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PHX Minerals (PHX) - 2025 Q1 - Quarterly Results
PHXPHX Minerals (PHX)2025-03-12 20:31

Financial Performance - Net income for the fourth quarter ended Dec. 31, 2024, was 0.1million,or0.1 million, or 0.00 per diluted share, compared to 2.5million,or2.5 million, or 0.07 per diluted share, for the same quarter in 2023[5] - The company recorded a net income of 2.3million,or2.3 million, or 0.06 per diluted share, for the year ended Dec. 31, 2024, a decrease from 13.9million,or13.9 million, or 0.39 per diluted share, for the year ended Dec. 31, 2023[18] - Net income for the year ended December 31, 2024, was 2,321,866,adecreaseof83.32,321,866, a decrease of 83.3% from 13,920,800 in 2023[40] - The company reported a net income of 109,400forthethreemonthsendedDecember31,2024,comparedto109,400 for the three months ended December 31, 2024, compared to 2,513,444 for the same period in 2023[47] - Net income for the TTM ended December 31, 2024, was 2,321,866,adecreasefrom2,321,866, a decrease from 13,920,800 for the TTM ended December 31, 2023[51] Revenue and Production - Natural gas, oil, and NGL revenue increased by 0.3million,or40.3 million, or 4%, for the quarter ended Dec. 31, 2024, driven by a 7% increase in natural gas volumes and a 10% increase in oil volumes[15] - Natural gas, oil, and NGL revenue decreased by 2.8 million, or 8%, for the year ended Dec. 31, 2024, due to a 16% decrease in natural gas prices and a 3% decrease in oil prices[19] - Revenues for the three months ended December 31, 2024, were 8,885,922,comparedto8,885,922, compared to 8,548,783 for the same period in 2023, representing an increase of 3.9%[36] - Total production volumes for the year ended Dec. 31, 2024, increased by 5% to 9,841 Mmcfe compared to the year ended Dec. 31, 2023[5] - Royalty production volumes for the year ended Dec. 31, 2024, increased by 8% to 8,760 Mmcfe compared to the year ended Dec. 31, 2023[5] Adjusted EBITDA - Adjusted EBITDA for the fourth quarter ended Dec. 31, 2024, was 5.4million,comparedto5.4 million, compared to 4.9 million for the quarter ended Sept. 30, 2024, and 22.7millionfortheyearendedDec.31,2023[5]−AdjustedEBITDAforthethreemonthsendedDecember31,2024,was22.7 million for the year ended Dec. 31, 2023[5] - Adjusted EBITDA for the three months ended December 31, 2024, was 5,385,515, an increase from 4,504,288inthepreviousyear[47]−AdjustedEBITDAfortheTTMendedDecember31,2024,was4,504,288 in the previous year[47] - Adjusted EBITDA for the TTM ended December 31, 2024, was 21,324,050, compared to 22,652,263fortheTTMendedDecember31,2023,reflectingadeclineofapproximately5.822,652,263 for the TTM ended December 31, 2023, reflecting a decline of approximately 5.8%[51] Debt and Liabilities - Total debt was 29.5 million at Dec. 31, 2024, down 3.25millionsinceDec.31,2023,withadebt−to−adjustedEBITDAratioof1.38x[5]−Thecompany′stotaldebtdecreasedfrom3.25 million since Dec. 31, 2023, with a debt-to-adjusted EBITDA ratio of 1.38x[5] - The company's total debt decreased from 32,750,000 in 2023 to 29,500,000in2024,resultinginadebt−to−adjustedEBITDA(TTM)ratioof1.38,downfrom1.45[51]−Long−termdebtdecreasedto29,500,000 in 2024, resulting in a debt-to-adjusted EBITDA (TTM) ratio of 1.38, down from 1.45[51] - Long-term debt decreased to 29,500,000 as of December 31, 2024, from 32,750,000in2023,areductionof6.932,750,000 in 2023, a reduction of 6.9%[38] - Total liabilities decreased to 41,965,913 as of December 31, 2024, from 43,276,866in2023,adeclineof3.043,276,866 in 2023, a decline of 3.0%[38] Assets and Equity - Total current assets decreased to 9,556,933 as of December 31, 2024, from 10,161,577in2023,adeclineof6.010,161,577 in 2023, a decline of 6.0%[38] - Cash and cash equivalents increased to 2,242,102 as of December 31, 2024, from 806,254in2023,agrowthof177.5806,254 in 