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

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

FORT WORTH, Texas, Aug. 8, 2022 – 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowing Base

 

 

 

 

 

 

 

 

 

$

50,000,000

 

 

$

28,500,000

 

Debt

 

 

 

 

 

 

 

 

 

$

28,300,000

 

 

$

19,900,000

 

Debt to Adjusted EBITDA (TTM) (2)

 

 

 

 

 

 

 

 

 

 

1.31

 

 

 

1.45

 

 

 

  1. G&A excluding restricted stock and deferred director’s expense.
  2. This is a non-GAAP measure. Refer to the Non-GAAP Reconciliation section.

THIRD FISCAL QUARTER ENDED JUNE 30, 2022, RESULTS

The Company recorded third fiscal quarter 2022 net income of $8,589,010, or $0.25 per share, as compared to a net loss of ($1,356,594), or ($0.05) per share, in the third fiscal quarter 2021. The change in net income was principally the result of increased natural gas, oil and NGL sales, decreased losses associated with our hedge contracts and increased gains on asset sales, partially offset by an increase in general and administrative costs, or G&A, and income tax expense.

Natural gas, oil and NGL revenue increased $8,661,748, or 79%, for the third quarter 2022, compared to the corresponding 2021 quarter due to increases in natural gas, oil and NGL prices of 105%, 65% and 56%, respectively, and an increase in natural gas volumes of 1%, partially offset by a decrease in oil and NGL volumes of 12% and 15%, respectively.

The production increase in royalty volumes during the three months ended June 30, 2022, as compared to the three months ended June 30, 2021, resulted from new wells associated with 2021 and 2022 acquisitions in the Haynesville Shale and SCOOP plays coming online. The decrease in working interest volumes resulted from the divestiture of low-value legacy working interests in Oklahoma and the Fayetteville Shale in Arkansas, naturally declining production in high-interest wells in the Arkoma Stack and STACK plays, and legacy wells shut in in the Eagle Ford play while the operator completes new offset wells.

The Company had a net loss on derivative contracts of ($2,387,226) in the third fiscal 2022 quarter, as compared to a net loss of ($5,487,483) in the third fiscal 2021 quarter, of which ($5,670,147) is a realized loss and $3,282,921 is an unrealized gain with respect to the third fiscal 2022 quarter. Realized net loss on derivative contracts for the third fiscal 2022 quarter excludes $1,284,024 of cash paid to settle off-market derivative contracts. 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 June 30, 2022, pricing relative to the strike price on open derivative contracts.

The 10% increase in total cost per Mcfe in the third fiscal 2022 quarter, relative to the third fiscal 2021 quarter, was primarily driven by an increase in G&A and production taxes. G&A increased $602,510, or 26%, in the third fiscal 2022 quarter, compared to the corresponding 2021 quarter due to legal expenses associated with reincorporating in the state of Delaware, increased transaction activity and restricted stock expense. Production taxes increased $328,339, or 55%, due to increase in natural gas, oil and NGL revenue, but decreased as a percent of natural gas, oil and NGL revenue in the third fiscal 2022 quarter, compared to the corresponding 2021 quarter from 5.5% to 4.7%.

NINE MONTHS ENDED JUNE 30, 2022, RESULTS

The Company recorded net income of $11,250,804, or $0.33 per share, in the fiscal nine-month period ended June 30, 2022 (the “fiscal nine-month 2022 period”), as compared to a net loss of ($2,453,037), or ($0.10) per share, in the corresponding 2021 period. The change in net income was principally the result of increased natural gas, oil and NGL sales, gains on asset sales and lease bonuses and rental income, and decreased DD&A, partially offset by an increase in losses on derivative contracts, production taxes, G&A and income tax expense.

Natural gas, oil and NGL sales increased $22,361,973, or 87%, for the fiscal nine-month 2022 period, compared to the corresponding 2021 period, due to increases in natural gas, oil and NGL prices of 103%, 71% and 74%, respectively, and an increase in natural gas volumes of 6%, partially offset by a decrease in oil and NGL volumes of 13% and 1%, respectively.

Natural gas volumes increased during the nine months ended June 30, 2022, as compared to the nine months ended June 30, 2021, primarily as a result of new wells associated with recent acquisitions in the Haynesville Shale and SCOOP plays coming online. These gas volumes were partially offset by naturally declining production in high-interest wells in the Arkoma Stack and divestitures in the Fayetteville. NGL production decreased slightly as a result of naturally declining production from liquids-rich gas wells in the STACK. The decrease in oil production was a result of naturally declining production in working interest wells and the Company’s strategy of no longer participating with working interests in new drilling in the Eagle Ford play and reduced drilling activity of royalty wells in the Bakken play, as well as naturally declining production in high-interest wells brought online in the STACK during fiscal year 2021. Oil production decreases were partially offset by new wells in the SCOOP.

