PHX Minerals Reports Results for the Quarter Ended March 31, 2025 and Announces Dividend Payment
PR Newswire
FORT WORTH, Texas, May 8, 2025
FORT WORTH, Texas, May 8, 2025 /PRNewswire/ -- PHX MINERALS INC., "PHX" or the "Company" $(PHX)$, today reported financial and operating results for the quarter ended March 31, 2025.
Summary of Results for the Quarter Ended March 31, 2025
-- Net income was $4.4 million, or $0.12 per diluted share, compared to net
income of $0.1 million, or $0.00 per diluted share, for the quarter ended
Dec. 31, 2024, and net loss of ($0.2) million, or ($0.01) per diluted
share, for the quarter ended March 31, 2024.
-- Adjusted EBITDA(1) was $6.2 million, compared to $5.4 million for the
quarter ended Dec. 31, 2024 and $4.6 million for the quarter ended March
31, 2024.
-- Royalty production volumes decreased 9% to 1,910 Mmcfe compared to the
quarter ended Dec. 31, 2024, and increased 3% compared to the quarter
ended March 31, 2024.
-- Total production volumes decreased 9% to 2,159 Mmcfe compared to the
quarter ended Dec. 31, 2024, and increased 2% compared to the quarter
ended March 31, 2024.
-- Converted 65 gross (0.113 net) wells to producing status, compared to a
conversion of 71 gross (0.22 net) wells to producing status during the
quarter ended Dec. 31, 2024 and 85 gross (0.32 net) during the quarter
ended March 31, 2024.
-- Inventory of 247 gross (1.017 net) wells in progress and permits as of
March 31, 2025, compared to 225 gross (0.91 net) wells in progress and
permits as of Dec. 31, 2024 and 230 gross (1.099 net) wells in progress
and permits as of March 31, 2024.
-- Total debt was $19.8 million, down $9.8 million since Dec. 31, 2024, and
the debt-to-adjusted EBITDA $(TTM)$ (1) ratio was 0.86x at March 31, 2025.
Subsequent Events
-- PHX announced a $0.04 per share quarterly dividend, payable on June 4,
2025, to stockholders of record on May 20, 2025.
-- In a separate press release also issued today, WhiteHawk Income
Corporation (together with WhiteHawk Energy, LLC and their respective
subsidiaries, "WhiteHawk") and PHX announced that they have entered into
a definitive agreement under which WhiteHawk will acquire PHX in an
all-cash transaction that values PHX at $4.35 per share, or total value
of approximately $187 million, including PHX's net debt. The joint press
release announcing the transaction is available
at https://phxmin.com/news/press-releases.
-- In light of the pending all-cash transaction with WhiteHawk, PHX is
canceling its previously scheduled quarterly conference call to discuss
the Company's results for the quarter ended March 31, 2025.
(1) This is a non-GAAP measure. Refer to the Non-GAAP Reconciliation
section.
Chad L. Stephens, President and CEO, commented,"PHX had a strong start to 2025, delivering solid cash flow and adjusted EBITDA on both a sequential and year-over-year basis. The closing of our recent divestiture of non-producing minerals in January, along with strong cash generation, enabled us to further reduce our debt to $19.8 million as of March 31, 2025, resulting in a debt-to-adjusted EBITDA $(TTM.AU)$ ratio under 1x. A strong and flexible balance sheet continues to be an important part of our strategy."
"The natural gas environment showed meaningful improvement during the first quarter driven by tightening supply-demand dynamics, colder-than-expected winter weather, and increasing liquefied natural gas $(LNG)$ export demand. This backdrop is translating into heightened operator activity across our mineral acreage as demonstrated by a higher gross and net number of wells in progress as of the quarter end. We expect this trend to continue throughout 2025 and into 2026, supporting the increased production volumes and enhanced cash flow from our assets."
