PHX Minerals Inc. Reports Third Quarter 2021 Results And Announces Dividend Payment

OKLAHOMA CITY, Aug. 5, 2021 – PHX MINERALS INC., “PHX” or the “Company,” (NYSE: PHX), today reported financial and operating results for the third quarter ended June 30, 2021.

SUMMARY OF RESULTS FOR THE PERIOD ENDED JUNE 30, 2021, AND SUBSEQUENT EVENTS

  • Production volumes for the third fiscal quarter of 2021 increased 31% to 2,493 Mmcfe from 1,904 Mmcfe in the third fiscal quarter of 2020 and increased 9% from 2,297 Mmcfe in the second fiscal quarter of 2021.
  • Net loss in the third fiscal quarter of 2021 was $1.4 million, or $0.05 per share, as compared to net loss of $3.6 million, or $0.21 per share, in the third fiscal quarter of 2020 and net loss of $0.5 million, or $0.02 per share, in the second fiscal quarter of 2021.
  • Adjusted EBITDA excluding gain/loss on asset sales(1) for the third quarter of 2021 was $4.7 million, increased from $1.2 million in the third fiscal quarter of 2020 and increased from $3.4 million in the second fiscal quarter of 2021.
  • On April 30, 2021, the Company closed on the acquisition of 2,514 net royalty acres in the SCOOP play of Oklahoma for approximately $8.5 million in cash and 1.2 million shares of PHX common stock.
  • Additionally, during the quarter ended June 30, the Company closed on two separate acquisitions totaling 393 net royalty acres in the Haynesville for an aggregate $2.3 million in cash.
  • Total debt was reduced to $19.9 million as of June 30, 2021, a 15% decrease from the $23.5 million as of March 31, 2021.
  • Debt to adjusted EBITDA (TTM) (1) ratio was 1.47x at June 30, 2021.
  • A payment of a one cent per share dividend payable on Sept. 10, 2021, to stockholders of record on Aug. 26, 2021, was approved.

Chad L. Stephens, President and CEO, commented, “PHX’s third quarter 2021 reflects excellent quarterly results as we reported adjusted EBITDA of $4.7 million, an increase of 38% over the sequential prior quarter and a 292% increase compared to the year over year quarter. This is due mainly to higher volumes and improved commodity prices. Importantly, it is a direct reflection of our continued success as we execute our stated strategy of growth through mineral acquisitions in our core focus areas. During the quarter, we closed on the purchase of minerals in three different acquisitions located in the Haynesville and SCOOP for $13.25 million of total consideration, the cash portion of which was funded with proceeds from the April equity offering. This brings our total year to date acquisitions to approximately $21.2 million. We also closed on the sale of non-core/non-operated working interest in 71 well bores for approximately $225,000 as part of our strategy of constantly looking to high grade our asset base.

                “Additionally, we reduced our debt to $19.9 million at quarter end, which represents a 15% reduction to sequential prior quarter and a 34% reduction compared to the year over year quarter. Current debt equates to a roughly 1.5x Debt to adjusted EBITDA (TTM) (1). Our goal is to achieve a 1.2x Debt to EBITDA (TTM) (1) by fiscal year end Sept. 30, 2021. This puts us in a strong financial position and will allow us to allocate a majority of our growing free cash flow to mineral acquisitions over the coming quarters. We look forward to informing you of our results to drive shareholder value in the future.”

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

 

OPERATING HIGHLIGHTS

 

Third Quarter Ended

 

 

Third Quarter Ended

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

June 30, 2021

 

 

June 30, 2020

 

 

June 30, 2021

 

 

June 30, 2020

 

Mcfe Sold

 

2,492,813

 

 

 

1,903,752

 

 

 

6,863,949

 

 

 

6,555,378

 

Average Sales Price per Mcfe

$

4.37

 

 

$

1.85

 

 

$

3.74

 

 

$

2.80

 

Gas Mcf Sold

 

1,879,343

 

 

 

1,361,909

 

 

 

5,090,619

 

 

 

4,539,103

 

Average Sales Price per Mcf

$

3.33

 

 

$

1.36

 

 

$

2.77

 

 

$

1.73

 

Oil Barrels Sold

 

55,492

 

 

 

55,138

 

 

 

170,437

 

 

 

214,159

 

Average Sales Price per Barrel

$

63.77

 

