South Texas operator Magnolia Oil & Gas closed a $40 million bolt-on acquisition in the Giddings Field outside of the company’s core development area, the company disclosed in an Aug. 1 earnings report.

Magnolia is focused on the Austin Chalk, where it holds 22,800 net acres in a well-delineated, low-risk position in the core of Karnes County, Texas. The company also holds about 460,000 net acres in the Giddings area, which it describes as a “re-emerging oil play with significant upside and what we believe to be substantial inventory.”

Magnolia President and CEO Chris Stavros said the company remains committed to a disciplined approach toward capital spending, generating moderate annual production growth, attaining high pre-tax margins and providing steady and consistent free cash flow.

“Earlier this week we successfully completed a small bolt-on oil and gas property acquisition in the Giddings area for approximately $40 million,” he said. “This asset purchase, which is outside of our core development area in Giddings, was a direct result of the extensive knowledge we have gained through operating in Giddings as well as some of our appraisal efforts.”

Stavros also said Magnolia’s board recently increased the company’s share repurchase authorization by 10 million shares, allowing “us to opportunistically repurchase our shares into next year.”

“We will continue to allocate our free cash flow toward enhancing our per share metrics and improving our overall business,” he said. “These activities, which include small, accretive bolt-on oil and gas property acquisitions and share repurchases, reinforce our investment proposition of providing 10% annual dividend growth over time.”