PHX Minerals Reports Results for the Quarter Ended March 31, 2024
May 8, 2024

PHX Minerals Reports Results for the Quarter Ended March 31, 2024

FORT WORTH, Texas, May 8, 2024 /PRNewswire/ — PHX MINERALS INC., “PHX” or the “Company” (NYSE: PHX), today reported financial and operating results for the quarter ended March 31, 2024.

Summary of Results for the Quarter Ended March 31, 2024

Net loss was ($0.2) million, or ($0.01) per diluted share, compared to net income of $2.5 million, or $0.07 per diluted share, for the quarter ended Dec. 31, 2023.Adjusted EBITDA(1) was $4.6 million, compared to $4.5 million for the quarter ended Dec. 31, 2023.Royalty production volumes decreased 5% to 1,857 Mmcfe compared to the quarter ended Dec. 31, 2023.Total production volumes decreased 6% to 2,117 Mmcfe compared to the quarter ended Dec. 31, 2023.Converted 85 gross (0.32 net) wells to producing status, compared to 46 gross (0.098 net) during the quarter ended Dec. 31, 2023.Inventory of 230 gross (1.099 net) wells in progress and permits as of March 31, 2024, compared to 263 gross (1.295 net) wells in progress and permits as of Dec. 31, 2023.Total debt was $30.8 million and the debt to adjusted EBITDA (TTM) (1) ratio was 1.58x at March 31, 2024.

Subsequent Events

PHX entered into the sixth amendment to its credit agreement on April 18, 2024, pursuant to which, among other changes, the maturity date was extended to Sept. 1, 2028, and the borrowing base under PHX’s credit facility was reaffirmed at $50.0 million in connection with its regularly scheduled semi-annual redetermination.

 

(1)

This is a non-GAAP measure. Refer to the Non-GAAP Reconciliation section.

Chad L. Stephens, President and CEO, commented, “PHX Minerals continues to deliver positive Adjusted EBITDA and cash flow, servicing our dividend and lowering our debt by $2.0 million from last quarter, despite the significant commodity headwinds. With 0.32 net wells converted to production this quarter, the highest since the quarter ended March 31, 2023, it demonstrates the acreage quality through our asset acquisition strategy. The number of rigs operating on the Company’s acreage and its surrounding area increased since our last update, even during the current challenging pricing environment with reduced drilling activities industry-wide, further validates our methodical strategy of acquiring acreage ahead of the drill-bits.

“In addition to the LNG export demand I have previously mentioned,” continued Mr. Stephens, “artificial intelligence/data center related power demand is an emerging driver for the natural gas markets going forward. With our strong financial position and a proven business strategy, we expect to continue to unlock stockholder value as we navigate through the current commodity cycle.”

Financial Highlights

Three Months Ended

Three Months Ended

March 31, 2024

March 31, 2023

Royalty Interest Sales

$

6,176,274

$

10,123,741

Working Interest Sales

$

913,934

$

1,733,506

Natural Gas, Oil and NGL Sales

$

7,090,208

$

11,857,247

Gains (Losses) on Derivative Contracts

$

627,492

$

3,802,820

Lease Bonuses and Rental Income

$

151,718

$

313,150

Total Revenue

$

7,869,418

$

15,973,217

Lease Operating Expense

per Working Interest Mcfe

$

1.28

$

1.48

Transportation, Gathering and Marketing

per Mcfe

$

0.40

$

0.45

Production and Ad Valorem Tax per Mcfe

$

0.19

$

0.22

G&A Expense per Mcfe

$

1.58

$

1.20

Cash G&A Expense per Mcfe (1)

$

1.25

$

0.95

Interest Expense per Mcfe

$

0.34

$

0.22

DD&A per Mcfe

$

1.11

$

0.76

Total Expense per Mcfe

$

3.78

$

3.08

Net Income (Loss)

$

(183,615)

$

9,553,244

Adjusted EBITDA (2)

$

4,607,034

$

7,740,240

Cash Flow from Operations (3)

$

5,246,651

$

8,933,477

CapEx (4)

$

7,440

$

190,826

CapEx – Mineral Acquisitions

$

1,406,248

$

10,236,615

Borrowing Base

$

50,000,000

$

50,000,000

Debt

$

30,750,000

$

26,000,000

Debt to Adjusted EBITDA (TTM) (2)

1.58

0.91

(1)

Cash G&A expense is G&A excluding restricted stock and deferred director’s expense from the adjusted EBITDA table in the non-GAAP Reconciliation section.

