PHX Minerals Reports Record Royalty Volumes for the Quarter Ended June 30, 2024; Increases Fixed Quarterly Dividend Payment 33%
PHX Minerals (NYSE: PHX) reported financial and operating results for Q2 2024. The company achieved a record royalty production of 2,709 Mmcfe, a 46% increase from Q1 2024. Net income was $1.3 million, or $0.04 per diluted share, compared to a net loss of $0.2 million in Q1 2024. Adjusted EBITDA rose to $6.4 million from $4.6 million in Q1 2024.
PHX converted 55 gross wells to producing status and reduced its total debt by $4.0 million to $28.8 million. The debt-to-adjusted EBITDA ratio improved to 1.32x. The company increased its fixed quarterly dividend by 33% to $0.04 per share, payable on Sep. 6, 2024.
PHX Minerals (NYSE: PHX) ha riportato i risultati finanziari e operativi per il secondo trimestre del 2024. L'azienda ha raggiunto una produzione di royalties record di 2.709 Mmcfe, con un incremento del 46% rispetto al primo trimestre del 2024. L'utile netto è stato di 1,3 milioni di dollari, ovvero 0,04 dollari per azione diluita, rispetto a una perdita netta di 0,2 milioni di dollari nel primo trimestre del 2024. L'EBITDA rettificato è aumentato a 6,4 milioni di dollari da 4,6 milioni di dollari nel primo trimestre del 2024.
PHX ha convertito 55 pozzi lordi in stato produttivo e ha ridotto il proprio debito totale di 4,0 milioni di dollari a 28,8 milioni di dollari. Il rapporto debito su EBITDA rettificato è migliorato a 1,32x. L'azienda ha aumentato il proprio dividendo fisso trimestrale del 33% a 0,04 dollari per azione, pagabile il 6 settembre 2024.
PHX Minerals (NYSE: PHX) informó sobre los resultados financieros y operativos del segundo trimestre de 2024. La compañía alcanzó una producción de regalías récord de 2,709 Mmcfe, un aumento del 46% con respecto al primer trimestre de 2024. El ingreso neto fue de 1,3 millones de dólares, o 0,04 dólares por acción diluida, en comparación con una pérdida neta de 0,2 millones de dólares en el primer trimestre de 2024. El EBITDA ajustado aumentó a 6,4 millones de dólares desde 4,6 millones de dólares en el primer trimestre de 2024.
PHX convirtió 55 pozos brutos a estado productivo y redujo su deuda total en 4,0 millones de dólares a 28,8 millones de dólares. La relación deuda a EBITDA ajustado mejoró a 1,32x. La compañía incrementó su dividendo fijo trimestral en un 33% a 0,04 dólares por acción, pagadero el 6 de septiembre de 2024.
PHX Minerals (NYSE: PHX)가 2024년 2분기 재무 및 운영 결과를 보고했습니다. 회사는 2,709 Mmcfe의 기록적인 로열티 생산을 달성했으며, 이는 2024년 1분기 대비 46% 증가한 수치입니다. 순이익은 130만 달러, 즉 희석 주당 0.04달러로, 2024년 1분기 순손실 20만 달러와 비교했습니다. 조정된 EBITDA는 460만 달러에서 640만 달러로 증가했습니다.
PHX는 55개의 원유 시추공을 생산 상태로 전환하였고, 총 부채를 400만 달러 줄여 2,880만 달러로 감소시켰습니다. 조정된 EBITDA 대비 부채 비율은 1.32배로 개선되었습니다. 회사는 고정 분기 배당금을 33% 인상하여 주당 0.04달러로 정하였으며, 이는 2024년 9월 6일 지급될 예정입니다.
PHX Minerals (NYSE: PHX) a annoncé ses résultats financiers et opérationnels pour le deuxième trimestre 2024. L'entreprise a atteint une production de redevances record de 2.709 Mmcfe, soit une augmentation de 46 % par rapport au premier trimestre 2024. Le bénéfice net s'est élevé à 1,3 million de dollars, soit 0,04 dollar par action diluée, contre une perte nette de 0,2 million de dollars au premier trimestre 2024. L'EBITDA ajusté a augmenté à 6,4 millions de dollars, contre 4,6 millions de dollars au premier trimestre 2024.
PHX a converti 55 puits bruts en statut de production et a réduit sa dette totale de 4,0 millions de dollars à 28,8 millions de dollars. Le ratio de la dette par rapport à l'EBITDA ajusté s'est amélioré à 1,32x. L'entreprise a augmenté son dividende trimestriel fixe de 33 % à 0,04 dollar par action, payable le 6 septembre 2024.
