FORT
WORTH, Texas, March 12,
2024 /PRNewswire/ -- PHX MINERALS INC., "PHX" or the
"Company" (NYSE: PHX), today reported financial and operating
results for the quarter and fiscal year ended Dec. 31, 2023.
Summary of Results for the Period Ended Dec. 31, 2023
- Net income in the fiscal fourth quarter and full fiscal year
2023 was $2.5 million, or
$0.07 per diluted share, and
$13.9 million, or $0.39 per diluted share, respectively, compared
to net income of $1.9 million, or
$0.05 per diluted share, for the
quarter ended Sept. 30, 2023, and net
income of $17.1 million, or
$0.48 per diluted share, for the year
ended Dec. 31, 2022.
- Adjusted EBITDA(1) in the fiscal fourth quarter and
full fiscal year was $4.5 million and
$22.7 million, respectively, compared
to $6.3 million for the quarter ended
Sept. 30, 2023, and $26.7 million for the year ended Dec. 31, 2022.
- Royalty production volumes for the fiscal fourth quarter
decreased 6% to 1,946 Mmcfe compared to the quarter ended
Sept. 30, 2023, and increased 23% to
8,123 Mmcfe for the full fiscal year 2023 compared to the year
ended Dec. 31, 2022.
- Total production volumes for the fiscal fourth quarter
decreased 4% to 2,245 Mmcfe compared to the quarter ended
Sept. 30, 2023, and decreased 3% to
9,379 Mmcfe for the full fiscal year 2023 compared to the year
ended Dec. 31, 2022.
- Net proved royalty interest reserves increased 9% to 57.8 Bcfe
at Dec. 31, 2023 from 53.1 Bcfe at
Dec. 31, 2022.
- Converted 46 gross (0.098 net) and 314 gross (1.03 net) wells
to producing status in the fiscal fourth quarter and full fiscal
year 2023, compared to 71 gross (0.155 net) during the quarter
ended Sept. 30, 2023, and 313 gross
(1.15 net) during the year ended Dec. 31,
2022.
- Inventory of 168 gross (0.851 net) wells in progress and 95
gross (0.444 net) permits as of Dec. 31,
2023, compared to 185 gross (0.81 net) wells in progress and
93 gross (0.28 net) permits as of Sept. 30,
2023.
- Total debt was $32.8 million and
the debt to adjusted EBITDA (TTM) (1) ratio was 1.45x as
of Dec. 31, 2023.
Subsequent Events
- PHX announced a $0.03 per share
quarterly dividend, payable on March 29,
2024, to stockholders of record on March 18, 2024.
|
(1)
This is a non-GAAP measure. Refer to the Non-GAAP Reconciliation
section.
|
Chad L. Stephens, President and
CEO, commented, "In 2023, PHX delivered year-over-year royalty
volume growth of 23%, expanding 2P royalty reserves by 12%,
generating significant operating cash flow and net income. These
results enabled us to raise our quarterly dividend by 33% despite
another challenging year in the natural gas pricing environment.
Our strong balance sheet and strategy of modest leverage enabled us
to deliver consistent results despite a historic drop in gas prices
and rising interest rates validating our business strategy, which
positions us for success in both up and down markets."
"Looking forward, we are optimistic that reduced drilling
activity, announced production curtailments, and the expansion of
LNG export facilities should balance the market and improve
commodity prices," continued Mr. Stephens. "During the past year,
PHX deployed more than $30 million to
acquire almost 2,400 net royalty acres in the Haynesville and SCOOP
plays. The acquisition of these high-quality minerals will further
drive our royalty volumes, margin expansion and cash flow over the
course of the next two to three years. With our strong financial
position and a highly focused acquisition strategy we are poised to
unlock value for our shareholders as the commodity pricing
environment improves."
|
Financial
Highlights
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
Dec. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Dec. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Royalty Interest
Sales
|
|
$
|
7,378,650
|
|
|
$
|
10,571,704
|
|
|
$
|
31,593,351
|
|
|
$
|
47,335,656
|
|
|
Working Interest
Sales
|
|
$
|
1,170,133
|
|
|
$
|
4,316,970
|
|
|
$
|
4,942,934
|
|
|
$
|
23,726,485
|
|
|
Natural Gas, Oil and
NGL Sales
|
|
$
|
8,548,783
|
|
|
$
|
14,888,674
|
|
|
$
|
36,536,285
|
|
|
$
|
71,062,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (Losses) on
Derivative Contracts
|
|
$
|
3,211,410
|
|
|
$
|
3,347,002
|
|
|
$
|
6,859,589
|
|
|
$
|
(16,322,244)
|
|
|
Lease Bonuses and
Rental Income
|
|
$
|
22,780
|
|
|
$
|
34,482
|
|
|
$
|
1,068,022
|
|
|
$
|
423,069
|
|
|
Total
Revenue
|
|
$
|
11,782,973
|
|
|
$
|
18,270,158
|
|
|
$
|
44,463,896