(2)

This is a non-GAAP measure. Refer to the Non-GAAP Reconciliation section.

(3)

GAAP cash flow from operations.

(4)

Includes legacy working interest expenditures and fixtures and equipment.

 

Operating Highlights

Three Months Ended

Three Months Ended

March 31, 2024

March 31, 2023

Gas Mcf Sold

1,700,108

1,959,010

Average Sales Price per Mcf before the

effects of settled derivative contracts

$

2.10

$

3.53

Average Sales Price per Mcf after the

effects of settled derivative contracts

$

3.08

$

3.83

% of sales subject to hedges

62

%

48

%

Oil Barrels Sold

37,260

54,107

Average Sales Price per Bbl before the

effects of settled derivative contracts

$

76.01

$

76.01

Average Sales Price per Bbl after the

effects of settled derivative contracts

$

76.19

$

69.90

% of sales subject to hedges

37

%

45

%

NGL Barrels Sold

32,184

33,104

Average Sales Price per Bbl(1)

$

21.51

$

25.18

Mcfe Sold

2,116,776

2,482,276

Natural gas, oil and NGL sales before the

effects of settled derivative contracts

$

7,090,208

$

11,857,247

Natural gas, oil and NGL sales after the

effects of settled derivative contracts

$

8,759,517

$

12,113,923

(1) There were no NGL settled derivative contracts during the 2024 and 2023 periods.

Total Production for the last four quarters was as follows:

Quarter ended

Mcf Sold

Oil Bbls Sold

NGL Bbls Sold

Mcfe Sold

3/31/2024

1,700,108

37,260

32,184

2,116,776

12/31/2023

1,775,577

39,768

38,422

2,244,717

9/30/2023

1,868,012

48,032

32,029

2,348,378

6/30/2023

1,854,485

41,009

33,929

2,304,113

Total production volumes attributable to natural gas were 80% for the quarter ended March 31, 2024.

Royalty Interest Production for the last four quarters was as follows:

Quarter ended

Mcf Sold

Oil Bbls Sold

NGL Bbls Sold

Mcfe Sold

3/31/2024

1,533,580

33,083

20,844

1,857,147

12/31/2023

1,590,301

35,547

23,769

1,946,196

9/30/2023

1,689,396

43,575

20,416

2,073,342

6/30/2023

1,673,346

35,599

20,516

2,010,036

Royalty production volumes attributable to natural gas were 83% for the quarter ended March 31, 2024.

Working Interest Production for the last four quarters was as follows:

Quarter ended

Mcf Sold

Oil Bbls Sold

NGL Bbls Sold

Mcfe Sold

3/31/2024

166,528

4,177

11,340

259,629

12/31/2023

185,276

4,221

14,653

298,521

9/30/2023

178,616

4,457

11,613

275,036

6/30/2023

181,139

5,410

13,413

294,077

Quarter Ended March 31, 2024 Results

The Company recorded net loss of ($0.2) million, or ($0.01) per diluted share, for the quarter ended March 31, 2024, as compared to net income of $9.6 million, or $0.27 per diluted share, for the quarter ended March 31, 2023. The change in net income was principally the result of decreased natural gas, oil and NGL sales, decreased gains associated with our derivative contracts and decreased gains on asset sales, partially offset by decreased income tax provision.

Natural gas, oil and NGL revenue decreased $4.8 million, or 40%, for the quarter ended March 31, 2024, compared to the quarter ended March 31, 2023, due to decreases in natural gas and NGL prices of 41% and 15%, respectively, and decreases in natural gas, oil and NGL volumes of 13%, 31% and 3%, respectively.

