FORT
WORTH, Texas, Aug. 8, 2022
/PRNewswire/ -- PHX MINERALS INC., "PHX" or the "Company" (NYSE:
PHX), today reported financial and operating results for the third
fiscal quarter ended June 30,
2022.
SUMMARY OF RESULTS FOR THE QUARTER ENDED JUNE 30, 2022, AND SUBSEQUENT EVENTS
- Net income in the third fiscal quarter of 2022 was $8.6 million, or $0.25 per share, compared to net loss of
($4.0) million, or ($0.12) per share, in the second fiscal quarter
of 2022.
- Adjusted EBITDA(1) of $7.2
million for the third fiscal quarter of 2022 increased from
$5.8 million in the second fiscal
quarter of 2022.
- Royalty production volumes for the third fiscal quarter of 2022
increased 3% to 1,595 Mmcfe, and total production volumes for the
third fiscal quarter of 2022 decreased 1% to 2,430 Mmcfe, compared
to the second fiscal quarter of 2022.
- 80% of royalty production volumes and 78% of total production
volumes in the third fiscal quarter of 2022 were attributable to
natural gas.
- 96 gross (0.25 net) wells converted to PDP, including 39 gross
(0.19 net) in the SCOOP and 12 gross (0.03 net) in the Haynesville, during the third fiscal quarter
of 2022, compared to 108 gross (0.48 net) in the second fiscal
quarter of 2022.
- 155 gross (0.79 net) wells in progress as of June 30, 2022, compared to 134 gross (0.60 net)
as of March 31, 2022.
- Total debt was $28.3 million and
the debt to adjusted EBITDA (TTM) (1) ratio was 1.31x at
June 30, 2022.
- During the third fiscal quarter of 2022, PHX closed on
acquisitions totaling 938 net royalty acres located in the SCOOP
play of Oklahoma and the
Haynesville play of East Texas and Louisiana for approximately $9.1 million.
- Since June 30, 2022, PHX has
closed on additional acquisitions of 544 net royalty acres located
in the SCOOP play of Oklahoma and
the Haynesville play of
Louisiana for approximately
$8.2 million.
- PHX has entered into a PSA to divest the remainder of its
non-operated working interest position in the Fayetteville Shale of
Arkansas for approximately
$6 million subject to customary
closing adjustments.
- PHX announced a $0.02 per share
quarterly dividend, payable on Sept. 9,
2022, to stockholders of record on Aug. 25, 2022.
(1)
This is a non-GAAP measure. Refer to the Non-GAAP Reconciliation
section.
|
Chad L. Stephens, President and
CEO, commented, "I am pleased to report another outstanding
quarter of financial results including adjusted EBITDA of
$7.2 million, a 22% increase over the
prior sequential quarter. I would like to thank all of the PHX
employees for their hard work that helped the company achieve these
excellent third quarter 2022 results.
Consistent with our first and second quarter of 2022 results, we
reported an increase in royalty volumes and a further decrease in
working interest volumes. This is in line with our corporate
strategy. We continue to allocate 100% of our capital to acquiring
minerals in the core of the Haynesville in Louisiana and the SCOOP in Southern Oklahoma in high rock quality areas
under well capitalized active operators, assuring us of near-term
line of sight development. We are keenly focused on executing a
successful acquisition strategy and expect our royalty volumes will
continue to increase on an annual basis.
In our third fiscal quarter ended June
30, 2022, and including through Aug.
4th, we have closed on a total of $18.0 million in additional minerals located
primarily in the Haynesville with
line-of-sight development, which should continue to drive our
growing royalty volumes. This brings our fiscal 2022 acquisition
program to approximately $42 million.
There continues to be a strong set of acquisition opportunities in
front of us.
Lastly, I'd like to announce that during our third fiscal
quarter we opened our new corporate headquarters in Fort Worth, Texas. This move places our senior
management team at the epicenter of the mineral space. We will
retain our offices in Oklahoma
City where our accounting and technical staff are located
and do not anticipate any disruption to the business. We are
excited about having new offices in Fort
Worth and believe it will better position us to execute the
Company's growth strategy of building shareholder value through the
acquisition and ownership of high-quality mineral interest in our
core areas."
