The business behind the dividend
| Measure | MGY | Median | Formula |
|---|---|---|---|
| Return on equity | 16.3% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 18.4% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $293.53m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $409.16m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 33.5% | 15.0% | Operating income ÷ revenue |
| Net margin | 24.8% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.20x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 14.80x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.54x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 2.55x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.70x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 16.3% | 18.6% | 20.6% | 51.4% | 39.9% | -144.0% | 1.8% | — | 18.6% |
| Return on capital employed | 18.4% | 21.7% | 23.5% | 50.4% | 42.0% | -156.5% | 4.1% | — | 21.7% |
| Operating margin | 33.5% | 38.9% | 43.6% | 63.4% | 55.9% | -355.7% | 13.5% | 47.1% | 43.6% |
| Net margin | 24.8% | 27.8% | 31.6% | 52.7% | 38.7% | -223.2% | 5.3% | 44.4% | 31.6% |
| Debt to equity | 0.20x | 0.20x | 0.21x | 0.22x | 0.37x | 0.47x | 0.14x | — | 0.21x |
| Current ratio | 1.54x | 1.42x | 1.88x | 2.50x | 2.37x | 2.18x | 1.67x | 0.55x | 1.88x |
| Cash conversion | 2.70x | 2.52x | 2.20x | 1.45x | 1.89x | — | 12.90x | 1.44x | 2.20x |
How it compares in energy
Among the 31 energy companies here measured on free cash flow, Magnolia Oil & Gas pays out less than 20 of them. The median for that group is 35.7%, against this company’s 27.6%.
Closest on free cash flow
- Marathon Petroleum (MPC) 23.9%
- California Resources (CRC) 25.0%
- Diversified Energy (DEC) 30.4%
- Patterson Uti Energy (PTEN) 32.9%
Same sector and same denominator, so the figures are comparable. All 40 in energy →