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PHX Minerals Reports Results for the Quarter Ended Sept. 30, 2024

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PHX Minerals reported financial results for Q3 2024. The company posted net income of $1.1 million ($0.03 per diluted share), down from $1.9 million in Q3 2023. Adjusted EBITDA was $4.9 million, compared to $6.3 million year-over-year. Total production volumes decreased 20% quarter-over-quarter to 2,379 Mmcfe but increased 1% year-over-year. The company converted 46 gross wells to producing status and maintained an inventory of 278 gross wells in progress. Total debt stood at $27.8 million with a debt-to-adjusted EBITDA ratio of 1.36x. PHX announced a $0.04 per share quarterly dividend and had its $50 million borrowing base reaffirmed.

PHX Minerals ha riportato i risultati finanziari per il terzo trimestre del 2024. L'azienda ha registrato un utile netto di 1,1 milioni di dollari (0,03 dollari per azione diluita), in calo rispetto a 1,9 milioni di dollari nel terzo trimestre del 2023. EBITDA rettificato è stato di 4,9 milioni di dollari, rispetto ai 6,3 milioni dell'anno precedente. I volumi di produzione totali sono diminuiti del 20% rispetto al trimestre precedente, arrivando a 2.379 Mmcfe, ma sono aumentati dell'1% rispetto all'anno precedente. L'azienda ha convertito 46 pozzi grezzi in stato di produzione e ha mantenuto un inventario di 278 pozzi grezzi in corso. Il debito totale ammontava a 27,8 milioni di dollari, con un rapporto debito-EBITDA rettificato di 1,36x. PHX ha annunciato un dividendo trimestrale di 0,04 dollari per azione e ha ricevuto la conferma della sua base di prestito di 50 milioni di dollari.

PHX Minerals informó los resultados financieros del tercer trimestre de 2024. La compañía reportó ingresos netos de 1,1 millones de dólares (0,03 dólares por acción diluida), una disminución con respecto a los 1,9 millones de dólares en el tercer trimestre de 2023. El EBITDA ajustado fue de 4,9 millones de dólares, en comparación con 6,3 millones del año anterior. Los volúmenes de producción total disminuyeron un 20% en comparación con el trimestre anterior, alcanzando los 2.379 Mmcfe, pero aumentaron un 1% en comparación con el año anterior. La compañía convirtió 46 pozos brutos a estado de producción y mantuvo un inventario de 278 pozos brutos en progreso. La deuda total fue de 27,8 millones de dólares, con una relación deuda-EBITDA ajustado de 1,36x. PHX anunció un dividendo trimestral de 0,04 dólares por acción y se reafirmó su base de préstamo de 50 millones de dólares.

PHX Minerals는 2024년 3분기 재무 결과를 보고했습니다. 이 회사는 순이익 110만 달러 (희석주당 0.03달러)를 기록했으며, 이는 2023년 3분기의 190만 달러에서 감소한 수치입니다. 조정 EBITDA는 490만 달러로, 전년 대비 630만 달러에서 감소했습니다. 총 생산량은 분기 대비 20% 감소하여 2,379 Mmcfe에 달했지만, 전년 대비 1% 증가했습니다. 이 회사는 46개의 원유 우물을 생산 상태로 전환했고, 278개의 원유 우물을 진행 중으로 보유하고 있습니다. 총 부채는 2,780만 달러였으며, 부채와 조정된 EBITDA 비율은 1.36배에 달했습니다. PHX는 주당 0.04달러의 분기 배당금을 발표했으며, 5천만 달러의 대출 기반도 재확인되었습니다.

PHX Minerals a annoncé ses résultats financiers pour le troisième trimestre 2024. L'entreprise a affiché un bénéfice net de 1,1 million de dollars (0,03 dollar par action diluée), en baisse par rapport à 1,9 million de dollars au troisième trimestre 2023. EBITDA ajusté s'élevait à 4,9 millions de dollars, contre 6,3 millions de dollars l'année précédente. Les volumes de production totale ont diminué de 20 % par rapport au trimestre précédent, atteignant 2 379 Mmcfe, mais ont augmenté de 1 % par rapport à l'année précédente. L'entreprise a converti 46 puits bruts en état de production et a maintenu un inventaire de 278 puits bruts en cours. La dette totale s'élevait à 27,8 millions de dollars, avec un ratio dette-EBITDA ajusté de 1,36x. PHX a annoncé un dividende trimestriel de 0,04 dollar par action et a vu sa base d'emprunt de 50 millions de dollars réaffirmée.

