OKLAHOMA
CITY, May 9, 2022 /PRNewswire/ -- PHX MINERALS
INC., "PHX" or the "Company" (NYSE: PHX), today reported financial
and operating results for the second fiscal quarter ended
March 31, 2022.
SUMMARY OF RESULTS FOR THE PERIOD ENDED MARCH 31, 2022, AND SUBSEQUENT EVENTS
- Royalty production volumes for the second fiscal quarter of
2022 increased 26% to a record 1,548 Mmcfe, and total production
volumes for the second fiscal quarter of 2022 increased 16% to
2,460 Mmcfe compared to the first fiscal quarter of 2022.
- 82% of royalty production volumes and 78% of total production
volumes in the second fiscal quarter of 2022 were attributable to
natural gas.
- 108 gross (0.48 net) wells converted to PDP, 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.
- 134 gross (0.60 net) wells in progress as of March 31, 2022.
- Net loss in the second fiscal quarter of 2022 was ($4.0) million, or ($0.12) per share, compared to net income of
$6.7 million, or $0.20 per share, in the first fiscal quarter of
2022.
- Pretax net income excluding non-cash derivative gains
(losses) (1) in the second fiscal quarter of 2022 was
$7.8 million, or $0.23 per share, compared to $2.9 million, or $0.09 per share, in the first fiscal quarter of
2022.
- Adjusted EBITDA(1) of $5.8
million for the second fiscal quarter of 2022, increased
from $3.6 million in the second
fiscal quarter of 2021 and from $4.4
million in the first fiscal quarter of 2022.
- Total debt as of March 31, 2022,
equaled $24.0 million and debt to
adjusted EBITDA (TTM) (1) ratio was 1.23x at
March 31, 2022.
- During the second quarter of fiscal year 2022, PHX closed on an
acquisition of 825 net royalty acres located in the SCOOP play of
Oklahoma and the Haynesville play of East Texas and Louisiana for approximately $9.3 million in cash.
- Since March 31, 2022, PHX has
closed on an additional acquisition of 185 net royalty acres
located in the SCOOP play of Oklahoma and the Haynesville play of Louisiana for approximately $1.5 million in cash. PHX has an additional 983
net royalty acres pending acquisition and under purchase and sale
agreements, which the Company expects to close by the end of
May 2022 for approximately
$9.4 million in cash.
- PHX announced that the quarterly dividend increased to
$0.02 per share, a 33% increase,
payable on June 3, 2022, to
stockholders of record on May 19,
2022.
(1)
|
This is a non-GAAP
measure. Refer to the Non-GAAP Reconciliation section.
|
Chad L. Stephens, President and
CEO, commented, "We are very pleased to report excellent
financial results for our second quarter. First, I would like to
recognize our employees for their dedication and hard work, for
they are our greatest resource. None of our accomplishments would
have been achieved without them.
"Royalty volumes increased by over 20% on a quarter over quarter
basis for the second consecutive quarter to a record 1.55 Bcfe, and
non-operated working interest volumes continue to decline as a
percentage of total volumes to 37% and will continue to become less
material going forward. Higher sales volumes along with the
serendipitous commodity price environment provided a 32% increase
quarter over sequential quarter in adjusted EBITDA.
"Our active mineral acquisition program has closed a
year-to-date total of $25.6 million
in transactions with another $9.4
million scheduled to close by the end of May – all in our
core focus areas in the SCOOP of southern Oklahoma and the Haynesville. These recent acquisitions are in
areas of active drilling and will drive our increasing royalty
volumes and cash flow over the coming quarters. Additionally, the
Board approved a 33% increase in our quarterly dividend payable in
June 2022, which highlights our
confidence in our financial strength and earnings power of our
growing asset base. PHX remains committed to increasing our return
of capital to stockholders via future dividends as we grow our
asset base."