Financial Highlights
----------------------------------------------------------------------
Three Months Ended Three Months Ended
March 31, 2025 March 31, 2024
-------------------- --------------------
Royalty Interest Sales $ 9,288,424 $ 6,176,274
Working Interest Sales $ 1,144,863 $ 913,934
---------------- ----------------
Natural Gas, Oil and NGL
Sales $ 10,433,287 $ 7,090,208
Gains (Losses) on
Derivative Contracts $ (3,163,178) $ 627,492
Lease Bonuses and Rental
Income $ 328,203 $ 151,718
---------------- ----------------
Total Revenue $ 7,598,312 $ 7,869,418
Lease Operating Expense
per Working Interest Mcfe $ 1.10 $ 1.28
Transportation, Gathering
and
Marketing per Mcfe $ 0.51 $ 0.40
Production and Ad Valorem
Tax
per Mcfe $ 0.20 $ 0.19
G&A Expense per Mcfe $ 1.74 $ 1.58
Cash G&A Expense per Mcfe
(1) $ 1.15 $ 1.25
Interest Expense per Mcfe $ 0.21 $ 0.34
DD&A per Mcfe $ 1.13 $ 1.11
Total Expense per Mcfe $ 3.92 $ 3.78
Net Income (Loss) $ 4,383,882 $ (183,615)
Adjusted EBITDA (2) $ 6,161,219 $ 4,607,034
Cash Flow from Operations
(3) $ 4,276,440 $ 5,246,651
CapEx (4) $ 6,336 $ 7,440
CapEx - Mineral
Acquisitions $ 630,296 $ 1,406,248
Borrowing Base $ 50,000,000 $ 50,000,000
Debt $ 19,750,000 $ 30,750,000
Debt-to-Adjusted EBITDA
(TTM) (2) 0.86 1.58
(1) Cash G&A expense is G&A excluding professional fees associated with
announced strategic alternatives process and 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, 2025 March 31, 2024
-------------------- --------------------
Gas Mcf Sold 1,729,256 1,700,108
Average Sales Price per
Mcf before the
effects of settled
derivative contracts $ 3.85 $ 2.10
Average Sales Price per
Mcf after the
effects of settled
derivative contracts $ 3.75 $ 3.08
% of sales subject to
hedges 75% 62%
Oil Barrels Sold 42,355 37,260
Average Sales Price per
Bbl before the
effects of settled
derivative contracts $ 70.52 $ 76.01
Average Sales Price per
Bbl after the
effects of settled
derivative contracts $ 69.25 $ 76.19
% of sales subject to
hedges 40% 37%
NGL Barrels Sold 29,316 32,184
Average Sales Price per
Bbl(1) $ 27.18 $ 21.51
Mcfe Sold 2,159,284 2,116,776
Natural gas, oil and NGL
sales before the
effects of settled
derivative contracts $ 10,433,287 $ 7,090,208
Natural gas, oil and NGL
sales after the
effects of settled
derivative contracts $ 10,214,808 $ 8,759,517
(1) There were no NGL settled derivative contracts during the 2025 and
2024 periods.
Total Production for the last five quarters was as follows:
Oil
Quarter Bbls NGL Bbls
ended Mcf Sold Sold Sold Mcfe Sold
----------- ---------- ------- -------- ---------
3/31/2025 1,729,256 42,355 29,316 2,159,284
12/31/2024 1,906,552 43,571 35,099 2,378,569
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
The percentage of total production volumes attributable to natural gas was 80% for the quarter ended March 31, 2025.
Royalty Interest Production for the last five quarters was as follows:
Oil NGL
Bbls Bbls
Quarter ended Mcf Sold Sold Sold Mcfe Sold
------------- ---------- ------ ------- ---------
3/31/2025 1,567,816 38,200 18,747 1,909,502
12/31/2024 1,728,225 39,592 21,778 2,096,435
9/30/2024 1,724,635 41,170 21,011 2,097,722
6/30/2024(1) 2,304,176 47,024 20,461 2,709,090
3/31/2024 1,533,580 33,083 20,844 1,857,147
(1) Increase in royalty production for the quarter ended June 30, 2024 was due
to high interest high impact wells coming online in the Haynesville.
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