Magnolia Oil & Gas Corp (MGY) presents a negative liquidation recovery posture as of March 31, 2026, consistent with MFFAIS-reported CLV of approximately -$560M. The asset base is dominated by oil and gas properties under the successful efforts method: gross PP&E of $5.23B, accumulated DD&A of $2.67B, leaving net book value of $2.59B. Under a 50-70% haircut applied to E&P PP&E, recoverable value from that asset class ranges from approximately $1.29B to $1.81B. Cash of $124.4M recovers at par. Trade AR of $160.8M (customer contracts) plus JIB receivables of $32.1M recover at 90-95%, contributing roughly $177M-$182M. Other current assets are minimal. Total haircut asset pool is approximately $1.59B-$2.11B at the midpoints. Against this, liabilities at face value include: $400M Senior Notes due 2032 (6.875%, no current draw on $450M RBL capacity), current liabilities of $290.5M (including $134M other current liabilities and $156.5M AP), noncurrent liabilities of $618.1M (comprising $393.4M long-term debt net of deferred financing costs, $187.5M ARO, and $18.6M other long-term liabilities). Total stated liabilities are approximately $908.6M. ARO of $187.5M does not extinguish on windup and must be settled at face. Net recovery to equity in a liquidation scenario is deeply negative, roughly -$400M to -$900M depending on PP&E realization rate, consistent with the MFFAIS CLV figure. Key changes from the prior filing (2025 10-K, December 31, 2025): bolt-on acquisitions of $155M cash in Q1 2026 added to the PP&E asset base and drove the $142.4M net cash decrease; AR rose from $116.5M to $160.8M (trade receivables) reflecting higher revenue accruals; accrued capex current liabilities nearly doubled from $21.4M to $48.8M; cash fell from approximately $267M (implied from cash flow) to $124.4M. The noncontrolling interest was fully eliminated in February 2026 through redemption and cancellation of all remaining Magnolia LLC Units, simplifying the capital structure. Deferred tax liabilities of $18.5M are tagged in XBRL but the full deferred tax balance is not broken out in the TAG_CONTEXT; filing discusses the One Big Beautiful Bill Act shifting income from current to deferred tax but this does not materially affect the liquidation analysis. No hedge positions, no pension obligation, no goodwill. The Karnes litigation exposure (working interest claim) is described as not reasonably estimable and retained by co-defendants; no accrual is recorded and the filing does not quantify it in XBRL.
▼ Community Notes