The decrease in royalty production volumes during the quarter ended March 31, 2024, as compared to the quarter ended March 31, 2023, resulted from fewer new wells being brought online in the Haynesville Shale due to low gas prices. The production decrease in working interest volumes during the quarter ended March 31, 2024, as compared to the quarter ended March 31, 2023, resulted from the divestiture of working interest properties.

The Company had a net gain on derivative contracts of $0.6 million for the quarter ended March 31, 2024, comprised of a $1.7 million gain on settled derivatives and a ($1.0) million non-cash loss on derivatives, as compared to a net gain of $3.8 million for the quarter ended March 31, 2023. The change in net gain on derivative contracts was due to the Company’s settlements of natural gas and oil collars and fixed price swaps and the change in valuation caused by the difference in March 31, 2024 pricing relative to the strike price on open derivative contracts.

Operations Update

During the quarter ended March 31, 2024, the Company converted 85 gross (0.32 net) wells to producing status, including 29 gross (0.10 net) wells in the Haynesville and 27 gross (0.13 net) wells in the SCOOP, compared to 117 gross (0.46 net) wells in the quarter ended March 31, 2023.

At March 31, 2024, the Company had a total of 230 gross (1.099 net) wells in progress and permits across its mineral positions, compared to 263 gross (1.295 net) wells in progress and permits at Dec. 31, 2023. As of April 30, 2024, 15 rigs were operating on the Company’s acreage and 62 rigs operating within 2.5 miles of its acreage.

Bakken/

Three

Arkoma

SCOOP

STACK

Forks

Stack

Haynesville

Other

Total

As of March 31, 2024:

Gross Wells in Progress on PHX Acreage (1)

56

3

2

–

70

5

136

Net Wells in Progress on PHX Acreage (1)

0.248

0.006

0.001

–

0.568

0.026

0.849

Gross Active Permits on PHX Acreage

41

5

–

7

37

4

94

Net Active Permits on PHX Acreage

0.095

0.006

–

0.003

0.126

0.020

0.250

As of April 30, 2024:

Rigs Present on PHX Acreage

10

1

–

–

4

–

15

Rigs Within 2.5 Miles of PHX Acreage

19

7

6

1

19

10

62

(1)

Wells in progress includes drilling wells and drilled but uncompleted wells, or DUCs.

Leasing Activity

During the quarter ended March 31, 2024, the Company leased 381 net mineral acres to third-party exploration and production companies for an average bonus payment of $439 per net mineral acre and an average royalty of 23%.

Acquisition and Divestiture Update

During the quarter ended March 31, 2024, the Company purchased 146 net royalty acres for approximately $1.4 million and had no significant divestitures.

Acquisitions

SCOOP

Haynesville

Other

Total

During Three Months Ended March 31, 2024:

Net Mineral Acres Purchased

111

–

–

111

Net Royalty Acres Purchased

146

–

–

146

Quarterly Conference Call

PHX will host a conference call to discuss the Company’s results for the quarter ended March 31, 2024, at 11 a.m. EDT on May 9, 2024. Management’s discussion will be followed by a question-and-answer session with investors.

To participate on the conference call, please dial 877-407-3088 (toll-free domestic) or 201-389-0927. A replay of the call will be available for 14 days after the call. The number to access the replay of the conference call is 877-660-6853 and the PIN for the replay is 13746174.

A live audio webcast of the conference call will be accessible from the “Investors” section of PHX’s website at https://phxmin.com/events. The webcast will be archived for at least 90 days.

