Eagle Ford Shale and Austin Chalk E&P Magnolia Oil & Gas Corp. said on Feb. 5 it will pay out a cash dividend of $0.13 per share of Class A common stock and a cash distribution of $0.13 per Class B unit.

Magnolia’s dividend represents a 13% increase to its quarterly dividend rate, providing an annualized dividend of $0.52 per share, the company said in a release. The dividend has increased three consecutive years since the company first initiated a dividend in 2021.

“The increase in the dividend is supported by our record of executing on our strategy and improving the business in 2023, during which Magnolia’s total production grew 9 percent and our share repurchase activities reduced our outstanding shares 4 percent,” said Chris Stavros, Magnolia’s president and CEO. “Magnolia’s principles of maintaining low leverage with disciplined capital spending, generating modest annual production growth and sustaining high pre-tax margins delivers steady and consistent free cash flow. This strategy improves Magnolia’s dividend per share payout capacity, allowing for above average and consistent annual dividend growth that is superior to that of our peers.”

The dividend is payable on March 1 to shareholders of record by Feb. 16.