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
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