PHX Minerals (NYSE: PHX) berichtete über die Finanz- und Betriebsergebnisse für das zweite Quartal 2024. Das Unternehmen erreichte eine Rekordproduktion von Lizenzgebühren von 2.709 Mmcfe, was einem Anstieg von 46% im Vergleich zum ersten Quartal 2024 entspricht. Der Nettogewinn betrug 1,3 Millionen US-Dollar oder 0,04 US-Dollar pro verwässerter Aktie, verglichen mit einem Nettverlust von 0,2 Millionen US-Dollar im ersten Quartal 2024. Das bereinigte EBITDA stieg von 4,6 Millionen US-Dollar auf 6,4 Millionen US-Dollar im ersten Quartal 2024.
PHX hat 55 Brutto-Bohrlöcher in den Produktionsstatus überführt und die Gesamtverschuldung um 4,0 Millionen US-Dollar auf 28,8 Millionen US-Dollar reduziert. Das Verhältnis von Schulden zu bereinigtem EBITDA verbesserte sich auf 1,32x. Das Unternehmen erhöhte die feste quartalsweise Dividende um 33% auf 0,04 US-Dollar pro Aktie, zahlbar am 6. September 2024.
- Record royalty production of 2,709 Mmcfe, a 46% increase from Q1 2024.
- Net income of $1.3 million, or $0.04 per diluted share.
- Adjusted EBITDA increased to $6.4 million.
- Total debt reduced by $4.0 million to $28.8 million.
- Debt-to-adjusted EBITDA ratio improved to 1.32x.
- 33% increase in quarterly dividend to $0.04 per share.
- Net loss on derivative contracts of $0.4 million for Q2 2024.
- Decrease in natural gas, oil, and NGL sales revenue by $2.2 million for the six months ended June 30, 2024 compared to the same period in 2023.
Summary of Results for the Quarter Ended June 30, 2024
- Net income was
$1.3 million $0.04 ( , or ($0.2) million $0.01 - Adjusted EBITDA(1) was
$6.4 million $4.6 million - Royalty production volumes increased
46% , to a quarterly record 2,709 Mmcfe, compared to the quarter ended March 31, 2024, as a result of high interest high impact wells coming online in the Haynesville. - Total production volumes increased
40% compared to the quarter ended March 31, 2024 to 2,968 Mmcfe, the highest quarterly production for PHX since the quarter ended June 30, 2018. - Converted 55 gross (0.40 net) wells to producing status, compared to a conversion of 85 gross (0.32 net) wells to producing status during the quarter ended March 31, 2024.
- Inventory of 241 gross (0.927 net) wells in progress and permits as of June 30, 2024, compared to 230 gross (1.099 net) wells in progress and permits as of March 31, 2024.
- Total debt was
$28.8 million $4.0 million
Subsequent Events
- PHX announced a
33% increase in its fixed quarterly dividend to$0.04
(1) | This is a non-GAAP measure. Refer to the Non-GAAP Reconciliation section. | |
Chad L.