OPERATING
HIGHLIGHTS
|
|
|
Second Quarter
Ended
|
|
|
Second Quarter
Ended
|
|
|
Six Months
Ended
|
|
|
Six Months
Ended
|
|
|
March 31,
2022
|
|
|
March 31,
2021
|
|
|
March 31,
2022
|
|
|
March 31,
2021
|
|
Mcfe Sold
|
|
2,460,042
|
|
|
|
2,296,802
|
|
|
|
4,588,290
|
|
|
|
4,371,139
|
|
Average Sales Price per
Mcfe
|
$
|
6.01
|
|
|
$
|
3.63
|
|
|
$
|
6.21
|
|
|
$
|
3.38
|
|
Gas Mcf Sold
|
|
1,908,030
|
|
|
|
1,735,820
|
|
|
|
3,482,295
|
|
|
|
3,211,276
|
|
Average Sales Price per
Mcf
|
$
|
4.47
|
|
|
$
|
2.52
|
|
|
$
|
4.95
|
|
|
$
|
2.44
|
|
Oil Barrels
Sold
|
|
51,631
|
|
|
|
56,269
|
|
|
|
99,705
|
|
|
|
114,945
|
|
Average Sales Price per
Barrel
|
$
|
91.26
|
|
|
$
|
55.89
|
|
|
$
|
83.12
|
|
|
$
|
47.73
|
|
NGL Barrels
Sold
|
|
40,371
|
|
|
|
37,228
|
|
|
|
84,627
|
|
|
|
78,365
|
|
Average Sales Price per
Barrel
|
$
|
38.05
|
|
|
$
|
22.24
|
|
|
$
|
34.94
|
|
|
$
|
18.54
|
|
Total Production for the last five quarters was as follows:
Quarter
ended
|
|
Mcf Sold
|
|
|
Oil Bbls
Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
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
|
|
6/30/2021
|
|
|
1,879,343
|
|
|
|
55,492
|
|
|
|
46,753
|
|
|
|
2,492,813
|
|
3/31/2021
|
|
|
1,735,820
|
|
|
|
56,269
|
|
|
|
37,228
|
|
|
|
2,296,802
|
|
Royalty Interest Production for the last five quarters was as
follows:
Quarter
ended
|
|
Mcf Sold
|
|
|
Oil Bbls
Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
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
|
|
6/30/2021
|
|
|
908,471
|
|
|
|
31,095
|
|
|
|
18,255
|
|
|
|
1,204,571
|
|
3/31/2021
|
|
|
924,969
|
|
|
|
31,768
|
|
|
|
19,088
|
|
|
|
1,230,105
|
|
Working Interest Production for the last five quarters was as
follows:
Quarter
ended
|
|
Mcf Sold
|
|
|
Oil Bbls
Sold
|
|
|
NGL Bbls
Sold
|
|
|
Mcfe Sold
|
|
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
|
|
6/30/2021
|
|
|
970,872
|
|
|
|
24,397
|
|
|
|
28,498
|
|
|
|
1,288,242
|
|
3/31/2021
|
|
|
810,851
|
|
|
|
24,501
|
|
|
|
18,140
|
|
|
|
1,066,697
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
Second Quarter
Ended
|
|
|
Second Quarter
Ended
|
|
|
Six Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
March 31,
2022
|
|
|
March 31,
2021
|
|
|
March 31,
2022
|
|
|
March 31,
2021
|
|
Working Interest
Sales
|
|
$
|
5,904,871
|
|
|
$
|
3,851,478
|
|
|
$
|
11,871,518
|
|
|
$
|
7,759,002
|
|
Royalty Interest
Sales
|
|
$
|
8,878,994
|
|
|
$
|
4,494,347
|
|
|
$
|
16,599,511
|
|
|
$
|
7,011,802
|
|
Natural Gas, Oil and
NGL Sales
|
|
$
|
14,783,865
|
|
|
$
|
8,345,825
|
|
|
$
|
28,471,029
|
|
|
$
|
14,770,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease Bonuses and
Rental Income
|
|
$
|
161,908
|
|
|
$
|
58,554
|
|
|
$
|
240,823
|
|
|
$
|
59,987
|
|
Total
Revenue
|
|
$
|
1,962,367
|
|
|
$
|
6,056,236
|
|
|
$
|
18,564,614
|
|
|
$
|
12,228,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOE per Working
Interest Mcfe
|
|
$
|
1.02
|
|
|
$
|
0.97
|
|
|
$
|
1.20
|
|
|
$
|
0.85
|
|
LOE per total
Mcfe
|
|
$
|
0.38
|
|
|
$
|
0.45
|
|
|
$
|
0.48
|
|
|
$
|
0.47
|
|
Transportation,
Gathering and Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per
Mcfe
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
|
$
|
0.59
|
|
|
$
|
0.59
|
|
Production Tax per
Mcfe
|
|
$
|
0.28
|
|
|
$
|
0.19
|
|
|
$
|
0.30
|
|
|
$
|
0.16
|
|
Cash G&A Expense
per Mcfe (1)
|
|
$
|
0.93
|
|
|
$
|
0.80
|
|
|
$
|
0.88
|
|
|
$
|
0.78
|
|
G&A Expense per
Mcfe
|
|
$
|
1.12
|
|
|
$
|
0.90
|
|
|
$
|
1.05
|
|
|
$
|
0.87
|
|
Interest Expense per
Mcfe
|
|
$
|
0.09
|
|
|
$
|
0.12
|
|
|
$
|
0.09
|
|
|
$
|
0.13
|
|
DD&A per
Mcfe
|
|
$
|
0.86
|
|
|
$
|
0.77
|
|
|
$
|
0.81
|
|
|
$
|
0.92
|
|
Total Expense per
Mcfe
|
|
$
|
3.34
|
|
|
$
|
3.00
|
|
|
$
|
3.32
|
|
|
$
|
3.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
$
|
(4,020,455)
|
|
|
$
|
(499,723)
|
|
|
$
|
2,661,794
|
|
|
$
|
(1,096,443)
|
|
Adjusted EBITDA
(2)
|
|
$
|
5,819,415
|
|
|
$
|
3,582,486
|
|
|
$
|
10,235,479
|
|
|
$
|
6,494,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow from
Operations
|
|
$
|
7,296,330
|
|
|
$
|
4,205,726
|
|
|
$
|
15,934,320
|
|
|
$
|
4,677,107
|
|
CapEx
|
|
$
|
86,671
|
|
|
$
|
297,015
|
|
|
$
|
279,348
|
|
|
$
|
425,098
|
|
CapEx - Mineral
Acquisitions
|
|
$
|
9,274,447
|
|
|
$
|
64,758
|
|
|
$
|
20,918,274
|
|
|
$
|
7,934,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowing
Base
|
|
|
|
|
|
|
|
|
|
$
|
32,000,000
|
|
|
$
|
29,400,000
|
|
Debt
|
|
|
|
|
|
|
|
|
|
$
|
24,000,000
|
|
|
$
|
23,500,000
|
|
Debt to Adjusted EBITDA
(TTM) (2)
|
|
|
|
|
|
|
|
|
|
|
1.23
|
|
|
|
2.35
|
|
|
|
(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.