|
|
|
$
|
55,162,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease Operating
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per Working Interest
Mcfe
|
|
$
|
1.07
|
|
|
$
|
1.66
|
|
|
$
|
1.27
|
|
|
$
|
1.21
|
|
|
Transportation,
Gathering and Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per Mcfe
|
|
$
|
0.42
|
|
|
$
|
0.66
|
|
|
$
|
0.39
|
|
|
$
|
0.63
|
|
|
Production and Ad
Valorem Tax per Mcfe
|
|
$
|
0.20
|
|
|
$
|
0.30
|
|
|
$
|
0.20
|
|
|
$
|
0.34
|
|
|
G&A Expense per
Mcfe
|
|
$
|
1.36
|
|
|
$
|
1.42
|
|
|
$
|
1.28
|
|
|
$
|
1.29
|
|
|
Cash G&A Expense
per Mcfe (1)
|
|
$
|
1.10
|
|
|
$
|
1.16
|
|
|
$
|
1.02
|
|
|
$
|
1.02
|
|
|
Interest Expense per
Mcfe
|
|
$
|
0.32
|
|
|
$
|
0.29
|
|
|
$
|
0.25
|
|
|
$
|
0.17
|
|
|
DD&A per
Mcfe
|
|
$
|
1.09
|
|
|
$
|
0.81
|
|
|
$
|
0.91
|
|
|
$
|
0.77
|
|
|
Total Expense per
Mcfe
|
|
$
|
3.53
|
|
|
$
|
3.92
|
|
|
$
|
3.20
|
|
|
$
|
3.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
2,513,444
|
|
|
$
|
3,346,133
|
|
|
$
|
13,920,800
|
|
|
$
|
17,073,156
|
|
|
Adjusted EBITDA
(2)
|
|
$
|
4,504,288
|
|
|
$
|
5,334,016
|
|
|
$
|
22,652,263
|
|
|
$
|
26,743,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow from
Operations (3)
|
|
$
|
3,361,455
|
|
|
$
|
10,141,814
|
|
|
$
|
24,171,139
|
|
|
$
|
39,035,474
|
|
|
CapEx
(4)
|
|
$
|
4,587
|
|
|
$
|
87,104
|
|
|
$
|
325,983
|
|
|
$
|
447,065
|
|
|
CapEx - Mineral
Acquisitions
|
|
$
|
4,351,757
|
|
|
$
|
14,499,014
|
|
|
$
|
29,735,516
|
|
|
$
|
46,380,423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowing
Base
|
|
|
|
|
|
|
|
$
|
50,000,000
|
|
|
$
|
50,000,000
|
|
|
Debt
|
|
|
|
|
|
|
|
$
|
32,750,000
|
|
|
$
|
33,300,000
|
|
|
Debt to Adjusted EBITDA
(TTM) (2)
|
|
|
|
|
|
|
|
|
1.45
|
|
|
|
1.25
|
|
|
|
|
(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
|
|
|
Twelve Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Dec. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Gas Mcf Sold
|
|
1,775,577
|
|
|
|
1,669,320
|
|
|
|
7,457,084
|
|
|
|
7,522,763
|
|
|
Average Sales Price per
Mcf before the
|
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
2.53
|
|
|
$
|
5.66
|
|
|
$
|
2.61
|
|
|
$
|
6.19
|
|
|
Average Sales Price per
Mcf after the
|
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
2.76
|
|
|
$
|
4.02
|
|
|
$
|
2.96
|
|
|
$
|
4.20
|
|
|
% of sales subject to
hedges
|
|
44
|
%
|
|
|
65
|
%
|
|
|
46
|
%
|
|
|
61
|
%
|
|
Oil Barrels
Sold
|
|
39,768
|
|
|
|
52,406
|
|
|
|
182,916
|
|
|
|
202,867
|
|
|
Average Sales Price per
Bbl before the
|
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
78.66
|
|
|
$
|
82.52
|
|
|
$
|
76.76
|
|
|
$
|
93.06
|
|
|
Average Sales Price per
Bbl after the
|
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
75.37
|
|
|
$
|
62.03
|
|
|
$
|
74.21
|
|
|
$
|
60.98
|
|
|
% of sales subject to
hedges
|
|
36
|
%
|
|
|
57
|
%
|
|
|
42
|
%
|
|
|
66
|
%
|
|
NGL Barrels
Sold
|
|
38,422
|
|
|
|
38,611
|
|
|
|
137,484
|
|
|
|
159,475
|
|
|
Average Sales Price per
Bbl(1)
|
$
|
24.00
|
|
|
$
|
28.77
|
|
|
$
|
22.18
|
|
|
$
|
35.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mcfe Sold
|
|
2,244,717
|
|
|
|
2,215,419
|
|
|
|
9,379,484
|
|
|
|
9,696,809
|
|
|
Natural gas, oil and
NGL sales before the
|
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
8,548,783
|
|
|
$
|
14,888,674
|
|
|
$
|
36,536,285
|
|
|
$
|
71,062,141
|
|
|
Natural gas, oil and
NGL sales after the
|
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
8,823,534
|
|
|
$
|
11,067,174
|
|
|
$
|
38,719,598
|
|
|
$
|
49,586,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) There were no NGL
settled derivative contracts during the 2023 and 2022
periods.
|
|
Total Production for the last four quarters was as follows:
|
Quarter
ended
|
|
Mcf Sold
|
|
|
Oil Bbls
Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
|
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
|
|
|
3/31/2023
|
|
|
1,959,010
|
|
|
|
54,107
|
|
|
|
33,104
|
|
|
|
2,482,276
|
|
Natural gas volumes were 79% of total production volumes for the
quarter ended Dec. 31, 2023.
Royalty Interest Production for the last four quarters was as
follows:
|
Quarter
ended
|
|
Mcf Sold
|
|
|
Oil Bbls
Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
|
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
|
|
|
3/31/2023
|
|
|
1,700,974
|
|
|
|
45,395
|
|
|
|
20,063
|
|
|
|
2,093,722
|
|
Natural gas volumes were 82% of total royalty production volumes
for the quarter ended Dec. 31,
2023.
