PHX MINERALS INC. Announces Closing of Acquisitions in the Haynesville Play

Rhea-AI Summary

PHX MINERALS INC. (NYSE: PHX) has successfully closed the acquisition of two mineral and royalty packages in East Texas and Louisiana, totaling 817 net royalty acres for $7,249,347. This amount includes $728,214 in cash and 2,349,207 newly issued shares of PHX common stock. The cash flow from production related to this acquisition is expected to commence on April 1, 2021. PHX aims to enhance its mineral position, owning approximately 251,000 net mineral acres across various states including Oklahoma and Texas.

Positive

• Acquisition of 817 net royalty acres boosts mineral holdings.
• Expected cash flow from acquisition starts April 1, 2021.

Negative

• Acquisition involves issuance of over 2.3 million shares, potentially diluting existing shareholders.

OKLAHOMA CITY, Sept. 24, 2021 /PRNewswire/ -- PHX MINERALS INC., "PHX," (NYSE: PHX), today announced that it has closed on the previously announced purchase of two mineral and royalty packages in East Texas and Louisiana totaling 817 net royalty acres for aggregate consideration in the amount of $7,249,347, consisting of $728,214 in cash and the issuance of 2,349,207 shares of PHX common stock (the "Acquisition"). PHX is entitled to the cash flow from production attributable to the Acquisition beginning on and after April 1, 2021.

PHX Minerals Inc. (NYSE: PHX) Oklahoma City-based, PHX Minerals Inc. is a natural gas and oil mineral company with a strategy to proactively grow its mineral position in its core areas of focus. PHX owns approximately 251,000 net mineral acres principally located in Oklahoma, Texas, North Dakota, New Mexico and Arkansas. Additional information on the Company can be found at www.phxmin.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 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; epidemics and pandemics such as the COVID-19 pandemic, 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 forward-looking statements 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 the results to differ materially from those expected by the Company's management. 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 in forward-looking statements. 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. Information concerning these risks and other factors can be found in the Company's filings with the Securities and Exchange Commission, 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.

 

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SOURCE PHX MINERALS INC.

FAQ

What did PHX Minerals announce on September 24, 2021?

PHX Minerals announced the closing of an acquisition of two mineral and royalty packages totaling 817 net royalty acres for $7,249,347.

How much did PHX Minerals pay for the acquisitions?

PHX Minerals paid $7,249,347, which included $728,214 in cash and 2,349,207 shares of common stock.

When will PHX Minerals begin receiving cash flow from the acquisition?

PHX Minerals expects to begin receiving cash flow from production attributable to the acquisition starting April 1, 2021.

What states are involved in the PHX Minerals acquisition?

The acquisition involves mineral and royalty packages located in East Texas and Louisiana.