|
SECOND FISCAL QUARTER ENDED MARCH 31,
2022, RESULTS
The Company recorded a second fiscal quarter 2022 net loss of
($4,020,455), or ($0.12) per share, as compared to a net loss of
($499,723), or ($0.02) per share, in the second fiscal quarter
2021. The change in net loss was principally the result of
unrealized losses associated with the Company's derivative
contracts, offset by increased natural gas, oil and NGL sales and
gains on asset sales.
Natural gas, oil and NGL revenue increased $6,438,040, or 77%, for the second quarter 2022,
compared to the corresponding 2021 quarter due to increases in
natural gas, oil and NGL prices of 77%, 63% and 71%, respectively,
and an increase in natural gas and NGL volumes of 10% and 8%,
respectively, partially offset by an 8% decrease in oil
volumes.
The production increase in royalty volumes during the three
months ended March 31, 2022, as
compared to the three months ended March 31,
2021, resulted from acquired wells in the Haynesville Shale
and SCOOP plays coming online. The decrease in working
interest volumes resulted from naturally declining production in
high-interest wells in the Arkoma Stack and the divestiture of
low-value legacy working interests in Oklahoma.
The Company had a net loss on derivative contracts of
($12,983,406) in the second fiscal
2022 quarter, as compared to a net loss of ($2,348,143) in the second fiscal 2021 quarter,
of which ($11,772,640) is unrealized
with respect to the second fiscal 2022 quarter. Realized net loss
on derivative contracts for the second fiscal 2022 quarter excludes
$2,493,481 of cash paid to settle
off-market derivative contracts. The change in net loss on
derivative contracts was principally due to the Company's natural
gas and oil collars and fixed price swaps being less beneficial in
the quarter ended March 31, 2022, in
relation to their respective contracted volumes and prices, as
compared to the corresponding 2021 quarter.
The 11% increase in total cost per Mcfe in the second fiscal
2022 quarter, relative to the second fiscal 2021 quarter, was
primarily driven by an increase in general and administrative
costs, or G&A, and depreciation, depletion and amortization, or
DD&A. G&A increased $684,788,
or 33%, in the second 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. DD&A increased $343,299, or 19%, in the second fiscal 2022
quarter to $0.86 per Mcfe, as
compared to $0.77 per Mcfe in the
second fiscal 2021 quarter. Of the DD&A increase, $217,604 was a result of a $0.09 increase in the DD&A rate per Mcfe, and
$125,695 of such increase resulted
from production increasing 7% in the second fiscal 2022
quarter.
SIX MONTHS ENDED MARCH 31, 2022,
RESULTS
The Company recorded net income of $2,661,794, or $0.08 per share, in the fiscal six-month period
ended March 31, 2022 (the "fiscal
six-month 2022 period"), as compared to a net loss of ($1,096,443), or ($0.05) per share, in the corresponding 2021
period. The change in net income was principally the result of
increased natural gas, oil and NGL sales and lease bonuses and
rental income, and decreased DD&A and interest expense,
partially offset by an increase in losses on derivative contracts,
lease operating expense, or LOE, transportation, gathering and
marketing expenses, production taxes and a reduction in income tax
benefit.
Natural gas, oil and NGL sales increased $13,700,225, or 93%, for the fiscal six-month
2022 period, compared to the corresponding 2021 period, due to
increases in natural gas, oil and NGL prices of 103%, 74% and 88%,
respectively, and an increase in natural gas and NGL volumes of 8%
and 8%, respectively, partially offset by a decrease in oil volumes
of 13%.
Natural gas volumes increased during the fiscal six-month 2022
period, as compared to the corresponding 2021 period, 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 also increased as a result of
new wells brought online in the SCOOP, as well as increased
production from liquids-rich gas wells in the Anadarko Granite
Wash. The decrease in oil production was a result of naturally
declining production in working interest wells in the Eagle Ford
play and royalty wells in the Bakken play, due to the Company's
strategy of no longer participating with working interests in new
drilling in the Eagle Ford, and reduced drilling activity in the
Bakken, 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
($10,147,238) in the fiscal six-month
2022 period, as compared to a net loss of ($2,602,179) in the corresponding 2021 period, of
which ($7,222,140) is unrealized with
respect to the fiscal six-month 2022 period. Realized net loss on
derivative contracts for the fiscal six-month 2022 period excludes
$5,181,572 of cash paid to settle
off-market derivative contracts. The change in net loss on
derivative contracts was principally due to the Company's natural
gas and oil collars and fixed price swaps being less beneficial in
the fiscal six-month 2022 period in relation to their respective
contracted volumes and prices, as compared to the corresponding
2021 period.
