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.