The Company had a net loss on derivative contracts of ($12,534,464) in the fiscal nine-month 2022 period, as compared to a net loss of ($8,089,662) in the corresponding 2021 period, of which ($8,595,246) is a realized loss and ($3,939,218) is an unrealized loss with respect to the fiscal nine-month 2022 period. Realized net loss on derivative contracts for the fiscal nine-month 2022 period excludes $6,465,597 of cash paid to settle off-market derivative contracts. 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 June 30, 2022, pricing relative to the strike price on open derivative contracts.

The 8% increase in total cost per Mcfe in the fiscal nine-month 2022 period, relative to the corresponding 2021 period, was primarily driven by an increase in G&A and production taxes, partially offset by a decrease in DD&A. G&A increased $1,651,758, or 27%, in the fiscal nine-month 2022 period, compared to the corresponding 2021 period due to legal expenses associated with reincorporating in the state of Delaware, increased transaction activity and restricted stock expense. Production taxes increased $958,499, or 75%, due to increase in natural gas, oil and NGL revenue, but decreased as a percent of natural gas, oil and NGL revenue in the nine-month 2022 period, compared to the corresponding 2021 period from 5.1% to 4.8%. DD&A decreased $448,465, or 7%, in the fiscal nine-month 2022 period to $0.82 per Mcfe, as compared to $0.90 per Mcfe in the corresponding 2021 period. Of the DD&A decrease, $587,155 was a result of an $0.08 decrease in the DD&A rate per Mcfe, partially offset by an increase of $138,690 resulting from production increasing 2% in the fiscal nine-month 2022 period, compared to the corresponding 2021 period. The DD&A rate per Mcfe decrease was mainly due to an increase in reserves during the fiscal nine-month 2022 period, as compared to the corresponding 2021 period.

OPERATIONS UPDATE

During the third fiscal quarter of 2022, the Company converted 96 gross (0.25 net) wells to producing status, including 39 gross (0.19 net) in the SCOOP and 12 gross (0.03 net) in the Haynesville, compared to 108 gross (0.48 net) wells, including 35 gross (0.04 net) in the SCOOP and 31 gross (0.33 net) in the Haynesville, during the second fiscal quarter of 2022.

At June 30, 2022, the Company had a total of 155 gross (0.79 net) wells in progress across its mineral positions and 65 gross (0.21 net) active permitted wells, compared to 134 gross (0.60 net) wells in progress and 52 gross (0.23 net) active permitted wells at March 31, 2022. As of June 30, 2022, 25 rigs were operating on the Company’s acreage with 96 rigs operating within 2.5 miles of its acreage, compared to 18 rigs operating on the Company’s acreage with 86 rigs operating within 2.5 miles of its acreage as of March 31, 2022.

 

 

 

 

 

 

 

 

 

 

 

 

Bakken/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three

 

 

Arkoma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCOOP

 

 

STACK

 

 

 

 

Forks

 

 

Stack

 

 

Fayetteville

 

 

Haynesville

 

 

Other

 

 

Total

 

As of June 30, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Wells in Progress on PHX Acreage

 

 

46

 

 

 

20

 

 

 

 

 

11

 

 

 

9

 

 

 

-

 

 

 

62

 

 

 

7

 

 

 

155

 

Net Wells in Progress on PHX Acreage

 

 

0.17

 

 

 

0.09

 

 

 

 

 

0.05

 

 

 

0.01

 

 

 

-

 

 

 

0.43

 

 

 

0.04

 

 

 

0.79

 

Gross Active Permits on PHX Acreage

 

 

20

 

 

 

17

 

 

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

16

 

 

 

10

 

 

 

65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rigs Present on PHX Acreage

 

 

6

 

 

 

2

 

 

 

 

 

3

 

 

 

-

 

 

 

-

 

 

 

12

 

 

 

2

 

 

 

25

 

Rigs Within 2.5 Miles of PHX Acreage

 

 

21

 

 

 

20

 

 

 

 

 

6

 

 

 

4

 

 

 

-

 

 

 

36

 

 

 

9

 

 

 

96

 

Leasing Activity

During the third quarter of fiscal 2022, the Company leased 395 net mineral acres for an average bonus payment of $512 per net mineral acre and an average royalty of 22%.

 

 

 

 

 

 

 

 

 

 

Bakken/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three

 

 

Arkoma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCOOP

 

 

STACK

 

 

Forks

 

 

Stack

 

 

Fayetteville

 

 

Haynesville

 

 

Other

 

 

Total

 

During Three Months Ended June 30, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Mineral Acres Leased

 

 

15

 

 

 

112

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

68

 

 

 

200

 

 

 

395

 

Average Bonus per Net Mineral Acre

 

$

325

 

 

$

1,000

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$

500

 

 

$

355

 

 

$

512

 

Average Royalty per Net Mineral Acre

 

23%

 

 

23%

 

 

 

-

 

 

-

 

 

 

-

 

 

23%

 

 

21%

 

 

22%

 

 

ACQUISITION AND DIVESTITURE UPDATE

During the third quarter of fiscal year 2022, the Company purchased 938 net royalty acres for approximately $9.1 million and sold 2,387 net mineral acres, which were outside our core focus areas and predominantly undeveloped and unleased, for approximately $0.5 million.