 

$

25.94

 

 

$

52.95

 

 

$

42.43

 

NGL Barrels Sold

 

46,753

 

 

 

35,169

 

 

 

125,118

 

 

 

121,887

 

Average Sales Price per Barrel

$

23.58

 

 

$

6.62

 

 

$

20.42

 

 

$

11.26

 

Total Production for the last four quarters was as follows:

Quarter ended

 

Mcf Sold

 

 

Oil Bbls Sold

 

 

NGL Bbls Sold

 

 

Mcfe Sold

 

6/30/2021

 

 

1,879,343

 

 

 

55,492

 

 

 

46,753

 

 

 

2,492,813

 

3/31/2021

 

 

1,735,820

 

 

 

56,269

 

 

 

37,228

 

 

 

2,296,802

 

12/31/2020

 

 

1,475,456

 

 

 

58,675

 

 

 

41,138

 

 

 

2,074,334

 

9/30/2020

 

 

1,423,602

 

 

 

55,626

 

 

 

46,737

 

 

 

2,037,779

 

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

Quarter ended

 

Mcf Sold

 

 

Oil Bbls Sold

 

 

NGL Bbls Sold

 

 

Mcfe Sold

 

6/30/2021

 

 

908,471

 

 

 

31,095

 

 

 

18,255

 

 

 

1,204,571

 

3/31/2021

 

 

924,969

 

 

 

31,768

 

 

 

19,088

 

 

 

1,230,105

 

12/31/2020

 

 

487,925

 

 

 

27,840

 

 

 

14,948

 

 

 

744,653

 

9/30/2020

 

 

491,234

 

 

 

27,326

 

 

 

20,181

 

 

 

776,276

 

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

Quarter ended

 

Mcf Sold

 

 

Oil Bbls Sold

 

 

NGL Bbls Sold

 

 

Mcfe Sold

 

6/30/2021

 

 

970,872

 

 

 

24,397

 

 

 

28,498

 

 

 

1,288,242

 

3/31/2021

 

 

810,851

 

 

 

24,501

 

 

 

18,140

 

 

 

1,066,697

 

12/31/2020

 

 

987,531

 

 

 

30,835

 

 

 

26,190

 

 

 

1,329,681

 

9/30/2020

 

 

932,368

 

 

 

28,300

 

 

 

26,556

 

 

 

1,261,503

 

FINANCIAL HIGHLIGHTS

 

 

Third Quarter Ended

 

 

Third Quarter Ended

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

June 30, 2021

 

 

June 30, 2020

 

 

June 30, 2021

 

 

June 30, 2020

 

    Working Interest Sales

 

$

5,486,978

 

 

$

1,876,489

 

 

$

13,245,980

 

 

$

9,976,274

 

    Royalty Interest Sales

 

$

5,412,842

 

 

$

1,641,072

 

 

$

12,424,644

 

 

$

8,352,743

 

Natural Gas, Oil and NGL Sales

 

$

10,899,820

 

 

$

3,517,561

 

 

$

25,670,624

 

 

$

18,329,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Bonuses and Rental Income

 

$

259,152

 

 

$

22,996

 

 

$

319,139

 

 

$

572,787

 

Total Revenue

 

$

5,941,559

 

 

$

2,705,383

 

 

$

18,213,696

 

 

$

24,593,201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOE per Mcfe

 

$

0.43

 

 

$

0.60

 

 

$

0.45

 

 

$

0.59

 

Transportation, Gathering and Marketing per Mcfe

 

$

0.62

 

 

$

0.50

 

 

$

0.60

 

 

$

0.56

 

Production Tax per Mcfe

 

$

0.24

 

 

$

0.07

 

 

$

0.19

 

 

$

0.13

 

G&A Expense per Mcfe

 

$

0.91

 

 

$

1.00

 

 

$

0.88

 

 

$

0.96

 

Interest Expense per Mcfe

 

$

0.09

 

 

$

0.13

 

 

$

0.12

 

 

$

0.15

 

DD&A per Mcfe

 

$

0.86

 

 

$

1.29

 

 

$

0.90

 

 

$

1.34

 

Total Expense per Mcfe

 

$

3.15

 

 

$

3.59

 

 

$

3.14

 

 

$

3.73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

(1,356,594

)

 

$

(3,555,215

)

 

$

(2,453,037

)

