Shares of Magnolia Oil & Gas Corp (MGY) surged 6.36% in after-hours trading on Wednesday following the release of its first-quarter 2025 financial results, which exceeded analysts' expectations and prompted the company to raise its full-year production guidance.

The Texas-based oil and gas producer reported a net income of $106.6 million, or $0.54 per share, for the quarter ended March 31, 2025. This represents a 9% increase from the same period last year. The company's adjusted EBITDAX, a key industry metric, rose to $248.4 million, up 9% year-over-year. Total revenues for the quarter came in at $350.3 million, beating analyst estimates of $342.5 million.

Magnolia's strong performance was driven by better-than-expected production levels, which grew by 14% year-over-year to 96.5 thousand barrels of oil equivalent per day (Mboe/d). The company attributed this growth to stronger well productivity and shallower than anticipated well declines in its Giddings asset. In light of these results, Magnolia increased its full-year 2025 production growth guidance range to 7-9%, up from its previous forecast of 5-7%. Additionally, the company announced a reduction in its capital spending program for 2025 to a range of $430-$470 million, down from the initial plan of $460-$490 million, showcasing improved capital efficiency.