"Our strong cash generation enabled us to reduce our debt by another
Financial Highlights | ||||||||||||||||
Three Months | Three Months | Six Months Ended | Six Months Ended | |||||||||||||
June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||
Royalty Interest Sales | $ | 8,818,964 | $ | 6,217,663 | $ | 14,995,239 | $ | 16,341,404 | ||||||||
Working Interest Sales | $ | 1,007,042 | $ | 1,013,501 | $ | 1,920,975 | $ | 2,747,007 | ||||||||
Natural Gas, Oil and NGL Sales | $ | 9,826,006 | $ | 7,231,164 | $ | 16,916,214 | $ | 19,088,411 | ||||||||
Gains (Losses) on Derivative Contracts | $ | (418,997) | $ | 183,006 | $ | 208,495 | $ | 3,985,826 | ||||||||
Lease Bonuses and Rental Income | $ | 134,226 | $ | 111,991 | $ | 285,944 | $ | 425,141 | ||||||||
Total Revenue | $ | 9,541,235 | $ | 7,526,161 | $ | 17,410,653 | $ | 23,499,378 | ||||||||
Lease Operating Expense | ||||||||||||||||
per Working Interest Mcfe | $ | 1.14 | $ | 1.16 | $ | 1.21 | $ | 1.34 | ||||||||
Transportation, Gathering and | ||||||||||||||||
Marketing per Mcfe | $ | 0.52 | $ | 0.39 | $ | 0.47 | $ | 0.43 | ||||||||
Production and Ad Valorem Tax | ||||||||||||||||
per Mcfe | $ | 0.20 | $ | 0.19 | $ | 0.19 | $ | 0.21 | ||||||||
G&A Expense per Mcfe | $ | 0.92 | $ | 1.38 | $ | 1.20 | $ | 1.29 | ||||||||
Cash G&A Expense per Mcfe (1) | $ | 0.69 | $ | 1.07 | $ | 0.92 | $ | 1.01 | ||||||||
Interest Expense per Mcfe | $ | 0.22 | $ | 0.23 | $ | 0.27 | $ | 0.23 | ||||||||
DD&A per Mcfe | $ | 0.76 | $ | 0.96 | $ | 0.91 | $ | 0.86 | ||||||||
Total Expense per Mcfe | $ | 2.72 | $ | 3.30 | $ | 3.16 | $ | 3.21 | ||||||||
Net Income (Loss) | $ | 1,295,771 | $ | (41,291) | $ | 1,112,156 | $ | 9,511,953 | ||||||||
Adjusted EBITDA (2) | $ | 6,426,167 | $ | 4,086,707 | $ | 11,033,201 | $ | 11,826,947 | ||||||||
Cash Flow from Operations (3) | $ | 4,176,704 | $ | 4,915,788 | $ | 9,423,355 | $ | 13,849,265 | ||||||||
CapEx (4) | $ | 28,286 | $ | 84,593 | $ | 35,726 | $ | 275,419 | ||||||||
CapEx - Mineral Acquisitions | $ | 871,930 | $ | 1,677,388 | $ | 2,278,178 | $ | 11,914,003 | ||||||||
Borrowing Base | $ | 50,000,000 | $ | 45,000,000 | ||||||||||||
Debt | $ | 28,750,000 | $ | 23,750,000 | ||||||||||||
Debt-to-Adjusted EBITDA (TTM) (2) | 1.32 | 0.93 | ||||||||||||||
(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 | Three Months | Six Months Ended | Six Months Ended | ||||||||||||
June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||
Gas Mcf Sold | 2,464,846 | 1,854,485 | 4,164,955 | 3,813,496 | |||||||||||
Average Sales Price per Mcf before the | |||||||||||||||
effects of settled derivative contracts | $ | 2.05 | $ | 1.92 | $ | 2.07 | $ | 2.75 | |||||||
Average Sales Price per Mcf after the | |||||||||||||||
effects of settled derivative contracts | $ | 2.57 | $ | 2.49 | $ | 2.78 | $ | 3.18 | |||||||
% of sales subject to hedges | 38 | % | 45 | % | 48 | % | 47 | % | |||||||
Oil Barrels Sold | 51,828 | 41,009 | 89,088 | 95,116 | |||||||||||
Average Sales Price per Bbl before the | |||||||||||||||
effects of settled derivative contracts | $ | 77.38 | $ | 73.87 | $ | 76.81 | $ | 75.09 | |||||||
Average Sales Price per Bbl after the | |||||||||||||||
effects of settled derivative contracts | $ | 75.38 | $ | 73.80 | $ | 75.72 | $ | 71.58 | |||||||
% of sales subject to hedges | 25 | % | 53 | % | 30 | % | 49 | % | |||||||
NGL Barrels Sold | 31,994 | 33,929 | 64,179 | 67,033 | |||||||||||
Average Sales Price per Bbl(1) | $ | 23.75 | $ | 18.93 | $ | 22.63 | $ | 22.02 | |||||||
Mcfe Sold | 2,967,779 | 2,304,113 | 5,084,557 | 4,786,390 | |||||||||||
Natural gas, oil and NGL sales before the | |||||||||||||||
effects of settled derivative contracts | $ | 9,826,006 | $ | 7,231,164 | $ | 16,916,214 | $ | 19,088,411 | |||||||
Natural gas, oil and NGL sales after the | |||||||||||||||
effects of settled derivative contracts | $ | 11,010,613 | $ | 8,280,104 | $ | 19,770,130 | $ | 20,394,028 | |||||||
(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 | ||||||||||||
6/30/2024 | 2,464,846 | 51,828 | 31,994 | 2,967,779 | ||||||||||||
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 | ||||||||||||
The percentage of total production volumes attributable to natural gas was
Royalty Interest Production for the last four quarters was as follows:
Quarter ended | Mcf Sold | Oil Bbls Sold | NGL Bbls Sold | Mcfe Sold | ||||||||||||
6/30/2024 | 2,304,176 | 47,024 | 20,461 | 2,709,090 | ||||||||||||
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 | ||||||||||||