PHX Minerals hat die Finanzergebnisse für das 3. Quartal 2024 veröffentlicht. Das Unternehmen verzeichnete einen Nettogewinn von 1,1 Millionen Dollar (0,03 Dollar pro verwässerter Aktie), ein Rückgang gegenüber 1,9 Millionen Dollar im 3. Quartal 2023. Bereinigtes EBITDA belief sich auf 4,9 Millionen Dollar, verglichen mit 6,3 Millionen Dollar im Vorjahr. Die Gesamtproduktionsmengen sanken im Quartalsvergleich um 20% auf 2.379 Mmcfe, stiegen jedoch im Jahresvergleich um 1%. Das Unternehmen hat 46 Bruttoölquellen in den Produktionsstatus überführt und hielt einen Bestand von 278 Bruttoölquellen in Bearbeitung. Die Gesamtverschuldung betrug 27,8 Millionen Dollar, bei einem Verhältnis von Schulden zu bereinigtem EBITDA von 1,36x. PHX gab eine vierteljährliche Dividende von 0,04 Dollar pro Aktie bekannt und erhielt die Bestätigung seiner Kreditbasis von 50 Millionen Dollar.

Positive
  • Net income of $1.1 million in Q3 2024
  • Debt reduced by $5.0 million since December 2023
  • Purchased 325 net royalty acres for $3.0 million
  • Net gain of $1.1 million on derivative contracts
  • Strong balance sheet with 1.36x debt-to-adjusted EBITDA ratio
Negative
  • Net income decreased from $1.9M in Q3 2023 to $1.1M in Q3 2024
  • Adjusted EBITDA declined to $4.9M from $6.3M year-over-year
  • Natural gas, oil and NGL revenue decreased 11% year-over-year
  • Royalty production volumes decreased 23% quarter-over-quarter
  • Total production volumes decreased 20% quarter-over-quarter

Insights

PHX Minerals showed mixed financial results for Q3 2024. $1.1 million net income ($0.03/share) represents declines from both Q2 2024 ($1.3 million) and Q3 2023 ($1.9 million). Adjusted EBITDA fell to $4.9 million from $6.4 million last quarter.

Key positives include:

  • Debt reduction of $5.0 million since December 2023
  • Strong balance sheet with 1.36x debt/EBITDA ratio
  • Maintained $50 million borrowing base
  • Strategic mineral acquisitions of 325 net royalty acres for $3.0 million

However, challenges persist with 23% lower royalty production volumes QoQ and weaker commodity prices, with natural gas down 17% YoY. The company's hedging program provided some protection, generating $1.1 million in gains this quarter.

The operational metrics reveal both opportunities and concerns. While total well inventory remains stable at 278 gross wells, the conversion rate slowed with only 46 gross wells turned to production versus 71 in Q3 2023. However, the company maintains strong positioning in key plays:

  • 82% of royalty production is natural gas-focused, primarily in Haynesville and SCOOP
  • 18 active rigs operating directly on acreage
  • 70 rigs within 2.5 miles, indicating strong surrounding activity
  • Successful leasing program with 25% average royalty rate

The $0.04 quarterly dividend reflects management's confidence in sustainable cash flows despite commodity price headwinds. The company's mineral-focused strategy provides operational flexibility and lower capital requirements compared to traditional E&Ps.

FORT WORTH, Texas, Nov. 6, 2024 /PRNewswire/ -- PHX MINERALS INC., "PHX" or the "Company" (NYSE: PHX), today reported financial and operating results for the quarter ended Sept. 30, 2024.

Summary of Results for the Quarter Ended Sept. 30, 2024

  • Net income was $1.1 million, or $0.03 per diluted share, compared to net income of $1.3 million, or $0.04 per diluted share, for the quarter ended June 30, 2024, and net income of $1.9 million, or $0.05 per diluted share, for the quarter ended Sept. 30, 2023.
  • Adjusted EBITDA(1) was $4.9 million, compared to $6.4 million for the quarter ended June 30, 2024 and $6.3 million for the quarter ended Sept. 30, 2023.
  • Royalty production volumes decreased 23% to 2,098 Mmcfe compared to the quarter ended June 30, 2024 and increased 1% compared to the quarter ended Sept. 30, 2023.
  • Total production volumes decreased 20% to 2,379 Mmcfe compared to the quarter ended June 30, 2024, and increased 1% compared to the quarter ended Sept. 30, 2023.
  • Converted 46 gross (0.18 net) wells to producing status, compared to a conversion of 55 gross (0.40 net) wells to producing status during the quarter ended June 30, 2024 and 71 gross (0.16 net) during the quarter ended Sept. 30, 2023.
  • Inventory of 278 gross (0.93 net) wells in progress and permits as of Sept. 30, 2024, compared to 241 gross (0.93 net) wells in progress and permits as of June 30, 2024 and 278 gross (1.09 net) wells in progress and permits as of Sept. 30, 2023.
  • Total debt was $27.8 million, down $5.0 million since Dec. 31, 2023, and the debt-to-adjusted EBITDA (TTM) (1) ratio was 1.36x at Sept. 30, 2024.