 

$

(22,117,915

)

Adj. Pre-Tax Net Income (Loss) (1)

 

$

2,356,054

 

 

$

(1,536,925

)

 

$

3,891,673

 

 

$

990,306

 

Adjusted EBITDA (1)

 

$

4,714,200

 

 

$

1,168,834

 

 

$

10,858,048

 

 

$

10,742,522

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flow from Operations

 

$

5,563,226

 

 

$

3,717,398

 

 

$

10,240,333

 

 

$

9,825,740

 

CapEx - Drilling & Completing

 

$

271,661

 

 

$

56,413

 

 

$

696,759

 

 

$

196,168

 

CapEx - Mineral Acquisitions

 

$

11,402,761

 

 

$

50,000

 

 

$

19,337,265

 

 

$

10,304,016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowing Base

 

 

 

 

 

 

 

 

 

$

28,500,000

 

 

$

32,000,000

 

Debt

 

 

 

 

 

 

 

 

 

$

19,900,000

 

 

$

30,000,000

 

Debt/Adjusted EBITDA (TTM) (1)

 

 

 

 

 

 

 

 

 

 

1.47

 

 

 

1.48

 

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

THIRD QUARTER 2021 RESULTS

The Company recorded a third quarter 2021 net loss of $1,356,594, or $0.05 per share, as compared to a net loss of $3,555,215, or $0.21 per share, in the third quarter 2020. The change in net loss was principally the result of increased natural gas, oil and NGL sales and decreased LOE, DD&A and impairment expense, partially offset by an increase in losses on derivative contracts, G&A, transportation, gathering and marketing expenses and production taxes.

Natural gas, oil and NGL revenue increased $7,382,259, or 210%, for the third quarter 2021, compared to the corresponding 2020 quarter due to increases in natural gas, oil and NGL prices of 145%, 146% and 256%, respectively, and an increase in natural gas, oil and NGL volumes of 38%, 1% and 33%, respectively.

Production increased across all three product categories during the three months ended June 30, 2021, as compared to the three months ended June 30, 2020, due to improved market conditions, resulting in (i) previously curtailed, high interest wells being worked over and brought fully back online in the STACK, Arkoma Stack, and Fayetteville Shale, (ii) acquisitions in the STACK and Haynesville, and (iii) increased drilling and completions activity in the STACK and SCOOP. These were partially offset by plays with naturally declining production in high interest wells, such as the Eagle Ford Shale.

The Company had a net loss on derivative contracts of $5,487,483 in the 2021 quarter, as compared to a net loss of $838,282 in the 2020 quarter. The net loss on derivative contracts in both periods was principally due to the natural gas and oil collars and fixed price swaps being less beneficial in relation to their respective contracted volumes and prices at the beginning of the periods.

The 12% decrease in total cost per Mcfe in the 2021 quarter, relative to the 2020 quarter, was primarily driven by a decrease in DD&A. DD&A decreased $326,861, or 13%, in the 2021 quarter to $0.86 per Mcfe, as compared to $1.29 per Mcfe in the 2020 quarter. Of the DD&A decrease, $1,086,750 was a result of a $0.43 decrease in the DD&A rate per Mcfe, partially offset by an increase of $759,889 resulting from production increasing 31% in the 2021 quarter. The rate decrease was mainly due to an increase in reserves during the 2021 quarter, as compared to the 2020 quarter.

NINE MONTHS 2021 RESULTS

The Company recorded a nine-month net loss of $2,453,037, or $0.10 per share, in the 2021 period, as compared to a net loss of $22,117,915, or $1.34 per share, in the 2020 period. The change in net loss was principally the result of increased natural gas, oil and NGL sales and decreased LOE, DD&A, impairment expense and G&A, partially offset by an increase in losses on derivative contracts, transportation, gathering and marketing expenses, production taxes and a reduction in gain on asset sales and income tax benefit.

Natural gas, oil and NGL sales increased $7,341,607, or 40%, for the 2021 period, compared to the 2020 period due to increases in natural gas, oil and NGL prices of 60%, 25% and 81%, respectively, and an increase in natural gas and NGL volumes of 12% and 3%, respectively.

