EnerVest Sale of 12,000,000 Shares of Class A Common Stock of Magnolia; Magnolia to Purchase 3,000,000 Shares of Class B Common Stock from EnerVest
May 14 2024 - 4:32PM
Business Wire
Magnolia Oil & Gas Corporation (NYSE: MGY) (“Magnolia” or
the “Company”), today announced that certain affiliates of
EnerVest, Ltd. (the “Selling Stockholders”) agreed to sell
12,000,000 shares of the Company’s Class A common stock (the “Class
A Common Stock”) in an unregistered secondary block trade pursuant
to Rule 144 under the Securities Act of 1933, as amended (the
“Block Trade”). The Company will not sell any shares of its Class A
Common Stock in the Block Trade or receive any proceeds from the
Block Trade.
The Company has agreed to purchase from the Selling Stockholders
3,000,000 shares of the Company’s Class B common stock (the “Class
B Common Stock”) at a price per share equal to the price per share
that the Selling Stockholders receive in the Block Trade (the
“Class B Common Stock Purchase”). The Class B Common Stock Purchase
is conditioned upon the completion of the Block Trade.
Following the closing of the Block Trade and Class B Common
Stock Purchase, the Selling Stockholders will own 4,164,961 Class A
and 10,957,921 Class B shares of the Company, or approximately 7.6%
of the total outstanding shares of the Company.
This press release is neither an offer to sell nor a
solicitation of an offer to buy any securities, nor shall there be
any sale of any such securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Magnolia Oil & Gas Corporation
Magnolia (MGY) 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 by delivering steady,
moderate annual production growth resulting from its disciplined
and efficient philosophy toward capital spending. The Company
strives to generate high pre‐tax margins and consistent free cash
flow allowing for strong cash returns to our shareholders. For more
information, visit www.magnoliaoilgas.com.
Forward-Looking Statements
The information in this press release includes forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, 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 Magnolia’s strategy, future operations, 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, 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. 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) 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; (ii) the outcome of any legal
proceedings that may be instituted against Magnolia; (iii)
Magnolia’s ability to realize the anticipated benefits of its
acquisitions, which may be affected by, among other things,
competition and the ability of Magnolia to grow and manage growth
profitably; (iv) changes in applicable laws or regulations; (v)
geopolitical and business conditions in key regions of the world;
and (vi) the possibility that Magnolia may be adversely affected by
other economic, business, and/or competitive factors, including
inflation. 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 SEC, 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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version on businesswire.com: https://www.businesswire.com/news/home/20240514205481/en/
Contacts for Magnolia Oil & Gas Corporation
Investors Tom Fitter (713) 331-4802
tfitter@mgyoil.com
Media Art Pike (713) 842-9057 apike@mgyoil.com
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