Working Interest Production for the last four quarters was as
follows:
|
Quarter
ended
|
|
Mcf Sold
|
|
|
Oil Bbls
Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
|
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
|
|
|
3/31/2023
|
|
|
258,036
|
|
|
|
8,712
|
|
|
|
13,041
|
|
|
|
388,554
|
|
|
Outlook
|
|
|
PHX is providing an
operational outlook for 2024 as follows:
|
|
|
|
Calendar Year
2022
Actual
|
|
Calendar Year
2023
Actual
|
|
Calendar Year
2024
Outlook
|
|
Mineral & Royalty
Production (Mmcfe)
|
|
6,613
|
|
8,123
|
|
8,100 -
8,800
|
|
Working Interest
Production (Mmcfe)
|
|
3,084
|
|
1,256
|
|
1,000 -
1,200
|
|
Total Production
(Mmcfe)
|
|
9,697
|
|
9,379
|
|
9,100 -
10,000
|
|
Percentage Natural
Gas
|
|
78 %
|
|
80 %
|
|
79% - 82%
|
|
|
|
|
|
|
|
|
Transportation,
Gathering & Marketing (per Mcfe)
|
|
$0.63
|
|
$0.39
|
|
$0.38 -
$0.43
|
|
Production Tax (as % of
pre-hedge sales volumes)
|
|
4.50 %
|
|
5.20 %
|
|
5.00% -
5.50%
|
|
LOE Expenses (on an
absolute basis in 000's)
|
|
$3,807
|
|
$1,599
|
|
$1,100 -
$1,300
|
|
Cash G&A (on an
absolute basis in 000's)
|
|
$9,900
|
|
$9,500
|
|
$9,700 -
$9,900
|
Quarter Ended Dec. 31, 2023
Results
The Company recorded net income of $2.5
million, or $0.07 per diluted
share, for the quarter ended Dec. 31,
2023, as compared to net income of $3.3 million, or $0.09 per diluted share, for the quarter ended
Dec. 31, 2022. The change in net
income was principally the result of a decrease in natural gas, oil
and NGL sales, a decrease in gains on asset sales, and an increase
in DD&A, partially offset by decreases in impairment, lease
operating expenses, and transportation, gathering and marketing
expenses.
Natural gas, oil and NGL revenue decreased $6.3 million, or 43%, for the quarter ended
Dec. 31, 2023, compared to the
quarter ended Dec. 31, 2022, due to
decreases in natural gas, oil and NGL prices of 55%, 5% and 17%,
respectively, and a decrease in oil volumes of 24%, partially
offset by an increase in natural gas volumes of 6%.
The increase in royalty production volumes during the quarter
ended Dec. 31, 2023 to 1,946 Mmcfe
from 1,628 Mmcfe during the quarter ended Dec. 31, 2022 resulted from new wells in the
Haynesville Shale and SCOOP coming online. The production
decrease in working interest volumes during the quarter ended
Dec. 31, 2023, as compared to the
quarter ended Dec. 31, 2022, resulted
from the divestiture of working interest properties in the Arkoma
Stack and Eagle Ford Shale plays.
The Company had a net gain on derivative contracts of
$3.2 million for the quarter ended
Dec. 31, 2023, comprised of a
$2.9 million non-cash gain on
derivatives and a $0.3 million gain
on settled derivatives, as compared to a net gain of $3.3 million for the quarter ended Dec. 31, 2022. 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 Dec.
31, 2023 pricing relative to the strike price on open
derivative contracts.
The Company recorded no impairment and made immaterial
divestitures during the quarter ended Dec.
31, 2023. Lease operating expenses and transportation,
gathering and marketing expenses were lower due to the divestiture
of working interest properties in the Arkoma Stack and Eagle Ford
Shale plays.
Twelve Months Ended Dec. 31,
2023 Results
The Company recorded net income of $13.9
million, or $0.39 per diluted
share, for the twelve months ended Dec. 31,
2023, as compared to net income of $17.1 million, or $0.48 per diluted share, for the twelve months
ended Dec. 31, 2022. The change in
net income was principally the result of a decrease in natural gas,
oil and NGL sales and a decrease in gains on asset sales, partially
offset by an increase in gains associated with our derivative
contracts and decreases in impairment, lease operating expenses,
production and ad valorem taxes, and transportation, gathering and
marketing expenses.
Natural gas, oil and NGL revenue decreased $34.5 million, or 49%, for the twelve months
ended Dec. 31, 2023, compared to the
twelve months ended Dec. 31, 2022,
due to decreases in natural gas, oil and NGL prices of 58%, 18% and
37%, respectively, and decreases in natural gas, oil and NGL
volumes of 1%, 10% and 14%, respectively.
The increase in royalty production volumes during the twelve
months ended Dec. 31, 2023 to 8,123
Mmcfe from 6,613 Mmcfe during the twelve months ended Dec. 31, 2022 resulted from new wells in the
Haynesville Shale and SCOOP coming online. The production decrease
in working interest volumes during the twelve months ended
Dec. 31, 2023, as compared to the
twelve months ended Dec. 31, 2022,
resulted from the divestiture of working interest properties in the
Fayetteville Shale, Arkoma Stack, and Eagle Ford Shale plays.
The Company had a net gain on derivative contracts of
$6.9 million for the twelve months
ended Dec. 31, 2023, comprised of a a
$4.3 million non-cash gain on
derivatives and a $2.6 million gain
on settled derivatives, as compared to a net loss of ($16.3) million for the twelve months ended
Dec. 31, 2022. The gain on settled
derivative contracts for the twelve months ended Dec. 31, 2023 excludes $0.4 million of cash paid to settle off-market
derivative contracts. The total net cash received to settle hedge
contracts during the twelve months ended Dec. 31, 2023 was $2.2
million. 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 Dec. 31, 2023 pricing
relative to the strike price on open derivative contracts.
Lease operating expenses and transportation, gathering and
marketing expenses were lower due to the divestiture of working
interest properties in the Fayetteville Shale, Arkoma Stack, and
Eagle Ford Shale plays. Production and ad valorem taxes decreased
due to a 49% decrease in natural gas, oil and NGL sales.
Operations Update
During the quarter ended Dec. 31,
2023, the Company converted 46 gross (0.098 net)
wells to producing status, including 21 gross (0.044 net) wells in
the Haynesville and 14 gross (0.024 net) wells in the SCOOP,
compared to 60 gross (0.27 net) wells in the quarter ended
Dec. 31, 2022.
At Dec. 31, 2023, the Company had
a total of 168 gross (0.851 net) wells in progress across its
mineral positions and 95 gross (0.444 net) active permitted wells,
compared to 185 gross (0.81 net) wells in progress and 93 gross
(0.28 net) active permitted wells at Sept.