Subsequent Events

  • PHX announced a $0.04 per share quarterly dividend, payable on Dec. 5, 2024, to stockholders of record on Nov. 21, 2024.
  • PHX's borrowing base under its existing 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 generated our second-highest quarter for royalty volumes in our history, validating the quality of our asset base even amidst continued volatility in commodity pricing.  We remain positive on natural gas prices as we move into a seasonal stronger period and are seeing sequential increased rig activities on and around our mineral acreage, further bolstering our longer-term outlook.

"During the quarter, we saw a growing pipeline of attractive M&A opportunities," continued Mr. Stephens. "We purchased 325 net royalty acres for $3.0 million and replaced 100% of the wells in progress that converted to production. We also reduced our debt by $1.0 million sequentially with cashflow generated from our production.  With a strong balance sheet, and a proven track record of acquiring attractive mineral assets that produce cash flow even during challenging pricing, we are well-positioned for continued success.

"Our risk-mitigated business is built for resilient and sustainable profitability even during challenging pricing environments, and our strategic advantages are evident through commodity price cycles," concluded Mr. Stephens.

Financial Highlights






Three Months Ended



Three Months Ended



Nine Months Ended



Nine Months Ended




Sept. 30, 2024



Sept. 30, 2023



Sept. 30, 2024



Sept. 30, 2023


Royalty Interest Sales


$

6,982,112



$

7,873,297



$

21,977,351



$

24,214,701


Working Interest Sales


$

906,404



$

1,025,794



$

2,827,379



$

3,772,801


Natural Gas, Oil and NGL Sales


$

7,888,516



$

8,899,091



$

24,804,730



$

27,987,502















Gains (Losses) on Derivative Contracts


$

1,089,242



$

(337,647)



$

1,297,737



$

3,648,179


Lease Bonuses and Rental Income


$

159,271



$

620,101



$

445,215



$

1,045,242


Total Revenue


$

9,137,029



$

9,181,545



$

26,547,682



$

32,680,923















Lease Operating Expense













per Working Interest Mcfe


$

1.05



$

1.32



$

1.15



$

1.34


Transportation, Gathering and













Marketing per Mcfe


$

0.47



$

0.30



$

0.47



$

0.38


Production and Ad Valorem Tax













per Mcfe


$

0.18



$

0.19



$

0.19



$

0.20


G&A Expense per Mcfe


$

1.13



$

1.18



$

1.17



$

1.25


Cash G&A Expense per Mcfe (1)


$

0.91



$

0.95



$

0.92



$

0.99


Interest Expense per Mcfe


$

0.26



$

0.24



$

0.27



$

0.23


DD&A per Mcfe


$

1.00



$

0.86



$

0.94



$

0.86


Total Expense per Mcfe


$

3.16



$

2.92



$

3.16



$

3.10















Net Income (Loss)


$

1,100,310



$

1,895,403



$

2,212,466



$

11,407,356


Adjusted EBITDA (2)


$

4,905,335



$

6,321,029



$

15,938,535



$

18,147,976















Cash Flow from Operations (3)


$

5,784,497



$

6,960,419



$

15,207,852



$

20,809,684


CapEx (4)


$

28,902



$

45,977



$

64,628



$

321,396


CapEx - Mineral Acquisitions


$

2,994,669



$

13,469,756



$

5,272,847



$

25,383,759















Borrowing Base








$

50,000,000



$

45,000,000


Debt








$

27,750,000



$

30,750,000


Debt-to-Adjusted EBITDA (TTM) (2)