OPERATING
HIGHLIGHTS
|
|
|
|
|
Third Quarter
Ended
|
|
|
Third Quarter
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
Gas Mcf Sold
|
|
1,897,799
|
|
|
|
1,879,343
|
|
|
|
5,380,093
|
|
|
|
5,090,619
|
|
Average Sales Price per
Mcfe before the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
6.82
|
|
|
$
|
3.33
|
|
|
$
|
5.61
|
|
|
$
|
2.77
|
|
Average Sales Price per
Mcfe after the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
4.32
|
|
|
$
|
3.31
|
|
|
$
|
3.72
|
|
|
$
|
2.76
|
|
Oil Barrels
Sold
|
|
48,928
|
|
|
|
55,492
|
|
|
|
148,632
|
|
|
|
170,437
|
|
Average Sales Price per
Mcfe before the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
105.23
|
|
|
$
|
63.77
|
|
|
$
|
90.40
|
|
|
$
|
52.95
|
|
Average Sales Price per
Mcfe after the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
60.18
|
|
|
$
|
46.25
|
|
|
$
|
57.63
|
|
|
$
|
49.15
|
|
NGL Barrels
Sold
|
|
39,732
|
|
|
|
46,753
|
|
|
|
124,358
|
|
|
|
125,118
|
|
Average Sales Price per
Barrel(1)
|
$
|
36.76
|
|
|
$
|
23.58
|
|
|
$
|
35.52
|
|
|
$
|
20.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mcfe Sold
|
|
2,429,760
|
|
|
|
2,492,813
|
|
|
|
7,018,036
|
|
|
|
6,863,949
|
|
Natural gas, oil and
NGL sales before the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
19,561,568
|
|
|
$
|
10,899,820
|
|
|
$
|
48,032,597
|
|
|
$
|
25,670,624
|
|
Natural gas, oil and
NGL sales after the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
12,607,397
|
|
|
$
|
9,895,130
|
|
|
$
|
32,971,756
|
|
|
$
|
24,981,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) There were no NGL
settled derivative contracts during the 2022 and 2021
periods.
|
|
Total Production for the last four quarters was as follows:
Quarter
ended
|
|
Mcf Sold
|
|
|
Oil Bbls
Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
6/30/2022
|
|
|
1,897,799
|
|
|
|
48,928
|
|
|
|
39,732
|
|
|
|
2,429,760
|
|
3/31/2022
|
|
|
1,908,030
|
|
|
|
51,631
|
|
|
|
40,371
|
|
|
|
2,460,042
|
|
12/31/2021
|
|
|
1,574,265
|
|
|
|
48,074
|
|
|
|
44,256
|
|
|
|
2,128,248
|
|
9/30/2021
|
|
|
1,609,101
|
|
|
|
54,043
|
|
|
|
46,369
|
|
|
|
2,211,570
|
|
Royalty Interest Production for the last four quarters was as
follows:
Quarter
ended
|
|
Mcf Sold
|
|
|
Oil Bbls
Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
6/30/2022
|
|
|
1,283,737
|
|
|
|
32,562
|
|
|
|
19,369
|
|
|
|
1,595,323
|
|
3/31/2022
|
|
|
1,261,949
|
|
|
|
28,758
|
|
|
|
18,852
|
|
|
|
1,547,609
|
|
12/31/2021
|
|
|
949,523
|
|
|
|
25,996
|
|
|
|
19,953
|
|
|
|
1,225,220
|
|
9/30/2021
|
|
|
705,397
|
|
|
|
29,442
|
|
|
|
19,364
|
|
|
|
998,230
|
|
Working Interest Production for the last four quarters was as
follows:
Quarter
ended
|
|
Mcf Sold
|
|
|
Oil Bbls
Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
6/30/2022
|
|
|
614,062
|
|
|
|
16,366