30, 2023. As of Feb. 12, 2024,
14 rigs were operating on the Company's acreage and 57 rigs
operating within 2.5 miles of its acreage.
|
|
|
|
|
|
|
Bakken/
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
|
Arkoma
|
|
|
|
|
|
|
|
|
|
|
|
SCOOP
|
|
|
STACK
|
|
|
Forks
|
|
|
Stack
|
|
|
Haynesville
|
|
|
Other
|
|
|
Total
|
|
|
As of Dec. 31,
2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Wells in Progress
on PHX Acreage (1)
|
|
57
|
|
|
|
5
|
|
|
|
8
|
|
|
|
2
|
|
|
|
87
|
|
|
|
9
|
|
|
|
168
|
|
|
Net Wells in Progress
on PHX Acreage (1)
|
|
0.227
|
|
|
|
0.023
|
|
|
|
0.043
|
|
|
|
0.001
|
|
|
|
0.537
|
|
|
|
0.020
|
|
|
|
0.851
|
|
|
Gross Active Permits on
PHX Acreage
|
|
35
|
|
|
|
5
|
|
|
-
|
|
|
|
5
|
|
|
|
44
|
|
|
|
6
|
|
|
|
95
|
|
|
Net Active Permits on
PHX Acreage
|
|
0.151
|
|
|
|
0.011
|
|
|
-
|
|
|
|
0.002
|
|
|
|
0.246
|
|
|
|
0.034
|
|
|
|
0.444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of Feb. 12,
2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rigs Present on PHX
Acreage
|
|
6
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
4
|
|
|
|
3
|
|
|
|
14
|
|
|
Rigs Within 2.5 Miles
of PHX Acreage
|
|
14
|
|
|
|
9
|
|
|
|
2
|
|
|
|
1
|
|
|
|
23
|
|
|
|
8
|
|
|
|
57
|
|
|
|
|
(1)
|
Wells in progress
includes drilling wells and drilled but uncompleted wells,
or DUCs.
|
Leasing Activity
During the quarter ended Dec. 31,
2023, the Company leased 108 net mineral acres to
third-party exploration and production companies for an average
bonus payment of $968 per net mineral
acre and an average royalty of 24%.
Acquisition and Divestiture Update
During the quarter ended Dec. 31,
2023, the Company purchased 325 net royalty acres for
approximately $4.3 million and had no
significant divestitures.
|
|
Acquisitions
|
|
|
|
SCOOP
|
|
|
Haynesville
|
|
|
Other
|
|
Total
|
|
|
During Three Months
Ended Dec. 31, 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Mineral Acres
Purchased
|
|
|
96
|
|
|
|
142
|
|
|
-
|
|
|
238
|
|
|
Net Royalty Acres
Purchased
|
|
|
112
|
|
|
|
213
|
|
|
-
|
|
|
325
|
|
Royalty Reserves Update
At Dec. 31, 2023, proved royalty
reserves increased 9% to 57.8 Bcfe compared to 53.1 Bcfe at
Dec. 31, 2022. Proved developed
reserves increased by 5.3 Bcfe and proved undeveloped reserves
decreased by 0.7 Bcfe, primarily due to execution of our
acquisition strategy and consistent development in the
Haynesville and SCOOP plays resulting in conversion of undeveloped
reserves to producing.
|
Proved Royalty
Interest
|
|
|
Reserves SEC
Pricing
|
|
|
Dec. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Proved Developed
Reserves:
|
|
|
|
Mcf of Gas
|
|
36,156,363
|
|
|
|
31,467,785
|
|
|
Barrels of
Oil
|
|
731,527
|
|
|
|
628,289
|
|
|
Barrels of
NGL
|
|
715,683
|
|
|
|
712,342
|
|
|
Mcfe (1)
|
|
44,839,623
|
|
|
|
39,511,571
|
|
|
Proved Undeveloped
Reserves:
|
|
|
|
|
|
|
Mcf of Gas
|
|
11,508,969
|
|
|
|
12,608,549
|
|
|
Barrels of
Oil
|
|
134,497
|
|
|
|
118,168
|
|
|
Barrels of
NGL
|
|
99,712
|
|
|
|
48,136
|
|
|
Mcfe (1)
|
|
12,914,223
|
|
|
|
13,606,373
|
|
|
Total Proved
Reserves:
|
|
|
|
|
|
|
Mcf of Gas
|
|
47,665,332
|
|
|
|
44,076,334
|
|
|
Barrels of
Oil
|
|
866,024
|
|
|
|
746,457
|
|
|
Barrels of
NGL
|
|
815,395
|
|
|
|
760,478
|
|
|
Mcfe (1)
|
|
57,753,846
|
|
|
|
53,117,944
|
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
|
|
|
|
|
|
Net Cash Flows (before
income taxes):
|
|
|
|
|
|
|
Proved
Developed
|
$
|
73,448,070
|
|
|
$
|
122,723,015
|
|
|
Proved
Undeveloped
|
|
23,525,572
|
|
|
|
56,306,773
|
|
|
Total
|
$
|
96,973,642
|
|
|
$
|
179,029,788
|
|
|
|
|
|
|
|
|
(1) Crude oil and NGL
converted to natural gas on a one barrel of crude oil or NGL equals
six Mcf of natural gas basis.
|
|
Total Reserves Update
At Dec. 31, 2023, proved reserves
were 71.2 Bcfe, as calculated by Cawley, Gillespie and Associates, Inc., the Company's
independent consulting petroleum engineering firm. This was an 11%
decrease, compared to the 79.7 Bcfe of proved reserves at
Dec. 31, 2022. Total proved developed
reserves decreased 12% to 58.3 Bcfe, as compared to
Dec. 31, 2022 reserve volumes, mainly
due to sales of working interest properties in the Arkoma Stack and
Eagle Ford Shale. SEC prices used for the Dec. 31, 2023 report averaged $2.67 per Mcf for natural gas, $76.85 per barrel for oil and $21.98 per barrel for NGL, compared to
$6.52 per Mcf for natural gas,
$92.74 per barrel for oil and
$39.18 per barrel for NGL for the
Dec. 31, 2022 report. These prices
reflect net prices received at the wellhead.