The percentage of royalty production volumes attributable to natural gas was
Working Interest Production for the last four quarters was as follows:
Quarter ended | Mcf Sold | Oil Bbls Sold | NGL Bbls Sold | Mcfe Sold | ||||||||||||
6/30/2024 | 160,670 | 4,804 | 11,533 | 258,689 | ||||||||||||
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 | ||||||||||||
Outlook
PHX is providing an updated operational outlook for 2024 as follows:
2023 Actual | YTD 2024 Actual | 2024 Outlook | |||
Mineral & Royalty Production (Mmcfe) | 8,123 | 4,566 | 8,700 - 9,100 | ||
Working Interest Production (Mmcfe) | 1,256 | 518 | 1,000 - 1,200 | ||
Total Production (Mmcfe) | 9,379 | 5,084 | 9,700 - 10,300 | ||
Percentage Natural Gas | 80 % | 82 % | |||
Transportation, Gathering & | |||||
Marketing (per Mcfe) | |||||
Production Tax (as % of pre-hedge | |||||
sales volumes) | 5.20 % | 5.90 % | |||
LOE Expenses (on an absolute basis in 000's) | |||||
Cash G&A (on an absolute basis in 000's) |
Quarter Ended June 30, 2024 Results
The Company recorded net income of
Natural gas, oil and NGL revenue increased
The increase in royalty production volumes during the quarter ended June 30, 2024, as compared to the quarter ended June 30, 2023, resulted primarily from new wells being brought online in the Haynesville Shale. The production decrease in working interest volumes during the quarter ended June 30, 2024, as compared to the quarter ended June 30, 2023, resulted from natural production decline.
The Company had a net loss on derivative contracts of
Six Months Ended June 30, 2024, Results
The Company recorded net income of
Natural gas, oil and NGL revenue decreased
The production increase in royalty volumes during the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, resulted primarily from new wells in the Haynesville Shale coming online. The production decrease in working interest volumes during the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, resulted from natural production decline and divestitures of working interest properties.
The Company had a net gain on derivative contracts of
Operations Update
During the quarter ended June 30, 2024, the Company converted 55 gross (0.40 net) wells to producing status, including 28 gross (0.30 net) wells in the Haynesville and 14 gross (0.07 net) wells in the SCOOP, compared to 81 gross (0.30 net) wells converted in the quarter ended June 30, 2023.
At June 30, 2024, the Company had a total of 241 gross (0.927 net) wells in progress and permits across its mineral positions, compared to 230 gross (1.099 net) wells in progress and permits at March 31, 2024. As of July 8, 2024, 15 rigs were operating on the Company's acreage and 60 rigs were operating within 2.5 miles of its acreage.
Bakken/ | |||||||||||||||||||||||||||
Three | Arkoma | ||||||||||||||||||||||||||
SCOOP | STACK | Forks | Stack | Haynesville | Other | Total | |||||||||||||||||||||
As of June 30, 2024: | |||||||||||||||||||||||||||
Gross Wells in Progress on PHX Acreage (1) | 74 | 7 | 2 | 3 | 58 | 3 | 147 | ||||||||||||||||||||
Net Wells in Progress on PHX Acreage (1) | 0.252 | 0.009 | 0.001 | 0.015 | 0.296 | 0.016 | 0.589 | ||||||||||||||||||||
Gross Active Permits on PHX Acreage | 35 | 6 | 3 | 7 | 35 | 8 | 94 | ||||||||||||||||||||
Net Active Permits on PHX Acreage | 0.151 | 0.007 | 0.003 | 0.030 | 0.112 | 0.035 | 0.338 | ||||||||||||||||||||
As of July 8, 2024: | |||||||||||||||||||||||||||
Rigs Present on PHX Acreage | 7 | 3 | - | 1 | 4 | - | 15 | ||||||||||||||||||||
Rigs Within 2.5 Miles of PHX Acreage | 10 | 11 | 6 | 1 | 23 | 9 | 60 | ||||||||||||||||||||
(1) Wells in progress includes drilling wells and drilled but uncompleted wells, or DUCs. |
Leasing Activity
During the quarter ended June 30, 2024, the Company leased 313 net mineral acres to third-party exploration and production companies for an average bonus payment of
Acquisition and Divestiture Update
During the quarter ended June 30, 2024, the Company purchased 96 net royalty acres for approximately
Acquisitions | ||||||||||||||||
SCOOP | Haynesville | Other | Total | |||||||||||||
During Three Months Ended June 30, 2024: | ||||||||||||||||
Net Mineral Acres Purchased | 35 | 21 | - | 56 | ||||||||||||
Net Royalty Acres Purchased | 58 | 38 | - | 96 | ||||||||||||
Quarterly Conference Call
PHX will host a conference call to discuss the Company's results for the quarter ended June 30, 2024, at 11 a.m. EDT on Aug. 8, 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 13748051.