 

 

 

 

 

 

 

 

 

 

Bakken/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three

 

 

Arkoma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCOOP

 

 

STACK

 

 

Forks

 

 

Stack

 

 

Fayetteville

 

 

Haynesville

 

 

Other

 

 

Total

 

During Three Months Ended June 30, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Mineral Acres Purchased

 

 

208

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

448

 

 

 

-

 

 

 

656

 

Net Royalty Acres Purchased

 

 

216

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

722

 

 

 

-

 

 

 

938

 

Price per Net Royalty Acre

 

$

9,394

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$

9,830

 

 

 

-

 

 

$

9,730

 

Net Mineral Acres Sold

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,387

 

 

 

2,387

 

Net Royalty Acres Sold

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,387

 

 

 

2,387

 

Price per Net Royalty Acre

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$

214

 

 

$

214

 

 

THIRD QUARTER EARNINGS CALL

PHX will host a conference call to discuss the Company’s third fiscal quarter results at 11:00 a.m. EDT tomorrow Aug. 9, 2022. 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 (domestic) or 201-389-0927 (international). 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 13731836.

 

FINANCIAL RESULTS

Statements of Operations

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

Natural gas, oil and NGL sales

$

19,561,568

 

 

$

10,899,820

 

 

$

48,032,597

 

 

$

25,670,624

 

Lease bonuses and rental income

 

209,329

 

 

 

259,152

 

 

 

450,152

 

 

 

319,139

 

Gains (losses) on derivative contracts

 

(2,387,226

)

 

 

(5,487,483

)

 

 

(12,534,464

)

 

 

(8,089,662

)

 

 

17,383,671

 

 

 

5,671,489

 

 

 

35,948,285

 

 

 

17,900,101

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

900,807

 

 

 

1,064,989

 

 

 

3,086,272

 

 

 

3,100,052

 

Transportation, gathering and marketing

 

1,430,136

 

 

 

1,538,174

 

 

 

4,132,258

 

 

 

4,138,653

 

Production taxes

 

925,197

 

 

 

596,858

 

 

 

2,301,537

 

 

 

1,316,038

 

Depreciation, depletion and amortization

 

2,022,832

 

 

 

2,137,707

 

 

 

5,727,708

 

 

 

6,176,173

 

Provision for impairment

 

6,277

 

 

 

45,855

 

 

 

11,862

 

 

 

45,855

 

Interest expense

 

286,345

 

 

 

220,439

 

 

 

693,276

 

 

 

790,202

 

General and administrative

 

2,877,614

 

 

 

2,275,104

 

 

 

7,717,435

 

 

 

6,065,677

 

Losses (gains) on asset sales and other

 

(630,547

)

 

 

(35,043

)

 

 

(743,867

)

 

 

(177,512

)

Total costs and expenses

 

7,818,661

 

 

 

7,844,083

 

 

 

22,926,481

 

 

 

21,455,138

 

Income (loss) before provision (benefit) for income taxes

 

9,565,010

 

 

 

(2,172,594

)

 

 

13,021,804

 

 

 

(3,555,037

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

 

976,000

 

 

 

(816,000

)

 

 

1,771,000

 

 

 

(1,102,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

8,589,010

 

 

$

(1,356,594

)

 

$

11,250,804

 

 

$

(2,453,037

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per common share

$

0.25

 

 

$

(0.05

)

 

$

0.33

 

 

$

(0.10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

34,652,155

 

 

 

28,309,258

 

 

 

34,009,105

 

 

 

24,482,639

 

Diluted

 

34,851,214

 

 

 

28,309,258

 

 

 

34,009,105

 

 

 

24,482,639

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

common stock paid in period

$

0.02

 

 

$

0.01

 

 

$

0.045

 

 

$

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheets

 

 

June 30, 2022

 

 

Sept. 30, 2021

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

4,489,282

 

 

$

2,438,511

 

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

 

11,780,557

 

 

 

6,428,982

 

allowance for uncollectable accounts)

 

 

 

 

 

 

 

Refundable income taxes

 

860,416

 

 

 

2,413,942

 

Other

 

1,276,942

 

 

 

942,082

 

Total current assets

 

18,407,197

 

 

 

12,223,517

 

 

 

 

 

 

 

 

 

Properties and equipment at cost, based on

 

 

 

 

 

 

 

   successful efforts accounting:

 

 

 

 

 

 

 

Producing natural gas and oil properties

 

265,800,998

 

 

 

319,984,874

 

Non-producing natural gas and oil properties

 

50,204,756

 

 

 

40,466,098

 

Other

 

972,770

 

 

 

794,179

 

 

 

316,978,524

 

 

 

361,245,151

 

Less accumulated depreciation, depletion and amortization

 

(193,551,159

)

 

 

(257,643,661

)

Net properties and equipment

 

123,427,365

 

 

 

103,601,490