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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