FORT
WORTH, Texas, Dec. 13,
2022 /PRNewswire/ -- PHX MINERALS INC., "PHX" or the
"Company" (NYSE: PHX), today reported financial and operating
results for the fiscal fourth quarter and fiscal year ended
Sept. 30, 2022.
SUMMARY OF RESULTS FOR THE PERIOD ENDED SEPT. 30, 2022
- Net income in the fiscal fourth quarter of 2022 and full fiscal
year 2022 was $9.2 million, or
$0.26 per share, and $20.4 million, or $0.59 per share, respectively, compared to net
income of $8.6 million, or
$0.25 per share, in the fiscal third
quarter of 2022 and net loss of $(6.2)
million, or $(0.24) per share,
for fiscal year 2021.
- Adjusted EBITDA(1) in the fiscal fourth quarter of
2022 and full fiscal year 2022 was $8.4
million and $25.8 million,
respectively, compared to $7.2
million in the fiscal third quarter of 2022 and $15.7 million for fiscal year 2021.
- Royalty production volumes for the fiscal fourth quarter of
2022 increased 15% to a record 1,842 Mmcfe, and total production
volumes for the fiscal fourth quarter of 2022 increased 7% to 2,592
Mmcfe, compared to the fiscal third quarter of 2022.
- Royalty production volumes for fiscal year 2022 increased 49%
to 6,209 Mmcfe, and total production volumes for fiscal year 2022
increased 6% to 9,609 Mmcfe, compared to fiscal year 2021.
- 172 gross (0.85 net) wells in progress as of Sept. 30, 2022, compared to 155 gross (0.79 net)
as of June 30, 2022.
- Net total proved royalty interest reserves increased 45% to
52.8 Bcfe at Sept. 30, 2022, from
36.4 Bcfe at Sept. 30, 2021.
- Total debt was $28.3 million and
the debt to adjusted EBITDA (TTM) (1) ratio was 1.10x at
Sept. 30, 2022.
- During the fiscal fourth quarter of 2022, PHX closed on
acquisitions totaling 923 net royalty acres located in the SCOOP
and the Haynesville plays for approximately $13.5 million, bringing the total acquisitions in
fiscal year 2022 to 4,570 net royalty acres for approximately
$48.0 million.
SUBSEQUENT EVENTS
- PHX announced a 12.5% increase in its fixed quarterly dividend
to $0.0225 per share, payable on
March 3, 2023, to stockholders of
record on Feb. 17, 2023.
- On Dec. 7, 2022, PHX had its
borrowing base reaffirmed at $50
million and added an additional bank to the lending
group.
- Since Sept. 30, 2022, PHX has
closed on additional acquisitions of 930 net royalty acres located
in the SCOOP and Haynesville plays for approximately $10.3 million.
- On Dec. 9, 2022, PHX's Board
approved a change in fiscal year from the twelve months beginning
Oct. 1st and ending Sept. 30th to the twelve months beginning
Jan. 1st and ending Dec. 31st. PHX's fiscal year 2023 will begin
Jan. 1, 2023, and end Dec. 31, 2023.
- On Dec. 12, 2022, PHX voluntarily
terminated its At-The-Market Equity Offering Sales Agreement, dated
Aug. 25, 2021.
(1)
|
This is a non-GAAP
measure. Refer to the Non-GAAP Reconciliation section.
|
|
|
Chad L. Stephens, President and
CEO, commented, "In fiscal 2022, we made significant progress in
the strategic transition that we began in late 2019. This strategy,
to exit legacy assets and transition to a low fixed-cost royalty
production model, is coming into sharp focus as demonstrated by the
significant improvements in our financial results. We are executing
according to our stated plan, growing our royalty reserves, high
grading our asset base and generating meaningful profitability and
cash flow. In response, both royalty production and royalty
reserves reached all-time high levels in the fourth fiscal quarter.
Looking ahead, 2023 should prove to be the final year of this
transformative transition as we plan to divest a material portion
of our remaining legacy non-operated working interest assets.
Following these planned divestitures, royalty volumes will
represent greater than 90% of total corporate volumes, leaving
working interest volumes virtually immaterial."
"Our strategy to allocate capital to existing and near-term
potential royalty production acquisitions is working, delivering
returns ahead of our expectations," continued Mr. Stephens.
"Importantly, our pipeline for acquisitions in our targeted regions
remains robust. Also, supply and demand for natural gas remains
favorable, which supports strong commodity pricing and gives us the
environment to continue to improve profitability and cashflow. Our
plan remains steadfast: to utilize the majority of our free cash
flow to acquire additional mineral and royalty assets in our core
focus areas with the expectation that these acquisitions will
quickly convert to additional royalty production volumes.
Simultaneously, as we work to continue to scale and expand
profitability, we should be positioned to continue to increase our
cash dividend which has risen 125% over the last 6 quarters."