The 6% increase in total cost per Mcfe in the fiscal six-month
2022 period, relative to the corresponding 2021 period, was
primarily driven by an increase in G&A and production tax,
partially offset by a decrease in DD&A. G&A increased
$1,049,248, or 28%, in the fiscal
six-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. DD&A decreased
$333,590, or 8%, in the fiscal
six-month 2022 period to $0.81 per
Mcfe, as compared to $0.92 per Mcfe
in the corresponding 2021 period. Of the DD&A decrease,
$533,366 was a result of an
$0.11 decrease in the DD&A rate
per Mcfe, partially offset by an increase of $199,776 resulting from production increasing 5%
in the fiscal six-month 2022 period compared to the corresponding
2021 period. The DD&A rate per Mcfe decrease was mainly due an
increase in reserves during the fiscal six-month 2022 period, as
compared to the corresponding 2021 period.
OPERATIONS UPDATE
During the second fiscal quarter of 2022, the Company converted
108 gross (0.48 net) wells to producing status, including 35 gross
(0.04 net) in the SCOOP and 31 gross (0.33 net) in the Haynesville.
At March 31, 2022, the Company had
a total of 134 gross wells (0.60 net wells) in progress across its
mineral positions and 52 gross (0.23 net) active permitted wells.
As of March 31, 2022, 18 rigs were
operating on the Company's acreage with 86 rigs operating within
2.5 miles of its acreage.
|
|
|
|
|
|
|
|
|
|
Bakken/
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
|
Arkoma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCOOP
|
|
|
STACK
|
|
|
Forks
|
|
|
Stack
|
|
|
Fayetteville
|
|
|
Haynesville
|
|
|
Other
|
|
|
Total
|
|
As of March 31,
2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Wells in
Progress on PHX Acreage
|
|
|
61
|
|
|
|
14
|
|
|
|
6
|
|
|
|
6
|
|
|
|
-
|
|
|
|
40
|
|
|
|
7
|
|
|
|
134
|
|
Net Wells in
Progress on PHX Acreage
|
|
|
0.17
|
|
|
|
0.07
|
|
|
|
0.01
|
|
|
|
0.00
|
|
|
|
-
|
|
|
|
0.33
|
|
|
|
0.02
|
|
|
|
0.60
|
|
Gross Active
Permits on PHX Acreage
|
|
|
10
|
|
|
|
11
|
|
|
|
11
|
|
|
|
4
|
|
|
|
-
|
|
|
|
12
|
|
|
|
4
|
|
|
|
52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31,
2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rigs Present on
PHX Acreage
|
|
|
7
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
-
|
|
|
|
7
|
|
|
|
1
|
|
|
|
18
|
|
Rigs Within 2.5
Miles of PHX Acreage
|
|
|
19
|
|
|
|
13
|
|
|
|
10
|
|
|
|
2
|
|
|
|
-
|
|
|
|
29
|
|
|
|
13
|
|
|
|
86
|
|
Leasing Activity
During the second quarter of fiscal 2022, the Company leased 385
net mineral acres for an average bonus payment of $942 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 March 31,
2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Mineral Acres
Leased
|
|
|
41
|
|
|
|
67
|
|
|
|
-
|
|
|
|
125
|
|
|
|
9
|
|
|
|
-
|
|
|
|
143
|
|
|
|
385
|
|
Average Bonus per Net
Mineral Acre
|
|
$
|
1,679
|
|
|
$
|
1,000
|
|
|
|
-
|
|
|
$
|
185
|
|
|
$
|
100
|
|
|
|
-
|
|
|
$
|
467
|
|
|
$
|
942
|
|
Average Royalty per Net
Mineral Acre
|
|
25%
|
|
|
25%
|
|
|
|
-
|
|
|
19%
|
|
|
$
|
17
|
|
|
|
-
|
|
|
19%
|
|
|
22%
|
|
ACQUISITION AND DIVESTITURE UPDATE
During the second quarter of fiscal year 2022, the Company
purchased 825 net royalty acres for approximately $9.3 million and sold 7,208 net mineral acres,
which were predominantly undeveloped and unleased, for
approximately $2.1 million.
|
|
|
|
|
|
|
|
|
|
Bakken/
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
|
|
|
Arkoma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCOOP
|
|
|
STACK
|
|
|
Forks
|
|
|
Stack
|
|
|
Fayetteville
|
|
|
Haynesville
|
|
|
Other
|
|
|
Total
|
|
During Three Months
Ended March 31, 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Mineral Acres Purchased
|
|
|
184
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
421
|
|
|
|
-
|
|
|
|
605
|
|
Net
Royalty Acres Purchased
|
|
|
224
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
601
|
|
|
|
-
|
|
|
|
825
|
|
Price per Net Royalty
Acre
|
|
$
|
8,027
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
$
|
12,511
|
|
|
|
-
|
|
|
$
|
11,294
|
|
Net
Mineral Acres Sold
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,208
|
|
|
|
7,208
|
|
Net
Royalty Acres Sold
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,708
|
|
|
|
7,708
|
|
Price per Net Royalty
Acre
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
$
|
272
|
|
|
$
|
272
|
|
SECOND QUARTER EARNINGS CALL
PHX will host a conference call to discuss the Company's second
fiscal quarter results at 11:00 a.m. EST
tomorrow May 10, 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 13729283.