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 June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenues: | ||||||||||||||||
Natural gas, oil and NGL sales | $ | 9,826,006 | $ | 7,231,164 | $ | 16,916,214 | $ | 19,088,411 | ||||||||
Lease bonuses and rental income | 134,226 | 111,991 | 285,944 | 425,141 | ||||||||||||
Gains (losses) on derivative contracts | (418,997) | 183,006 | 208,495 | 3,985,826 | ||||||||||||
9,541,235 | 7,526,161 | 17,410,653 | 23,499,378 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Lease operating expenses | 294,354 | 341,463 | 626,763 | 916,405 | ||||||||||||
Transportation, gathering and marketing | 1,540,396 | 906,373 | 2,383,900 | 2,035,129 | ||||||||||||
Production and ad valorem taxes | 597,995 | 434,580 | 990,322 | 986,838 | ||||||||||||
Depreciation, depletion and amortization | 2,268,284 | 2,210,332 | 4,624,610 | 4,100,322 | ||||||||||||
Provision for impairment | - | - | - | 2,073 | ||||||||||||
Interest expense | 651,982 | 524,294 | 1,366,868 | 1,081,767 | ||||||||||||
General and administrative | 2,734,628 | 3,177,103 | 6,081,665 | 6,159,012 | ||||||||||||
Losses (gains) on asset sales and other | (197,326) | 139,307 | (173,114) | (4,195,121) | ||||||||||||
Total costs and expenses | 7,890,313 | 7,733,452 | 15,901,014 | 11,086,425 | ||||||||||||
Income (loss) before provision for income taxes | 1,650,922 | (207,291) | 1,509,639 | 12,412,953 | ||||||||||||
Provision for income taxes | 355,151 | (166,000) | 397,483 | 2,901,000 | ||||||||||||
Net income (loss) | $ | 1,295,771 | $ | (41,291) | $ | 1,112,156 | $ | 9,511,953 | ||||||||
Basic and diluted earnings per common share | $ | 0.04 | $ | (0.00) | $ | 0.03 | $ | 0.26 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 36,308,224 | 35,965,281 | 36,301,540 | 35,950,615 | ||||||||||||
Diluted | 36,379,653 | 35,965,281 | 36,301,540 | 36,034,438 | ||||||||||||
Dividends per share of | ||||||||||||||||
common stock paid in period | $ | 0.0300 | $ | 0.0225 | $ | 0.0600 | $ | 0.0450 | ||||||||
Balance Sheets | |||||||
June 30, 2024 | Dec. 31, 2023 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 2,271,544 | $ | 806,254 | |||
Natural gas, oil, and NGL sales receivables (net of | 5,071,590 | 4,900,126 | |||||
allowance for uncollectable accounts) | |||||||
Refundable income taxes | 372,963 | 455,931 | |||||
Derivative contracts, net | 877,538 | 3,120,607 | |||||
Other | 703,210 | 878,659 | |||||
Total current assets | 9,296,845 | 10,161,577 | |||||
Properties and equipment at cost, based on | |||||||
successful efforts accounting: | |||||||
Producing natural gas and oil properties | 216,696,381 | 209,082,847 | |||||
Non-producing natural gas and oil properties | 52,997,639 | 58,820,445 | |||||
Other | 1,361,064 | 1,360,614 | |||||
271,055,084 | 269,263,906 | ||||||
Less accumulated depreciation, depletion and amortization | (118,186,569) | (114,139,423) | |||||
Net properties and equipment | 152,868,515 | 155,124,483 | |||||
Derivative contracts, net | - | 162,980 | |||||
Operating lease right-of-use assets | 502,194 | 572,610 | |||||
Other, net | 640,573 | 486,630 | |||||
Total assets | $ | 163,308,127 | $ | 166,508,280 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 636,327 | $ | 562,607 | |||
Current portion of operating lease liability | 239,571 | 233,390 | |||||
Accrued liabilities and other | 1,457,285 | 1,215,275 | |||||