1.36




1.31




(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



Nine Months Ended



Nine Months Ended



Sept. 30, 2024



Sept. 30, 2023



Sept. 30, 2024



Sept. 30, 2023


Gas Mcf Sold


1,898,442




1,868,012




6,063,397




5,681,508


Average Sales Price per Mcf before the












effects of settled derivative contracts

$

2.00



$

2.40



$

2.05



$

2.63


Average Sales Price per Mcf after the












effects of settled derivative contracts

$

2.54



$

2.72



$

2.70



$

3.03


% of sales subject to hedges


48

%



46

%



48

%



46

%

Oil Barrels Sold


45,698




48,032




134,786




143,148


Average Sales Price per Bbl before the












effects of settled derivative contracts

$

74.83



$

78.48



$

76.14



$

76.23


Average Sales Price per Bbl after the












effects of settled derivative contracts

$

72.95



$

78.44



$

74.78



$

73.88


% of sales subject to hedges


31

%



35

%



31

%



44

%

NGL Barrels Sold


34,332




32,029




98,511




99,063


Average Sales Price per Bbl(1)

$

19.60



$

20.35



$

21.57



$

21.48














Mcfe Sold


2,378,622




2,348,378




7,463,177




7,134,770


Natural gas, oil and NGL sales before the












effects of settled derivative contracts

$

7,888,516



$

8,899,091



$

24,804,730



$

27,987,502


Natural gas, oil and NGL sales after the












effects of settled derivative contracts

$

8,820,672



$

9,502,036



$

28,590,801



$

29,896,064














(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


9/30/2024



1,898,442




45,698




34,332




2,378,622


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


 

The percentage of total production volumes attributable to natural gas was 80% for the quarter ended Sept. 30, 2024.

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

Quarter ended


Mcf Sold



Oil Bbls Sold



NGL Bbls Sold



Mcfe Sold


9/30/2024



1,724,635




41,170




21,011




2,097,722


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


 

The percentage of royalty production volumes attributable to natural gas was 82% for the quarter ended Sept. 30, 2024.

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

Quarter ended


Mcf Sold



Oil Bbls Sold



NGL Bbls Sold



Mcfe Sold


9/30/2024



173,807




4,528




13,321




280,900


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


 

Quarter Ended Sept. 30, 2024 Results

The Company recorded net income of $1.1 million, or $0.03 per diluted share, for the quarter ended Sept. 30, 2024, as compared to net income of $1.90 million, or $0.05 per diluted share, for the quarter ended Sept. 30, 2023. The change in net income was principally the result of a decrease in natural gas, oil and NGL sales, a decrease in lease bonuses, an increase in transportation, gathering and marketing expenses and an increase in depreciation, depletion and amortization expenses, partially offset by an increase in gains associated with our derivative contracts.

Natural gas, oil and NGL revenue decreased $1.0 million, or 11%, for the quarter ended Sept. 30, 2024, compared to the quarter ended Sept. 30, 2023, due to decreases in natural gas, oil, and NGL prices of 17%, 5%, and 4%, respectively, and a decrease in oil volumes of 5%, partially offset by increases in natural gas and NGL volumes of 2% and 7%, respectively.

The increase in royalty production volumes during the quarter ended Sept. 30, 2024, as compared to the quarter ended Sept. 30, 2023, resulted primarily from new wells being brought online in the Haynesville Shale and SCOOP plays.

The Company had a net gain on derivative contracts of $1.1 million for the quarter ended Sept. 30, 2024, comprised of a $0.9 million gain on settled derivatives and a $0.2 million non-cash gain on derivatives, as compared to a net loss of ($0.3) million for the quarter ended Sept. 30, 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 Sept. 30, 2024 pricing relative to the strike price on open derivative contracts.

Nine Months Ended Sept. 30, 2024 Results

The Company recorded net income of $2.2 million, or $0.06 per diluted share, for the nine months ended Sept. 30, 2024, as compared to a net income of $11.4 million, or $0.31 per diluted share, for the nine months ended Sept. 30, 2023. The change in net income was principally the result of a decrease in natural gas, oil and NGL sales, a decrease in gains associated with our hedge contracts, a decrease in gains on asset sales, an increase in transportation, gathering and marketing expenses and an increase in depreciation, depletion and amortization expenses, partially offset by a decrease in income tax provision.

Natural gas, oil and NGL revenue decreased $3.2 million, or 11%, for the nine months ended Sept. 30, 2024, compared to the nine months ended Sept. 30, 2023, due to a decrease in natural gas prices of 22% and decreases in oil and NGL volumes of 6% and 1%, respectively, partially offset by an increase in gas volumes of 7%.

