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PHX MINERALS INC. REPORTS THIRD FISCAL QUARTER 2022 RESULTS AND ANNOUNCES DIVIDEND PAYMENT

·7 min read
Cision

FORT WORTH, Texas, Aug. 8, 2022 /PRNewswire/ -- PHX MINERALS INC., "PHX" or the "Company" (NYSE: PHX), today reported financial and operating results for the third fiscal quarter ended June 30, 2022.

SUMMARY OF RESULTS FOR THE QUARTER ENDED JUNE 30, 2022, AND SUBSEQUENT EVENTS

  • Net income in the third fiscal quarter of 2022 was $8.6 million, or $0.25 per share, compared to net loss of ($4.0) million, or ($0.12) per share, in the second fiscal quarter of 2022.

  • Adjusted EBITDA(1) of $7.2 million for the third fiscal quarter of 2022 increased from $5.8 million in the second fiscal quarter of 2022.

  • Royalty production volumes for the third fiscal quarter of 2022 increased 3% to 1,595 Mmcfe, and total production volumes for the third fiscal quarter of 2022 decreased 1% to 2,430 Mmcfe, compared to the second fiscal quarter of 2022.

  • 80% of royalty production volumes and 78% of total production volumes in the third fiscal quarter of 2022 were attributable to natural gas.

  • 96 gross (0.25 net) wells converted to PDP, including 39 gross (0.19 net) in the SCOOP and 12 gross (0.03 net) in the Haynesville, during the third fiscal quarter of 2022, compared to 108 gross (0.48 net) in the second fiscal quarter of 2022.

  • 155 gross (0.79 net) wells in progress as of June 30, 2022, compared to 134 gross (0.60 net) as of March 31, 2022.

  • Total debt was $28.3 million and the debt to adjusted EBITDA (TTM) (1) ratio was 1.31x at June 30, 2022.

  • During the third fiscal quarter of 2022, PHX closed on acquisitions totaling 938 net royalty acres located in the SCOOP play of Oklahoma and the Haynesville play of East Texas and Louisiana for approximately $9.1 million.

  • Since June 30, 2022, PHX has closed on additional acquisitions of 544 net royalty acres located in the SCOOP play of Oklahoma and the Haynesville play of Louisiana for approximately $8.2 million.

  • PHX has entered into a PSA to divest the remainder of its non-operated working interest position in the Fayetteville Shale of Arkansas for approximately $6 million subject to customary closing adjustments.

  • PHX announced a $0.02 per share quarterly dividend, payable on Sept. 9, 2022, to stockholders of record on Aug. 25, 2022.

(1) This is a non-GAAP measure. Refer to the Non-GAAP Reconciliation section.

Chad L. Stephens, President and CEO, commented, "I am pleased to report another outstanding quarter of financial results including adjusted EBITDA of $7.2 million, a 22% increase over the prior sequential quarter. I would like to thank all of the PHX employees for their hard work that helped the company achieve these excellent third quarter 2022 results.

Consistent with our first and second quarter of 2022 results, we reported an increase in royalty volumes and a further decrease in working interest volumes. This is in line with our corporate strategy. We continue to allocate 100% of our capital to acquiring minerals in the core of the Haynesville in Louisiana and the SCOOP in Southern Oklahoma in high rock quality areas under well capitalized active operators, assuring us of near-term line of sight development. We are keenly focused on executing a successful acquisition strategy and expect our royalty volumes will continue to increase on an annual basis.

In our third fiscal quarter ended June 30, 2022, and including through Aug. 4th, we have closed on a total of $18.0 million in additional minerals located primarily in the Haynesville with line-of-sight development, which should continue to drive our growing royalty volumes. This brings our fiscal 2022 acquisition program to approximately $42 million. There continues to be a strong set of acquisition opportunities in front of us.

Lastly, I'd like to announce that during our third fiscal quarter we opened our new corporate headquarters in Fort Worth, Texas. This move places our senior management team at the epicenter of the mineral space. We will retain our offices in Oklahoma City where our accounting and technical staff are located and do not anticipate any disruption to the business. We are excited about having new offices in Fort Worth and believe it will better position us to execute the Company's growth strategy of building shareholder value through the acquisition and ownership of high-quality mineral interest in our core areas."