Total current liabilities | 2,333,183 | 2,011,272 | |||||
Long-term debt | 28,750,000 | 32,750,000 | |||||
Deferred income taxes, net | 6,829,023 | 6,757,637 | |||||
Asset retirement obligations | 1,083,947 | 1,062,139 | |||||
Derivative contracts, net | 239,372 | - | |||||
Operating lease liability, net of current portion | 574,598 | 695,818 | |||||
Total liabilities | 39,810,123 | 43,276,866 | |||||
Stockholders' equity: | |||||||
Common Stock, | |||||||
36,121,723 issued at June 30, 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 | 43,054,447 | 41,676,417 | |||||
Deferred directors' compensation | 1,471,052 | 1,487,590 | |||||
Retained earnings | 78,891,082 | 80,022,839 | |||||
124,018,369 | 123,788,634 | ||||||
Less treasury stock, at cost; 122,785 shares at June 30, | |||||||
2024, and 131,477 shares at Dec. 31, 2023 | (520,365) | (557,220) | |||||
Total stockholders' equity | 123,498,004 | 123,231,414 | |||||
Total liabilities and stockholders' equity | $ | 163,308,127 | $ | 166,508,280 | |||
Condensed Statements of Cash Flows | |||||||
Six Months Ended | Six Months Ended | ||||||
June 30, 2024 | June 30, 2023 | ||||||
Operating Activities | |||||||
Net income (loss) | $ | 1,112,156 | $ | 9,511,953 | |||
Adjustments to reconcile net income (loss) to net cash provided | |||||||
by operating activities: | |||||||
Depreciation, depletion and amortization | 4,624,610 | 4,100,322 | |||||
Impairment of producing properties | - | 2,073 | |||||
Provision for deferred income taxes | 71,386 | 2,679,000 | |||||
Gain from leasing fee mineral acreage | (285,944) | (425,141) | |||||
Proceeds from leasing fee mineral acreage | 292,350 | 488,173 | |||||
Net (gain) loss on sales of assets | (511,684) | (4,428,212) | |||||
Directors' deferred compensation expense | 90,661 | 109,383 | |||||
Total (gain) loss on derivative contracts | (208,495) | (3,985,826) | |||||
Cash receipts (payments) on settled derivative contracts | 2,853,916 | 1,865,779 | |||||
Restricted stock award expense | 1,307,686 | 1,228,871 | |||||
Other | 55,059 | 70,526 | |||||
Cash provided (used) by changes in assets and liabilities: | |||||||
Natural gas, oil and NGL sales receivables | (171,464) | 3,944,092 | |||||
Income taxes receivable | 82,968 | (675,268) | |||||
Other current assets | 131,854 | 405,055 | |||||
Accounts payable | 73,810 | (228,305) | |||||
Other non-current assets | (138,508) | 95,283 | |||||
Income taxes payable | - | (576,427) | |||||
Accrued liabilities | 42,994 | (332,066) | |||||
Total adjustments | 8,311,199 | 4,337,312 | |||||
Net cash provided by operating activities | 9,423,355 | 13,849,265 | |||||
Investing Activities | |||||||
Capital expenditures | (35,726) | (275,419) | |||||
Acquisition of minerals and overriding royalty interests | (2,278,178) | (11,914,003) | |||||
Net proceeds from sales of assets | 515,775 | 9,223,405 | |||||
Net cash provided by (used in) investing activities | (1,798,129) | (2,966,017) | |||||
Financing Activities | |||||||
Borrowings under credit facility | 1,000,000 | 6,000,000 | |||||
Payments of loan principal | (5,000,000) | (15,550,000) | |||||
Payments on off-market derivative contracts | - | (560,162) | |||||
Purchases of treasury stock | - | (669) | |||||
Payments of dividends | (2,159,936) | (1,620,442) | |||||
Net cash provided by (used in) financing activities | (6,159,936) | (11,731,273) | |||||
Increase (decrease) in cash and cash equivalents | 1,465,290 | (848,025) | |||||