FINANCIAL
HIGHLIGHTS
|
|
|
|
Fourth Quarter
Ended
|
|
|
Fourth Quarter
Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
Sept. 30,
2022
|
|
|
Sept. 30,
2021
|
|
|
Sept. 30,
2022
|
|
|
Sept. 30,
2021
|
|
Royalty Interest
Sales
|
|
$
|
15,411,544
|
|
|
$
|
6,007,389
|
|
|
$
|
44,484,472
|
|
|
$
|
18,432,035
|
|
Working Interest
Sales
|
|
$
|
6,416,490
|
|
|
$
|
6,071,031
|
|
|
$
|
25,376,159
|
|
|
$
|
19,317,009
|
|
Natural Gas, Oil and
NGL Sales
|
|
$
|
21,828,034
|
|
|
$
|
12,078,420
|
|
|
$
|
69,860,631
|
|
|
$
|
37,749,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (Losses) on
Derivative Contracts
|
|
$
|
(4,298,614)
|
|
|
$
|
(8,112,827)
|
|
|
$
|
(16,833,078)
|
|
|
$
|
(16,202,489)
|
|
Lease Bonuses and
Rental Income
|
|
$
|
17,350
|
|
|
$
|
105,974
|
|
|
$
|
467,502
|
|
|
$
|
425,113
|
|
Total
Revenue
|
|
$
|
17,546,770
|
|
|
$
|
4,071,567
|
|
|
$
|
53,495,055
|
|
|
$
|
21,971,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease Operating
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
per Working Interest
Mcfe
|
|
$
|
1.28
|
|
|
$
|
0.93
|
|
|
$
|
1.19
|
|
|
$
|
0.86
|
|
Transportation,
Gathering and Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
per Mcfe
|
|
$
|
0.68
|
|
|
$
|
0.74
|
|
|
$
|
0.61
|
|
|
$
|
0.64
|
|
Production Tax per
Mcfe
|
|
$
|
0.36
|
|
|
$
|
0.28
|
|
|
$
|
0.34
|
|
|
$
|
0.21
|
|
Cash G&A Expense
per Mcfe (1)
|
|
$
|
1.06
|
|
|
$
|
0.82
|
|
|
$
|
0.95
|
|
|
$
|
0.79
|
|
G&A Expense per
Mcfe
|
|
$
|
1.46
|
|
|
$
|
0.97
|
|
|
$
|
1.20
|
|
|
$
|
0.90
|
|
Interest Expense per
Mcfe
|
|
$
|
0.18
|
|
|
$
|
0.09
|
|
|
$
|
0.12
|
|
|
$
|
0.11
|
|
DD&A per
Mcfe
|
|
$
|
0.60
|
|
|
$
|
0.71
|
|
|
$
|
0.76
|
|
|
$
|
0.85
|
|
Total Expense per
Mcfe
|
|
$
|
3.65
|
|
|
$
|
3.30
|
|
|
$
|
3.45
|
|
|
$
|
3.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
$
|
9,158,468
|
|
|
$
|
(3,764,200)
|
|
|
$
|
20,409,272
|
|
|
$
|
(6,217,237)
|
|
Adjusted EBITDA
(2)
|
|
$
|
8,395,965
|
|
|
$
|
4,219,914
|
|
|
$
|
25,825,548
|
|
|
$
|
15,726,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow from
Operations
|
|
$
|
13,192,676
|
|
|
$
|
(6,298,246)
|
|
|
$
|
37,531,650
|
|
|
$
|
3,942,087
|
|
CapEx
|
|
$
|
201,114
|
|
|
$
|
36,413
|
|
|
$
|
552,638
|
|
|
$
|
733,172
|
|
CapEx - Mineral
Acquisitions
|
|
$
|
13,652,829
|
|
|
$
|
1,287,082
|
|
|
$
|
43,525,236
|
|
|
$
|
20,624,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowing
Base
|
|
|
|
|
|
|
|
$
|
50,000,000
|
|
|
$
|
27,500,000
|
|
Debt
|
|
|
|
|
|
|
|
$
|
28,300,000
|
|
|
$
|
17,500,000
|
|
Debt to Adjusted EBITDA
(TTM) (2)
|
|
|
|
|
|
|
|
|
1.10
|
|
|
|
1.11
|
(1)
|
Cash G&A expense is
G&A excluding restricted stock and deferred director's expense
from the adjusted EBITDA table on page 13.
|
(2)
|
This is a non-GAAP
measure. Refer to the Non-GAAP Reconciliation section.
|
OPERATING
HIGHLIGHTS
|
|
|
Fourth Quarter
Ended
|
|
|
Fourth Quarter
Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Sept. 30,
2022
|
|
|
Sept. 30,
2021
|
|
|
Sept. 30,
2022
|
|
|
Sept. 30,
2021
|
|
Gas Mcf Sold
|
|
2,047,614
|
|
|
|
1,609,101
|
|
|
|
7,427,708
|
|
|
|
6,699,720
|
|
Average Sales Price per
Mcf before the
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
7.61
|
|
|
$
|
4.27
|
|
|
$
|
6.16
|
|
|
$
|
3.13
|
|
Average Sales Price per
Mcf after the
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
5.08
|
|
|
$
|
3.54
|
|
|
$
|
4.09
|
|
|
$
|
2.95
|
|
% of sales subject to
hedges
|
|
58
|
%
|
|
|
72
|
%
|
|
|
62
|
%
|
|
|
62
|
%
|
Oil Barrels
Sold
|
|
49,902
|
|
|
|
54,043
|
|
|
|
198,535
|
|
|
|
224,479
|
|
Average Sales Price per
Bbl before the
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
94.07
|
|
|
$
|
68.02
|
|
|
$
|
91.32
|
|
|
$
|
56.58
|
|
Average Sales Price per
Bbl after the
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
57.80
|
|
|
$
|
45.09
|
|
|
$
|
57.67
|
|
|
$
|
48.17
|
|
% of sales subject to
hedges
|
|
62
|
%
|
|
|
77
|
%
|
|
|
72
|
%
|
|
|
75
|
%
|
NGL Barrels
Sold
|
|
40,761
|
|
|
|
46,369
|
|
|
|
165,120
|
|
|
|
171,488
|
|
Average Sales Price per
Bbl(1)
|
$
|
37.89
|
|
|
$
|
32.91
|
|
|
$
|
36.11
|
|
|
$
|
23.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mcfe Sold
|
|
2,591,588
|
|
|
|
2,211,570
|
|
|
|
9,609,638
|
|
|
|
9,075,519
|
|
Natural gas, oil and
NGL sales before the
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
21,828,034
|
|
|
$
|
12,078,420
|
|
|
$
|
69,860,631
|
|
|
$
|
37,749,044
|
|
Natural gas, oil and
NGL sales after the
|
|
|
|
|
|
|
|
|
|
|
|
effects of settled
derivative contracts
|
$
|
14,832,521
|
|
|
$
|
9,652,336
|
|
|
$
|
47,804,278
|
|
|
$
|
34,634,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
9/30/2022
|
|
|
2,047,614
|
|
|
|
49,902
|
|
|
|
40,761
|
|
|
|
2,591,588
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total production volumes attributable to natural gas were 79%
and 78%, respectively, for the fiscal fourth quarter of 2022 and
fiscal year 2022.
Royalty Interest Production for the last four quarters was as
follows:
Quarter
ended
|
|
Mcf Sold
|
|
|
Oil Bbls
Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
9/30/2022
|
|
|
1,525,363
|
|
|
|
32,202
|
|
|
|
20,488
|
|
|
|
1,841,502
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalty production volumes attributable to natural gas were 83%
and 81%, respectively, for the fiscal fourth quarter and fiscal
year of 2022.
