FORT WORTH, Texas, March 12, 2025 /PRNewswire/ -- PHX MINERALS INC., "PHX" or the "Company" (NYSE: PHX), today reported financial and operating results for the quarter and year ended Dec. 31, 2024.
Summary of Results for the Quarter and Year Ended Dec. 31, 2024
- Net income in the fourth quarter and year ended Dec. 31, 2024 was $0.1 million, or $0.00 per diluted share, and $2.3 million, or $0.06 per diluted share, respectively, compared to net income of $1.1 million, or $0.03 per diluted share, for the quarter ended Sept. 30, 2024, and net income of $13.9 million, or $0.39 per diluted share, for the year ended Dec. 31, 2023.
- Adjusted EBITDA(1) in the fourth quarter and year ended Dec. 31, 2024 was $5.4 million and $21.3 million, respectively, compared to $4.9 million for the quarter ended Sept. 30, 2024 and $22.7 million for the year ended Dec. 31, 2023.
- Adjusted pretax net income(1) in the fourth quarter and year ended Dec. 31, 2024 was $1.6 million, or $0.04 per diluted share, and $7.1 million, or $0.20 per diluted share, respectively, compared to $1.4 million, or $0.04 per diluted share, for the quarter ended Sept. 30, 2024, and $14.4 million, or $0.40 per diluted share, for the year ended Dec. 31, 2023.
- Royalty production volumes for the fourth quarter ended Dec. 31, 2024 remained flat at 2,096 Mmcfe compared to the quarter ended Sept. 30, 2024, and increased 8% to 8,760 Mmcfe for the year ended Dec. 31, 2024 compared to the year ended Dec. 31, 2023.
- Total production volumes for the fourth quarter ended Dec. 31, 2024 remained flat at 2,379 Mmcfe compared to the quarter ended Sept. 30, 2024, and increased 5% to 9,841 Mmcfe for the year ended Dec. 31, 2024 compared to the year ended Dec. 31, 2023.
- Converted 71 gross (0.22 net) and 255 gross (1.11 net) wells to producing status in the fourth quarter and year ended Dec. 31, 2024, respectively, compared to 46 gross (0.18 net) wells converted to producing status during the quarter ended Sept. 30, 2024 and 314 gross (1.03 net) converted during the year ended Dec. 31, 2023.
- Inventory of 225 gross (0.91 net) wells in progress and permits as of Dec. 31, 2024, compared to 278 gross (0.93 net) wells in progress and permits as of Sept. 30, 2024 and 263 gross (1.29 net) wells in progress and permits as of Dec. 31, 2023.
- Total debt was $29.5 million at Dec. 31, 2024, down $3.25 million since Dec. 31, 2023, and the debt-to-adjusted EBITDA (TTM) (1) ratio was 1.38x at Dec. 31, 2024.
Subsequent Events
- PHX announced a $0.04 per share quarterly dividend, payable on Mar. 28, 2025, to stockholders of record on Mar. 17, 2025.
- On Jan. 31, 2025, PHX closed on the divestiture of 165,326 net mineral acres for approximately $8.0 million.
- Since Dec. 31, 2024, PHX has paid down an additional $9.8 million of debt, bringing the balance to $19.8 million as of Mar. 5, 2025.
(1) This is a non-GAAP measure. Refer to the Non-GAAP Reconciliation section. |
Chad L. Stephens, President and CEO, commented, "PHX delivered solid results in 2024. Notably, we achieved our highest total corporate production volumes for a full calendar year since 2019. We also recorded our two highest royalty production volume quarters in company history during 2024, specifically the second and third calendar quarters. The strength of our asset base allowed us to generate strong cash flow, reduce debt and return capital to stockholders through our dividend." Mr. Stephens added, "We are continuing our previously announced process with RBC to evaluate possible strategic alternatives to maximize stockholder value.
"As referenced in our subsequent events, we closed on the sale of approximately 165,000 net mineral acres for $8.0 million. These minerals are old legacy minerals located in the U.S. on the margins of various basins with little to no near-term developmental resource potential, have no cash flow or reserve value associated with them and have had no leasing activity over the last 6 years," concluded Mr. Stephens.