Cash and cash equivalents at beginning of period | 806,254 | 2,115,652 | |||||
Cash and cash equivalents at end of period | $ | 2,271,544 | $ | 1,267,627 | |||
Supplemental Disclosures of Cash Flow Information: | |||||||
Interest paid (net of capitalized interest) | $ | 1,409,711 | $ | 1,155,637 | |||
Income taxes paid (net of refunds received) | $ | 243,130 | $ | 1,473,696 | |||
Supplemental Schedule of Noncash Investing and Financing Activities: | |||||||
Dividends declared and unpaid | $ | 83,977 | $ | 72,460 | |||
Gross additions to properties and equipment | $ | 2,357,409 | $ | 12,952,046 | |||
Net increase (decrease) in accounts receivable for properties | |||||||
and equipment additions | (43,505) | (762,624) | |||||
Capital expenditures and acquisitions | $ | 2,313,904 | $ | 12,189,422 | |||
Derivative Contracts as of June 30, 2024 | ||||||
Production volume | ||||||
Contract period | covered per month | Index | Contract price | |||
Natural gas costless collars | ||||||
July - September 2024 | 30,000 Mmbtu | NYMEX Henry Hub | ||||
October 2024 - June 2025 | 30,000 Mmbtu | NYMEX Henry Hub | ||||
November 2024 - March 2025 | 90,000 Mmbtu | NYMEX Henry Hub | ||||
November - December 2024 | 35,000 Mmbtu | NYMEX Henry Hub | ||||
January - March 2025 | 30,000 Mmbtu | NYMEX Henry Hub | ||||
January 2025 | 55,000 Mmbtu | NYMEX Henry Hub | ||||
February 2025 | 25,000 Mmbtu | NYMEX Henry Hub | ||||
March 2025 | 35,000 Mmbtu | NYMEX Henry Hub | ||||
April 2025 - September 2025 | 55,000 Mmbtu | NYMEX Henry Hub | ||||
November 2025 - March 2026 | 100,000 Mmbtu | NYMEX Henry Hub | ||||
November 2025 - March 2026 | 75,000 Mmbtu | NYMEX Henry Hub | ||||
November 2025 - March 2026 | 15,000 Mmbtu | NYMEX Henry Hub | ||||
Natural gas fixed price swaps | ||||||
July - October 2024 | 50,000 Mmbtu | NYMEX Henry Hub | ||||
July 2024 | 127,500 Mmbtu | NYMEX Henry Hub | ||||
July - October 2024 | 75,000 Mmbtu | NYMEX Henry Hub | ||||
July - October 2024 | 25,000 Mmbtu | NYMEX Henry Hub | ||||
August - September 2024 | 120,000 Mmbtu | NYMEX Henry Hub | ||||
October 2024 | 105,000 Mmbtu | NYMEX Henry Hub | ||||
November - December 2024 | 70,000 Mmbtu | NYMEX Henry Hub | ||||
December 2024 | 50,000 Mmbtu | NYMEX Henry Hub | ||||
January - March 2025 | 60,000 Mmbtu | NYMEX Henry Hub | ||||
January - March 2025 | 50,000 Mmbtu | NYMEX Henry Hub | ||||
April - October 2025 | 100,000 Mmbtu | NYMEX Henry Hub | ||||
Oil costless collars | ||||||
June 2024 | 1,650 Bbls | NYMEX WTI | ||||
June 2024 | 500 Bbls | NYMEX WTI | ||||
June - September 2024 | 500 Bbls | NYMEX WTI | ||||
July - October 2024 | 1,650 Bbls | NYMEX WTI | ||||
October - December 2024 | 500 Bbls | NYMEX WTI | ||||
Oil fixed price swaps | ||||||
June - October 2024 | 1,000 Bbls | NYMEX WTI | ||||
June 2024 | 1,300 Bbls | NYMEX WTI | ||||
July - October 2024 | 1,500 Bbls | NYMEX WTI | ||||
September 2024 | 500 Bbls | NYMEX WTI | ||||
October 2024 | 500 Bbls | NYMEX WTI | ||||
November 2024 | 500 Bbls | NYMEX WTI | ||||
November - December 2024 | 2,000 Bbls | NYMEX WTI | ||||
November 2024 - March 2025 | 1,600 Bbls | NYMEX WTI | ||||
December 2024 | 500 Bbls | NYMEX WTI | ||||
January 2025 | 500 Bbls | NYMEX WTI | ||||
January - March 2025 | 500 Bbls | NYMEX WTI | ||||
January - June 2025 | 2,000 Bbls | NYMEX WTI | ||||
February 2025 | 500 Bbls | NYMEX WTI | ||||
March 2025 | 500 Bbls | NYMEX WTI | ||||