|
Proved
Reserves SEC Pricing
|
|
|
Dec. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Proved Developed
Reserves:
|
|
|
|
Mcf of Gas
|
|
44,479,988
|
|
|
|
48,596,944
|
|
|
Barrels of
Oil
|
|
937,465
|
|
|
|
1,253,838
|
|
|
Barrels of
NGL
|
|
1,362,944
|
|
|
|
1,660,439
|
|
|
Mcfe (1)
|
|
58,282,442
|
|
|
|
66,082,606
|
|
|
Proved Undeveloped
Reserves:
|
|
|
|
|
|
|
Mcf of Gas
|
|
11,508,969
|
|
|
|
12,608,549
|
|
|
Barrels of
Oil
|
|
134,497
|
|
|
|
118,168
|
|
|
Barrels of
NGL
|
|
99,712
|
|
|
|
48,136
|
|
|
Mcfe (1)
|
|
12,914,223
|
|
|
|
13,606,373
|
|
|
Total Proved
Reserves:
|
|
|
|
|
|
|
Mcf of Gas
|
|
55,988,957
|
|
|
|
61,205,493
|
|
|
Barrels of
Oil
|
|
1,071,962
|
|
|
|
1,372,006
|
|
|
Barrels of
NGL
|
|
1,462,656
|
|
|
|
1,708,575
|
|
|
Mcfe (1)
|
|
71,196,665
|
|
|
|
79,688,979
|
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
|
|
|
|
|
|
Net Cash Flows (before
income taxes):
|
|
|
|
|
|
|
Proved
Developed
|
$
|
86,694,012
|
|
|
$
|
185,018,066
|
|
|
Proved
Undeveloped
|
|
23,325,572
|
|
|
|
56,306,773
|
|
|
Total
|
$
|
110,019,584
|
|
|
$
|
241,324,839
|
|
|
SEC Pricing
|
|
|
|
|
|
|
Gas/Mcf
|
$
|
2.67
|
|
|
$
|
6.52
|
|
|
Oil/Barrel
|
$
|
76.85
|
|
|
$
|
92.74
|
|
|
NGL/Barrel
|
$
|
21.98
|
|
|
$
|
39.18
|
|
|
|
|
|
|
|
|
Proved Reserves -
Projected Future Pricing (2)
|
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
Proved
Reserves
|
|
|
Net Cash Flows (before
income taxes):
|
Dec. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Proved
Developed
|
$
|
107,635,503
|
|
|
$
|
126,605,850
|
|
|
Proved
Undeveloped
|
|
29,439,523
|
|
|
|
38,748,236
|
|
|
Total
|
$
|
137,075,026
|
|
|
$
|
165,354,086
|
|
|
|
|
|
|
|
|
(1) Crude oil and NGL
converted to natural gas on a one barrel of crude oil or NGL equals
six Mcf of natural gas basis.
|
|
|
(2) Projected futures
pricing as of Dec. 31, 2023 and Dec. 31, 2022 basis adjusted to
Company wellhead price.
|
|
Quarterly Conference Call
PHX will host a conference call to discuss the Company's results
for the quarter ended Dec. 31, 2023
at 11 a.m. EDT tomorrow, March 13, 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 13744298.
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
Dec. 31,
|
|
|
Twelve Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
2023
|
|
|
2022
|
|
|
Dec. 31,
2023
|
|
|
Sept. 30,
2022
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Natural gas, oil and
NGL sales
|
$
|
8,548,783
|
|
|
$
|
14,888,674
|
|
|
$
|
36,536,285
|
|
|
$
|
69,860,631
|
|
|
Lease bonuses and
rental income
|
|
22,780
|
|
|
|
34,482
|
|
|
|
1,068,022
|
|
|
|
467,502
|
|
|
Gains (losses) on
derivative contracts
|
|
3,211,410
|
|
|
|
3,347,002
|
|
|
|
6,859,589
|
|
|
|
(16,833,078)
|
|
|
|
11,782,973
|
|
|
|
18,270,158
|
|
|
|
44,463,896
|
|
|
|
53,495,055
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
|
319,113
|
|
|
|
977,165
|
|
|
|
1,598,944
|
|
|
|
3,945,706
|
|
|
Transportation,
gathering and marketing
|
|
945,788
|
|
|
|
1,455,260
|
|
|
|
3,674,832
|
|
|
|
5,890,390
|
|
|
Production and ad
valorem taxes
|
|
457,058
|
|
|
|
656,764
|
|
|
|
1,881,737
|
|
|
|
3,332,581
|
|
|
Depreciation,
depletion and amortization
|
|
2,443,154
|
|
|
|
1,802,114
|
|
|
|
8,566,185
|
|
|
|
7,278,118
|
|
|
Provision for
impairment
|
|
-
|
|
|
|
6,100,696
|
|
|
|
38,533
|
|
|
|
14,565
|
|
|
Interest
expense
|
|
723,685
|
|
|
|
637,698
|
|
|
|
2,362,393
|
|
|
|
1,164,992
|
|
|
General and
administrative
|
|
3,050,828
|
|
|
|
3,137,401
|
|
|
|
11,970,182
|
|
|
|
11,500,594
|
|
|
Losses (gains) on
asset sales and other
|
|
84,443
|
|
|
|
(824,073)
|
|
|
|
(4,285,170)
|
|
|
|
(4,243,163)
|
|
|
Total costs and
expenses
|
|
8,024,069
|
|
|
|
13,943,025
|
|
|
|
25,807,636
|
|
|
|
28,883,783
|
|
|
Income (loss) before
provision (benefit) for income taxes
|
|
3,758,904
|
|
|
|
4,327,133
|
|
|
|
18,656,260
|
|
|
|
24,611,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
1,245,460
|
|
|
|
981,000
|
|
|
|
4,735,460
|
|
|
|
4,202,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
2,513,444
|
|
|
$
|
3,346,133
|
|
|
$
|
13,920,800
|
|
|
$
|
20,409,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.07
|
|
|
$
|
0.09
|
|
|
$
|
0.39
|
|
|
$
|
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
|
0.07
|
|
|
$
|
0.09
|
|
|
$
|
0.39
|
|
|
$
|
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