Financial Highlights |
|
|
| Three Months Ended |
|
| Three Months Ended |
|
| Year Ended |
|
| Year Ended |
|
|
| Dec. 31, 2024 |
|
| Dec. 31, 2023 |
|
| Dec. 31, 2024 |
|
| Dec. 31, 2023 |
|
Royalty Interest Sales |
| $ | 7,874,377 |
|
| $ | 7,378,650 |
|
| $ | 29,851,728 |
|
| $ | 31,593,351 |
|
Working Interest Sales |
| $ | 1,011,545 |
|
| $ | 1,170,133 |
|
| $ | 3,838,924 |
|
| $ | 4,942,934 |
|
Natural Gas, Oil and NGL Sales |
| $ | 8,885,922 |
|
| $ | 8,548,783 |
|
| $ | 33,690,652 |
|
| $ | 36,536,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (Losses) on Derivative Contracts |
| $ | (998,129) |
|
| $ | 3,211,410 |
|
| $ | 299,608 |
|
| $ | 6,859,589 |
|
Lease Bonuses and Rental Income |
| $ | 135,589 |
|
| $ | 22,780 |
|
| $ | 580,804 |
|
| $ | 1,068,022 |
|
Total Revenue |
| $ | 8,023,382 |
|
| $ | 11,782,973 |
|
| $ | 34,571,064 |
|
| $ | 44,463,896 |
|
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|
Lease Operating Expense |
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per Working Interest Mcfe |
| $ | 1.09 |
|
| $ | 1.07 |
|
| $ | 1.14 |
|
| $ | 1.27 |
|
Transportation, Gathering and |
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|
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Marketing per Mcfe |
| $ | 0.43 |
|
| $ | 0.42 |
|
| $ | 0.46 |
|
| $ | 0.39 |
|
Production and Ad Valorem Tax |
|
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|
|
|
|
|
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|
|
per Mcfe |
| $ | 0.12 |
|
| $ | 0.20 |
|
| $ | 0.17 |
|
| $ | 0.20 |
|
G&A Expense per Mcfe |
| $ | 1.22 |
|
| $ | 1.36 |
|
| $ | 1.19 |
|
| $ | 1.28 |
|
Cash G&A Expense per Mcfe (1) |
| $ | 0.99 |
|
| $ | 1.10 |
|
| $ | 0.93 |
|
| $ | 1.02 |
|
Interest Expense per Mcfe |
| $ | 0.24 |
|
| $ | 0.32 |
|
| $ | 0.26 |
|
| $ | 0.25 |
|
DD&A per Mcfe |
| $ | 1.10 |
|
| $ | 1.09 |
|
| $ | 0.98 |
|
| $ | 0.91 |
|
Total Expense per Mcfe |
| $ | 3.24 |
|
| $ | 3.53 |
|
| $ | 3.18 |
|
| $ | 3.20 |
|
|
|
|
|
|
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|
|
|
|
|
Net Income (Loss) |
| $ | 109,400 |
|
| $ | 2,513,444 |
|
| $ | 2,321,866 |
|
| $ | 13,920,800 |
|
Adjusted EBITDA (2) |
| $ | 5,385,515 |
|
| $ | 4,504,288 |
|
| $ | 21,324,050 |
|
| $ | 22,652,263 |
|
|
|
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|
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|
|
|
Cash Flow from Operations (3) |
| $ | 2,870,001 |
|
| $ | 3,361,455 |
|
| $ | 18,077,853 |
|
| $ | 24,171,139 |
|
CapEx (4) |
| $ | 22,951 |
|
| $ | 4,587 |
|
| $ | 87,579 |
|
| $ | 325,983 |
|
CapEx - Mineral Acquisitions |
| $ | 2,524,136 |
|
| $ | 4,351,757 |
|
| $ | 7,796,983 |
|
| $ | 29,735,516 |
|
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Borrowing Base |
|
|
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|
|
|
| $ | 50,000,000 |
|
| $ | 50,000,000 |
|
Debt |
|
|
|
|
|
|
| $ | 29,500,000 |
|
| $ | 32,750,000 |
|
Debt-to-Adjusted EBITDA (TTM) (2) |
|
|
|
|
|
|
|
| 1.38 |
|
|
| 1.45 |
|
|
|
(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 |
|
| Year Ended |
|
| Year Ended |
|
| Dec. 31, 2024 |
|
| Dec. 31, 2023 |
|
| Dec. 31, 2024 |
|
| Dec. 31, 2023 |
|
Gas Mcf Sold |
| 1,906,552 |
|
|
| 1,775,577 |
|
|
| 7,969,948 |
|
|
| 7,457,084 |
|
Average Sales Price per Mcf before the |
|
|
|
|
|
|
|
|
|
|
|
effects of settled derivative contracts | $ | 2.64 |
|
| $ | 2.53 |
|
| $ | 2.19 |
|
| $ | 2.61 |
|
Average Sales Price per Mcf after the |
|
|
|
|
|
|
|
|
|
|
|
effects of settled derivative contracts | $ | 2.92 |
|
| $ | 2.76 |
|
| $ | 2.75 |
|
| $ | 2.96 |
|
% of sales subject to hedges |
| 46 | % |
|
| 44 | % |
|
| 47 | % |
|
| 46 | % |
Oil Barrels Sold |
| 43,571 |
|
|
| 39,768 |
|
|
| 178,357 |
|
|
| 182,916 |
|
Average Sales Price per Bbl before the |
|
|
|
|
|
|
|
|
|
|
|
effects of settled derivative contracts | $ | 69.82 |
|
| $ | 78.66 |
|
| $ | 74.59 |
|
| $ | 76.76 |
|
Average Sales Price per Bbl after the |
|
|
|
|
|
|
|
|
|
|
|
effects of settled derivative contracts | $ | 69.50 |
|
| $ | 75.37 |
|
| $ | 73.49 |
|
| $ | 74.21 |
|
% of sales subject to hedges |
| 39 | % |
|
| 36 | % |
|
| 33 | % |
|
| 42 | % |
NGL Barrels Sold |
| 35,099 |
|
|
| 38,422 |
|
|
| 133,609 |
|
|
| 137,484 |
|
Average Sales Price per Bbl(1) | $ | 23.01 |
|
| $ | 24.00 |
|
| $ | 21.95 |
|
| $ | 22.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mcfe Sold |
| 2,378,569 |
|
|
| 2,244,717 |
|
|
| 9,841,746 |
|
|
| 9,379,484 |
|
Natural gas, oil and NGL sales before the |
|
|
|
|
|
|
|
|
|
|
|
effects of settled derivative contracts | $ | 8,885,922 |
|
| $ | 8,548,783 |
|
| $ | 33,690,652 |
|
| $ | 36,536,285 |
|
Natural gas, oil and NGL sales after the |
|
|
|
|
|
|
|
|
|
|
|
effects of settled derivative contracts | $ | 9,397,454 |
|
| $ | 8,823,534 |
|
| $ | 37,988,255 |
|
| $ | 38,719,598 |
|
|
|
(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 |
|
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 Dec. 31, 2024.