|
|
|
|
20,363
|
|
|
|
834,437
|
|
3/31/2022
|
|
|
646,081
|
|
|
|
22,873
|
|
|
|
21,519
|
|
|
|
912,433
|
|
12/31/2021
|
|
|
624,742
|
|
|
|
22,078
|
|
|
|
24,303
|
|
|
|
903,028
|
|
9/30/2021
|
|
|
903,704
|
|
|
|
24,601
|
|
|
|
27,005
|
|
|
|
1,213,340
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
Third Quarter
Ended
|
|
|
Third Quarter
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
Working Interest
Sales
|
|
$
|
7,088,153
|
|
|
$
|
5,486,978
|
|
|
$
|
18,959,671
|
|
|
$
|
13,245,980
|
|
Royalty Interest
Sales
|
|
$
|
12,473,415
|
|
|
$
|
5,412,842
|
|
|
$
|
29,072,926
|
|
|
$
|
12,424,644
|
|
Natural Gas, Oil and
NGL Sales
|
|
$
|
19,561,568
|
|
|
$
|
10,899,820
|
|
|
$
|
48,032,597
|
|
|
$
|
25,670,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (Losses) on
Derivative Contracts
|
|
$
|
(2,387,226)
|
|
|
$
|
(5,487,483)
|
|
|
$
|
(12,534,464)
|
|
|
$
|
(8,089,662)
|
|
Lease Bonuses and
Rental Income
|
|
$
|
209,329
|
|
|
$
|
259,152
|
|
|
$
|
450,152
|
|
|
$
|
319,139
|
|
Total
Revenue
|
|
$
|
17,383,671
|
|
|
$
|
5,671,489
|
|
|
$
|
35,948,285
|
|
|
$
|
17,900,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease Operating
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per Working Interest
Mcfe
|
|
$
|
1.08
|
|
|
$
|
0.83
|
|
|
$
|
1.16
|
|
|
$
|
0.84
|
|
Transportation,
Gathering and Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per Mcfe
|
|
$
|
0.59
|
|
|
$
|
0.62
|
|
|
$
|
0.59
|
|
|
$
|
0.60
|
|
Production Tax per
Mcfe
|
|
$
|
0.38
|
|
|
$
|
0.24
|
|
|
$
|
0.33
|
|
|
$
|
0.19
|
|
Cash G&A Expense
per Mcfe (1)
|
|
$
|
0.95
|
|
|
$
|
0.78
|
|
|
$
|
0.90
|
|
|
$
|
0.78
|
|
G&A Expense per
Mcfe
|
|
$
|
1.18
|
|
|
$
|
0.91
|
|
|
$
|
1.10
|
|
|
$
|
0.88
|
|
Interest Expense per
Mcfe
|
|
$
|
0.12
|
|
|
$
|
0.09
|
|
|
$
|
0.10
|
|
|
$
|
0.12
|
|
DD&A per
Mcfe
|
|
$
|
0.83
|
|
|
$
|
0.86
|
|
|
$
|
0.82
|
|
|
$
|
0.90
|
|
Total Expense per
Mcfe
|
|
$
|
3.47
|
|
|
$
|
3.15
|
|
|
$
|
3.38
|
|
|
$
|
3.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
$
|
8,589,010
|
|
|
$
|
(1,356,594)
|
|
|
$
|
11,250,804
|
|
|
$
|
(2,453,037)
|
|
Adjusted EBITDA
(2)
|
|
$
|
7,194,102
|
|
|
$
|
5,008,654
|
|
|
$
|
17,429,579
|
|
|
$
|
11,506,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow from
Operations
|
|
$
|
8,404,654
|
|
|
$
|
5,563,226
|
|
|
$
|
24,338,974
|
|
|
$
|
10,240,333
|
|
CapEx
|
|
$
|
72,176
|
|
|
$
|
271,661
|
|
|
$
|
351,524
|
|
|
$
|
696,759
|
|
CapEx - Mineral
Acquisitions
|
|
$
|
8,954,133
|
|
|
$
|
11,402,761
|
|
|
$
|
29,872,407
|
|
|
$
|
19,337,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
770,952
|
|
|
|
607,414
|
|
Other, net
|
|
764,068
|
|
|
|
578,593
|
|
Total assets
|
$
|
143,369,582
|
|
|
$
|
117,011,014
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
486,034
|
|
|
$
|
772,717
|
|