FINANCIAL
RESULTS
|
|
Statements of
Operations
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
Six Months Ended
March 31,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Revenues:
|
|
|
|
|
|
Natural gas, oil and NGL sales
|
$
|
14,783,865
|
|
|
$
|
8,345,825
|
|
|
$
|
28,471,029
|
|
|
$
|
14,770,804
|
|
Lease bonuses and rental income
|
|
161,908
|
|
|
|
58,554
|
|
|
|
240,823
|
|
|
|
59,987
|
|
Gains (losses) on derivative contracts
|
|
(12,983,406)
|
|
|
|
(2,348,143)
|
|
|
|
(10,147,238)
|
|
|
|
(2,602,179)
|
|
|
|
1,962,367
|
|
|
|
6,056,236
|
|
|
|
18,564,614
|
|
|
|
12,228,612
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses
|
|
929,454
|
|
|
|
1,030,651
|
|
|
|
2,185,465
|
|
|
|
2,035,063
|
|
Transportation, gathering and marketing
|
|
1,488,518
|
|
|
|
1,319,514
|
|
|
|
2,702,122
|
|
|
|
2,600,479
|
|
Production taxes
|
|
697,393
|
|
|
|
443,154
|
|
|
|
1,376,340
|
|
|
|
719,180
|
|
Depreciation, depletion and amortization
|
|
2,121,116
|
|
|
|
1,777,817
|
|
|
|
3,704,876
|
|
|
|
4,038,466
|
|
Provision for impairment
|
|
-
|
|
|
|
-
|
|
|
|
5,585
|
|
|
|
-
|
|
Interest expense
|
|
230,212
|
|
|
|
267,865
|
|
|
|
406,931
|
|
|
|
569,763
|
|
General and administrative
|
|
2,744,264
|
|
|
|
2,059,476
|
|
|
|
4,839,821
|
|
|
|
3,790,573
|
|
Losses (gains) on asset sales and other
|
|
(2,261,135)
|
|
|
|
(125,518)
|
|
|
|
(113,320)
|
|
|
|
(142,469)
|
|
Total costs and
expenses
|
|
5,949,822
|
|
|
|
6,772,959
|
|
|
|
15,107,820
|
|
|
|
13,611,055
|
|
Income (loss) before
provision (benefit) for income taxes
|
|
(3,987,455)
|
|
|
|
(716,723)
|
|
|
|
3,456,794
|
|
|
|
(1,382,443)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for
income taxes
|
|
33,000
|
|
|
|
(217,000)
|
|
|
|
795,000
|
|
|
|
(286,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(4,020,455)
|
|
|
$
|
(499,723)
|
|
|
$
|
2,661,794
|
|
|
$
|
(1,096,443)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per common share
|
$
|
(0.12)
|
|
|
$
|
(0.02)
|
|
|
$
|
0.08
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
|
|
34,056,316
|
|
|
|
22,429,777
|
|
|
|
33,449,594
|
|
|
|
22,403,678
|
|
Unissued, directors' deferred compensation shares
|
|
236,139
|
|
|
|
178,597
|
|
|
|
234,091
|
|
|
|
177,923
|
|
|
|
34,292,455
|
|
|
|
22,608,374
|
|
|
|
33,683,685
|
|
|
|
22,581,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common stock paid in period
|
$
|
0.015
|
|
|
$
|
0.01
|
|
|
$
|
0.025
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common stock and to be paid in quarter ended June
30
|
$
|
-
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheets
|
|
|
March 31,
2022
|
|
|
Sept. 30,
2021
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
1,703,675
|
|
|
$
|
2,438,511
|
|
Natural gas, oil, and NGL sales receivables (net of
$0
|
|
9,451,366
|
|
|
|
6,428,982
|
|
allowance for uncollectable
accounts)
|
|
|
|
|
|
|
|
Refundable income taxes
|
|
-
|
|
|
|
2,413,942
|
|
Other
|
|
1,188,312
|
|
|
|
942,082
|
|
Total current
assets
|
|
12,343,353
|
|
|
|
12,223,517
|
|
|
|
|
|
|
|
|
|
Properties and
equipment at cost, based on
|
|
|
|
|
|
|
|
successful
efforts accounting:
|
|
|
|
|
|
|
|
Producing natural gas and oil properties
|
|
264,135,242
|
|
|
|
319,984,874
|
|
Non-producing natural gas and oil properties
|
|
48,878,130
|
|
|
|
40,466,098
|
|
Other
|
|
844,582
|
|
|
|
794,179
|
|
|
|
313,857,954
|
|
|
|
361,245,151
|
|
Less accumulated depreciation, depletion and
amortization
|
|
(196,960,903)
|
|
|
|
(257,643,661)
|
|
Net properties and
equipment
|
|
116,897,051
|
|
|
|
103,601,490
|
|
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets
|
|
564,034
|
|
|
|
607,414
|
|
Other, net
|
|
537,199
|
|
|
|
578,593
|
|
Total assets
|
$
|
130,341,637
|
|
|
$
|
117,011,014
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
$
|
602,415
|
|
|
$
|
772,717
|
|
Derivative contracts, net
|
|
14,793,396
|
|
|
|
12,087,988
|
|
Income taxes payable
|
|
253,733
|
|
|
|
334,050
|
|
Current portion of operating lease liability
|
|
134,955
|
|
|
|
132,287
|
|
Accrued liabilities and other
|
|
1,506,836
|
|
|
|
1,809,337
|
|
Total current
liabilities
|
|
17,291,335
|
|
|
|
15,136,379
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
24,000,000
|
|
|
|
17,500,000
|
|
Deferred income taxes,
net
|
|
370,906
|
|
|
|
343,906
|
|
Asset retirement
obligations
|
|
2,178,023
|
|
|
|
2,836,172
|
|
Derivative contracts,
net
|
|
1,031,639
|
|
|
|
1,696,479
|
|
Operating lease
liability, net of current portion
|
|
721,188
|
|
|
|
789,339
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
45,593,091
|
|
|
|
38,302,275
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common Stock, $0.01666 par value; 54,000,500
|
|
|
|
|
|
|
|
shares authorized and 34,469,449 issued at March 31,
2022;
|
|
|
|
|
|
|
|
36,000,500 shares authorized and 32,770,433 issued at Sept.