Royalty Interest Production for the last four quarters was as follows:
Quarter ended |
| Mcf Sold |
|
| Oil Bbls Sold |
|
| NGL Bbls Sold |
|
| Mcfe Sold |
|
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 |
|
| 2,304,176 |
|
|
| 47,024 |
|
|
| 20,461 |
|
|
| 2,709,090 |
|
3/31/2024 |
|
| 1,533,580 |
|
|
| 33,083 |
|
|
| 20,844 |
|
|
| 1,857,147 |
|
The percentage of royalty production volumes attributable to natural gas was 82% for the quarter ended Dec. 31, 2024.
Working Interest Production for the last four quarters was as follows:
Quarter ended |
| Mcf Sold |
|
| Oil Bbls Sold |
|
| NGL Bbls Sold |
|
| Mcfe Sold |
|
12/31/2024 |
|
| 178,327 |
|
|
| 3,979 |
|
|
| 13,321 |
|
|
| 282,134 |
|
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 |
|
Quarter Ended Dec. 31, 2024 Results
The Company recorded net income of $0.1 million, or $0.00 per diluted share, for the quarter ended Dec. 31, 2024, as compared to net income of $2.5 million, or $0.07 per diluted share, for the quarter ended Dec. 31, 2023. The change in net income was principally the result of an increase in losses associated with our derivative contracts, and an increase in depreciation, depletion and amortization (DD&A) expenses, partially offset by an increase in natural gas, oil, and NGL sales, a decrease in production and ad valorem taxes, a decrease in interest expense, and a decrease in general and administrative (G&A) expenses.
Natural gas, oil and NGL revenue increased $0.3 million, or 4%, for the quarter ended Dec. 31, 2024, compared to the quarter ended Dec. 31, 2023, due to an increase in natural gas and oil volumes of 7% and 10%, respectively, and an increase in natural gas prices of 4%, partially offset by decreases in oil, and NGL prices of 11%, and 4%, respectively, and a decrease in NGL volumes of 9%.
The increase in royalty production volumes during the quarter ended Dec. 31, 2024, as compared to the quarter ended Dec. 31, 2023, resulted primarily from new wells being brought online in the Haynesville Shale and SCOOP plays.
The Company had a net loss on derivative contracts of ($1.0) million for the quarter ended Dec. 31, 2024, comprised of a ($1.5) million unrealized non-cash loss on derivatives and a $0.5 million gain on settled derivatives, as compared to a net gain of $3.2 million for the quarter ended Dec. 31, 2023. The change in net loss 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 Dec. 31, 2024 pricing relative to the strike price on open derivative contracts.
Year Ended Dec. 31, 2024 Results
The Company recorded net income of $2.3 million, or $0.06 per diluted share, for the year ended Dec. 31, 2024, as compared to a net income of $13.9 million, or $0.39 per diluted share, for the year ended Dec. 31, 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 derivative 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 the income tax provision.
Natural gas, oil and NGL revenue decreased $2.8 million, or 8%, for the year ended Dec. 31, 2024, compared to the year ended Dec. 31, 2023, due to a decreases in natural gas, oil, and NGL prices of 16%, 3%, and 1%, respectively, and decreases in oil and NGL volumes of 2% and 3%, respectively, partially offset by an increase in gas volumes of 7%.
The production increase in royalty volumes during the year ended Dec. 31, 2024, as compared to the year ended Dec. 31, 2023, resulted primarily from new wells in the Haynesville Shale and SCOOP plays coming online. The production decrease in working interest volumes during the year ended Dec. 31, 2024, as compared to the year ended Dec. 31, 2023, resulted from natural production decline and 2023 working interest divestitures.
The Company had a net gain on derivative contracts of $0.3 million for the year ended Dec. 31, 2024, comprised of a $4.3 million gain on settled derivatives and a $4.0 million non-cash loss on derivatives, as compared to a net gain of $6.9 million for the year ended Dec. 31, 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 Dec. 31, 2024 pricing relative to the strike price on open derivative contracts.
Operations Update
During the quarter ended Dec. 31, 2024, the Company converted 71 gross (0.22 net) wells to producing status, including 21 gross (0.03 net) wells in the Haynesville and 43 gross (0.18 net) wells in the SCOOP, compared to 46 gross (0.10 net) wells converted in the quarter ended Dec. 31, 2023.
At Dec. 31, 2024, the Company had a total of 225 gross (0.91 net) wells in progress and permits across its mineral positions, compared to 278 gross (0.93 net) wells in progress and permits at Sept. 30, 2024. As of Feb. 3, 2025, 16 rigs were operating on the Company's acreage and 62 rigs were operating within 2.5 miles of its acreage.