Derivative contracts,
net
|
|
10,189,546
|
|
|
|
12,087,988
|
|
Income taxes
payable
|
|
-
|
|
|
|
334,050
|
|
Current portion of
operating lease liability
|
|
190,604
|
|
|
|
132,287
|
|
Accrued liabilities
and other
|
|
1,489,127
|
|
|
|
1,809,337
|
|
Total current
liabilities
|
|
12,355,311
|
|
|
|
15,136,379
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
28,300,000
|
|
|
|
17,500,000
|
|
Deferred income taxes,
net
|
|
550,906
|
|
|
|
343,906
|
|
Asset retirement
obligations
|
|
2,116,246
|
|
|
|
2,836,172
|
|
Derivative contracts,
net
|
|
1,068,544
|
|
|
|
1,696,479
|
|
Operating lease
liability, net of current portion
|
|
1,015,405
|
|
|
|
789,339
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
45,406,412
|
|
|
|
38,302,275
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common Stock, $0.01666
par value; 54,000,500
|
|
|
|
|
|
|
|
shares authorized and
35,680,970 issued at June 30, 2022;
|
|
|
|
|
|
|
|
36,000,500 shares
authorized and 32,770,433 issued at Sept. 30, 2021
|
|
594,445
|
|
|
|
545,956
|
|
Capital in excess of
par value
|
|
42,849,595
|
|
|
|
33,213,645
|
|
Deferred directors'
compensation
|
|
1,451,690
|
|
|
|
1,768,151
|
|
Retained
earnings
|
|
58,676,047
|
|
|
|
48,966,420
|
|
|
|
103,571,777
|
|
|
|
84,494,172
|
|
Less treasury stock,
at cost; 377,232 shares at June 30,
|
|
|
|
|
|
|
|
2022, and 388,545
shares at Sept. 30, 2021
|
|
(5,608,607)
|
|
|
|
(5,785,433)
|
|
Total stockholders'
equity
|
|
97,963,170
|
|
|
|
78,708,739
|
|
Total liabilities and
stockholders' equity
|
$
|
143,369,582
|
|
|
$
|
117,011,014
|
|
Condensed Statements of
Cash Flows
|
|
|
|
|
Nine Months Ended June
30,
|
|
|
2022
|
|
|
2021
|
|
Operating
Activities
|
|
|
Net income
(loss)
|
$
|
11,250,804
|
|
|
$
|
(2,453,037)
|
|
Adjustments to
reconcile net income (loss) to net cash provided
|
|
|
|
|
|
|
|
by operating
activities:
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
5,727,708
|
|
|
|
6,176,173
|
|
Impairment of
producing properties
|
|
11,862
|
|
|
|
45,855
|
|
Provision for deferred
income taxes
|
|
207,000
|
|
|
|
(1,117,000)
|
|
Gain from leasing fee
mineral acreage
|
|
(449,053)
|
|
|
|
(316,541)
|
|
Proceeds from leasing
fee mineral acreage
|
|
545,920
|
|
|
|
334,938
|
|
Net (gain) loss on
sales of assets
|
|
(865,035)
|
|
|
|
(136,596)
|
|
Directors' deferred
compensation expense
|
|
147,298
|
|
|
|
167,425
|
|
Total (gain) loss on
derivative contracts
|
|
12,534,464
|
|
|
|
8,089,662
|
|
Cash receipts
(payments) on settled derivative contracts
|
|
(1,215,245)
|
|
|
|
(688,807)
|
|
Restricted stock
awards
|
|
1,219,047
|
|
|
|
542,674
|
|
Other
|
|
55,653
|
|
|
|
72,126
|
|
Cash provided (used)
by changes in assets and liabilities:
|
|
|
|
|
|
|
|
Natural gas, oil and
NGL sales receivables
|
|
(5,351,575)
|
|
|
|
(2,134,395)
|
|