30, 2021
|
|
574,261
|
|
|
|
545,956
|
|
Capital in excess of par value
|
|
37,596,944
|
|
|
|
33,213,645
|
|
Deferred directors' compensation
|
|
1,407,423
|
|
|
|
1,768,151
|
|
Retained earnings
|
|
50,778,525
|
|
|
|
48,966,420
|
|
|
|
90,357,153
|
|
|
|
84,494,172
|
|
Less treasury stock, at cost; 377,232 shares at March
31,
|
|
|
|
|
|
|
|
2022, and 388,545 shares at Sept. 30, 2021
|
|
(5,608,607)
|
|
|
|
(5,785,433)
|
|
Total stockholders'
equity
|
|
84,748,546
|
|
|
|
78,708,739
|
|
Total liabilities and
stockholders' equity
|
$
|
130,341,637
|
|
|
$
|
117,011,014
|
|
Condensed Statements of
Cash Flows
|
|
|
|
|
Six Months Ended
March 31,
|
|
|
2022
|
|
|
2021
|
|
Operating Activities
|
|
|
Net
income (loss)
|
$
|
2,661,794
|
|
|
$
|
(1,096,443)
|
|
Adjustments to reconcile net income (loss) to net cash
provided
|
|
|
|
|
|
|
|
by operating activities:
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization
|
|
3,704,876
|
|
|
|
4,038,466
|
|
Impairment of producing properties
|
|
5,585
|
|
|
|
-
|
|
Provision for deferred income taxes
|
|
27,000
|
|
|
|
(288,000)
|
|
Gain from leasing fee mineral acreage
|
|
(239,751)
|
|
|
|
(57,493)
|
|
Proceeds from leasing fee mineral acreage
|
|
328,783
|
|
|
|
64,047
|
|
Net (gain) loss on sales of assets
|
|
(171,285)
|
|
|
|
(62,097)
|
|
Directors' deferred compensation expense
|
|
103,031
|
|
|
|
100,254
|
|
Total (gain) loss on derivative contracts
|
|
10,147,238
|
|
|
|
2,602,179
|
|
Cash receipts (payments) on settled derivative
contracts
|
|
(176,510)
|
|
|
|
315,883
|
|
Restricted stock awards
|
|
688,981
|
|
|
|
284,148
|
|
Other
|
|
28,483
|
|
|
|
31,544
|
|
Cash provided (used) by changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Natural gas, oil and NGL sales
receivables
|
|
(3,022,384)
|
|
|
|
(1,732,801)
|
|
Other current assets
|
|
(205,489)
|
|
|
|
(388,864)
|
|
Accounts payable
|
|
(91,587)
|
|
|
|
(340,404)
|
|
Income taxes receivable
|
|
2,413,942
|
|
|
|
1,356,356
|
|
Other non-current assets
|
|
64,975
|
|
|
|
56,545
|
|
Income taxes payable
|
|
(80,317)
|
|
|
|
-
|
|
Accrued liabilities
|
|
(253,045)
|
|
|
|
(206,213)
|
|
Total adjustments
|
|
13,272,526
|
|
|
|
5,773,550
|
|
Net
cash provided by operating activities
|
|
15,934,320
|
|
|
|
4,677,107
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(279,348)
|
|
|
|
(425,098)
|
|
Acquisition of minerals and overriding royalty
interests
|
|
(20,918,274)
|
|
|
|
(7,934,504)
|
|
Net proceeds from sales of assets
|
|
6,880,972
|
|
|
|
21,000
|
|
Net
cash provided (used) by investing activities
|
|
(14,316,650)
|
|
|
|
(8,338,602)
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
Borrowings under credit facility
|
|
10,000,000
|
|
|
|
-
|
|
Payments of loan principal
|
|
(3,500,000)
|
|
|
|
(5,250,000)
|
|
Net cost of equity issuance
|
|
(72,657)
|