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| Bakken/ |
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|
|
| Three |
|
| Arkoma |
|
|
|
|
|
|
|
|
|
|
| SCOOP |
|
| STACK |
|
| Forks |
|
| Stack |
|
| Haynesville |
|
| Other |
|
| Total |
|
As of Dec. 31, 2024: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Wells in Progress on PHX Acreage (1) |
| 58 |
|
|
| 13 |
|
|
| 5 |
|
|
| 3 |
|
|
| 63 |
|
|
| 8 |
|
|
| 150 |
|
Net Wells in Progress on PHX Acreage (1) |
| 0.194 |
|
|
| 0.022 |
|
|
| 0.006 |
|
|
| 0.015 |
|
|
| 0.320 |
|
|
| 0.042 |
|
|
| 0.599 |
|
Gross Active Permits on PHX Acreage |
| 28 |
|
|
| 9 |
|
|
| 8 |
|
|
| 4 |
|
|
| 23 |
|
|
| 3 |
|
|
| 75 |
|
Net Active Permits on PHX Acreage |
| 0.068 |
|
|
| 0.083 |
|
|
| 0.040 |
|
|
| 0.030 |
|
|
| 0.077 |
|
|
| 0.014 |
|
|
| 0.312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of Feb. 3, 2025: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rigs Present on PHX Acreage |
| 10 |
|
|
| - |
|
|
| 2 |
|
|
| - |
|
|
| 3 |
|
|
| 1 |
|
|
| 16 |
|
Rigs Within 2.5 Miles of PHX Acreage |
| 19 |
|
|
| 4 |
|
|
| 10 |
|
|
| - |
|
|
| 13 |
|
|
| 16 |
|
|
| 62 |
|
|
|
(1) | Wells in progress includes drilling wells and drilled but uncompleted wells, or DUCs. |
Leasing Activity
During the quarter ended Dec. 31, 2024, the Company leased 265 net mineral acres to third-party exploration and production companies for an average bonus payment of $760 per net mineral acre and an average royalty of 23%.
Acquisition and Divestiture Update
During the quarter ended Dec. 31, 2024, the Company purchased 363 net royalty acres for approximately $2.5 million and had no significant divestitures.
|
| Acquisitions |
|
|
| SCOOP |
|
| Haynesville |
|
| Other |
| Total |
|
During Three Months Ended Dec. 31, 2024: |
|
|
|
|
|
|
|
|
|
|
|
Net Mineral Acres Purchased |
|
| - |
|
|
| 222 |
|
| - |
|
| 222 |
|
Net Royalty Acres Purchased |
|
| - |
|
|
| 363 |
|
| - |
|
| 363 |
|
Royalty Reserves Update
At Dec. 31, 2024, proved royalty reserves decreased 9% to 52.5 Bcfe compared to 57.8 Bcfe at Dec. 31, 2023. Proved developed royalty reserves increased by 0.1 Bcfe from Dec. 31, 2023 to Dec. 31, 2024 due to execution of our acquisition strategy and conversion of high interest undeveloped reserves to producing in the Haynesville and SCOOP. Proved undeveloped royalty reserves decreased by 5.4 Bcfe from Dec. 31, 2023 to Dec. 31, 2024 primarily due to transfers to proved developed royalty reserves, and those transferred proved undeveloped royalty reserves were not replaced due to reduced permitting activity in the Haynesville shale as a result of lower gas prices.
| Proved Royalty Interest |
|
| Reserves SEC Pricing |
|
| Dec. 31, 2024 |
|
| Dec. 31, 2023 |
|
Proved Developed Reserves: |
|
|
Mcf of Gas |
| 35,404,847 |
|
|
| 36,156,363 |
|
Barrels of Oil |
| 800,965 |
|
|
| 731,527 |
|
Barrels of NGL |
| 796,840 |
|
|
| 715,683 |
|
Mcfe (1) |
| 44,991,676 |
|
|
| 44,839,623 |
|
Proved Undeveloped Reserves: |
|
|
|
|
|
Mcf of Gas |
| 6,757,726 |
|
|
| 11,508,969 |
|
Barrels of Oil |
| 98,825 |
|
|
| 134,497 |
|
Barrels of NGL |
| 25,951 |
|
|
| 99,712 |
|
Mcfe (1) |
| 7,506,382 |
|
|
| 12,914,223 |
|
Total Proved Reserves: |
|
|
|
|
|
Mcf of Gas |
| 42,162,573 |
|
|
| 47,665,332 |
|
Barrels of Oil |
| 899,790 |
|
|
| 866,024 |
|
Barrels of NGL |
| 822,791 |
|
|
| 815,395 |
|
Mcfe (1) |
| 52,498,058 |
|
|
| 57,753,846 |
|
|
|
|
|
|
|
10% Discounted Estimated Future |
|
|
|
|
|
Net Cash Flows (before income taxes): |
|
|
|
|
|
Proved Developed | $ | 60,879,737 |
|
| $ | 73,448,070 |
|
Proved Undeveloped |
| 11,019,175 |
|
|
| 23,525,572 |
|
Total | $ | 71,898,912 |
|
| $ | 96,973,642 |
|
|
|
(1) Crude oil and NGL converted to natural gas on a one barrel of crude oil or NGL equals six Mcf of natural gas basis. |
|
Total Reserves Update
At Dec. 31, 2024, proved reserves were 63.7 Bcfe, as calculated by Cawley, Gillespie and Associates, Inc. ("CG&A"), the Company's independent consulting petroleum engineering firm. This was an 11% decrease, compared to the 71.2 Bcfe of proved reserves at Dec. 31, 2023. Total proved developed reserves decreased 4% to 56.2 Bcfe, as compared to Dec. 31, 2023 reserve volumes, mainly due to pricing. SEC prices used for the Company's Dec. 31, 2024 reserve report prepared by CG&A averaged $2.05 per Mcf for natural gas, $73.48 per barrel for oil and $20.97 per barrel for NGL, compared to $2.67 per Mcf for natural gas, $76.85 per barrel for oil and $21.98 per barrel for NGL for the Company's Dec. 31, 2023 reserve report prepared by CG&A. These prices reflect net prices received at the wellhead.