Natural gas volumes increased during the nine months ended June 30, 2021, as compared to the nine months ended June 30, 2020, primarily as a result of (i) acquisitions in the Haynesville Shale, (ii) maintenance workovers on high-interest wells in the Arkoma Stack, and (iii) increased drilling and completion activity in the STACK.  These gas volumes were partially offset by naturally declining production in the Fayetteville Shale and production downtime and curtailments in response to market conditions in the SCOOP.  The decrease in oil production was primarily due to naturally declining production in high-interest wells brought online during the first quarter of 2020 in the Bakken, as well as reduced drilling and completion activity in 2021 due to prevailing economic conditions compared to 2020 in the Eagle Ford and SCOOP. Oil production decreases were partially offset by increased drilling and completion activity in the STACK. The increased activity in the STACK also resulted in increased NGL production, which was partially offset by production downtime and curtailments in high-interest wells in in the SCOOP as well as naturally declining production in liquid-rich gas areas of the Anadarko Granite Wash.

The Company had a net loss on derivative contracts of $8,089,662 in the 2021 period, as compared to a net gain of $2,415,401 in the 2020 period. The net loss on derivative contracts in the current period was principally due to the natural gas and oil collars and fixed price swaps being less beneficial in relation to their respective contracted volumes and prices at the beginning of the period.

The 16% decrease in total cost per Mcfe in the 2021 period, relative to the 2020 period, was primarily driven by a decrease in DD&A. DD&A decreased $2,617,614, or 30%, in the 2021 period to $0.90 per Mcfe, as compared to $1.34 per Mcfe in the 2020 period. Of the DD&A decrease, $3,031,099 was a result of a $0.44 decrease in the DD&A rate per Mcfe, partially offset by an increase of $413,485 resulting from production increasing 5% in the 2021 period. The rate decrease was mainly due an increase in reserves during the 2021 period, as compared to the 2020 period.

OPERATIONS UPDATE

During the quarter ended June 30, 2021, 37 gross and 0.18 net wells in progress converted to producing wells. Our inventory of wells in progress increased to 97 gross wells and 0.48 net wells.

 

 

 

 

 

 

 

 

 

 

Bakken/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three

 

 

Arkoma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCOOP

 

 

STACK

 

 

Forks

 

 

Stack

 

 

Permian

 

 

Fayetteville

 

 

Haynesville

 

 

Other

 

 

Total

 

Gross Wells in Progress on PHX Acreage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of 3/31/21

 

 

42

 

 

 

13

 

 

 

3

 

 

 

2

 

 

 

3

 

 

 

-

 

 

 

13

 

 

 

4

 

 

 

80

 

Net Change

 

 

18

 

 

 

1

 

 

 

-2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-1

 

 

 

1

 

 

 

17

 

As of 6/30/21

 

 

60

 

 

 

14

 

 

 

1

 

 

 

2

 

 

 

3

 

 

 

-

 

 

 

12

 

 

 

5

 

 

 

97

 

Net Wells in Progress on PHX Acreage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of 3/31/21

 

 

0.08

 

 

 

0.03

 

 

 

-

 

 

 

-

 

 

 

0.14

 

 

 

-

 

 

 

0.13

 

 

 

0.06

 

 

 

0.44

 

Net Change

 

 

0.05

 

 

 

0.01

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-0.01

 

 

 

-0.01

 

 

 

0.04

 

As of 6/30/21

 

 

0.13

 

 

 

0.04

 

 

 

-

 

 

 

-

 

 

 

0.14

 

 

 

-

 

 

 

0.12

 

 

 

0.05

 

 

 

0.48

 

Gross Active Permits on PHX Acreage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of 3/31/21

 

 

14

 

 

 

11

 

 

 

6

 

 

 

3

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6

 

 

 

40

 

Net Change

 

 

-1

 

 

 

-4

 

 

 

-1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-6

 

As of 6/30/21

 

 

13

 

 

 

7

 

 

 

5

 

 

 

3

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6

 

 

 

34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of 6/30/21:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rigs Present on PHX Acreage

 

 

6

 

 

 

1

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3

 

 

 

1

 

 

 

13

 

Rigs Within 2.5 Miles of PHX Acreage

 

 

12

 

 

 

7

 

 

 

6

 

 

 

1

 

 

 

2

 

 

 

-

 

 

 

13

 

 

 

5

 

 

 

46

 

Leasing Activity

During the third quarter of fiscal 2021, the Company leased 518 net mineral acres for $270,890, primarily in Dawson County, TX in the Midland Basin.