Working Interest Production for the last four quarters was as
follows:
Quarter
ended
|
|
Mcf Sold
|
|
|
Oil Bbls
Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
9/30/2022
|
|
|
522,251
|
|
|
|
17,700
|
|
|
|
20,273
|
|
|
|
750,086
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FISCAL FOURTH QUARTER ENDED SEPT. 30,
2022, RESULTS
The Company recorded fiscal fourth quarter 2022 net income of
$9,158,468, or $0.26 per share, as compared to a net loss of
($3,764,200), or ($0.12) per share, in the fiscal fourth 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 $9,749,614, or 81%, for the fiscal fourth quarter
2022, compared to the corresponding fiscal 2021 quarter, due to
increases in natural gas, oil and NGL prices of 78%, 38% and 15%,
respectively, and an increase in natural gas volumes of 27%,
partially offset by a decrease in oil and NGL volumes of 8% and
12%, respectively.
The production increase in royalty volumes during the fiscal
quarter ended Sept. 30, 2022, as
compared to the fiscal quarter ended Sept.
30, 2021, was primarily due to acquisitions and new drilling
in the Haynesville and SCOOP plays. 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
shut-in legacy wells in the Eagle Ford play while the operator
completes new offset wells.
The Company had a net loss on derivative contracts of
($4,298,614) in the fiscal fourth
quarter 2022, as compared to a net loss of ($8,112,827) in the fiscal fourth quarter 2021,
of which ($5,938,317) is a loss on
settled derivatives and $1,639,703 is
a non-cash gain on derivatives with respect to the fiscal fourth
quarter 2022. Loss on settled derivative contracts for the fiscal
fourth quarter 2022 excludes $1,057,197 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 Sept. 30,
2022, pricing relative to the strike price on open
derivative contracts.
The 11% increase in total cost per Mcfe in the fiscal fourth
quarter 2022, relative to the fiscal fourth quarter 2021, was
primarily driven by an increase in G&A and production taxes.
G&A increased $1,640,954, or 77%,
in the fiscal fourth quarter 2022, compared to the corresponding
fiscal 2021 quarter due to increased legal and accounting expenses
associated with higher transaction activity and restricted stock
expense. Production taxes increased $307,064, or 49%, due to an increase in natural
gas, oil and NGL revenue, but decreased as a percent of natural
gas, oil and NGL revenue in the fiscal fourth quarter 2022,
compared to the corresponding fiscal 2021 quarter, from 5.2% to
4.3%.
Income tax expense increased in the fiscal fourth quarter 2022
due to net income of $9,158,468,
compared to the ($3,764,200) net loss
recorded in the fiscal fourth quarter 2021.
FISCAL YEAR 2022 RESULTS
The Company recorded net income of $20,409,272, or $0.59 per share, in the fiscal year ended
Sept. 30, 2022 ("fiscal year 2022"),
as compared to a net loss of $(6,217,237), or $(0.24) per share, in the fiscal year ended
Sept. 30, 2021 ("fiscal year 2021").
The change in net income was principally the result of increased
natural gas, oil and NGL sales and gains on asset sales, and
decreased depreciation, depletion and amortization, or DD&A,
partially offset by an increase in income tax expense, losses on
derivative contracts, production taxes, and G&A.
Natural gas, oil and NGL sales increased $32,111,587, or 85%, for fiscal year 2022,
compared to fiscal year 2021, due to increases in natural gas, oil
and NGL prices of 97%, 61% and 52%, respectively, and an increase
in natural gas volumes of 11%, partially offset by a decrease in
oil and NGL volumes of 12% and 4%, respectively.
The increase in natural gas production was primarily due to
acquisitions and new drilling in the Haynesville play, and slightly
offset by divestiture of working interest assets in the
Fayetteville Shale and naturally declining production in the Arkoma
STACK. The decrease in oil production was a result of naturally
declining production in high interest wells in the Eagle Ford and
Bakken plays, wells shut in for workovers in the Eagle Ford, our
strategy of no longer participating with working interest in new
drilling in the Eagle Ford and the natural decline of wells brought
online in fiscal year 2021 in the STACK play. These decreases
were partially offset by new drilling and acquisitions in the
SCOOP. The decrease in NGL production is primarily attributable to
the natural decline in high interest, liquids rich wells in the
STACK. This was partially offset by new wells in the SCOOP.
The Company had a net loss on derivative contracts of
($16,833,078) in fiscal year 2022, as
compared to a net loss of ($16,202,489) in fiscal year 2021, of which
($14,533,560) is a loss on settled
derivatives and ($2,299,518) is a
non-cash loss on derivatives with respect to fiscal year 2022. Loss
on settled derivative contracts for fiscal year 2022 excludes
$7,522,794 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 Sept.
30, 2022, pricing relative to the strike price on open
derivative contracts.
The 8% increase in total cost per Mcfe in fiscal year 2022,
relative to fiscal year 2021, was primarily driven by an increase
in G&A and production taxes, partially offset by a decrease in
DD&A. G&A increased $3,292,712, or 40%, in fiscal year 2022 compared
to the fiscal year 2021 due to legal and accounting expenses
associated with reincorporating in the state of Delaware and increased transaction
activity, increased wage inflation and increased restricted stock
expense. Production taxes increased $1,292,563, or 67%, due to increase in natural
gas, oil and NGL revenue, but decreased as a percentage of natural
gas, oil and NGL revenue in fiscal year 2022, compared to the
fiscal year 2021 from 5.1% to 4.6%. DD&A decreased $467,686, or 6%, in fiscal year 2022 to
$0.76 per Mcfe, as compared to
$0.85 per Mcfe in fiscal year 2021.
Of the DD&A decrease, $921,685
was a result of a $0.09 decrease in
the DD&A rate per Mcfe, partially offset by an increase of
$453,999 resulting from production
increasing 6% in fiscal year 2022, compared to fiscal year 2021.
The DD&A rate per Mcfe decrease was due to working interest
divestitures, partially offset by royalty interest acquisitions
during fiscal year 2022.
Income tax expense increased in fiscal year 2022 due to net
income of $20,409,272, compared to
the $(6,217,237) net loss in fiscal
year 2021.
OPERATIONS UPDATE
During the fiscal fourth quarter of 2022, the Company converted
49 gross (0.22 net) wells to producing status, including
18 gross (0.057 net) in the SCOOP and 8 gross (0.057 net) in the
Haynesville, compared to 96 gross (0.25 net) wells, including 39
gross (0.19 net) in the SCOOP and 12 gross (0.03 net) in the
Haynesville, during the fiscal third quarter of 2022.