The production increase in royalty volumes during the nine months ended Sept. 30, 2024, as compared to the nine months ended Sept. 30, 2023, resulted primarily from new wells in the Haynesville Shale and SCOOP plays coming online. The production decrease in working interest volumes during the nine months ended Sept. 30, 2024, as compared to the nine months ended Sept. 30, 2023, resulted from natural production decline and working interest divestitures.

The Company had a net gain on derivative contracts of $1.3 million for the nine months ended Sept. 30, 2024, comprised of a $3.8 million gain on settled derivatives and a $2.5 million non-cash loss on derivatives, as compared to a net gain of $3.6 million for the nine months ended Sept. 30, 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 Sept. 30, 2024 pricing relative to the strike price on open derivative contracts.

Operations Update

During the quarter ended Sept. 30, 2024, the Company converted 46 gross (0.18 net) wells to producing status, including 12 gross (0.11 net) wells in the Haynesville and 18 gross (0.04 net) wells in the SCOOP, compared to 71 gross (0.16 net) wells converted in the quarter ended Sept. 30, 2023.

At Sept. 30, 2024, the Company had a total of 278 gross (0.93 net) wells in progress and permits across its mineral positions, compared to 241 gross (0.93 net) wells in progress and permits at June 30, 2024. As of Sept. 30, 2024, 18 rigs were operating on the Company's acreage and 70 rigs were operating within 2.5 miles of its acreage.








Bakken/





















Three



Arkoma












SCOOP



STACK



Forks



Stack



Haynesville



Other



Total


As of Sept. 30, 2024:





















Gross Wells in Progress on PHX Acreage (1)


84




13




4




3




69




3




176


Net Wells in Progress on PHX Acreage (1)


0.351




0.021




0.001




0.015




0.240




0.030




0.658


Gross Active Permits on PHX Acreage


43




4




3




9




32




11




102


Net Active Permits on PHX Acreage


0.093




0.008




0.003




0.030




0.100




0.041




0.275























As of Sept. 30, 2024:





















Rigs Present on PHX Acreage


9




2




1




-




4




2




18


Rigs Within 2.5 Miles of PHX Acreage


12




12




13




-




20




13




70



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

 

Leasing Activity

During the quarter ended Sept. 30, 2024, the Company leased 183 net mineral acres to third-party exploration and production companies for an average bonus payment of $688 per net mineral acre and an average royalty of 25%.

Acquisition and Divestiture Update

During the quarter ended Sept. 30, 2024, the Company purchased 325 net royalty acres for approximately $3.0 million and had no significant divestitures.



Acquisitions




SCOOP



Haynesville



Other


Total


During Three Months Ended Sept. 30, 2024:












Net Mineral Acres Purchased



20




181



-



201


Net Royalty Acres Purchased



40




285



-



325


 

Quarterly Conference Call

PHX will host a conference call to discuss the Company's results for the quarter ended Sept. 30, 2024, at 12 p.m. EST on Nov. 7, 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 13748980.

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 Sept. 30,



Nine Months Ended Sept. 30,




2024



2023



2024



2023



Revenues:








Natural gas, oil and NGL sales

$

7,888,516



$

8,899,091



$

24,804,730



$

27,987,502



Lease bonuses and rental income


159,271




620,101




445,215




1,045,242



Gains (losses) on derivative contracts


1,089,242




(337,647)




1,297,737




3,648,179





9,137,029




9,181,545




26,547,682




32,680,923



Costs and expenses:













Lease operating expenses


294,720




363,426




921,483




1,279,831



Transportation, gathering and marketing


1,111,980




693,915




3,495,880




2,729,044



Production and ad valorem taxes


428,577




437,841




1,418,899




1,424,679



Depreciation, depletion and amortization


2,376,025




2,022,709




7,000,635




6,123,031



Provision for impairment


-




36,460




-




38,533



Interest expense


622,480




556,941




1,989,348




1,638,708



General and administrative


2,683,434




2,760,342




8,765,099




8,919,354



Losses (gains) on asset sales and other


62,248




(174,492)




(110,866)




(4,369,613)



Total costs and expenses


7,579,464




6,697,142




23,480,478




17,783,567



Income (loss) before provision for income taxes


1,557,565




2,484,403




3,067,204




14,897,356
















Provision for income taxes


457,255




589,000




854,738




3,490,000
















Net income (loss)

