Shares of Magnolia Oil & Gas Corp (MGY) surged 6.36% in after-hours trading on Wednesday following the release of the company's first quarter 2025 financial results and updated guidance.

The oil and gas producer reported strong Q1 performance, with net income of $106.6 million and adjusted EBITDAX of $248.4 million. Magnolia's quarterly earnings per share of $0.54 met analyst expectations, while revenue of $350.30 million beat estimates of $342.50 million.

Investors were particularly encouraged by Magnolia's decision to raise its full-year 2025 production growth guidance to 7-9%, up from the previous 5-7% range. This increase comes despite a reduction in the company's capital spending program for 2025, now set at $430-$470 million, down from the initial $460-$490 million range. The improved outlook suggests stronger operational efficiency and productivity from Magnolia's assets, particularly in the Giddings area where production exceeded expectations.