During fiscal year 2022, the Company converted
318 gross (1.07 net) wells to producing status, including
108 gross (0.22 net) in the SCOOP and 84 gross (0.57 net) in the
Haynesville, compared to 147 gross (0.56 net) wells in fiscal year
2021.
At Sept. 30, 2022, the Company had
a total of 172 gross (0.85 net) wells in progress across its
mineral positions and 64 gross (0.21 net) active permitted wells,
compared to 155 gross (0.79 net) wells in progress and 65 gross
(0.21 net) active permitted wells at June
30, 2022. As of Nov. 28, 2022,
26 rigs were operating on the Company's acreage with 99 rigs
operating within 2.5 miles of its acreage, compared to 25 rigs
operating on the Company's acreage with 96 rigs operating within
2.5 miles of its acreage as of June 30,
2022.
|
|
|
|
|
|
|
Bakken/
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
|
Arkoma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCOOP
|
|
|
STACK
|
|
|
Forks
|
|
|
Stack
|
|
|
Fayetteville
|
|
|
Haynesville
|
|
|
Other
|
|
|
Total
|
|
As of Sept. 30,
2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Wells in Progress
on PHX Acreage
|
|
42
|
|
|
|
27
|
|
|
|
10
|
|
|
|
5
|
|
|
|
-
|
|
|
|
80
|
|
|
|
8
|
|
|
|
172
|
|
Net Wells in Progress
on PHX Acreage
|
|
0.15
|
|
|
|
0.05
|
|
|
|
0.07
|
|
|
|
0.003
|
|
|
|
-
|
|
|
|
0.56
|
|
|
|
0.02
|
|
|
|
0.85
|
|
Gross Active Permits on
PHX Acreage
|
|
22
|
|
|
|
6
|
|
|
|
7
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23
|
|
|
|
6
|
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of Nov. 28,
2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rigs Present on PHX
Acreage
|
|
11
|
|
|
|
3
|
|
|
|
1
|
|
|
|
2
|
|
|
|
-
|
|
|
|
9
|
|
|
|
-
|
|
|
|
26
|
|
Rigs Within 2.5 Miles
of PHX Acreage
|
|
25
|
|
|
|
18
|
|
|
|
4
|
|
|
|
2
|
|
|
|
-
|
|
|
|
39
|
|
|
|
11
|
|
|
|
99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leasing Activity
During the fiscal fourth quarter of 2022, the Company leased 266
net mineral acres for an average bonus payment of $450 per net mineral acre and an average royalty
of 22%.
ACQUISITION AND DIVESTITURE UPDATE
During the fiscal fourth quarter of 2022, the Company purchased
923 net royalty acres for approximately $13.5 million and sold 112 net mineral acres,
which were outside our core focus areas and predominantly
undeveloped and unleased, for approximately $0.1 million. The Company also sold 243 gross
non-operated working interest wellbores for approximately
$5.3 million.
|
|
Fiscal Fourth Quarter
2022 Acquisitions
|
|
|
|
SCOOP
|
|
|
Haynesville
|
|
|
Other
|
|
|
Total
|
|
Net Mineral Acres
Purchased
|
|
|
114
|
|
|
|
450
|
|
|
|
-
|
|
|
|
564
|
|
Net Royalty Acres
Purchased
|
|
|
157
|
|
|
|
766
|
|
|
|
-
|
|
|
|
923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During fiscal year 2022, the Company purchased 4,570 net royalty
acres for approximately $48.0 million and sold 9,707 net mineral
acres, which were outside our core focus areas and predominantly
undeveloped and unleased, for approximately $2.7 million. The Company also sold 1,001 gross
non-operated working interest wellbores for approximately
$10.5 million.
|
|
Fiscal Year 2022
Acquisitions
|
|
|
|
SCOOP
|
|
|
Haynesville
|
|
|
Other
|
|
|
Total
|
|
Net Mineral Acres
Purchased
|
|
|
823
|
|
|
|
2,204
|
|
|
|
-
|
|
|
|
3,027
|
|
Net Royalty Acres
Purchased
|
|
|
989
|
|
|
|
3,581
|
|
|
|
-
|
|
|
|
4,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROYALTY RESERVES UPDATE
At Sept. 30, 2022, proved royalty
reserves increased 45% to 52.8 Bcfe compared to 36.4 Bcfe at
Sept. 30, 2021. Proved developed
reserves increased by 8.7 Bcfe and proved undeveloped reserves
increased by 7.7 Bcfe, primarily due to execution of our
acquisition strategy and increased activity in the Haynesville and
SCOOP plays.
|
Proved Royalty
Interest
|
|
|
Reserves SEC
Pricing
|
|
|
Sept. 30,
2022
|
|
|
Sept. 30,
2021
|
|
Proved Developed
Reserves:
|
|
|
Mcf of Gas
|
|
32,055,133
|
|
|
|
23,978,345
|
|
Barrels of
Oil
|
|
607,727
|
|
|
|
667,457
|
|
Barrels of
NGL
|
|
685,166
|
|
|
|
527,142
|
|
Mcfe (1)
|
|
39,812,491
|
|
|
|
31,145,939
|
|
Proved Undeveloped
Reserves:
|
|
|
|
|
|
Mcf of Gas
|
|
11,933,021
|
|
|
|
4,664,782
|
|
Barrels of
Oil
|
|
106,924
|
|
|
|
64,979
|
|
Barrels of
NGL
|
|
64,637
|
|
|
|
34,762
|
|
Mcfe (1)
|
|
12,962,387
|
|
|
|
5,263,228
|
|
Total Proved
Reserves:
|
|
|
|
|
|
Mcf of Gas
|
|
43,988,154
|
|
|
|
28,643,127
|
|
Barrels of
Oil
|
|
714,651
|
|
|
|
732,436
|
|
Barrels of
NGL
|
|
749,803
|
|
|
|
561,904
|
|
Mcfe (1)
|
|
52,774,878
|
|
|
|
36,409,167
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
|
|
|
|
|
Net Cash Flows (before
income taxes):
|
|
|
|
|
|
Proved
Developed
|
$
|
119,710,945
|
|
|
$
|
45,948,690
|
|
Proved
Undeveloped
|
|
52,978,389
|
|
|
|
9,731,035
|
|
Total
|
$
|
172,689,334
|
|
|
$
|
55,679,725
|
|
|
|
|
|
|
|
(1) Crude oil and NGL
converted to natural gas on a one barrel of crude oil or NGL equals
six Mcf of natural gas basis.