 

 

 

 

 

 

 

 

 

 

Bakken/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three

 

 

Arkoma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCOOP

 

 

STACK

 

 

Forks

 

 

Stack

 

 

Permian

 

 

Fayetteville

 

 

Haynesville

 

 

Other

 

 

Total

 

During Three Months Ended 6/30/21:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Mineral Acres Leased

 

 

-

 

 

 

30

 

 

 

-

 

 

 

-

 

 

 

307

 

 

 

-

 

 

 

-

 

 

 

181

 

 

 

518

 

Average Bonus per Net Mineral Acre

 

 

-

 

 

$

500

 

 

 

-

 

 

 

-

 

 

$

527

 

 

 

-

 

 

 

-

 

 

$

377

 

 

$

524

 

Average Royalty per Net Mineral Acre

 

-

 

 

20%

 

 

 

-

 

 

-

 

 

25%

 

 

 

-

 

 

 

-

 

 

19%

 

 

22%

 

ACQUISITION AND DIVESTITURE UPDATE

During the third quarter of fiscal 2021, the Company purchased 2,913 net royalty acres for $13,310,340 and sold 5,197 net royalty acres at an average price of $57 per acre.

 

 

 

 

 

 

 

 

 

 

Bakken/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three

 

 

Arkoma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCOOP

 

 

STACK

 

 

Forks

 

 

Stack

 

 

Permian

 

 

Fayetteville

 

 

Haynesville

 

 

Other

 

 

Total

 

During Three Months Ended 6/30/21:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Mineral Acres Purchased

 

 

1,819

 

 

 

47

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

308

 

 

 

23

 

 

 

2,197

 

Net Royalty Acres Purchased

 

 

2,420

 

 

 

61

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

398

 

 

 

34

 

 

 

2,913

 

Price per Net Royalty Acre

 

$

4,455

 

 

$

1,624

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$

5,955

 

 

$

1,754

 

 

$

4,570

 

Net Mineral Acres Sold

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,857

 

 

 

-

 

 

 

-

 

 

 

32

 

 

 

2,889

 

Net Royalty Acres Sold

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,165

 

 

 

-

 

 

 

-

 

 

 

32

 

 

 

5,197

 

Price per Net Royalty Acre

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$

55

 

 

 

-

 

 

 

-

 

 

$

391

 

 

$

57

 

THIRD QUARTER EARNINGS CALL

PHX will host a conference call to discuss third quarter results at 5:00 p.m. EDT on Aug. 5, 2021. 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 13720096.

 

FINANCIAL RESULTS

Statements of Operations

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenues:

 

 

 

 

 

Natural gas, oil and NGL sales

$

10,899,820

 

 

$

3,517,561

 

 

$

25,670,624

 

 

$

18,329,017

 

Lease bonuses and rental income

 

259,152

 

 

 

22,996

 

 

 

319,139

 

 

 

572,787

 

Gains (losses) on derivative contracts

 

(5,487,483

)

 

 

(838,282

)

 

 

(8,089,662

)

 

 

2,415,401

 

Gain on asset sales

 

270,070

 

 

 

3,108

 

 

 

313,595

 

 

 

3,275,996

 

 

 

5,941,559

 

 

 

2,705,383

 

 

 

18,213,696

 

 

 

24,593,201

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

1,064,989

 

 

 

1,147,948

 

 

 

3,100,052

 

 

 

3,871,818

 

Transportation, gathering and marketing

 

1,538,174

 

 

 

956,653

 

 

 

4,138,653

 

 

 

3,696,282

 

Production taxes

 

596,858

 

 

 

134,249

 

 

 

1,316,038

 

 

 

835,284

 

Depreciation, depletion and amortization

 

2,137,707

 

 

 

2,464,568

 

 

 

6,176,173

 

 

 

8,793,787

 

Provision for impairment

 

45,855

 

 

 

358,826

 

 

 

45,855

 

 

 

29,904,528

 

Interest expense

 

220,439

 

 

 

241,191

 

 

 

790,202

 

 

 

958,429

 

General and administrative

 

2,275,104

 

 

 

1,908,790

 

 

 

6,065,677

 

 

 

6,306,479

 

Other expense (income)

 

235,027

 

 

 

(73,687

)

 

 

136,083

 

 

 