Other current
assets
|
|
(78,262)
|
|
|
|
(89,957)
|
|
Accounts
payable
|
|
(251,059)
|
|
|
|
209,014
|
|
Income taxes
receivable
|
|
1,553,526
|
|
|
|
1,425,471
|
|
Other non-current
assets
|
|
(393,492)
|
|
|
|
87,065
|
|
Income taxes
payable
|
|
(334,050)
|
|
|
|
-
|
|
Accrued
liabilities
|
|
23,463
|
|
|
|
26,263
|
|
Total
adjustments
|
|
13,088,170
|
|
|
|
12,693,370
|
|
Net cash provided by
operating activities
|
|
24,338,974
|
|
|
|
10,240,333
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(351,524)
|
|
|
|
(696,759)
|
|
Acquisition of
minerals and overriding royalty interests
|
|
(29,872,407)
|
|
|
|
(19,337,265)
|
|
Net proceeds from
sales of assets
|
|
7,852,389
|
|
|
|
533,371
|
|
Net cash provided
(used) by investing activities
|
|
(22,371,542)
|
|
|
|
(19,500,653)
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Borrowings under
credit facility
|
|
14,300,000
|
|
|
|
-
|
|
Payments of loan
principal
|
|
(3,500,000)
|
|
|
|
(8,850,000)
|
|
Net proceeds from
equity issuance
|
|
4,670,112
|
|
|
|
11,088,858
|
|
Cash receipts from
(payments on) off-market derivative contracts
|
|
(13,845,596)
|
|
|
|
-
|
|
Purchases of treasury
stock
|
|
-
|
|
|
|
(2,741)
|
|
Payments of
dividends
|
|
(1,541,177)
|
|
|
|
(757,692)
|
|
Net cash provided
(used) by financing activities
|
|
83,339
|
|
|
|
1,478,425
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
2,050,771
|
|
|
|
(7,781,895)
|
|
Cash and cash
equivalents at beginning of period
|
|
2,438,511
|
|
|
|
10,690,395
|
|
Cash and cash
equivalents at end of period
|
$
|
4,489,282
|
|
|
$
|
2,908,500
|
|
|
|
|
|
|
|
|
|
Supplemental
Schedule of Noncash Investing and Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross additions to
properties and equipment
|
$
|
33,431,875
|
|
|
$
|
23,794,178
|
|
Value of shares used
for acquisitions
|
|
(3,510,001)
|
|
|
|
(3,718,000)
|
|
Net (increase)
decrease in accounts payable for properties
|
|
|
|
|
|
|
|
and equipment
additions
|
|
302,057
|
|
|
|
(42,154)
|
|
Capital expenditures
and acquisitions
|
$
|
30,223,931
|
|
|
$
|
20,034,024
|
|
Derivative Contracts as
of Aug. 5, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collar
Average
|
|
|
Collar
Average
|
|
Fiscal
Period
|
|
Product
|
|
Volume
Mcf/Bbl
|
|
|
Swap Price
|
|
|
Floor Price
|
|
|
Ceiling
Price
|
|
Remaining
2022
|
|
Natural Gas
|
|
|
135,000
|
|
|
|
|
|
|
$
|
4.15
|
|
|
$
|
6.53
|
|
Remaining
2022
|
|
Natural Gas
|
|
|
250,000
|
|
|
$
|
3.01
|
|
|
|
|
|
|
|
|
|
2023
|
|
Natural Gas
|
|
|
890,000
|
|
|
|
|
|
|
$
|
4.49
|
|
|
$
|
8.10
|
|
2023
|
|
Natural Gas
|
|
|
2,100,000
|
|
|
$
|
3.24
|
|
|
|
|
|
|
|
|
|
2024
|
|
Natural Gas
|
|
|
60,000
|
|
|
|
|
|
|
$
|
3.00
|
|
|
$
|
4.70
|
|
2024
|
|
Natural Gas
|
|
|
380,000
|
|
|
$
|
3.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remaining