| Proved Reserves SEC Pricing |
|
| Dec. 31, 2024 |
|
| Dec. 31, 2023 |
|
Proved Developed Reserves: |
|
|
Mcf of Gas |
| 42,549,110 |
|
|
| 44,479,988 |
|
Barrels of Oil |
| 948,078 |
|
|
| 937,465 |
|
Barrels of NGL |
| 1,322,146 |
|
|
| 1,362,944 |
|
Mcfe (1) |
| 56,170,454 |
|
|
| 58,282,442 |
|
Proved Undeveloped Reserves: |
|
|
|
|
|
Mcf of Gas |
| 6,757,726 |
|
|
| 11,508,969 |
|
Barrels of Oil |
| 98,825 |
|
|
| 134,497 |
|
Barrels of NGL |
| 25,951 |
|
|
| 99,712 |
|
Mcfe (1) |
| 7,506,382 |
|
|
| 12,914,223 |
|
Total Proved Reserves: |
|
|
|
|
|
Mcf of Gas |
| 49,306,836 |
|
|
| 55,988,957 |
|
Barrels of Oil |
| 1,046,903 |
|
|
| 1,071,962 |
|
Barrels of NGL |
| 1,348,097 |
|
|
| 1,462,656 |
|
Mcfe (1) |
| 63,676,836 |
|
|
| 71,196,665 |
|
|
|
|
|
|
|
10% Discounted Estimated Future |
|
|
|
|
|
Net Cash Flows (before income taxes): |
|
|
|
|
|
Proved Developed | $ | 68,623,088 |
|
| $ | 86,694,012 |
|
Proved Undeveloped |
| 11,018,931 |
|
|
| 23,325,572 |
|
Total | $ | 79,642,019 |
|
| $ | 110,019,584 |
|
SEC Pricing |
|
|
|
|
|
Gas/Mcf | $ | 2.05 |
|
| $ | 2.67 |
|
Oil/Barrel | $ | 73.48 |
|
| $ | 76.85 |
|
NGL/Barrel | $ | 20.97 |
|
| $ | 21.98 |
|
|
|
|
|
|
|
Proved Reserves - Projected Future Pricing (2) |
|
|
|
|
|
|
|
10% Discounted Estimated Future | Proved Reserves |
|
Net Cash Flows (before income taxes): | Dec. 31, 2024 |
|
| Dec. 31, 2023 |
|
Proved Developed | $ | 109,165,292 |
|
| $ | 107,635,503 |
|
Proved Undeveloped |
| 17,439,516 |
|
|
| 29,439,523 |
|
Total | $ | 126,604,808 |
|
| $ | 137,075,026 |
|
|
|
(1) Crude oil and NGL converted to natural gas on a one barrel of crude oil or NGL equals six Mcf of natural gas basis. |
|
(2) Projected futures pricing as of Dec. 31, 2024 and Dec. 31, 2023 basis adjusted to Company wellhead price. |
|
Quarterly Conference Call
PHX will host a conference call to discuss the Company's results for the quarter ended Dec. 31, 2024 at 11 a.m. ET on Mar. 13, 2025. 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 13751358.
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 Dec. 31, |
|
| Year Ended Dec. 31, |
|
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
|
|
Revenues: |
|
|
|
|
|
|
|
Natural gas, oil and NGL sales | $ | 8,885,922 |
|
| $ | 8,548,783 |
|
| $ | 33,690,652 |
|
| $ | 36,536,285 |
|
|
Lease bonuses and rental income |
| 135,589 |
|
|
| 22,780 |
|
|
| 580,804 |
|
|
| 1,068,022 |
|
|
Gains (losses) on derivative contracts |
| (998,129) |
|
|
| 3,211,410 |
|
|
| 299,608 |
|
|
| 6,859,589 |
|
|
|
| 8,023,382 |
|
|
| 11,782,973 |
|
|
| 34,571,064 |
|
|
| 44,463,896 |
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
| 307,330 |
|
|
| 319,113 |
|
|
| 1,228,813 |
|
|
| 1,598,944 |
|
|
Transportation, gathering and marketing |
| 1,017,501 |
|
|
| 945,788 |
|
|
| 4,513,381 |
|
|
| 3,674,832 |
|
|
Production and ad valorem taxes |
| 284,406 |
|
|
| 457,058 |
|
|
| 1,703,305 |
|
|
| 1,881,737 |
|
|
Depreciation, depletion and amortization |
| 2,605,809 |
|
|
| 2,443,154 |
|
|
| 9,606,444 |
|
|
| 8,566,185 |
|
|
Provision for impairment |
| 52,673 |
|
|
| - |
|
|
| 52,673 |
|
|
| 38,533 |
|
|
Interest expense |
| 573,920 |
|
|
| 723,685 |
|
|
| 2,563,268 |
|
|
| 2,362,393 |
|
|
General and administrative |
| 2,905,229 |
|
|
| 3,050,828 |
|
|
| 11,670,328 |
|
|
| 11,970,182 |
|
|
Losses (gains) on asset sales and other |
| 194,665 |
|
|
| 84,443 |
|
|
| 83,799 |
|
|
| (4,285,170) |
|
|
Total costs and expenses |
| 7,941,533 |
|
|
| 8,024,069 |
|
|
| 31,422,011 |
|
|
| 25,807,636 |
|
|
Income (loss) before provision (benefit) for income taxes |
| 81,849 |
|
|
| 3,758,904 |
|
|
| 3,149,053 |
|
|
| 18,656,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes |
| (27,551) |
|
|
| 1,245,460 |
|
|
| 827,187 |
|
|
| 4,735,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) | $ | 109,400 |
|
| $ | 2,513,444 |
|
| $ | 2,321,866 |
|
| $ | 13,920,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share | $ | 0.00 |
|
| $ | 0.07 |
|
| $ | 0.06 |
|
| $ | 0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share | $ | 0.00 |
|
| $ | 0.07 |
|
| $ | 0.06 |
|
| $ | 0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| 36,398,660 |
|
|
| 36,036,270 |
|
|
| 36,329,735 |
|
|
| 35,980,309 |
|
|
Diluted |
| 36,944,330 |
|
|
| 36,083,449 |
|
|