(44,551

)

 Total costs and expenses

 

8,114,153

 

 

 

7,138,538

 

 

 

21,768,733

 

 

 

54,322,056

 

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

 

(2,172,594

)

 

 

(4,433,155

)

 

 

(3,555,037

)

 

 

(29,728,855

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

 

(816,000

)

 

 

(877,940

)

 

 

(1,102,000

)

 

 

(7,610,940

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(1,356,594

)

 

$

(3,555,215

)

 

$

(2,453,037

)

 

$

(22,117,915

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per common share

$

(0.05

)

 

$

(0.21

)

 

$

(0.10

)

 

$

(1.34

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares

 

28,117,199

 

 

 

16,403,243

 

 

 

24,308,185

 

 

 

16,375,736

 

Unissued, directors' deferred compensation shares

 

192,059

 

 

 

141,799

 

 

 

174,454

 

 

 

152,500

 

 

 

28,309,258

 

 

 

16,545,042

 

 

 

24,482,639

 

 

 

16,528,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per share of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

common stock and paid in period

$

0.01

 

 

$

0.01

 

 

$

0.03

 

 

$

0.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheets

 

June 30, 2021

 

 

Sept. 30, 2020

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

2,908,500

 

 

$

10,690,395

 

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

 

5,114,387

 

 

 

2,943,220

 

allowance for uncollectable accounts)

 

 

 

 

 

 

 

Refundable income taxes

 

2,379,756

 

 

 

3,805,227

 

Other

 

480,600

 

 

 

351,088

 

Total current assets

 

10,883,243

 

 

 

17,789,930

 

 

 

 

 

 

 

 

 

Properties and equipment at cost, based on

 

 

 

 

 

 

 

   successful efforts accounting:

 

 

 

 

 

 

 

Producing natural gas and oil properties

 

323,187,303

 

 

 

324,886,491

 

Non-producing natural gas and oil properties

 

32,894,588

 

 

 

18,993,814

 

Other

 

681,125

 

 

 

582,444

 

 

 

356,763,016

 

 

 

344,462,749

 

Less accumulated depreciation, depletion and amortization

 

(259,018,926

)

 

 

(263,590,801

)

Net properties and equipment

 

97,744,090

 

 

 

80,871,948

 

 

 

 

 

 

 

 

 

Operating lease right-of-use assets

 

628,617

 

 

 

690,316

 

Other, net

 

558,659

 

 

 

669,641

 

Total assets

$

109,814,609

 

 

$

100,021,835

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

$

1,173,258

 

 

$

997,637

 

Derivative contracts, net

 

6,754,328

 

 

 

281,942

 

Current portion of operating lease liability

 

130,973

 

 

 

127,108

 

Accrued liabilities and other

 

1,324,482

 

 

 

1,297,363

 

Short-term debt

 

-

 

 

 

1,750,000

 

Total current liabilities

 

9,383,041

 

 

 

4,454,050

 

 

 

 

 

 

 

 

 

Long-term debt

 

19,900,000

 

 

 

27,000,000

 

Deferred income taxes, net

 

212,007

 

 

 

1,329,007

 

Asset retirement obligations

 

2,845,919

 

 

 

2,897,522

 

Derivative contracts, net

 

1,354,174

 

 

 

425,705

 

Operating lease liability, net of current portion

 

822,907

 

 

 

921,625

 

 

 

 

 

 

 

 

 

Total liabilities

 

34,518,048

 

 

 

37,027,909

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

Class A voting common stock, $0.01666 par value; 36,000,500

 

 

 

 

 

 

 

shares authorized and 30,200,226 issued at June 30, 2021;

 

 

 

 

 

 

 

24,000,500 shares authorized and 22,647,306 issued at Sept. 30, 2020

 

503,136

 

 

 

377,304

 

Capital in excess of par value

 

25,844,372

 

 

 

10,649,611

 

Deferred directors' compensation

 

1,701,110

 

 

 

1,874,007

 

Retained earnings

 

53,033,376

 

 

 

56,244,100

 

 

 

81,081,994

 

 

 

69,145,022

 

Less treasury stock, at cost; 388,545 shares at June 30,

 

 

 

 

 

 

 

2021, and 411,487 shares at Sept. 30, 2020

 

(5,785,433

)

 

 

(6,151,096

)

Total stockholders' equity