$

1,100,310



$

1,895,403



$

2,212,466



$

11,407,356










































Basic earnings per common share

$

0.03



$

0.05



$

0.06



$

0.32
















Diluted earnings per common share

$

0.03



$

0.05



$

0.06



$

0.31
















Weighted average shares outstanding:













Basic


36,316,742




35,983,116




36,306,593




35,961,570



Diluted


36,983,669




36,656,272




36,731,643




36,670,494
















Dividends per share of













common stock paid in period

$

0.0400



$

0.0225



$

0.1000



$

0.0675
















 

Balance Sheets





Sept. 30, 2024



Dec. 31, 2023


Assets






Current assets:






Cash and cash equivalents

$

2,601,681



$

806,254


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


4,080,560




4,900,126


allowance for uncollectable accounts)






Refundable income taxes


343,814




455,931


Derivative contracts, net


761,527




3,120,607


Other


417,929




878,659


Total current assets


8,205,511




10,161,577








Properties and equipment at cost, based on






   successful efforts accounting:






Producing natural gas and oil properties


219,958,671




209,082,847


Non-producing natural gas and oil properties


52,503,370




58,820,445


Other


1,361,064




1,360,614




273,823,105




269,263,906


Less accumulated depreciation, depletion and amortization


(120,301,196)




(114,139,423)


Net properties and equipment


153,521,909




155,124,483








Derivative contracts, net


33,726




162,980


Operating lease right-of-use assets


466,135




572,610


Other, net


596,830




486,630


Total assets

$

162,824,111



$

166,508,280








Liabilities and Stockholders' Equity






Current liabilities:






Accounts payable

$

512,936



$

562,607


Current portion of operating lease liability


243,184




233,390


Accrued liabilities and other


1,815,758




1,215,275


Total current liabilities


2,571,878




2,011,272








Long-term debt


27,750,000




32,750,000


Deferred income taxes, net


7,289,591




6,757,637


Asset retirement obligations


1,087,416




1,062,139


Operating lease liability, net of current portion


512,357




695,818


Total liabilities


39,211,242




43,276,866








Stockholders' equity:






Common Stock, $0.01666 par value; 75,000,000 shares authorized and






36,121,723 issued at Sept. 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


43,526,595




41,676,417


Deferred directors' compensation


1,276,295




1,487,590


Retained earnings


78,492,889




80,022,839




123,897,567




123,788,634


Less treasury stock, at cost; 67,203 shares at Sept. 30,






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


(284,698)




(557,220)


Total stockholders' equity


123,612,869




123,231,414


Total liabilities and stockholders' equity

$

162,824,111



$

166,508,280


 

Condensed Statements of Cash Flows





Nine Months Ended



Sept. 30, 2024



Sept. 30, 2023


Operating Activities






Net income (loss)

$

2,212,466



$

11,407,356


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






  by operating activities:






Depreciation, depletion and amortization


7,000,635




6,123,031


Impairment of producing properties


-




38,533


Provision for deferred income taxes


531,954




3,256,000


Gain from leasing fee mineral acreage


(445,215)




(1,045,242)


Proceeds from leasing fee mineral acreage


451,616




1,108,909


Net (gain) loss on sales of assets


(518,816)




(4,671,253)


Directors' deferred compensation expense


137,617




165,582


Total (gain) loss on derivative contracts


(1,297,737)




(3,648,179)


Cash receipts (payments) on settled derivative contracts


3,786,071




2,468,724


Restricted stock award expense


1,773,789




1,695,637


Other


76,375




105,604


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






Natural gas, oil and NGL sales receivables


819,566




4,369,921


Income taxes receivable


112,117




(712,475)


Other current assets


430,119




408,533


Accounts payable


(68,183)




(107,796)


Other non-current assets


(81,037)




150,515


Income taxes payable


-




(576,427)


Accrued liabilities


286,515




272,711


Total adjustments


12,995,386




9,402,328


Net cash provided by operating activities


15,207,852




20,809,684








Investing Activities






Capital expenditures


(64,628)




(321,396)


Acquisition of minerals and overriding royalty interests


(5,272,847)




(25,383,759)


Net proceeds from sales of assets


527,167




9,556,666


Net cash provided by (used in) investing activities


(4,810,308)




(16,148,489)








Financing Activities






Borrowings under credit facility


1,000,000




16,000,000


Payments of loan principal


(6,000,000)




(18,550,000)


Payments on off-market derivative contracts


-




(560,162)


Purchases of treasury stock


-




(669)


Payments of dividends


(3,602,117)