2022
|
|
Crude Oil
|
|
|
19,000
|
|
|
$
|
46.89
|
|
|
|
|
|
|
|
|
|
2023
|
|
Crude Oil
|
|
|
15,000
|
|
|
|
|
|
|
$
|
75.00
|
|
|
$
|
96.00
|
|
2023
|
|
Crude Oil
|
|
|
72,750
|
|
|
$
|
63.65
|
|
|
|
|
|
|
|
|
|
2024
|
|
Crude Oil
|
|
|
14,250
|
|
|
$
|
74.91
|
|
|
|
|
|
|
|
|
|
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
We define "adjusted EBITDA" as earnings before interest, taxes,
depreciation and amortization, or EBITDA, excluding unrealized
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. We have
included a presentation of adjusted EBITDA because we recognize
that certain investors consider this amount to be a useful means of
measuring our ability to meet our debt service obligations and
evaluating our 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 presentation of net income (loss) to
adjusted EBITDA for the periods indicated:
|
Third Quarter
Ended
|
|
|
Third Quarter
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Second Quarter
Ended
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
|
March 31,
2022
|
|
Net Income
(Loss)
|
$
|
8,589,010
|
|
|
$
|
(1,356,594)
|
|
|
$
|
11,250,804
|
|
|
$
|
(2,453,037)
|
|
|
$
|
(4,020,455)
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(benefit)
|
|
976,000
|
|
|
|
(816,000)
|
|
|
|
1,771,000
|
|
|
|
(1,102,000)
|
|
|
|
33,000
|
|
Interest expense
|
|
286,345
|
|
|
|
220,439
|
|
|
|
693,276
|
|
|
|
790,202
|
|
|
|
230,212
|
|
DD&A
|
|
2,022,832
|
|
|
|
2,137,707
|
|
|
|
5,727,708
|
|
|
|
6,176,173
|
|
|
|
2,121,116
|
|
Impairment
|
|
6,277
|
|
|
|
45,855
|
|
|
|
11,862
|
|
|
|
45,855
|
|
|
|
-
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on
derivatives
|
|
3,282,921
|
|
|
|
(4,482,793)
|
|
|
|
(3,939,218)
|
|
|
|
(7,400,855)
|
|
|
|
(11,772,640)
|
|
Gains (losses) on
asset sales
|
|
693,750
|
|
|
|
31,243
|
|
|
|
865,038
|
|
|
|
61,801
|
|
|
|
2,292,215
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash receipts from
(payments on)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
off-market
derivative contracts(1)
|
|
(1,284,024)
|
|
|
|
-
|
|
|
|
(6,465,597)
|
|
|
|
-
|
|
|
|
(2,493,481)
|
|
Restricted stock and
deferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
director's
expense
|
|
574,333
|
|
|
|
325,697
|
|
|
|
1,366,346
|
|
|
|
710,099
|
|
|
|
468,598
|
|
Adjusted
EBITDA
|
$
|
7,194,102
|
|
|
$
|
5,008,654
|
|
|
$
|
17,429,579
|
|
|
$
|
11,506,346
|
|
|
$
|
5,819,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The initial receipt
of $8.8 million of cash from BP Energy Company, or BP, for entering
into the off-market derivative contracts had no effect on the
Company's statement of operations and was considered cash
flow from financing activities. A portion of subsequent settlements
with BP had no effect on the Company's statement of
operations.