|
|
|
(53,482)
|
|
Cash receipts from (payments on) off-market
derivative contracts
|
|
(7,930,160)
|
|
|
|
-
|
|
Payments of dividends
|
|
(849,689)
|
|
|
|
(454,936)
|
|
Net
cash provided (used) by financing activities
|
|
(2,352,506)
|
|
|
|
(5,758,418)
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
(734,836)
|
|
|
|
(9,419,913)
|
|
Cash and cash equivalents at beginning of period
|
|
2,438,511
|
|
|
|
10,690,395
|
|
Cash and cash equivalents at end of period
|
$
|
1,703,675
|
|
|
$
|
1,270,482
|
|
|
|
|
|
|
|
|
|
Supplemental Schedule of Noncash Investing and
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared and unpaid
|
$
|
-
|
|
|
$
|
289,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross additions to properties and equipment
|
$
|
24,522,684
|
|
|
$
|
8,759,616
|
|
Value of shares used for acquisitions
|
|
(3,510,001)
|
|
|
|
(250,000)
|
|
Net
(increase) decrease in accounts payable for properties
|
|
|
|
|
|
|
|
and equipment
additions
|
|
184,939
|
|
|
|
(150,014)
|
|
Capital expenditures and acquisitions
|
$
|
21,197,622
|
|
|
$
|
8,359,602
|
|
Proved
Reserves
|
|
|
|
|
Proved Reserves SEC
Pricing
|
|
|
March 31,
2022
|
|
|
Sept. 30,
2021
|
|
Proved Developed Reserves:
|
|
|
Mcf
of Gas
|
|
57,105,505
|
|
|
|
60,287,881
|
|
Barrels of Oil
|
|
1,407,747
|
|
|
|
1,439,860
|
|
Barrels of NGL
|
|
1,413,001
|
|
|
|
1,467,092
|
|
Mcfe (1)
|
|
74,029,993
|
|
|
|
77,729,593
|
|
Proved Undeveloped Reserves:
|
|
|
|
|
|
|
|
Mcf
of Gas
|
|
6,649,529
|
|
|
|
4,664,787
|
|
Barrels of Oil
|
|
49,819
|
|
|
|
64,980
|
|
Barrels of NGL
|
|
39,120
|
|
|
|
34,761
|
|
Mcfe (1)
|
|
7,183,163
|
|
|
|
5,263,233
|
|
Total Proved Reserves:
|
|
|
|
|
|
|
|
Mcf
of Gas
|
|
63,755,034
|
|
|
|
64,952,668
|
|
Barrels of Oil
|
|
1,457,566
|
|
|
|
1,504,840
|
|
Barrels of NGL
|
|
1,452,121
|
|
|
|
1,501,853
|
|
Mcfe (1)
|
|
81,213,156
|
|
|
|
82,992,826
|
|
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
|
|
|
|
|
|
|
Net Cash Flows (before income
taxes):
|
|
|
|
|
|
|
|
Proved Developed
|
$
|
136,886,508
|
|
|
$
|
86,793,303
|
|
Proved Undeveloped
|
|
18,800,039
|
|
|
|
9,731,035
|
|
Total
|
$
|
155,686,547
|
|
|
$
|
96,524,338
|
|
SEC Pricing
|
|
|
|
|
|
|
|
Gas/Mcf
|
$
|
4.24
|
|
|
$
|
2.79
|
|
Oil/Barrel
|
$
|
75.00
|
|
|
$
|
56.51
|
|
NGL/Barrel
|
$
|
31.44
|
|
|
$
|
20.58
|
|
|
|
|
|
|
|
|
|
Proved Reserves -
Projected Future Pricing (2)
|
|
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
Proved
Reserves
|
|
Net Cash Flows (before income
taxes):
|
March 31,
2022
|
|
|
Sept. 30,
2021
|
|
Proved Developed
|
$
|
132,544,462
|
|
|
$
|
111,007,369
|
|
Proved Undeveloped
|
|
18,291,047
|
|
|
|
11,989,928
|
|
Total
|
$
|
150,835,509
|
|
|
$
|
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 March 31, 2022, and Sept. 30, 2021, basis adjusted to
Company wellhead price.
