The following is a summary of the PHX Minerals Inc. (PHX) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Despite a 40% drop in natural gas prices from the previous year, PHX reported steady, positive adjusted EBITDA and cash flow.

• Royalty volumes were down slightly year-over-year and sequentially.

• EBITDA was down significantly year-over-year but increased slightly compared to the previous quarter, reflecting the company's strong hedging program.

• PHX was able to pay dividends, reduce debt, and close on acquisitions worth approximately $1.1 million, $2 million, and $1.5 million, respectively.

• Total corporate production decreased by 6% compared to the prior quarter, and revenues from natural gas, oil, and NGL sales have decreased by 17% to $7.1 million.

• Net loss for the quarter was $200,000 or negative $0.01 per diluted share.

• PHX reduced total debt to $30.75 million by the end of Q1 2024.

Business Progress:

• The company is replenishing its existing PDP reserve base through well conversions and is expecting positive macro events in the near future.

• PHX reported a significant increase in new wells online with plans to increase Haynesville locations converting to PDP in the coming years.

• The company has spent roughly $130 million acquiring a solid mineral position in the SCOOP and Haynesville since 2020 and continues to focus on acquiring minerals in the core of their focus area with near-term development potential.

• PHX Minerals is viewing a potential increase of around 5-5.5 BCF a day in Haynesville production over the next three years and expects larger public operators to drive development due to their large leasehold positions.

• The company will continue to participate in investor marketing activities and conferences to maintain investor relations, remaining committed to its strategy of focusing on natural gas.

More details: PHX Minerals IR

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