|
|
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. We have included a presentation of debt to adjusted EBITDA
(TTM) because we recognize that certain investors consider such
ratios to be useful means of measuring our ability to meet our debt
service obligations and for evaluating our 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
presentation 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
|
|
|
June 30,
2022
|
|
|
June 30,
2021
|
|
Net Income
(Loss)
|
$
|
7,486,604
|
|
|
$
|
(4,287,159)
|
|
Plus:
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
2,221,949
|
|
|
|
(1,780,060)
|
|
Interest expense
|
|
898,201
|
|
|
|
1,118,561
|
|
DD&A
|
|
7,297,339
|
|
|
|
8,696,169
|
|
Impairment
|
|
16,482
|
|
|
|
45,855
|
|
Less:
|
|
|
|
|
|
|
|
Unrealized gains (losses)
|
|
|
|
|
|
|
|
on
derivatives
|
|
(815,184)
|
|
|
|
(9,788,013)
|
|
Gains (losses) on
asset sales
|
|
1,112,581
|
|
|
|
770,911
|
|
Plus:
|
|
|
|
|
|
|
|
Cash receipts from
(payments on)
|
|
|
|
|
|
|
|
off-market derivative
contracts(1)
|
|
2,334,403
|
|
|
|
-
|
|
Restricted stock and
deferred
|
|
|
|
|
|
|
|
director's expense
|
|
1,691,912
|
|
|
|
878,405
|
|
Adjusted
EBITDA
|
$
|
21,649,493
|
|
|
$
|
13,688,873
|
|
|
|
|
|
|
|
|
|
Debt
|
$
|
28,300,000
|
|
|
$
|
19,900,000
|
|
Debt to Adjusted
EBITDA (TTM)
|
|
1.31
|
|
|
|
1.45
|
|
|
|
|
|
|
|
|
|
(1) The initial receipt
of $8.8 million of cash from BP for entering into the off-market
derivative contracts had no effect on the
Company's statement of operations and was considered cash
flow from financing activities. A portion of subsequent settlements
with BP has no effect on the Company's statement of
operations.
|
|
Pretax Net Income (Loss) Excluding Non-cash Derivative
Gains (Losses) Reconciliation
"Pretax net income (loss) excluding non-cash derivative gains
(losses)" is defined as earnings before taxes, excluding unrealized
gains (losses) on derivatives. We have included a presentation of
pretax net income (loss) excluding non-cash derivative gains
(losses) because we recognize that certain investors consider this
amount to be a useful means of measuring our ability to meet our
debt service obligations and evaluating our financial performance.
Pretax net income (loss) excluding non-cash derivative gains
(losses) 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 pretax net income (loss)
excluding non-cash derivative gains (losses) may not be comparable
to a similarly titled measure of other companies. The following
table provides a presentation of net income (loss) to pretax net
income (loss) excluding non-cash derivative gains (losses) for the
periods indicated:
|
Third Quarter
Ended
|
|
|
Second Quarter
Ended
|
|
|
June 30,
2022
|
|
|
March 31,
2022
|
|
Net Income
(Loss)
|
$
|
8,589,010
|
|
|
$
|
(4,020,455)
|
|
Plus:
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
976,000
|
|
|
|
33,000
|
|
Less:
|
|
|
|
|
|
|
|
Unrealized gains (losses)
|
|
|
|
|
|
|
|
on
derivatives
|
|
3,282,921
|
|
|
|
(11,772,640)
|
|
Pretax Net Income
(Loss) excluding
|
|
|
|
|
|
|
|
Non-cash Derivative
Gains (Losses)
|
$
|
6,282,089
|
|
|
$
|
7,785,185
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
Basic
|
|
34,652,155
|
|
|
|
34,292,455
|
|
Diluted
|
|
34,851,214
|
|
|
|
34,292,455
|
|
|
|
|
|
|
|
|
|
Pretax Net Income
(Loss) excluding Non-cash
|
|
|
|
|
|
|
|
Derivative
Gains (Losses) per basic and diluted share
|
$
|
0.18
|
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
PHX Minerals Inc. (NYSE: PHX) Fort Worth, Texas, based, PHX Minerals Inc. is
a natural gas and oil mineral company with a strategy to
proactively grow its mineral position in its core areas of focus.
PHX owns approximately 75,000 leased mineral acres principally
located in Oklahoma, Texas, Louisiana, North
Dakota, and Arkansas.
Additional information on PHX 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 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 the 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 statements are not
guarantees of future performance and that actual results or
developments may differ materially from those projected in
forward-looking statements. 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.
View original
content:https://www.prnewswire.com/news-releases/phx-minerals-inc-reports-third-fiscal-quarter-2022-results-and-announces-dividend-payment-301601842.html
SOURCE PHX MINERALS INC.