OPERATING HIGHLIGHTS





Third Quarter Ended



Third Quarter Ended



Nine Months Ended



Nine Months Ended



June 30, 2022



June 30, 2021



June 30, 2022



June 30, 2021


Gas Mcf Sold


1,897,799




1,879,343




5,380,093




5,090,619


Average Sales Price per Mcfe before the
















effects of settled derivative contracts

$

6.82



$

3.33



$

5.61



$

2.77


Average Sales Price per Mcfe after the
















effects of settled derivative contracts

$

4.32



$

3.31



$

3.72



$

2.76


Oil Barrels Sold


48,928




55,492




148,632




170,437


Average Sales Price per Mcfe before the
















effects of settled derivative contracts

$

105.23



$

63.77



$

90.40



$

52.95


Average Sales Price per Mcfe after the
















effects of settled derivative contracts

$

60.18



$

46.25



$

57.63



$

49.15


NGL Barrels Sold


39,732




46,753




124,358




125,118


Average Sales Price per Barrel(1)

$

36.76



$

23.58



$

35.52



$

20.42


















Mcfe Sold


2,429,760




2,492,813




7,018,036




6,863,949


Natural gas, oil and NGL sales before the
















effects of settled derivative contracts

$

19,561,568



$

10,899,820



$

48,032,597



$

25,670,624


Natural gas, oil and NGL sales after the
















effects of settled derivative contracts

$

12,607,397



$

9,895,130



$

32,971,756



$

24,981,817


















(1) There were no NGL settled derivative contracts during the 2022 and 2021 periods.


Total Production for the last four quarters was as follows:

Quarter ended


Mcf Sold



Oil Bbls Sold



NGL Bbls Sold



Mcfe Sold


6/30/2022



1,897,799




48,928




39,732




2,429,760


3/31/2022



1,908,030




51,631




40,371




2,460,042


12/31/2021



1,574,265




48,074




44,256




2,128,248


9/30/2021



1,609,101




54,043




46,369




2,211,570


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

Quarter ended


Mcf Sold



Oil Bbls Sold



NGL Bbls Sold



Mcfe Sold


6/30/2022



1,283,737




32,562




19,369




1,595,323


3/31/2022



1,261,949




28,758




18,852




1,547,609


12/31/2021



949,523




25,996




19,953




1,225,220


9/30/2021



705,397




29,442




19,364




998,230


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

Quarter ended


Mcf Sold



Oil Bbls Sold



NGL Bbls Sold



Mcfe Sold


6/30/2022



614,062




16,366




20,363




834,437


3/31/2022



646,081




22,873




21,519




912,433


12/31/2021



624,742




22,078




24,303




903,028


9/30/2021



903,704




24,601




27,005




1,213,340


FINANCIAL HIGHLIGHTS






Third Quarter Ended



Third Quarter Ended



Nine Months Ended



Nine Months Ended




June 30, 2022



June 30, 2021



June 30, 2022



June 30, 2021


Working Interest Sales


$

7,088,153



$

5,486,978



$

18,959,671



$

13,245,980


Royalty Interest Sales


$

12,473,415



$

5,412,842



$

29,072,926



$

12,424,644


Natural Gas, Oil and NGL Sales


$

19,561,568



$

10,899,820



$

48,032,597



$

25,670,624



















Gains (Losses) on Derivative Contracts


$

(2,387,226)



$

(5,487,483)



$

(12,534,464)



$

(8,089,662)


Lease Bonuses and Rental Income


$

209,329



$

259,152



$

450,152



$

319,139


Total Revenue


$

17,383,671



$

5,671,489



$

35,948,285



$

17,900,101



















Lease Operating Expense

















per Working Interest Mcfe


$

1.08



$

0.83



$

1.16



$

0.84


Transportation, Gathering and Marketing

















per Mcfe


$

0.59



$

0.62



$

0.59



$

0.60


Production Tax per Mcfe


$

0.38



$

0.24



$

0.33



$

0.19


Cash G&A Expense per Mcfe (1)


$

0.95



$

0.78



$

0.90



$

0.78


G&A Expense per Mcfe


$

1.18



$

0.91



$

1.10



$

0.88


Interest Expense per Mcfe


$

0.12



$

0.09



$

0.10



$

0.12


DD&A per Mcfe


$

0.83



$

0.86



$

0.82



$

0.90


Total Expense per Mcfe


$

3.47



$

3.15



$

3.38



$

3.14



















Net Income (Loss)


$

8,589,010



$

(1,356,594)



$

11,250,804



$

(2,453,037)


Adjusted EBITDA (2)


$

7,194,102



$

5,008,654



$

17,429,579



$

11,506,346



















Cash Flow from Operations


$

8,404,654



$

5,563,226



$

24,338,974



$

10,240,333


CapEx


$

72,176



$

271,661



$

351,524



$

696,759


CapEx - Mineral Acquisitions


$

8,954,133



$

11,402,761



$

29,872,407



$

19,337,265