April 2025 | 500 Bbls | NYMEX WTI | ||||
April - June 2025 | 750 Bbls | NYMEX WTI | ||||
April - June 2025 | 1,000 Bbls | NYMEX WTI | ||||
May 2025 | 500 Bbls | NYMEX WTI | ||||
June 2025 | 500 Bbls | NYMEX WTI | ||||
July 2025 | 500 Bbls | NYMEX WTI | ||||
July - September 2025 | 500 Bbls | NYMEX WTI | ||||
July - December 2025 | 1,500 Bbls | NYMEX WTI | ||||
August 2025 | 500 Bbls | NYMEX WTI | ||||
September 2025 | 500 Bbls | NYMEX WTI | ||||
October 2025 | 750 Bbls | NYMEX WTI | ||||
November 2025 | 750 Bbls | NYMEX WTI | ||||
December 2025 | 750 Bbls | NYMEX WTI | ||||
January 2026 | 1,500 Bbls | NYMEX WTI | ||||
February 2026 | 1,500 Bbls | NYMEX WTI | ||||
March 2026 | 1,500 Bbls | NYMEX WTI | ||||
Non-GAAP Reconciliation
This press release includes certain "non-GAAP financial measures" as defined under the rules and regulations of the
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 | Three Months | Six Months | Six Months | Three Months | |||||||||||||||
June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | Mar. 31, 2024 | |||||||||||||||
Net Income | $ | 1,295,771 | $ | (41,291) | $ | 1,112,156 | $ | 9,511,953 | $ | (183,615) | |||||||||
Plus: | |||||||||||||||||||
Income tax expense | 355,151 | (166,000) | 397,483 | 2,901,000 | 42,332 | ||||||||||||||
Interest expense | 651,982 | 524,294 | 1,366,868 | 1,081,767 | 714,886 | ||||||||||||||
DD&A | 2,268,284 | 2,210,332 | 4,624,610 | 4,100,322 | 2,356,326 | ||||||||||||||
Impairment expense | - | - | - | 2,073 | - | ||||||||||||||
Less: | |||||||||||||||||||
Non-cash gains (losses) | |||||||||||||||||||
on derivatives | (1,603,604) | (865,935) | (2,645,421) | 2,306,464 | (1,041,817) | ||||||||||||||
Gains (losses) on asset sales | 445,184 | 10,230 | 511,684 | 4,428,213 | 66,500 | ||||||||||||||
Plus: | |||||||||||||||||||
Cash payments on off-market | |||||||||||||||||||
contracts | - | - | - | (373,745) | - | ||||||||||||||
Restricted stock and deferred | |||||||||||||||||||
director's expense | 696,559 | 703,667 | 1,398,347 | 1,338,254 | 701,788 | ||||||||||||||
Adjusted EBITDA | $ | 6,426,167 | $ | 4,086,707 | $ | 11,033,201 | $ | 11,826,947 | $ | 4,607,034 | |||||||||
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 | ||||||
June 30, 2024 | June 30, 2023 | ||||||
Net Income | $ | 5,521,003 | $ | 22,016,554 | |||
Plus: | |||||||
Income tax expense | 2,231,943 | 6,313,000 | |||||
Interest expense | 2,647,494 | 2,191,181 | |||||
DD&A | 9,090,473 | 7,452,846 | |||||
Impairment expense | 36,460 | 6,105,472 | |||||
Less: | |||||||
Non-cash gains (losses) | |||||||
on derivatives | (649,354) | 10,211,207 | |||||
Gains (losses) on asset sales | 812,230 | 8,921,031 | |||||
Plus: | |||||||
Cash payments on off-market derivative | |||||||
contracts | - | (2,334,403) | |||||
Restricted stock and deferred | |||||||
director's expense | 2,494,021 | 2,944,517 | |||||
Adjusted EBITDA | $ | 21,858,518 | $ | 25,556,929 | |||
Debt | $ | 28,750,000 | $ | 23,750,000 | |||
Debt-to-Adjusted EBITDA (TTM) | 1.32 | 0.93 | |||||
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
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.
Investor Contact:
Rob Fink / Stephen Lee
FNK IR
646.809.4048
PHX@fnkir.com
Corporate Contact:
405.948.1560
inquiry@phxmin.com
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SOURCE PHX MINERALS INC.
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