|
|
|
|
TOTAL RESERVES UPDATE
At Sept. 30, 2022, proved reserves
were 81.1 Bcfe, as calculated by Cawley, Gillespie and Associates, Inc., the Company's
independent consulting petroleum engineering firm. This was a 2%
decrease, compared to the 83.0 Bcfe of proved reserves at
Sept. 30, 2021. Total proved
developed reserves decreased 12% to 68.1 Bcfe, as compared to
Sept. 30, 2021, reserve volumes,
mainly due to sales of working interest properties in the
Fayetteville Shale, Arkoma Stack and Western Anadarko Basin. SEC prices used
for the Sept. 30, 2022, report
averaged $6.41 per Mcf for natural
gas, $90.33 per barrel for oil and
$38.09 per barrel for NGL, compared
to $2.79 per Mcf for natural gas,
$56.51 per barrel for oil and
$20.58 per barrel for NGL for the
Sept. 30, 2021, report. These prices
reflect net prices received at the wellhead.
|
Proved Reserves SEC
Pricing
|
|
|
Sept. 30,
2022
|
|
|
Sept. 30,
2021
|
|
Proved Developed
Reserves:
|
|
|
Mcf of Gas
|
|
50,304,185
|
|
|
|
60,287,881
|
|
Barrels of
Oil
|
|
1,275,853
|
|
|
|
1,439,860
|
|
Barrels of
NGL
|
|
1,698,046
|
|
|
|
1,467,092
|
|
Mcfe (1)
|
|
68,147,579
|
|
|
|
77,729,593
|
|
Proved Undeveloped
Reserves:
|
|
|
|
|
|
Mcf of Gas
|
|
11,933,021
|
|
|
|
4,664,787
|
|
Barrels of
Oil
|
|
106,924
|
|
|
|
64,980
|
|
Barrels of
NGL
|
|
64,637
|
|
|
|
34,761
|
|
Mcfe (1)
|
|
12,962,387
|
|
|
|
5,263,233
|
|
Total Proved
Reserves:
|
|
|
|
|
|
Mcf of Gas
|
|
62,237,206
|
|
|
|
64,952,668
|
|
Barrels of
Oil
|
|
1,382,777
|
|
|
|
1,504,840
|
|
Barrels of
NGL
|
|
1,762,683
|
|
|
|
1,501,853
|
|
Mcfe (1)
|
|
81,109,966
|
|
|
|
82,992,826
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
|
|
|
|
|
Net Cash Flows (before
income taxes):
|
|
|
|
|
|
Proved
Developed
|
$
|
184,948,239
|
|
|
$
|
86,793,303
|
|
Proved
Undeveloped
|
|
52,978,389
|
|
|
|
9,731,036
|
|
Total
|
$
|
237,926,628
|
|
|
$
|
96,524,339
|
|
SEC Pricing
|
|
|
|
|
|
Gas/Mcf
|
$
|
6.41
|
|
|
$
|
2.79
|
|
Oil/Barrel
|
$
|
90.33
|
|
|
$
|
56.51
|
|
NGL/Barrel
|
$
|
38.09
|
|
|
$
|
20.58
|
|
|
|
|
|
|
|
Proved Reserves -
Projected Future Pricing (2)
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
Proved
Reserves
|
|
Net Cash Flows (before
income taxes):
|
Sept. 30,
2022
|
|
|
Sept. 30,
2021
|
|
Proved
Developed
|
$
|
128,718,584
|
|
|
$
|
111,007,369
|
|
Proved
Undeveloped
|
|
39,770,031
|
|
|
|
11,989,928
|
|
Total
|
$
|
168,488,615
|
|
|
$
|
122,997,297
|
|
|
|
|
|
|
|
(1) Crude oil and NGL
converted to natural gas on a one barrel of crude oil or NGL equals
six Mcf of natural gas basis.
|
|
(2) Projected futures
pricing as of Sept. 30, 2022, and Sept. 30, 2021, basis adjusted to
Company wellhead price.
|
|
|
|
FOURTH QUARTER EARNINGS CALL
PHX will host a conference call to discuss the Company's fiscal
fourth quarter 2022 results at 11:00 a.m.
EST tomorrow, Dec. 14, 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 13734289. A
webcast will be available at
https://event.choruscall.com/mediaframe/webcast.html?webcastid=pL7VYYvq.
FINANCIAL
RESULTS
|
|
Statements of
Operations
|
|
Three Months Ended
Sept. 30,
|
|
|
Year Ended Sept.
