Magnolia Oil & Gas Corp., recently started by one-time Occidental Petroleum CEO Steve Chazen, is in a buying mood. It will purchase most of the Harvest Oil & Gas Corp.’s assets in South Texas for $191 million. Involved in the deal are 15 oil and natural gas production sites in Karnes County and 114,000 acres in the Eagle Ford Shale and Austin Chalk geological formations. This takes in Austin, Bastrop, Brazos, Burleson, De Witt, Fayette, Gonzales, Grimes, Karnes, Lee, Montgomery and Washington counties.
“Harvest represented our largest non-operated working interest owner, and the assets are a natural fit for Magnolia,” Chazen said. “We believe this accretive transaction is highly complementary to our business objectives of maximizing shareholder returns by generating steady production growth, strong pretax margins and significant free cash flow.”
Magnolia also spent $2.66 billion on July 31 for 360,000 acres of Eagle Ford and Austin Chalk leases from Houston-based EnerVest Ltd. Chazen retired as CEO of Occidental in 2016, having joined the company in 1994. He formed Magnolia in 2018.