 

FINANCIAL RESULTS

Statements of Income

Three Months Ended March 31,

2024

2023

Revenues:

Natural gas, oil and NGL sales

$

7,090,208

$

11,857,247

Lease bonuses and rental income

151,718

313,150

Gains (losses) on derivative contracts

627,492

3,802,820

7,869,418

15,973,217

Costs and expenses:

Lease operating expenses

332,409

574,942

Transportation, gathering and marketing

843,504

1,128,756

Production and ad valorem taxes

392,327

552,258

Depreciation, depletion and amortization

2,356,326

1,889,990

Provision for impairment

–

2,073

Interest expense

714,886

557,473

General and administrative

3,347,037

2,981,909

Losses (gains) on asset sales and other

24,212

(4,334,428)

Total costs and expenses

8,010,701

3,352,973

Income (loss) before provision for income taxes

(141,283)

12,620,244

Provision for income taxes

42,332

3,067,000

Net income (loss)

$

(183,615)

$

9,553,244

Basic and diluted earnings per common share

$

(0.01)

$

0.27

Weighted average shares outstanding:

Basic

36,303,392

35,935,791

Diluted

36,303,392

35,935,791

Dividends per share of

common stock paid in period

$

0.0300

$

0.0225

 

Balance Sheets

March 31, 2024

Dec. 31, 2023

Assets

Current assets:

Cash and cash equivalents

$

1,625,749

$

806,254

Natural gas, oil, and NGL sales receivables (net of $0

3,683,671

4,900,126

allowance for uncollectable accounts)

Refundable income taxes

455,553

455,931

Derivative contracts, net

2,400,390

3,120,607

Other

668,705

878,659

Total current assets

8,834,068

10,161,577

Properties and equipment at cost, based on

   successful efforts accounting:

Producing natural gas and oil properties

212,852,807

209,082,847

Non-producing natural gas and oil properties

56,150,263

58,820,445

Other

1,360,614

1,360,614

270,363,684

269,263,906

Less accumulated depreciation, depletion and amortization

(116,177,898)

(114,139,423)

Net properties and equipment

154,185,786

155,124,483

Derivative contracts, net

–

162,980

Operating lease right-of-use assets

537,685

572,610

Other, net

429,486

486,630

Total assets

$

163,987,025

$

166,508,280

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

621,191

$

562,607

Current portion of operating lease liability

236,465

233,390

Accrued liabilities and other

1,100,976

1,215,275

Total current liabilities

1,958,632

2,011,272

Long-term debt

30,750,000

32,750,000

Deferred income taxes, net

6,782,969

6,757,637

Asset retirement obligations

1,073,025

1,062,139

Derivative contracts, net

158,620

–

Operating lease liability, net of current portion

635,506

695,818

Total liabilities

41,358,752

43,276,866

Stockholders’ equity:

Common Stock, $0.01666 par value; 54,000,500 shares authorized and

36,121,723 issued at Mar. 31, 2024; 54,000,500 shares authorized

and 36,121,723 issued at Dec. 31, 2023

601,788

601,788

Capital in excess of par value

42,403,417

41,676,417

Deferred directors’ compensation

1,425,523

1,487,590

Retained earnings

78,717,910

80,022,839

123,148,638

123,788,634

Less treasury stock, at cost; 122,785 shares at Mar. 31,

2024, and 131,477 shares at Dec. 31, 2023

(520,365)

(557,220)

Total stockholders’ equity

122,628,273

123,231,414

Total liabilities and stockholders’ equity

$

163,987,025

$

166,508,280

 

Condensed Statements of Cash Flows

Three Months Ended

Three Months Ended

March 31, 2024

March 31, 2023

Operating Activities

Net income (loss)

$

(183,615)

$

9,553,244

Adjustments to reconcile net income (loss) to net cash provided

  by operating activities:

Depreciation, depletion and amortization

2,356,326

1,889,990

Impairment of producing properties

–

2,073

Provision for deferred income taxes

25,332

2,934,000

Gain from leasing fee mineral acreage

(151,718)

(313,150)

Proceeds from leasing fee mineral acreage

151,718

373,878

Net (gain) loss on sales of assets

(66,500)

(4,417,983)

Directors’ deferred compensation expense

45,132

53,589

Total (gain) loss on derivative contracts

(627,492)

(3,802,820)

Cash receipts (payments) on settled derivative contracts

1,669,309

816,838

Restricted stock award expense

656,656

580,998

Other

35,731

35,904

Cash provided (used) by changes in assets and liabilities:

Natural gas, oil and NGL sales receivables

1,216,455

2,328,673

Income taxes receivable

378

(776,077)

Other current assets

207,497

123,948

Accounts payable

67,986

(175,207)

Other non-current assets

56,338

40,576

Income taxes payable

–

(576,427)

Accrued liabilities

(212,882)

261,430

Total adjustments

5,430,266

(619,767)

Net cash provided by operating activities

5,246,651

8,933,477

Investing Activities

Capital expenditures

(7,440)

(190,826)

Acquisition of minerals and overriding royalty interests

(1,406,248)

(10,236,615)

Net proceeds from sales of assets

66,500

9,210,005

Net cash provided by (used in) investing activities

(1,347,188)

(1,217,436)

Financing Activities

Borrowings under credit facility

1,000,000

6,000,000

Payments of loan principal

(3,000,000)

(13,300,000)

Payments on off-market derivative contracts

–

(560,162)

Payments of dividends

(1,079,968)

(810,071)

Net cash provided by (used in) financing activities

(3,079,968)

(8,670,233)

Increase (decrease) in cash and cash equivalents

819,495

(954,192)

Cash and cash equivalents at beginning of period

806,254

2,115,652

Cash and cash equivalents at end of period

$

1,625,749

$

1,161,460

Supplemental Disclosures of Cash Flow Information:

Interest paid (net of capitalized interest)

$

733,799

$

611,922

Income taxes paid (net of refunds received)

$

16,623

$

1,485,505

Supplemental Schedule of Noncash Investing and Financing Activities:

Dividends declared and unpaid

$

41,346

$

50,034

Gross additions to properties and equipment

$

1,406,743

$

10,996,880

Net increase (decrease) in accounts receivable for properties

and equipment additions

6,945

(569,439)

Capital expenditures and acquisitions

$

1,413,688

$

10,427,441

 