30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Revenues:
|
|
|
|
|
|
Natural gas, oil and
NGL sales
|
$
|
21,828,034
|
|
|
$
|
12,078,420
|
|
|
$
|
69,860,631
|
|
|
$
|
37,749,044
|
|
Lease bonuses and
rental income
|
|
17,350
|
|
|
|
105,974
|
|
|
|
467,502
|
|
|
|
425,113
|
|
Gains (losses) on
derivative contracts
|
|
(4,298,614)
|
|
|
|
(8,112,827)
|
|
|
|
(16,833,078)
|
|
|
|
(16,202,489)
|
|
|
|
17,546,770
|
|
|
|
4,071,567
|
|
|
|
53,495,055
|
|
|
|
21,971,668
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
|
961,148
|
|
|
|
1,130,916
|
|
|
|
4,047,420
|
|
|
|
4,230,968
|
|
Transportation,
gathering and marketing
|
|
1,758,132
|
|
|
|
1,628,634
|
|
|
|
5,890,390
|
|
|
|
5,767,287
|
|
Production
taxes
|
|
929,330
|
|
|
|
622,266
|
|
|
|
3,230,867
|
|
|
|
1,938,304
|
|
Depreciation,
depletion and amortization
|
|
1,550,410
|
|
|
|
1,569,631
|
|
|
|
7,278,118
|
|
|
|
7,745,804
|
|
Provision for
impairment
|
|
2,703
|
|
|
|
4,620
|
|
|
|
14,565
|
|
|
|
50,475
|
|
Interest
expense
|
|
471,716
|
|
|
|
204,925
|
|
|
|
1,164,992
|
|
|
|
995,127
|
|
General and
administrative
|
|
3,783,159
|
|
|
|
2,142,205
|
|
|
|
11,500,594
|
|
|
|
8,207,882
|
|
Loss on debt
extinguishment
|
|
-
|
|
|
|
260,236
|
|
|
|
-
|
|
|
|
260,236
|
|
Losses (gains) on
asset sales and other
|
|
(3,499,296)
|
|
|
|
(178,615)
|
|
|
|
(4,243,163)
|
|
|
|
(356,127)
|
|
Total costs and
expenses
|
|
5,957,302
|
|
|
|
7,384,818
|
|
|
|
28,883,783
|
|
|
|
28,839,956
|
|
Income (loss) before
provision (benefit) for income taxes
|
|
11,589,468
|
|
|
|
(3,313,251)
|
|
|
|
24,611,272
|
|
|
|
(6,868,288)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for
income taxes
|
|
2,431,000
|
|
|
|
450,949
|
|
|
|
4,202,000
|
|
|
|
(651,051)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
9,158,468
|
|
|
$
|
(3,764,200)
|
|
|
$
|
20,409,272
|
|
|
$
|
(6,217,237)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per common share
|
$
|
0.26
|
|
|
$
|
(0.12)
|
|
|
$
|
0.59
|
|
|
$
|
(0.24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
35,573,813
|
|
|
|
30,207,492
|
|
|
|
34,403,498
|
|
|
|
25,925,536
|
|
Diluted
|
|
35,916,878
|
|
|
|
30,207,492
|
|
|
|
34,560,310
|
|
|
|
25,925,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
of
|
|
|
|
|
|
|
|
|
|
|
|
common stock paid in
period
|
$
|
0.02
|
|
|
$
|
0.01
|
|
|
$
|
0.065
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheets
|
|
|
Sept. 30,
2022
|
|
|
Sept. 30,
2021
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
3,396,809
|
|
|
$
|
2,438,511
|
|
Natural gas, oil, and
NGL sales receivables (net of $0
|
|
13,152,274
|
|
|
|
6,428,982
|
|
allowance for
uncollectable accounts)
|
|
|
|
|
|
Refundable income
taxes
|
|
-
|
|
|
|
2,413,942
|
|
Other
|
|
1,372,847
|
|
|
|
942,082
|
|
Total current
assets
|
|
17,921,930
|
|
|
|
12,223,517
|
|
|
|
|
|
|
|
Properties and
equipment at cost, based on
|
|
|
|
|
|
successful efforts
accounting:
|
|
|
|
|
|
Producing natural gas
and oil properties
|
|
248,978,928
|
|
|
|
319,984,874
|
|
Non-producing natural
gas and oil properties
|
|
51,779,336
|
|
|
|
40,466,098
|
|
Other
|
|
1,085,056
|
|
|
|
794,179
|
|
|
|
301,843,320
|
|
|
|
361,245,151
|
|
Less accumulated
depreciation, depletion and amortization
|
|
(168,759,385)
|
|
|
|
(257,643,661)
|
|
Net properties and
equipment
|
|
133,083,935
|
|
|
|
103,601,490
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
739,131
|
|
|
|
607,414
|
|
Other, net
|
|
757,116
|
|
|
|
578,593
|
|
Total assets
|
$
|
152,502,112
|
|
|
$
|
117,011,014
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
647,217
|
|
|
$
|
772,717
|
|
Derivative contracts,
net
|
|
7,873,979
|
|
|
|
12,087,988
|
|
Income taxes
payable
|
|
495,858
|
|
|
|
334,050
|
|
Current portion of
operating lease liability
|
|
213,355
|
|
|
|
132,287
|
|
Accrued liabilities
and other
|
|
2,032,275
|
|
|
|
1,809,337
|
|
Total current
liabilities
|
|
11,262,684
|
|
|
|
15,136,379
|
|
|
|
|
|
|
|
Long-term
debt
|
|
28,300,000
|
|
|
|
17,500,000
|
|
Deferred income taxes,
net
|
|
1,585,906
|
|
|
|
343,906
|
|
Asset retirement
obligations
|
|
1,901,904
|
|
|
|
2,836,172
|
|
Derivative contracts,
net
|
|
687,212
|
|
|
|
1,696,479
|
|
Operating lease
liability, net of current portion
|
|
985,887
|
|
|
|
789,339
|
|
|
|
|
|
|
|
Total
liabilities
|
|
44,723,593
|
|
|
|
38,302,275
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Voting common stock,
par value $0.01666 per share: 54,000,500 shares
|
|
|
|
|
|
authorized and
35,776,752 shares issued and outstanding at Sept. 30,
2022,
|
|
|
|
|
|
36,000,500 shares
authorized and 32,770,433 shares issued and
|
|
596,041
|
|
|
|
545,956
|
|
outstanding at Sept.
30, 2021
|
|
|
|
|
|
Capital in excess of
par value
|
|
44,177,051
|
|
|
|
33,213,645
|
|
Deferred directors'
compensation
|
|
1,496,243
|
|
|
|
1,768,151
|
|
Retained
earnings
|
|
67,117,791
|
|
|
|
48,966,420
|
|
|
|
113,387,126
|
|
|
|
84,494,172
|
|
Less treasury stock,
at cost; 377,232 shares at Sept. 30,
|
|
|
|
|
|
2022, and 388,545
shares at Sept. 30, 2021
|
|
(5,608,607)
|
|
|
|
(5,785,433)
|
|
Total stockholders'
equity
|
|
107,778,519
|
|
|
|
78,708,739
|
|
Total liabilities and
stockholders' equity
|
$
|
152,502,112
|
|
|
$
|
117,011,014
|
|
Condensed Statements of
Cash Flows
|
|
|
Year Ended Sept.