| 36,412,270 |
|
|
| 35,980,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share of |
|
|
|
|
|
|
|
|
|
|
|
|
common stock paid in period | $ | 0.0400 |
|
| $ | 0.0300 |
|
| $ | 0.1400 |
|
| $ | 0.0975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheets |
|
| Dec. 31, 2024 |
|
| Dec. 31, 2023 |
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents | $ | 2,242,102 |
|
| $ | 806,254 |
|
Natural gas, oil and NGL sales receivables (net of $0 |
| 6,128,954 |
|
|
| 4,900,126 |
|
allowance for uncollectable accounts) |
|
|
|
|
|
Refundable income taxes |
| 328,560 |
|
|
| 455,931 |
|
Derivative contracts, net |
| - |
|
|
| 3,120,607 |
|
Other |
| 857,317 |
|
|
| 878,659 |
|
Total current assets |
| 9,556,933 |
|
|
| 10,161,577 |
|
|
|
|
|
|
|
Properties and equipment at cost, based on |
|
|
|
|
|
successful efforts accounting: |
|
|
|
|
|
Producing natural gas and oil properties |
| 223,043,942 |
|
|
| 209,082,847 |
|
Non-producing natural gas and oil properties |
| 51,806,911 |
|
|
| 58,820,445 |
|
Other |
| 1,361,064 |
|
|
| 1,360,614 |
|
|
| 276,211,917 |
|
|
| 269,263,906 |
|
Less accumulated depreciation, depletion and amortization |
| (122,835,668) |
|
|
| (114,139,423) |
|
Net properties and equipment |
| 153,376,249 |
|
|
| 155,124,483 |
|
|
|
|
|
|
|
Derivative contracts, net |
| - |
|
|
| 162,980 |
|
Operating lease right-of-use assets |
| 429,494 |
|
|
| 572,610 |
|
Other, net |
| 553,090 |
|
|
| 486,630 |
|
Total assets | $ | 163,915,766 |
|
| $ | 166,508,280 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable | $ | 804,693 |
|
| $ | 562,607 |
|
Derivative contracts, net |
| 316,336 |
|
|
| - |
|
Current portion of operating lease liability |
| 247,786 |
|
|
| 233,390 |
|
Accrued liabilities and other |
| 1,866,930 |
|
|
| 1,215,275 |
|
Total current liabilities |
| 3,235,745 |
|
|
| 2,011,272 |
|
|
|
|
|
|
|
Long-term debt |
| 29,500,000 |
|
|
| 32,750,000 |
|
Deferred income taxes, net |
| 7,286,315 |
|
|
| 6,757,637 |
|
Asset retirement obligations |
| 1,097,750 |
|
|
| 1,062,139 |
|
Derivative contracts, net |
| 398,072 |
|
|
| - |
|
Operating lease liability, net of current portion |
| 448,031 |
|
|
| 695,818 |
|
Total liabilities |
| 41,965,913 |
|
|
| 43,276,866 |
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
Common Stock, $0.01666 par value; 75,000,000 shares authorized and |
|
|
|
|
|
36,796,496 issued at Dec. 31, 2024; 54,000,500 shares authorized |
|
|
|
|
|
and 36,121,723 issued at Dec. 31, 2023 |
| 613,030 |
|
|
| 601,788 |
|
Capital in excess of par value |
| 44,029,492 |
|
|
| 41,676,417 |
|
Deferred directors' compensation |
| 1,323,760 |
|
|
| 1,487,590 |
|
Retained earnings |
| 77,073,332 |
|
|
| 80,022,839 |
|
|
| 123,039,614 |
|
|
| 123,788,634 |
|
Less treasury stock, at cost; 279,594 shares at Dec. 31, |
|
|
|
|
|
2024, and 131,477 shares at Dec. 31, 2023 |
| (1,089,761) |
|
|
| (557,220) |
|
Total stockholders' equity |
| 121,949,853 |
|
|
| 123,231,414 |
|
Total liabilities and stockholders' equity | $ | 163,915,766 |
|
| $ | 166,508,280 |
|
Condensed Statements of Cash Flows |
|
| Year Ended |
|
| Dec. 31, 2024 |
|
| Dec. 31, 2023 |
|
Operating Activities |
|
|
|
|
|
Net income | $ | 2,321,866 |
|
| $ | 13,920,800 |
|
Adjustments to reconcile net income (loss) to net cash provided |
|
|
|
|
|
by operating activities: |
|
|
|
|
|
Depreciation, depletion and amortization |
| 9,606,444 |
|
|
| 8,566,185 |
|
Impairment of producing properties |
| 52,673 |
|
|
| 38,533 |
|
Provision for deferred income taxes |
| 528,678 |
|
|
| 4,303,731 |
|
Gain from leasing fee mineral acreage |
| (580,805) |
|
|
| (1,067,992) |
|
Proceeds from leasing fee mineral acreage |
| 597,389 |
|
|
| 1,213,913 |
|
Net (gain) loss on sales of assets |
| (518,816) |
|
|
| (4,728,758) |
|
Directors' deferred compensation expense |
| 185,082 |
|
|
| 228,017 |
|
Total (gain) loss on derivative contracts |
| (299,608) |
|
|
| (6,859,589) |
|
Cash receipts (payments) on settled derivative contracts |
| 4,297,603 |
|
|
| 2,743,475 |
|
Restricted stock award expense |
| 2,287,927 |
|
|
| 2,205,910 |
|
Other |
| 98,104 |
|
|
| 136,412 |
|
Cash provided (used) by changes in assets and liabilities: |
|
|
|
|
|
Natural gas, oil and NGL sales receivables |
| (1,228,828) |
|
|
| 4,883,870 |