Derivative Contracts as of March 31, 2024

Production volume

Contract period

covered per month

Index

Contract price

Natural gas costless collars

April – September 2024

30,000 Mmbtu

NYMEX Henry Hub

$3.00 floor / $3.60 ceiling

April 2024

90,000 Mmbtu

NYMEX Henry Hub

$3.50 floor / $4.70 ceiling

May 2024

95,000 Mmbtu

NYMEX Henry Hub

$3.50 floor / $4.70 ceiling

June 2024

90,000 Mmbtu

NYMEX Henry Hub

$3.50 floor / $4.70 ceiling

October 2024 – June 2025

30,000 Mmbtu

NYMEX Henry Hub

$3.00 floor / $5.00 ceiling

November 2024 – March 2025

90,000 Mmbtu

NYMEX Henry Hub

$3.25 floor / $5.25 ceiling

November – December 2024

35,000 Mmbtu

NYMEX Henry Hub

$3.50 floor / $5.15 ceiling

January – March 2025

30,000 Mmbtu

NYMEX Henry Hub

$3.50 floor / $5.15 ceiling

April 2025 – September 2025

55,000 Mmbtu

NYMEX Henry Hub

$3.00 floor / $3.75 ceiling

November 2025 – March 2026

100,000 Mmbtu

NYMEX Henry Hub

$3.50 floor / $4.85 ceiling

November 2025 – March 2026

75,000 Mmbtu

NYMEX Henry Hub

$3.50 floor / $4.72 ceiling

Natural gas fixed price swaps

April – June 2024

10,000 Mmbtu

NYMEX Henry Hub

$3.21

April – October 2024

50,000 Mmbtu

NYMEX Henry Hub

$3.17

April – July 2024

127,500 Mmbtu

NYMEX Henry Hub

$3.24

July – October 2024

75,000 Mmbtu

NYMEX Henry Hub

$3.47

July – October 2024

25,000 Mmbtu

NYMEX Henry Hub

$3.47

August – September 2024

120,000 Mmbtu

NYMEX Henry Hub

$3.24

October 2024

105,000 Mmbtu

NYMEX Henry Hub

$3.24

November – December 2024

70,000 Mmbtu

NYMEX Henry Hub

$4.16

December 2024

50,000 Mmbtu

NYMEX Henry Hub

$3.39

January – March 2025

60,000 Mmbtu

NYMEX Henry Hub

$4.16

January – March 2025

50,000 Mmbtu

NYMEX Henry Hub

$3.51

April – October 2025

100,000 Mmbtu

NYMEX Henry Hub

$3.28

Oil costless collars

March 2024

1,750 Bbls

NYMEX WTI

$63.00 floor / $76.00 ceiling

April 2024

1,700 Bbls

NYMEX WTI

$63.00 floor / $76.00 ceiling

May 2024

1,750 Bbls

NYMEX WTI

$63.00 floor / $76.00 ceiling

June 2024

1,650 Bbls

NYMEX WTI

$63.00 floor / $76.00 ceiling

March 2024

1,650 Bbls

NYMEX WTI

$65.00 floor / $76.50 ceiling

April – June 2024

500 Bbls

NYMEX WTI

$65.00 floor / $76.50 ceiling

June – September 2024

500 Bbls

NYMEX WTI

$70.00 floor / $78.10 ceiling

July – October 2024

1,650 Bbls

NYMEX WTI

$65.00 floor / $76.50 ceiling

October – December 2024

500 Bbls

NYMEX WTI

$67.00 floor / $77.00 ceiling

Oil fixed price swaps

March 2024

750 Bbls

NYMEX WTI

$71.75

April – October 2024

1,000 Bbls

NYMEX WTI

$66.10

April – June 2024

1,300 Bbls

NYMEX WTI

$70.59

July – October 2024

1,500 Bbls

NYMEX WTI

$69.50

November – December 2024

2,000 Bbls

NYMEX WTI

$69.50

November 2024 – March 2025

1,600 Bbls

NYMEX WTI

$64.80

January – March 2025

500 Bbls

NYMEX WTI

$69.50

January – June 2025

2,000 Bbls

NYMEX WTI

$70.90

April – June 2025

750 Bbls

NYMEX WTI

$69.50

April – June 2025

1,000 Bbls

NYMEX WTI

$68.00

July – September 2025

500 Bbls

NYMEX WTI

$69.50

July – December 2025

1,500 Bbls

NYMEX WTI

$68.90

Non-GAAP Reconciliation

This press release includes certain “non-GAAP financial measures” as defined under the rules and regulations of the U.S. Securities and Exchange Commission, or the SEC, including Regulation G. These non-GAAP financial measures are calculated using GAAP amounts in the Company’s financial statements. These measures, detailed below, are provided in addition to, not as an alternative for, and should be read in conjunction with, the information contained in the Company’s financial statements prepared in accordance with GAAP (including the notes thereto), included in the Company’s SEC filings and posted on its website.

Adjusted EBITDA Reconciliation 

The Company defines “adjusted EBITDA” as earnings before interest, taxes, depreciation and amortization, or EBITDA, excluding non-cash gains (losses) on derivatives and gains (losses) on asset sales and including cash receipts from (payments on) off-market derivatives and restricted stock and deferred directors’ expense. The Company has included a presentation of adjusted EBITDA because it recognizes that certain investors consider this amount to be a useful means of measuring the Company’s ability to meet its debt service obligations and evaluating its financial performance. Adjusted EBITDA has limitations and should not be considered in isolation or as a substitute for net income, operating income, cash flow from operations or other consolidated income or cash flow data prepared in accordance with GAAP. Because not all companies use identical calculations, this presentation of adjusted EBITDA may not be comparable to a similarly titled measure of other companies. The following table provides a reconciliation of net income (loss) to adjusted EBITDA for the quarters indicated:

Three Months Ended

Three Months Ended

Three Months Ended

March 31, 2024

March 31, 2023

Dec. 31, 2023

Net Income

$

(183,615)

$

9,553,244

$

2,513,444

Plus:

Income tax expense

42,332

3,067,000

1,245,460

Interest expense

714,886

557,473

723,685

DD&A

2,356,326

1,889,990

2,443,154

Impairment expense

–

2,073

–

Less:

Non-cash gains (losses)

on derivatives

(1,041,817)

3,172,399

2,936,659

Gains (losses) on asset sales

66,500

4,417,983

57,505

Plus:

Cash payments on off-market derivative

contracts

–

(373,745)

–

Restricted stock and deferred

director’s expense

701,788

634,587

572,709

Adjusted EBITDA

$

4,607,034

$

7,740,240

$

4,504,288

Debt to Adjusted EBITDA (TTM) Reconciliation 

“Debt to adjusted EBITDA (TTM)” is defined as the ratio of long-term debt to adjusted EBITDA on a trailing 12-month (TTM) basis. The Company has included a presentation of debt to adjusted EBITDA (TTM) because it recognizes that certain investors consider such ratios to be a useful means of measuring the Company’s ability to meet its debt service obligations and for evaluating its financial performance. The debt to adjusted EBITDA (TTM) ratio has limitations and should not be considered in isolation or as a substitute for net income, operating income, cash flow from operations or other consolidated income or cash flow data prepared in accordance with GAAP. Because not all companies use identical calculations, this presentation of debt to adjusted EBITDA (TTM) may not be comparable to a similarly titled measure of other companies. The following table provides a reconciliation of net income (loss) to adjusted EBITDA on a TTM basis and of the resulting debt to adjusted EBITDA (TTM) ratio:

TTM Ended

TTM Ended

March 31, 2024

March 31, 2023

Net Income

$

4,183,941

$

30,646,855

Plus:

Income tax expense

1,710,792

7,455,000

Interest expense

2,519,806

1,953,232

DD&A

9,032,521

7,265,346

Impairment expense

36,460

6,111,749

Less:

Non-cash gains (losses)

on derivatives

88,315

14,360,063

Gains (losses) on asset sales

377,276

9,604,551

Plus:

Cash payments on off-market derivative

contracts

–

(3,618,427)

Restricted stock and deferred

director’s expense

2,501,129

2,815,183

Adjusted EBITDA

$

19,519,058

$

28,664,324

Debt

$

30,750,000

$

26,000,000

Debt to Adjusted EBITDA (TTM)

1.58

0.91

PHX Minerals Inc. Fort Worth-based, PHX Minerals Inc. is a natural gas and oil mineral company with a strategy to proactively grow its mineral position in its core focus areas. PHX owns mineral acreage principally located in Oklahoma, Texas, Louisiana, North Dakota and Arkansas. Additional information on the Company can be found at www.phxmin.com.

Cautionary Statement Regarding Forward-Looking Statements 

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “anticipates,” “plans,” “estimates,” “believes,” “expects,” “intends,” “will,” “should,” “may” and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect PHX’s current views about future events. Forward-looking statements may include, but are not limited to, statements relating to: the Company’s operational outlook; the Company’s ability to execute its business strategies; the volatility of realized natural gas and oil prices; the level of production on the Company’s properties; estimates of quantities of natural gas, oil and NGL reserves and their values; general economic or industry conditions; legislation or regulatory requirements; conditions of the securities markets; the Company’s ability to raise capital; changes in accounting principles, policies or guidelines; financial or political instability; acts of war or terrorism; title defects in the properties in which the Company invests; and other economic, competitive, governmental, regulatory or technical factors affecting properties, operations or prices. Although the Company believes expectations reflected in these and other forward-looking statements are reasonable, the Company can give no assurance such expectations will prove to be correct. Such forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. These forward-looking statements involve certain risks and uncertainties that could cause results to differ materially from those expected by the Company’s management. Information concerning these risks and other factors can be found in the Company’s filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, available on the Company’s website or the SEC’s website at www.sec.gov.

Investors are cautioned that any such forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof, and the Company does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.

 

View original content:https://www.prnewswire.com/news-releases/phx-minerals-reports-results-for-the-quarter-ended-march-31-2024-302139977.html

SOURCE PHX MINERALS INC.

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