2023, a growth of 177.5%[40] - Total stockholders' equity decreased to 121,949,853 as of December 31, 2024, from 123,231,414in2023,adeclineof1.0123,231,414 in 2023, a decline of 1.0%[38] Capital Expenditures and Dividends - Capital expenditures for the year ended December 31, 2024, were 87,579, significantly lower than 325,983in2023[40]−Thecompanypaiddividendsof325,983 in 2023[40] - The company paid dividends of 5,229,547 in 2024, compared to 3,520,366in2023,anincreaseof48.63,520,366 in 2023, an increase of 48.6%[40] - The company announced a quarterly dividend of 0.04 per share, payable on Mar. 28, 2025[5] Operational Highlights - The company converted 71 gross (0.22 net) wells to producing status in the fourth quarter ended Dec. 31, 2024, compared to 46 gross (0.18 net) wells in the previous quarter[5] - The percentage of total production volumes attributable to natural gas was 80% for the quarter ended Dec. 31, 2024[11] - The company converted 71 gross (0.22 net) wells to producing status during the quarter ended Dec. 31, 2024, compared to 46 gross (0.10 net) wells in the same quarter of 2023[22] - The company purchased 363 net royalty acres for approximately 2.5millionduringthequarterendedDec.31,2024[26]−Thecompanyleased265netmineralacrestothird−partyexplorationandproductioncompaniesforanaveragebonuspaymentof2.5 million during the quarter ended Dec. 31, 2024[26] - The company leased 265 net mineral acres to third-party exploration and production companies for an average bonus payment of 760 per net mineral acre during the quarter ended Dec. 31, 2024[25] Market and Future Outlook - Forward-looking statements indicate the company anticipates challenges related to oil and natural gas price volatility and production levels[53] - The company does not guarantee future performance based on forward-looking statements, which are subject to various risks and uncertainties[54] - The company continues to focus on expanding its mineral position in core areas, including Oklahoma, Texas, Louisiana, North Dakota, and Arkansas[51] Derivative Contracts - The company has a total of 1,000 Bbls of oil fixed price swaps at 68.80fortheperiodfromDecember2024toAugust2025[43]−Thecompanyhascontracted100,000Mmbtuofnaturalgasatafixedpriceof68.80 for the period from December 2024 to August 2025[43] - The company has contracted 100,000 Mmbtu of natural gas at a fixed price of 3.50 floor and 4.85ceilingfortheperiodfromNovember2025toMarch2026[42]−Thecompanyhasanaturalgascostlesscollarwithacontractpriceof4.85 ceiling for the period from November 2025 to March 2026[42] - The company has a natural gas costless collar with a contract price of 3.00 floor and 5.00ceilingfor30,000MmbtupermonthfromJanuarytoJune2025[42]−Thecompanyhasatotalof125,000Mmbtuofnaturalgasfixedpriceswapsat5.00 ceiling for 30,000 Mmbtu per month from January to June 2025[42] - The company has a total of 125,000 Mmbtu of natural gas fixed price swaps at 3.01 for the period from April to August 2025[42] Expenses - The company incurred an interest expense of 573,920forthethreemonthsendedDecember31,2024[47]−Interestexpenseincreasedslightlyfrom573,920 for the three months ended December 31, 2024[47] - Interest expense increased slightly from 2,362,393 in 2023 to 2,563,268 in 2024[51] - Depreciation, depletion, and amortization (DD&A) rose from 8,566,185 in 2023 to 9,606,444in2024,anincreaseofapproximately12.19,606,444 in 2024, an increase of approximately 12.1%[51] - The company had a net gain on derivative contracts of 0.3 million for the year ended Dec. 31, 2024, compared to a net gain of 6.9millionfortheyearendedDec.31,2023[21]−Non−cashlossesonderivativesfortheTTMendedDecember31,2024,were6.9 million for the year ended Dec. 31, 2023[21] - Non-cash losses on derivatives for the TTM ended December 31, 2024, were (3,997,995), contrasting with gains of $4,302,531 in 2023[51]