|
|
Derivative Contracts as
of May 6, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collar
Average
|
|
|
Collar
Average
|
|
Fiscal
Period
|
|
Product
|
|
Volume
Mcf/Bbl
|
|
|
Swap Price
|
|
|
Floor
Price
|
|
|
Ceiling
Price
|
|
Remaining
2022
|
|
Natural
Gas
|
|
|
585,000
|
|
|
|
|
|
|
$
|
3.95
|
|
|
$
|
5.69
|
|
Remaining
2022
|
|
Natural
Gas
|
|
|
1,785,000
|
|
|
$
|
2.98
|
|
|
|
|
|
|
|
|
|
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
|
|
|
64,500
|
|
|
$
|
45.03
|
|
|
|
|
|
|
|
|
|
2023
|
|
Crude Oil
|
|
|
15,000
|
|
|
|
|
|
|
$
|
75.00
|
|
|
$
|
96.00
|
|
2023
|
|
Crude Oil
|
|
|
66,750
|
|
|
$
|
62.11
|
|
|
|
|
|
|
|
|
|
2024
|
|
Crude Oil
|
|
|
11,250
|
|
|
$
|
73.35
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation
This news 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:
|
Second Quarter
Ended
|
|
|
Second Quarter
Ended
|
|
|
Six Months
Ended
|
|
|
Six Months
Ended
|
|
|
First Quarter
Ended
|
|
|
March 31,
2022
|
|
|
March 31,
2021
|
|
|
March 31,
2022
|
|
|
March 31,
2021
|
|
|
Dec. 31,
2021
|
|
Net Income (Loss)
|
$
|
(4,020,455)
|
|
|
$
|
(499,723)
|
|
|
$
|
2,661,794
|
|
|
$
|
(1,096,443)
|
|
|
$
|
6,682,249
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(benefit)
|
|
33,000
|
|
|
|
(217,000)
|
|
|
|
795,000
|
|
|
|
(286,000)
|
|
|
|
762,000
|
|
Interest expense
|
|
230,212
|
|
|
|
267,865
|
|
|
|
406,931
|
|
|
|
569,763
|
|
|
|
176,719
|
|
DD&A
|
|
2,121,116
|
|
|
|
1,777,817
|
|
|
|
3,704,876
|
|
|
|
4,038,466
|
|
|
|
1,583,760
|
|
Impairment
|
|
-
|
|
|
|
-
|
|
|
|
5,585
|
|
|
|
-
|
|
|
|
5,585
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on derivatives
|
|
(11,772,640)
|
|
|
|
(2,050,712)
|
|
|
|
(7,222,140)
|
|
|
|
(2,918,062)
|
|
|
|
4,550,499
|
|
Gains (losses) on asset
sales
|
|
2,292,215
|
|
|
|
14,082
|
|
|
|
171,288
|
|
|
|
30,559
|
|
|
|
(2,120,927)
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash receipts from
(payments on)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
off-market derivative
contracts(1)
|
|
(2,493,481)
|
|
|
|
-
|
|
|
|
(5,181,572)
|
|
|
|
-
|
|
|
|
(2,688,091)
|
|
Restricted stock and
deferred
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
director's expense
|
|
468,598
|
|
|
|
216,897
|
|
|
|
792,013
|
|
|
|
384,402
|
|
|
|
323,415
|
|
Adjusted EBITDA
|
$
|
5,819,415
|
|
|
$
|
3,582,486
|
|
|
$
|
10,235,479
|
|
|
$
|
6,497,691
|
|
|
$
|
4,416,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 has 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
|
|
|
March 31,
2022
|
|
|
March 31,
2021
|
|
Net Income (Loss)
|
$
|
(2,459,000)
|
|
|
$
|
(6,485,780)
|
|
Plus:
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
429,949
|
|
|
|
(1,842,000)
|
|
Interest expense
|
|
832,295
|
|
|
|
1,139,313
|
|
DD&A
|
|
7,412,214
|
|
|
|
9,023,030
|
|
Impairment
|
|
56,060
|
|
|
|
358,826
|
|
Less:
|
|
|
|
|
|
|
|
Unrealized gains (losses)
|
|
|
|
|
|
|
|
on
derivatives
|
|
(8,580,898)
|
|
|
|
(7,842,624)
|
|
Gains (losses) on asset
sales
|
|
450,074
|
|
|
|
738,432
|
|
Plus:
|
|
|
|
|
|
|
|
Cash receipts from
(payments on)
|
|
|
|
|
|
|
|
off-market derivative
contracts(1)
|
|
3,618,428
|
|
|
|
-
|
|
Restricted stock and
deferred
|
|
|
|
|
|
|
|
director's expense
|
|
1,443,276
|
|
|
|
721,944
|
|
Adjusted EBITDA
|
$
|
19,464,046
|
|
|
$
|
10,019,525
|
|
|
|
|
|
|
|
|
|
Debt
|
$
|
24,000,000
|
|
|
$
|
23,500,000
|
|
Debt to Adjusted EBITDA (TTM)
|
|
1.23
|
|
|
|
2.35
|
|
|
|
|
|
|
|
|
|
(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:
|
Second Quarter
Ended
|
|
|
First Quarter
Ended
|
|
|
March 31,
2022
|
|
|
Dec. 31,
2021
|
|
Net Income (Loss)
|
$
|
(4,020,455)
|
|
|
$
|
6,682,249
|
|
Plus:
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
33,000
|
|
|
|
762,000
|
|
Less:
|
|
|
|
|
|
|
|
Unrealized gains (losses)
|
|
|
|
|
|
|
|
on derivatives
|
|
(11,772,640)
|
|
|
|
4,550,499
|
|
Pretax Net Income (Loss)
excluding
|
|
|
|
|
|
|
|
Non-cash Derivative Gains
(Losses)
|
$
|
7,785,185
|
|
|
$
|
2,893,750
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average
|
|
|
|
|
|
|
|
shares outstanding
|
|
34,292,455
|
|
|
|
33,127,722
|
|
|
|
|
|
|
|
|
|
Pretax Net Income (Loss)
excluding
|
|
|
|
|
|
|
|
Non-cash Derivative Gains
(Losses) per share
|
$
|
0.23
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
PHX Minerals Inc. (NYSE: PHX) Oklahoma City-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
mineral acreage 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-second-fiscal-quarter-2022-results-record-royalty-volumes-and-a-quarterly-dividend-increase-of-33-301543011.html
SOURCE PHX MINERALS INC.