(2,430,823)


Net cash provided by (used in) financing activities


(8,602,117)




(5,541,654)








Increase (decrease) in cash and cash equivalents


1,795,427




(880,459)


Cash and cash equivalents at beginning of period


806,254




2,115,652


Cash and cash equivalents at end of period

$

2,601,681



$

1,235,193








Supplemental Disclosures of Cash Flow Information:












Interest paid (net of capitalized interest)

$

2,041,252



$

1,652,872


Income taxes paid (net of refunds received)

$

210,668



$

1,522,904








Supplemental Schedule of Noncash Investing and Financing Activities:












Dividends declared and unpaid

$

140,300



$

94,587








Gross additions to properties and equipment

$

5,386,597



$

26,392,844


Net increase (decrease) in accounts receivable for properties






and equipment additions


(49,122)




(687,689)


Capital expenditures and acquisitions

$

5,337,475



$

25,705,155


 

Derivative Contracts as of Sept. 30, 2024




Production volume





Contract period


covered per month


Index


Contract price

Natural gas costless collars







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

December 2024


75,000 Mmbtu


NYMEX Henry Hub


$3.00 floor / $3.37 ceiling

January - March 2025


25,000 Mmbtu


NYMEX Henry Hub


$3.00 floor / $3.37 ceiling

January - March 2025


30,000 Mmbtu


NYMEX Henry Hub


$3.50 floor / $5.15 ceiling

January 2025


55,000 Mmbtu


NYMEX Henry Hub


$3.50 floor / $4.40 ceiling

February 2025


25,000 Mmbtu


NYMEX Henry Hub


$3.50 floor / $4.40 ceiling

March 2025


35,000 Mmbtu


NYMEX Henry Hub


$3.50 floor / $4.40 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

November 2025 - March 2026


15,000 Mmbtu


NYMEX Henry Hub


$3.50 floor / $5.15 ceiling

Natural gas fixed price swaps







October 2024


50,000 Mmbtu


NYMEX Henry Hub


$3.17

October 2024


75,000 Mmbtu


NYMEX Henry Hub


$3.47

October 2024


25,000 Mmbtu


NYMEX Henry Hub


$3.47

October 2024


105,000 Mmbtu


NYMEX Henry Hub


$3.24

November 2024


25,000 Mmbtu


NYMEX Henry Hub


$2.80

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 - May 2025


25,000 Mmbtu


NYMEX Henry Hub


$3.23

April - August 2025


125,000 Mmbtu


NYMEX Henry Hub


$3.01

April - October 2025


100,000 Mmbtu


NYMEX Henry Hub


$3.28

June 2025


10,000 Mmbtu


NYMEX Henry Hub


$3.23

July 2025


45,000 Mmbtu


NYMEX Henry Hub


$3.23

August 2025


40,000 Mmbtu


NYMEX Henry Hub


$3.23

September 2025


50,000 Mmbtu


NYMEX Henry Hub


$3.23

September - October 2025


100,000 Mmbtu


NYMEX Henry Hub


$3.01

October 2025


100,000 Mmbtu


NYMEX Henry Hub


$3.23

April - June 2026


50,000 Mmbtu


NYMEX Henry Hub


$3.10

Oil costless collars







September 2024


500 Bbls


NYMEX WTI


$70.00 floor / $78.10 ceiling

September - 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







September - October 2024


1,000 Bbls


NYMEX WTI


$66.10

September - October 2024


1,500 Bbls


NYMEX WTI


$69.50

September 2024


500 Bbls


NYMEX WTI


$76.46

October 2024


500 Bbls


NYMEX WTI


$76.12

October 2024 - August 2025


1,000 Bbls


NYMEX WTI


$68.80

November 2024


500 Bbls


NYMEX WTI


$75.49

November - December 2024


2,000 Bbls


NYMEX WTI


$69.50

November 2024 - March 2025


1,600 Bbls


NYMEX WTI


$64.80

December 2024


500 Bbls


NYMEX WTI


$74.94

January 2025


500 Bbls


NYMEX WTI


$74.48

January - March 2025


500 Bbls


NYMEX WTI


$69.50

January - June 2025


2,000 Bbls


NYMEX WTI


$70.90

February 2025


500 Bbls


NYMEX WTI


$74.10

March 2025


500 Bbls


NYMEX WTI


$73.71

April 2025


500 Bbls


NYMEX WTI


$73.30

April - June 2025


750 Bbls


NYMEX WTI


$69.50

April - June 2025


1,000 Bbls


NYMEX WTI


$68.00

May 2025


500 Bbls


NYMEX WTI


$72.92

June 2025


500 Bbls


NYMEX WTI


$72.58

July 2025


500 Bbls


NYMEX WTI


$72.24