30,
|
|
|
2022
|
|
|
2021
|
|
Operating
Activities
|
|
|
Net income
(loss)
|
$
|
20,409,272
|
|
|
$
|
(6,217,237)
|
|
Adjustments to
reconcile net income (loss) to net cash provided
|
|
|
|
|
|
by operating
activities:
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
7,278,118
|
|
|
|
7,745,804
|
|
Impairment of
producing properties
|
|
14,565
|
|
|
|
50,475
|
|
Provision for deferred
income taxes
|
|
1,242,000
|
|
|
|
(985,101)
|
|
Gain from leasing fee
mineral acreage
|
|
(466,341)
|
|
|
|
(421,915)
|
|
Proceeds from leasing
fee mineral acreage
|
|
688,207
|
|
|
|
441,653
|
|
Net (gain) loss on
sales of assets
|
|
(4,423,646)
|
|
|
|
(309,348)
|
|
Directors' deferred
compensation expense
|
|
191,852
|
|
|
|
234,466
|
|
Total (gain) loss on
derivative contracts
|
|
16,833,078
|
|
|
|
16,202,489
|
|
Cash receipts
(payments) on settled derivative contracts
|
|
(2,796,250)
|
|
|
|
(11,925,669)
|
|
Restricted stock
awards
|
|
2,211,673
|
|
|
|
801,200
|
|
Loss on debt
extinguishment
|
|
-
|
|
|
|
260,236
|
|
Other
|
|
87,353
|
|
|
|
(11,099)
|
|
Cash provided (used)
by changes in assets and liabilities:
|
|
|
|
|
|
Natural gas, oil and
NGL sales receivables
|
|
(6,723,292)
|
|
|
|
(3,485,762)
|
|
Refundable (payable)
income taxes
|
|
2,413,942
|
|
|
|
1,391,285
|
|
Other current
assets
|
|
250,568
|
|
|
|
(436,401)
|
|
Accounts
payable
|
|
(10,305)
|
|
|
|
(151,875)
|
|
Other non-current
assets
|
|
(380,964)
|
|
|
|
(86,282)
|
|
Income taxes
payable
|
|
161,808
|
|
|
|
-
|
|
Accrued
liabilities
|
|
550,012
|
|
|
|
845,168
|
|
Total
adjustments
|
|
17,122,378
|
|
|
|
10,159,324
|
|
Net cash provided by
operating activities
|
|
37,531,650
|
|
|
|
3,942,087
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
Capital
expenditures
|
|
(552,638)
|
|
|
|
(733,172)
|
|
Acquisition of
minerals and overriding royalty interests
|
|
(43,525,236)
|
|
|
|
(20,624,347)
|
|
Net proceeds from
sales of assets
|
|
13,217,844
|
|
|
|
988,600
|
|
Net cash provided
(used) by investing activities
|
|
(30,860,030)
|
|
|
|
(20,368,919)
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
Borrowings under
credit facility
|
|
21,300,000
|
|
|
|
26,300,000
|
|
Payments of loan
principal
|
|
(10,500,000)
|
|
|
|
(37,550,000)
|
|
Net proceeds from
equity issuance
|
|
5,006,538
|
|
|
|
11,688,137
|
|
Cash receipts from
(payments on) off-market derivative contracts
|
|
(19,260,104)
|
|
|
|
8,800,000
|
|
Purchases of treasury
stock
|
|
(1,855)
|
|
|
|
(2,741)
|
|
Payments of
dividends
|
|
(2,257,901)
|
|
|
|
(1,060,448)
|
|
Net cash provided
(used) by financing activities
|
|
(5,713,322)
|
|
|
|
8,174,948
|
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
958,298
|
|
|
|
(8,251,884)
|
|
Cash and cash
equivalents at beginning of year
|
|
2,438,511
|
|
|
|
10,690,395
|
|
Cash and cash
equivalents at end of year
|
$
|
3,396,809
|
|
|
$
|
2,438,511
|
|
|
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid (net of
capitalized interest)
|
$
|
997,085
|
|
|
$
|
1,021,142
|
|
Income taxes paid (net
of refunds received)
|
$
|
384,249
|
|
|
$
|
(1,391,225)
|
|
|
|
|
|
|
|
Gross additions to
properties and equipment
|
$
|
46,791,346
|
|
|
$
|
31,485,015
|
|
Value of shares used
for acquisitions
|
|
(3,510,001)
|
|
|
|
(10,272,288)
|
|
Net (increase)
decrease in accounts payable for properties
|
|
|
|
|
|
and equipment
additions
|
|
796,529
|
|
|
|
144,792
|
|
Capital expenditures
and acquisitions
|
$
|
44,077,874
|
|
|
$
|
21,357,519
|
|
Derivative Contracts as
of Sept. 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collar
Average
|
|
|
Collar
Average
|
|
Fiscal
Period
|
|
Product
|
|
Volume
Mcf/Bbl
|
|
|
Swap Price
|
|
|
Floor Price
|
|
|
Ceiling
Price
|
|
2023
|
|
Natural Gas
|
|
|
1,415,000
|
|
|
|
|
|
$
|
4.13
|
|
|
$
|
7.69
|
|
2023
|
|
Natural Gas
|
|
|
2,100,000
|
|
|
$
|
3.24
|
|
|
|
|
|
|
|
2024
|
|
Natural Gas
|
|
|
135,000
|
|
|
|
|
|
$
|
3.28
|
|
|
$
|
5.98
|
|
2024
|
|
Natural Gas
|
|
|
380,000
|
|
|
$
|
3.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 non-cash gains
(losses) on derivatives and gains (losses) on asset sales and
including cash receipts from (payments on) off-market derivatives
and restricted stock and deferred directors' expense. 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 reconciliation of net income (loss) to
adjusted EBITDA for the periods indicated:
|
Fourth Quarter
Ended
|
|
|
Fourth Quarter
Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Third Quarter
Ended
|
|
|
Sept. 30,
2022
|
|
|
Sept. 30,
2021
|
|
|
Sept. 30,
2022
|
|
|
Sept. 30,
2021
|
|
|
June 30,
2022
|
|
Net Income
(Loss)
|
$
|
9,158,468
|
|
|
$
|
(3,764,200)
|
|
|
$
|
20,409,272
|
|
|
$
|
(6,217,237)
|
|
|
$
|
8,589,010
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(benefit)
|
|
2,431,000
|
|
|
|
450,949
|
|
|
|
4,202,000
|
|
|
|
(651,051)
|
|
|
|
976,000
|
|
Interest
expense
|
|
471,716
|
|
|
|
204,925
|
|
|
|
1,164,992
|
|
|
|
995,127
|
|
|
|
286,345
|
|
DD&A
|
|
1,550,410
|
|
|
|
1,569,631
|
|
|
|
7,278,118
|
|
|
|
7,745,804
|
|
|
|
2,022,832
|
|
Impairment
|
|
2,703
|
|
|
|
4,620
|
|
|
|
14,565
|
|
|
|
50,475
|
|
|
|
6,277
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash gains
(losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on
derivatives
|
|
1,639,703
|
|
|
|
3,124,035
|
|
|
|
(2,299,518)
|
|
|
|
(4,276,820)
|
|
|
|
3,282,921
