BUZZ-Magnolia Oil & Gas drops on $1.1 bln stock sale for WildFire Energy acquisition

Jpmorgan Chase
Goldman Sachs Group, Inc.
Magnolia Oil & Gas Corp. Class A

Jpmorgan Chase

JPM

0.00

Goldman Sachs Group, Inc.

GS

0.00

Magnolia Oil & Gas Corp. Class A

MGY

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** Shares of Magnolia Oil & Gas MGY.N down 6.1% at $23.97 premarket on Tues after $1.1 bln M&A-related follow-on priced

** Houston, Texas-based E&P firm sold ~46.3 mln shares at $23.75 to fund purchase of WildFire Energy

** Offering size increased from $1 bln and priced at 7% discount to stock's last sale on Mon

** MGY early Mon said it agreed to buy WildFire for about $4 bln, including debt, to expand its position in the Giddings field in South Texas

** MGY shares finished down 6.3% on Mon, trimming YTD gain to ~17%

** Co has ~184.95 mln shares outstanding for $4.7 bln market cap

** JP Morgan and Goldman Sachs are joint bookrunners for the stock offering, among others

** 11 of 19 analysts rate MGY stock "strong buy" or "buy", 8 "hold"; median PT $32.50, per LSEG data


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