July - August 2025


1,250 Bbls


NYMEX WTI


$70.81

July - September 2025


500 Bbls


NYMEX WTI


$69.50

July - December 2025


1,500 Bbls


NYMEX WTI


$68.90

August 2025


500 Bbls


NYMEX WTI


$71.88

September 2025


500 Bbls


NYMEX WTI


$71.60

September 2025


1,500 Bbls


NYMEX WTI


$68.80

October 2025


750 Bbls


NYMEX WTI


$71.12

October 2025


2,000 Bbls


NYMEX WTI


$68.80

November 2025


750 Bbls


NYMEX WTI


$70.99

November 2025 - March 2026


1,500 Bbls


NYMEX WTI


$68.80

December 2025


750 Bbls


NYMEX WTI


$70.66

January 2026


1,500 Bbls


NYMEX WTI


$70.53

February 2026


1,500 Bbls


NYMEX WTI


$71.28

March 2026


1,500 Bbls


NYMEX WTI


$70.42

April - June 2026


1,000 Bbls


NYMEX WTI


$68.80

 

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



Nine Months Ended



Nine Months Ended



Three Months Ended



Sept. 30, 2024



Sept. 30, 2023



Sept. 30, 2024



Sept. 30, 2023



June 30, 2024


Net Income

$

1,100,310



$

1,895,403



$

2,212,466



$

11,407,356



$

1,295,771


Plus:















Income tax expense


457,255




589,000




854,738




3,490,000




355,151


Interest expense


622,480




556,941




1,989,348




1,638,708




651,982


DD&A


2,376,025




2,022,709




7,000,635




6,123,031




2,268,284


Impairment expense


-




36,460




-




38,533




-


Less:















Non-cash gains (losses)















on derivatives


157,086




(940,592)




(2,488,334)




1,365,872




(1,603,604)


Gains (losses) on asset sales


6,708




243,041




518,391




4,671,254




445,184


Plus:















Cash payments on off-market derivative















contracts


-




-




-




(373,745)




-


Restricted stock and deferred















director's expense


513,059




522,965




1,911,405




1,861,219




696,559


Adjusted EBITDA

$

4,905,335



$

6,321,029



$

15,938,535



$

18,147,976



$

6,426,167

















 

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



Sept. 30, 2024



Sept. 30, 2023


Net Income

$

4,725,910



$

14,753,489


Plus:






Income tax expense


2,100,198




4,471,000


Interest expense


2,713,033




2,276,406


DD&A


9,443,789




7,925,145


Impairment expense


-




6,139,229


Less:






Non-cash gains (losses)






on derivatives


448,324




7,630,914


Gains (losses) on asset sales


575,897




5,605,461


Plus:






Cash payments on off-market derivative






contracts


-




(1,277,206)


Restricted stock and deferred






director's expense


2,484,115




2,430,303


Adjusted EBITDA

$

20,442,824



$

23,481,991








Debt

$

27,750,000



$

30,750,000


Debt-to-Adjusted EBITDA (TTM)


1.36




1.31








 

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 about 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.

Investor Contact:
Rob Fink / Stephen Lee
FNK IR
646.809.4048
PHX@fnkir.com 

Corporate Contact:
405.948.1560
inquiry@phxmin.com

Cision View original content:https://www.prnewswire.com/news-releases/phx-minerals-reports-results-for-the-quarter-ended-sept-30-2024-302297840.html

SOURCE PHX MINERALS INC.

FAQ

What was PHX Minerals' net income for Q3 2024?

PHX Minerals reported net income of $1.1 million ($0.03 per diluted share) for Q3 2024.

How much did PHX Minerals' total debt decrease in 2024?

PHX Minerals reduced its total debt by $5.0 million since December 31, 2023, bringing it to $27.8 million.

What was PHX's quarterly dividend announced for December 2024?

PHX announced a quarterly dividend of $0.04 per share, payable on December 5, 2024.

How many wells did PHX convert to producing status in Q3 2024?

PHX converted 46 gross (0.18 net) wells to producing status during Q3 2024.

PHX Minerals Inc.

NYSE:PHX

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Oil & Gas E&P
Crude Petroleum & Natural Gas
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