36,036,270
|
|
|
|
35,679,740
|
|
|
|
35,980,309
|
|
|
|
34,403,498
|
|
|
Diluted
|
|
36,083,449
|
|
|
|
36,489,353
|
|
|
|
35,980,309
|
|
|
|
34,560,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
of
|
|
|
|
|
|
|
|
|
|
|
|
|
common stock paid in
period
|
$
|
0.0300
|
|
|
$
|
0.0200
|
|
|
$
|
0.0975
|
|
|
$
|
0.0650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheets
|
|
|
Dec. 31,
2023
|
|
|
Sept. 30,
2022
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
806,254
|
|
|
$
|
3,396,809
|
|
|
Natural gas, oil, and
NGL sales receivables (net of $0
|
|
4,900,126
|
|
|
|
13,152,274
|
|
|
allowance for
uncollectable accounts)
|
|
|
|
|
|
|
Refundable income
taxes
|
|
455,931
|
|
|
|
-
|
|
|
Derivative contracts,
net
|
|
3,120,607
|
|
|
|
-
|
|
|
Other
|
|
878,659
|
|
|
|
1,372,847
|
|
|
Total current
assets
|
|
10,161,577
|
|
|
|
17,921,930
|
|
|
|
|
|
|
|
|
Properties and
equipment at cost, based on
|
|
|
|
|
|
|
successful
efforts accounting:
|
|
|
|
|
|
|
Producing natural gas
and oil properties
|
|
209,082,847
|
|
|
|
248,978,928
|
|
|
Non-producing natural
gas and oil properties
|
|
58,820,445
|
|
|
|
51,779,336
|
|
|
Other
|
|
1,360,614
|
|
|
|
1,085,056
|
|
|
|
269,263,906
|
|
|
|
301,843,320
|
|
|
Less accumulated
depreciation, depletion and amortization
|
|
(114,139,423)
|
|
|
|
(168,759,385)
|
|
|
Net properties and
equipment
|
|
155,124,483
|
|
|
|
133,083,935
|
|
|
|
|
|
|
|
|
Derivative contracts,
net
|
|
162,980
|
|
|
|
-
|
|
|
Operating lease
right-of-use assets
|
|
572,610
|
|
|
|
739,131
|
|
|
Other, net
|
|
486,630
|
|
|
|
757,116
|
|
|
Total assets
|
$
|
166,508,280
|
|
|
$
|
152,502,112
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
562,607
|
|
|
$
|
647,217
|
|
|
Derivative contracts,
net
|
|
-
|
|
|
|
7,873,979
|
|
|
Income taxes
payable
|
|
-
|
|
|
|
495,858
|
|
|
Current portion of
operating lease liability
|
|
233,390
|
|
|
|
213,355
|
|
|
Accrued liabilities
and other
|
|
1,215,275
|
|
|
|
2,032,275
|
|
|
Total current
liabilities
|
|
2,011,272
|
|
|
|
11,262,684
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
32,750,000
|
|
|
|
28,300,000
|
|
|
Deferred income taxes,
net
|
|
6,757,637
|
|
|
|
1,585,906
|
|
|
Asset retirement
obligations
|
|
1,062,139
|
|
|
|
1,901,904
|
|
|
Derivative contracts,
net
|
|
-
|
|
|
|
687,212
|
|
|
Operating lease
liability, net of current portion
|
|
695,818
|
|
|
|
985,887
|
|
|
Total
liabilities
|
|
43,276,866
|
|
|
|
44,723,593
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common Stock, $0.01666
par value; 54,000,500 shares authorized and
|
|
|
|
|
|
|
36,121,723 issued at
Dec. 31, 2023; 54,000,500 shares authorized
|
|
|
|
|
|
|
and 35,776,752 issued
at Sep. 30, 2022
|
|
601,788
|
|
|
|
596,041
|
|
|
Capital in excess of
par value
|
|
41,676,417
|
|
|
|
44,177,051
|
|
|
Deferred directors'
compensation
|
|
1,487,590
|
|
|
|
1,496,243
|
|
|
Retained
earnings
|
|
80,022,839
|
|
|
|
67,117,791
|
|
|
|
123,788,634
|
|
|
|
113,387,126
|
|
|
Less treasury stock,
at cost; 131,477 shares at Dec. 31,
|
|
|
|
|
|
|
2023, and 377,232
shares at Sep. 30, 2022
|
|
(557,220)
|
|
|
|
(5,608,607)
|
|
|
Total stockholders'
equity
|
|
123,231,414
|
|
|
|
107,778,519
|
|
|
Total liabilities and
stockholders' equity
|
$
|
166,508,280
|
|
|
$
|
152,502,112
|
|
|
Condensed Statements of
Cash Flows
|
|
|
Twelve Months
Ended
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
Dec. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Sept. 30,
2022
|
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
13,920,800
|
|
|
$
|
3,346,133
|
|
|
$
|
20,409,272
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided
|
|
|
|
|
|
|
|
|
|
by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
8,566,185
|
|
|
|
1,802,114
|
|
|
|
7,278,118
|
|
|
Impairment of
producing properties
|
|
38,533
|
|
|
|
6,100,696
|
|
|
|
14,565
|
|
|
Provision for deferred
income taxes
|
|
4,303,731
|
|
|
|
868,000
|
|
|
|
1,242,000
|
|
|
Gain from leasing fee
mineral acreage
|
|
(1,067,992)
|
|
|
|
(34,371)
|
|
|
|
(466,341)
|
|
|
Proceeds from leasing
fee mineral acreage
|
|
1,213,913
|
|
|
|
67,651
|
|
|
|
688,207
|
|
|
Net (gain) loss on
sales of assets
|
|
(4,728,758)
|
|
|
|
(934,207)
|
|
|
|
(4,423,646)
|
|
|
Directors' deferred
compensation expense
|
|
228,017
|
|
|
|
44,827
|
|
|
|
191,852
|
|
|
Total (gain) loss on
