PHX Minerals (PHX) - 2024 Q4 - Annual Report

Financial Position - Total current assets decreased from $10,161,577 to $8,205,511, a decline of approximately 19.2% from December 31, 2023 to September 30, 2024[15] - Long-term debt decreased from $32,750,000 to $27,750,000, a reduction of 15.3%[15] - Total liabilities decreased from $43,276,866 to $39,211,242, a decline of approximately 9.6%[15] - Stockholders' equity increased slightly from $123,231,414 to $123,612,869, an increase of about 0.3%[15] - The company reported a net properties and equipment value of $153,521,909 as of September 30, 2024, down from $155,124,483[15] - Total assets decreased from $166.5 billion on December 31, 2023, to $162.8 billion on September 30, 2024, representing a decline of approximately 2.0%[15] - Current assets fell from $10.2 billion to $8.2 billion, a decrease of about 19.4%[15] - Long-term debt reduced from $32.8 billion to $27.8 billion, a decrease of approximately 15.3%[15] - Total liabilities decreased from $43.3 billion to $39.2 billion, a reduction of about 9.5%[15] - Stockholders' equity increased slightly from $123.2 billion to $123.6 billion, an increase of approximately 0.3%[15] - Cash and cash equivalents rose significantly from $806.3 million to $2.6 billion, an increase of approximately 223.5%[15] - The current portion of operating lease liability increased from $233.4 million to $243.2 million, an increase of about 4.0%[15] - Retained earnings decreased from $80.0 billion to $78.5 billion, a decline of approximately 1.9%[15] Revenue and Income - Revenues for the three months ended September 30, 2024, were $9,137,029, a decrease of 0.5% compared to $9,181,545 for the same period in 2023[17] - Natural gas, oil, and NGL sales amounted to $7,888,516 for the three months ended September 30, 2024, down from $8,899,091 in 2023, representing a decline of 11.3%[17] - Net income for the three months ended September 30, 2024, was $1,100,310, a decrease of 42.0% compared to $1,895,403 in the same period of 2023[17] - Basic earnings per share for the three months ended September 30, 2024, were $0.03, down from $0.05 in the same period of 2023[18] - The total net income for the nine months ended September 30, 2024, was $2,212,466, down from $11,407,356 in the same period of 2023[17] - For the nine months ended September 30, 2023, the net income was $9,553,244[21] Expenses and Costs - Total costs and expenses for the three months ended September 30, 2024, were $7,579,464, an increase of 13.1% from $6,697,142 in 2023[17] - Depreciation, depletion, and amortization expenses increased to $2,376,025 for the three months ended September 30, 2024, compared to $2,022,709 in 2023, reflecting a rise of 17.5%[17] - The company reported a provision for income taxes of $457,255 for the three months ended September 30, 2024, compared to $589,000 in 2023[17] - The effective tax rate for the nine months ended September 30, 2024, was 28%, up from 23% for the same period in 2023, primarily due to a decrease in net income and changes in state tax rates[37] Cash Flow and Capital Expenditures - Cash provided by operating activities for the year 2024 (unaudited) was $15,207,852, a decrease from $20,809,684 in 2023[22] - Capital expenditures for the year 2024 (unaudited) were $(64,628), significantly lower than $(321,396) in 2023[22] - The total cash used in investing activities for 2024 (unaudited) was $(4,810,308), compared to $(16,148,489) in 2023[22] - The company had borrowings under the credit facility of $1,000,000 in 2024 (unaudited), down from $16,000,000 in 2023[22] Dividends - The company declared dividends of $0.0400 per share for the period, compared to $0.0225 per share in the same period last year[18] - The company declared dividends of $(50,034) for the nine months ended September 30, 2023[21] - The company declared dividends of $140,300 in 2024 (unaudited), compared to $94,587 in 2023[22] Derivative Contracts and Risk Management - The company has entered into commodity price derivative agreements, including fixed swap contracts and costless collar contracts, to mitigate exposure to price fluctuations[54] - The natural gas costless collars for 2024 have a total volume of 415,000 Mmbtu with a floor price of $3.19 and a ceiling price of $4.84[55] - The company reported a net gain on derivative contracts of $1,089,242 for the three months ended September 30, 2024, compared to a loss of $337,647 in the same period of 2023[57] - The total cash receipts from derivative contracts for the nine months ended September 30, 2024, were $3,786,071, up from $2,282,307 in the same period of 2023, indicating a 65.8% increase[57] - The fair value of derivative contracts measured at fair value on a recurring basis included $466,220 for swaps and $329,033 for collars as of September 30, 2024[61] Acquisitions and Divestitures - The Company acquired 325 net royalty acres for a total purchase price of $3.0 million during the quarter ended September 30, 2024, with a proved/unproved ratio of 78%/22%[49] - The Company reported no significant divestitures for the quarter ended September 30, 2024, but sold 1,005 acres for $0.5 million in June 2024, realizing a gain of $0.4 million[51] Other Financial Metrics - The unrecognized compensation cost for unvested market-based and time-based restricted stock as of September 30, 2024, was $1,674,612[47] - The Company is required to maintain a current ratio of no less than 1.0 to 1.0 and a funded debt to EBITDAX ratio of no more than 3.5 to 1.0[44] - The Company has a $100,000,000 credit facility with a borrowing base of $50,000,000 and an effective interest rate of 8.36% as of September 30, 2024[42]