For $300M
Portfolio Pulse from Happy Mohamed
Magnolia Oil & Gas Corporation (NYSE:MGY) has announced a definitive purchase agreement to acquire oil and gas producing properties in Giddings for $300 million. The acquisition will be funded with cash on hand, which was $677 million as of June 30, 2023. The acquisition will add approximately 48,000 net acres in Giddings to Magnolia's portfolio, enhancing its development opportunities. The acquired assets are expected to generate a free cash flow yield of more than 20% during 2024 at current strip prices.
September 05, 2023 | 8:04 pm
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Magnolia Oil & Gas Corporation's acquisition of oil and gas properties in Giddings for $300 million is expected to enhance its development opportunities and generate a free cash flow yield of more than 20% during 2024.
The acquisition of oil and gas properties in Giddings by Magnolia Oil & Gas Corporation is a significant move that will enhance its development opportunities. The acquired assets are expected to generate a free cash flow yield of more than 20% during 2024, which is a positive indicator for the company's financial performance. This could potentially lead to an increase in the company's stock price in the short term.
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