|
Income taxes receivable |
| 127,371 |
|
|
| (455,931) |
|
Other current assets |
| (3,064) |
|
|
| (45,869) |
|
Accounts payable |
| 252,386 |
|
|
| 69,228 |
|
Other non-current assets |
| (22,985) |
|
|
| 206,292 |
|
Income taxes payable |
| - |
|
|
| (576,427) |
|
Accrued liabilities |
| 376,436 |
|
|
| (610,661) |
|
Total adjustments |
| 15,755,987 |
|
|
| 10,250,339 |
|
Net cash provided by operating activities |
| 18,077,853 |
|
|
| 24,171,139 |
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
Capital expenditures |
| (87,579) |
|
|
| (325,983) |
|
Acquisition of minerals and overriding royalty interests |
| (7,796,983) |
|
|
| (29,735,516) |
|
Net proceeds from sales of assets |
| 527,167 |
|
|
| 9,614,194 |
|
Net cash provided by (used in) investing activities |
| (7,357,395) |
|
|
| (20,447,305) |
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
Borrowings under credit facility |
| 3,000,000 |
|
|
| 19,500,000 |
|
Payments of loan principal |
| (6,250,000) |
|
|
| (20,050,000) |
|
Payments on off-market derivative contracts |
| - |
|
|
| (560,162) |
|
Purchases of treasury stock |
| (805,063) |
|
|
| (402,704) |
|
Payments of dividends |
| (5,229,547) |
|
|
| (3,520,366) |
|
Net cash provided by (used in) financing activities |
| (9,284,610) |
|
|
| (5,033,232) |
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
| 1,435,848 |
|
|
| (1,309,398) |
|
Cash and cash equivalents at beginning of period |
| 806,254 |
|
|
| 2,115,652 |
|
Cash and cash equivalents at end of period | $ | 2,242,102 |
|
| $ | 806,254 |
|
|
|
|
|
|
|
Supplemental Disclosures of Cash Flow Information: |
|
|
|
|
|
|
|
|
|
|
|
Interest paid (net of capitalized interest) | $ | 2,611,089 |
|
| $ | 2,405,361 |
|
Income taxes paid (net of refunds received) | $ | 318,789 |
|
| $ | 1,464,087 |
|
|
|
|
|
|
|
Supplemental Schedule of Noncash Investing and Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
Dividends declared and unpaid | $ | 155,271 |
|
| $ | 113,443 |
|
|
|
|
|
|
|
Gross additions to properties and equipment | $ | 7,893,036 |
|
| $ | 30,761,578 |
|
Net increase (decrease) in accounts receivable for properties |
|
|
|
|
|
and equipment additions |
| (8,474) |
|
|
| (700,079) |
|
Capital expenditures and acquisitions | $ | 7,884,562 |
|
| $ | 30,061,499 |
|
Derivative Contracts as of Dec. 31, 2024 |
|
|
| Production volume |
|
|
|
|
Contract period |
| covered per month |
| Index |
| Contract price |
|
|
|
|
|
|
|
Natural gas costless collars |
|
|
|
|
|
|
January - June 2025 |
| 30,000 Mmbtu |
| NYMEX Henry Hub |
| $3.00 floor / $5.00 ceiling |
January - March 2025 |
| 90,000 Mmbtu |
| NYMEX Henry Hub |
| $3.25 floor / $5.25 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 |
| 50,000 Mmbtu |
| NYMEX Henry Hub |
| $3.50 floor / $3.87 ceiling |
November 2025 - March 2026 |
| 15,000 Mmbtu |
| NYMEX Henry Hub |
| $3.50 floor / $5.15 ceiling |
April - June 2026 |
| 75,000 Mmbtu |
| NYMEX Henry Hub |
| $3.00 floor / $3.60 ceiling |
July - September 2026 |
| 100,000 Mmbtu |
| NYMEX Henry Hub |
| $3.00 floor / $3.60 ceiling |
Natural gas fixed price swaps |
|
|
|
|
|
|
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 |
November - January 2026 |
| 25,000 Mmbtu |
| NYMEX Henry Hub |
| $4.21 |
February 2026 |
| 15,000 Mmbtu |
| NYMEX Henry Hub |
| $4.21 |
March 2026 |
| 25,000 Mmbtu |
| NYMEX Henry Hub |
| $4.21 |
April - June 2026 |
| 50,000 Mmbtu |
| NYMEX Henry Hub |
| $3.10 |
Oil costless collars |
|
|
|
|
|
|
December 2024 |
| 500 Bbls |
| NYMEX WTI |
| $67.00 floor / $77.00 ceiling |
|
|
|
|
|
|
|
Oil fixed price swaps |
|
|
|
|
|
|
December 2024 - August 2025 |
| 1,000 Bbls |
| NYMEX WTI |
| $68.80 |
December 2024 - March 2025 |
| 1,600 Bbls |
| NYMEX WTI |
| $64.80 |
December 2024 |
| 500 Bbls |
| NYMEX WTI |
| $74.94 |
December 2024 |
| 2,000 Bbls |
| NYMEX WTI |
| $69.50 |
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 |
April - June 2026 |
| 1,000 Bbls |
| NYMEX WTI |
| $65.80 |
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 |
|
| Year Ended |
|
| Year Ended |
|
| Three Months
Ended |
|
| Dec. 31, 2024 |
|
| Dec. 31, 2023 |
|
| Dec. 31, 2024 |
|
| Dec. 31, 2023 |
|
| Sept. 30, 2024 |
|
Net Income | $ | 109,400 |
|
| $ | 2,513,444 |
|
| $ | 2,321,866 |
|
| $ | 13,920,800 |
|