derivative contracts
|
|
(6,859,589)
|
|
|
|
(3,347,002)
|
|
|
|
16,833,078
|
|
|
Cash receipts
(payments) on settled derivative contracts
|
|
2,743,475
|
|
|
|
(810,839)
|
|
|
|
(2,796,250)
|
|
|
Restricted stock award
expense
|
|
2,205,910
|
|
|
|
524,257
|
|
|
|
2,211,673
|
|
|
Other
|
|
136,412
|
|
|
|
30,157
|
|
|
|
87,353
|
|
|
Cash provided (used)
by changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Natural gas, oil and
NGL sales receivables
|
|
4,883,870
|
|
|
|
3,368,278
|
|
|
|
(6,723,292)
|
|
|
Income taxes
receivable
|
|
(455,931)
|
|
|
|
-
|
|
|
|
2,413,942
|
|
|
Other current
assets
|
|
(45,869)
|
|
|
|
(309,051)
|
|
|
|
250,568
|
|
|
Accounts
payable
|
|
69,228
|
|
|
|
(129,304)
|
|
|
|
(10,305)
|
|
|
Other non-current
assets
|
|
206,292
|
|
|
|
63,723
|
|
|
|
(380,964)
|
|
|
Income taxes
payable
|
|
(576,427)
|
|
|
|
80,569
|
|
|
|
161,808
|
|
|
Accrued
liabilities
|
|
(610,661)
|
|
|
|
(589,817)
|
|
|
|
550,012
|
|
|
Total
adjustments
|
|
10,250,339
|
|
|
|
6,795,681
|
|
|
|
17,122,378
|
|
|
Net cash provided by
operating activities
|
|
24,171,139
|
|
|
|
10,141,814
|
|
|
|
37,531,650
|
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(325,983)
|
|
|
|
(87,104)
|
|
|
|
(552,638)
|
|
|
Acquisition of
minerals and overriding royalty interests
|
|
(29,735,516)
|
|
|
|
(14,499,014)
|
|
|
|
(43,525,236)
|
|
|
Net proceeds from
sales of assets
|
|
9,614,194
|
|
|
|
1,137,730
|
|
|
|
13,217,844
|
|
|
Deposits received on
held for sale assets
|
|
-
|
|
|
|
815,000
|
|
|
|
-
|
|
|
Net cash provided
(used) by investing activities
|
|
(20,447,305)
|
|
|
|
(12,633,388)
|
|
|
|
(30,860,030)
|
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
Borrowings under
credit facility
|
|
19,500,000
|
|
|
|
10,000,000
|
|
|
|
21,300,000
|
|
|
Payments of loan
principal
|
|
(20,050,000)
|
|
|
|
(5,000,000)
|
|
|
|
(10,500,000)
|
|
|
Net proceeds from
equity issuance
|
|
-
|
|
|
|
-
|
|
|
|
5,006,538
|
|
|
Cash receipts from
(payments on) off-market derivative contracts
|
|
(560,162)
|
|
|
|
(3,010,661)
|
|
|
|
(19,260,104)
|
|
|
Purchases of treasury
stock
|
|
(402,704)
|
|
|
|
(52,460)
|
|
|
|
(1,855)
|
|
|
Payments of
dividends
|
|
(3,520,366)
|
|
|
|
(726,462)
|
|
|
|
(2,257,901)
|
|
|
Net cash provided
(used) by financing activities
|
|
(5,033,232)
|
|
|
|
1,210,417
|
|
|
|
(5,713,322)
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
(1,309,398)
|
|
|
|
(1,281,157)
|
|
|
|
958,298
|
|
|
Cash and cash
equivalents at beginning of period
|
|
2,115,652
|
|
|
|
3,396,809
|
|
|
|
2,438,511
|
|
|
Cash and cash
equivalents at end of period
|
$
|
806,254
|
|
|
$
|
2,115,652
|
|
|
$
|
3,396,809
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid (net of
capitalized interest)
|
$
|
2,405,361
|
|
|
$
|
581,142
|
|
|
$
|
997,085
|
|
|
Income taxes paid (net
of refunds received)
|
$
|
1,464,087
|
|
|
$
|
32,431
|
|
|
$
|
384,249
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Schedule of Noncash Investing and Financing
Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared and
unpaid
|
$
|
113,443
|
|
|
$
|
811,688
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Gross additions to
properties and equipment
|
$
|
30,761,578
|
|
|
$
|
14,710,613
|
|
|
$
|
46,791,346
|
|
|
Value of shares used
for acquisitions
|
|
-
|
|
|
|
-
|
|
|
|
(3,510,001)
|
|
|
Net increase
(decrease) in accounts receivable for properties
|
|
|
|
|
|
|
|
|
|
and equipment
additions
|
|
(700,079)
|
|
|
|
(124,495)
|
|
|
|
796,529
|
|
|
Capital expenditures
and acquisitions
|
$
|
30,061,499
|
|
|
$
|
14,586,118
|
|
|
$
|
44,077,874
|
|
|
Derivative Contracts as
of March 7, 2024
|
|
|
|
Production
volume
|
|
|
|
|
|
Contract
period
|
|
covered per
month
|
|
Index
|
|
Contract
price
|
|
Natural gas costless
collars
|
|
|
|
|
|
|
|
January - March
2024
|
|
30,000 Mmbtu
|
|
NYMEX Henry
Hub
|
|
$3.25 floor / $5.25
ceiling
|
|
January - September
2024
|
|
30,000 Mmbtu
|
|
NYMEX Henry
Hub
|
|
$3.00 floor / $3.60
ceiling
|
|
January 2024
|
|
135,000
Mmbtu
|
|
NYMEX Henry
Hub
|
|
$4.50 floor / $7.90
ceiling
|
|
February
2024
|
|
125,000
Mmbtu
|
|
NYMEX Henry
Hub
|
|
$4.50 floor / $7.90
ceiling
|
|
March 2024
|
|
130,000
Mmbtu
|
|
NYMEX Henry
Hub
|
|
$4.50 floor / $7.90
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
|
|
January - March
2024
|
|
30,000 Mmbtu
|
|
NYMEX Henry
Hub
