Magnolia Oil & Gas CorpMGY

Magnolia Oil & Gas Corp Earnings Per Share Disclosure

10-KFiled Feb 12, 20262 min read
Earnings Per Share
The Company’s unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are deemed participating securities, and therefore dividends and net income allocated to such awards have been deducted from earnings in computing basic and diluted net income per share under the two-class method. Diluted net income per share attributable to Class A Common Stock is calculated under both the two-class method and the treasury stock method and the more dilutive of the two calculations is presented.

The components of basic and diluted net income per share attributable to Class A Common Stock are as follows:

Years Ended
(In thousands, except per share data)December 31, 2025December 31, 2024December 31, 2023
Basic:
Net income attributable to Class A Common Stock$325,252 $366,027 $388,301 
Less: Dividends and net income allocated to participating securities4,457 4,497 4,345 
Net income, net of participating securities$320,795 $361,530 $383,956 
Weighted average number of common shares outstanding during the period - basic185,581 186,465 188,174 
Net income per share of Class A Common Stock - basic
$1.73 $1.94 $2.04 
Diluted:
Net income attributable to Class A Common Stock$325,252 $366,027 $388,301 
Less: Dividends and net income allocated to participating securities4,457 4,497 4,342 
Net income, net of participating securities$320,795 $361,530 $383,959 
Weighted average number of common shares outstanding during the period - basic185,581 186,465 188,174 
Add: Dilutive effect stock based compensation and other12 27 181 
Weighted average number of common shares outstanding during the period - diluted185,593 186,492 188,355 
Net income per share of Class A Common Stock - diluted
$1.73 $1.94 $2.04 

The Company excluded 5.5 million, 13.5 million, and 21.8 million of weighted average shares of Class A Common Stock issuable upon the exchange of Class B Common Stock (and corresponding Magnolia LLC Units) for the years ended December 31, 2025, 2024, and 2023, respectively, as the effect was anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 19, 2025
2023Feb 15, 2024
2022Feb 16, 2023
2019Feb 26, 2020
2018Feb 27, 2019

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValueGoodwill & IntangiblesLeasesDebtCommitmentsStock CompensationNew StandardsPay vs Performance