| $ | 1,100,310 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
| (27,551) |
|
|
| 1,245,460 |
|
|
| 827,187 |
|
|
| 4,735,460 |
|
|
| 457,255 |
|
Interest expense |
| 573,920 |
|
|
| 723,685 |
|
|
| 2,563,268 |
|
|
| 2,362,393 |
|
|
| 622,480 |
|
DD&A |
| 2,605,809 |
|
|
| 2,443,154 |
|
|
| 9,606,444 |
|
|
| 8,566,185 |
|
|
| 2,376,025 |
|
Impairment expense |
| 52,673 |
|
|
| - |
|
|
| 52,673 |
|
|
| 38,533 |
|
|
| - |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash gains (losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on derivatives |
| (1,509,661) |
|
|
| 2,936,659 |
|
|
| (3,997,995) |
|
|
| 4,302,531 |
|
|
| 157,086 |
|
Gains (losses) on asset sales |
| - |
|
|
| 57,505 |
|
|
| 518,391 |
|
|
| 4,728,759 |
|
|
| 6,708 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash payments on off-market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
derivative contracts |
| - |
|
|
| - |
|
|
| - |
|
|
| (373,745) |
|
|
| - |
|
Restricted stock and deferred |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
director's expense |
| 561,603 |
|
|
| 572,709 |
|
|
| 2,473,008 |
|
|
| 2,433,927 |
|
|
| 513,059 |
|
Adjusted EBITDA | $ | 5,385,515 |
|
| $ | 4,504,288 |
|
| $ | 21,324,050 |
|
| $ | 22,652,263 |
|
| $ | 4,905,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Pretax Net Income (Loss) Reconciliation
"Adjusted pretax net income (loss)" is defined as earnings before taxes, excluding non-cash gains (losses) on derivatives. The Company has included a presentation of adjusted pretax net income (loss) 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 pretax net income (loss) 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 pretax net income (loss) may not be comparable to a similarly titled measure of other companies. The following table provides a reconciliation of net income (loss) to adjusted pretax net income (loss) for the periods indicated:
| Three Months Ended |
|
| Twelve Months
Ended |
|
| Twelve Months
Ended |
|
| Three Months Ended |
|
| Dec. 31, 2024 |
|
| Dec. 31, 2024 |
|
| Dec. 31, 2023 |
|
| Sept. 30, 2024 |
|
Net Income (Loss) | $ | 109,400 |
|
| $ | 2,321,866 |
|
| $ | 13,920,800 |
|
| $ | 1,100,310 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
| (27,551) |
|
|
| 827,187 |
|
|
| 4,735,460 |
|
|
| 457,255 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Non-cash gains (losses) |
|
|
|
|
|
|
|
|
|
|
|
on derivatives |
| (1,509,661) |
|
|
| (3,997,995) |
|
|
| 4,302,531 |
|
|
| 157,086 |
|
Adjusted Pretax Net Income (Loss) | $ | 1,591,510 |
|
| $ | 7,147,048 |
|
| $ | 14,353,729 |
|
| $ | 1,400,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
| 36,398,660 |
|
|
| 36,329,735 |
|
|
| 35,980,309 |
|
|
| 36,316,742 |
|
Diluted |
| 36,944,330 |
|
|
| 36,412,270 |
|
|
| 35,980,309 |
|
|
| 36,983,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Pretax Net Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
per basic share | $ | 0.04 |
|
| $ | 0.20 |
|
| $ | 0.40 |
|
| $ | 0.04 |
|
Adjusted Pretax Net Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
per diluted share | $ | 0.04 |
|
| $ | 0.20 |
|
| $ | 0.40 |
|
| $ | 0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
| Dec. 31, 2024 |
|
| Dec. 31, 2023 |
|
Net Income | $ | 2,321,866 |
|
| $ | 13,920,800 |
|
Plus: |
|
|
|
|
|
Income tax expense |
| 827,187 |
|
|
| 4,735,460 |
|
Interest expense |
| 2,563,268 |
|
|
| 2,362,393 |
|
DD&A |
| 9,606,444 |
|
|
| 8,566,185 |
|
Impairment expense |
| 52,673 |
|
|
| 38,533 |
|
Less: |
|
|
|
|
|
Non-cash gains (losses) |
|
|
|
|
|
on derivatives |
| (3,997,995) |
|
|
| 4,302,531 |
|
Gains (losses) on asset sales |
| 518,391 |
|
|
| 4,728,759 |
|
Plus: |
|
|
|
|
|
Cash payments on off-market derivative |
|
|
|
|
|
contracts |
| - |
|
|
| (373,745) |
|
Restricted stock and deferred |
|
|
|
|
|
director's expense |
| 2,473,008 |
|
|
| 2,433,927 |
|
Adjusted EBITDA | $ | 21,324,050 |
|
| $ | 22,652,263 |
|
|
|
|
|
|
|
Debt | $ | 29,500,000 |
|
| $ | 32,750,000 |
|
Debt-to-Adjusted EBITDA (TTM) |
| 1.38 |
|
|
| 1.45 |
|
|
|
|
|
|
|
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
View original content: https://www.prnewswire.com/news-releases/phx-minerals-reports-results-for-the-quarter-and-year-ended-dec-31-2024-302399998.html
SOURCE PHX MINERALS INC.