|
|
Gains (losses) on asset
sales
|
|
3,558,611
|
|
|
|
247,543
|
|
|
|
4,423,648
|
|
|
|
309,344
|
|
|
|
693,750
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash receipts from
(payments on)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
off-market
derivative contracts(1)
|
|
(1,057,197)
|
|
|
|
8,800,000
|
|
|
|
(7,522,794)
|
|
|
|
8,800,000
|
|
|
|
(1,284,024)
|
|
Restricted stock and
deferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
director's
expense
|
|
1,037,179
|
|
|
|
325,567
|
|
|
|
2,403,525
|
|
|
|
1,035,666
|
|
|
|
574,333
|
|
Adjusted
EBITDA
|
$
|
8,395,965
|
|
|
$
|
4,219,914
|
|
|
$
|
25,825,548
|
|
|
$
|
15,726,260
|
|
|
$
|
7,194,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 a 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 reconciliation of net
income (loss) to adjusted EBITDA on a TTM basis and of the
resulting debt to adjusted EBITDA (TTM) ratio:
|
TTM Ended
|
|
|
TTM Ended
|
|
|
Sept. 30,
2022
|
|
|
Sept. 30,
2021
|
|
Net Income
(Loss)
|
$
|
20,409,272
|
|
|
$
|
(6,217,237)
|
|
Plus:
|
|
|
|
|
|
Income tax expense (benefit)
|
|
4,202,000
|
|
|
|
(651,051)
|
|
Interest expense
|
|
1,164,992
|
|
|
|
995,127
|
|
DD&A
|
|
7,278,118
|
|
|
|
7,745,804
|
|
Impairment
|
|
14,565
|
|
|
|
50,475
|
|
Less:
|
|
|
|
|
|
Non-cash gains (losses)
|
|
|
|
|
|
on
derivatives
|
|
(2,299,518)
|
|
|
|
(4,276,820)
|
|
Gains (losses) on asset
sales
|
|
4,423,648
|
|
|
|
309,344
|
|
Plus:
|
|
|
|
|
|
Cash receipts from
(payments on)
|
|
|
|
|
|
off-market
derivative contracts(1)
|
|
(7,522,794)
|
|
|
|
8,800,000
|
|
Restricted stock and
deferred
|
|
|
|
|
|
director's
expense
|
|
2,403,525
|
|
|
|
1,035,666
|
|
Adjusted
EBITDA
|
$
|
25,825,548
|
|
|
$
|
15,726,260
|
|
|
|
|
|
|
|
Debt
|
$
|
28,300,000
|
|
|
$
|
17,500,000
|
|
Debt to Adjusted
EBITDA (TTM)
|
|
1.10
|
|
|
|
1.11
|
|
|
|
|
|
|
|
(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
non-cash 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 reconciliation of
net income (loss) to pretax net income (loss) excluding
non-cash derivative gains (losses) for the periods indicated:
|
Fourth Quarter
Ended
|
|
|
Fourth Quarter
Ended
|
|
|
Sept. 30,
2022
|
|
|
Sept. 30,
2021
|
|
Net Income
(Loss)
|
$
|
9,158,468
|
|
|
$
|
(3,764,200)
|
|
Plus:
|
|
|
|
|
|
Income tax expense (benefit)
|
|
2,431,000
|
|
|
|
450,949
|
|
Less:
|
|
|
|
|
|
Non-cash gains (losses)
|
|
|
|
|
|
on
derivatives
|
|
1,639,703
|
|
|
|
3,124,035
|
|
Pretax Net Income
(Loss) excluding
|
|
|
|
|
|
Non-cash Derivative
Gains (Losses)
|
$
|
9,949,765
|
|
|
$
|
(6,437,286)
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
|
|
Basic
|
|
35,573,813
|
|
|
|
30,207,492
|
|
Diluted
|
|
35,916,878
|
|
|
|
30,207,492
|
|
|
|
|
|
|
|
Pretax Net Income
(Loss) excluding Non-cash
|
|
|
|
|
|
Derivative
Gains (Losses) per basic and diluted share
|
$
|
0.28
|
|
|
$
|
(0.21)
|
|
|
|
|
|
|
|
PHX Minerals Inc. (NYSE: PHX) Fort
Worth-based, PHX Minerals Inc. is a natural gas and oil focused
mineral company with a strategy to proactively grow its mineral
position in its core focus areas. PHX owns mineral acreage
principally located in Oklahoma,
Texas, Louisiana, North
Dakota and Arkansas. Additional information on the
Company can be found at www.phxmin.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Words such as "anticipates," "plans," "estimates,"
"believes," "expects," "intends," "will," "should," "may" and
similar expressions may be used to identify forward-looking
statements. Forward-looking statements are not statements of
historical fact and reflect PHX's current views about future
events. Forward-looking statements may include, but are not limited
to, statements relating to: the Company's ability to execute its
business strategies; the volatility of realized natural gas and oil
prices; the level of production on the Company's properties;
estimates of quantities of natural gas, oil and NGL reserves and
their values; general economic or industry conditions; legislation
or regulatory requirements; conditions of the securities markets;
the Company's ability to raise capital; changes in accounting
principles, policies or guidelines; financial or political
instability; acts of war or terrorism; title defects in the
properties in which the Company invests; and other economic,
competitive, governmental, regulatory or technical factors
affecting properties, operations or prices. Although the Company
believes expectations reflected in these and other forward-looking
statements are reasonable, the Company can give no assurance such
expectations will prove to be correct. Such forward-looking
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the
Company. These forward-looking statements involve certain risks and
uncertainties that could cause results to differ materially from
those expected by the Company's management. Information concerning
these risks and other factors can be found in the Company's filings
with the SEC, including its Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q, available on the Company's website
or the SEC's website at www.sec.gov.
Investors are cautioned that any such 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-reports-fiscal-fourth-quarter-2022-and-fiscal-year-2022-results-and-announces-increase-in-dividend-payment-301702227.html
SOURCE PHX MINERALS INC.