|
|
$3.00 floor / $6.00
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
|
|
Natural gas fixed
price swaps
|
|
|
|
|
|
|
|
Janurary - February
2024
|
|
135,000
Mmbtu
|
|
NYMEX Henry
Hub
|
|
$3.65
|
|
March 2024
|
|
127,500
Mmbtu
|
|
NYMEX Henry
Hub
|
|
$3.65
|
|
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
|
|
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
|
|
|
|
|
|
|
|
January 2024
|
|
1,850 Bbls
|
|
NYMEX WTI
|
|
$63.00 floor / $76.00
ceiling
|
|
February
2024
|
|
1,700 Bbls
|
|
NYMEX WTI
|
|
$63.00 floor / $76.00
ceiling
|
|
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
|
|
January - 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
|
|
|
|
|
|
|
|
January - 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
|
|
|
Twelve Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
Three Months
Ended
|
|
|
Dec. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Dec. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Sept. 30,
2023
|
|
|
Net
Income
|
$
|
2,513,444
|
|
|
$
|
3,346,133
|
|
|
$
|
13,920,800
|
|
|
$
|
17,073,156
|
|
|
$
|
1,895,403
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
1,245,460
|
|
|
|
981,000
|
|
|
|
4,735,460
|
|
|
|
4,421,000
|
|
|
|
589,000
|
|
|
Interest
expense
|
|
723,685
|
|
|
|
637,698
|
|
|
|
2,362,393
|
|
|
|
1,625,971
|
|
|
|
556,941
|
|
|
DD&A
|
|
2,443,154
|
|
|
|
1,802,114
|
|
|
|
8,566,185
|
|
|
|
7,496,472
|
|
|
|
2,022,709
|
|
|
Impairment
expense
|
|
-
|
|
|
|
6,100,696
|
|
|
|
38,533
|
|
|
|
6,109,676
|
|
|
|
36,460
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash gains
(losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on
derivatives
|
|
2,936,659
|
|
|
|
6,265,041
|
|
|
|
4,302,531
|
|
|
|
(584,976)
|
|
|
|
(940,592)
|
|
|
Gains (losses) on asset
sales
|
|
57,505
|
|
|
|
934,207
|
|
|
|
4,728,759
|
|
|
|
7,478,781
|
|
|
|
243,041
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash receipts from
(payments on)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
off-market derivative
contracts(1)
|
|
-
|
|
|
|
(903,461)
|
|
|
|
(373,745)
|
|
|
|
(5,738,164)
|
|
|
|
-
|
|
|
Restricted stock and
deferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
director's
expense
|
|
572,709
|
|
|
|
569,084
|
|
|
|
2,433,927
|
|
|
|
2,649,194
|
|
|
|
522,965
|
|
|
Adjusted
EBITDA
|
$
|
4,504,288
|
|
|
$
|
5,334,016
|
|
|
$
|
22,652,263
|
|
|
$
|
26,743,500
|
|
|
$
|
6,321,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The initial receipt
of $8.8 million of cash from BP Energy Company, or BP, for entering
into the off-market derivative
contracts had no effect on the Company's statement of
operations and was considered cash flow from financing
activities.
A portion of subsequent settlements with BP had no effect on the
Company's statement of operations.
|
|
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
|
|
|
Dec. 31,
2023
|
|
|
Dec. 31,
2022
|
|
|
Net
Income
|
$
|
13,920,800
|
|
|
$
|
17,073,156
|
|
|
Plus:
|
|
|
|
|
|
|
Income tax
expense
|
|
4,735,460
|
|
|
|
4,421,000
|
|
|
Interest
expense
|
|
2,362,393
|
|
|
|
1,625,971
|
|
|
DD&A
|
|
8,566,185
|
|
|
|
7,496,472
|
|
|
Impairment
expense
|
|
38,533
|
|
|
|
6,109,676
|
|
|
Less:
|
|
|
|
|
|
|
Non-cash gains
(losses)
|
|
|
|
|
|
|
on
derivatives
|
|
4,302,531
|
|
|
|
(584,976)
|
|
|
Gains (losses) on asset
sales
|
|
4,728,759
|
|
|
|
7,478,781
|
|
|
Plus:
|
|
|
|
|
|
|
Cash receipts from
(payments on)
|
|
|
|
|
|
|
off-market derivative
contracts(1)
|
|
(373,745)
|
|
|
|
(5,738,164)
|
|
|
Restricted stock and
deferred
|
|
|
|
|
|
|
director's
expense
|
|
2,433,927
|
|
|
|
2,649,194
|
|
|
Adjusted
EBITDA
|
$
|
22,652,263
|
|
|
$
|
26,743,500
|
|
|
|
|
|
|
|
|
Debt
|
$
|
32,750,000
|
|
|
$
|
33,300,000
|
|
|
Debt to Adjusted
EBITDA (TTM)
|
|
1.45
|
|
|
|
1.25
|
|
|
|
|
|
|
|
|
(1) The initial receipt
of $8.8 million of cash from BP for entering into the off-market
derivative contracts had no effect on the
Company's statement of operations and was considered cash flow
from financing activities. A portion of subsequent
settlements
with BP had no effect on the Company's statement of
operations.
|
|
PHX Minerals Inc. (NYSE: PHX) 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-and-fiscal-year-ended-dec-31-2023-announces-dividend-and-provides-2024-operational-outlook-302086886.html
SOURCE PHX MINERALS INC.