PHX Minerals Reports Financial Performance for 2024 and Future Plans

On March 12, 2025, PHX Minerals Inc. (NYSE: PHX) disclosed its financial outcomes for the quarter and full year ending December 31, 2024. The report highlights notable shifts in net income and the company’s strategic direction aimed at maximizing shareholder value.

Summary of Financial Performance

For the fourth quarter of 2024, PHX reported a net income of $0.1 million, translating to $0.00 per diluted share. In comparison to the same quarter of the previous year, when the company earned $2.5 million or $0.07 per diluted share, this marks a significant decline. The primary factor contributing to this decrease was a rise in losses associated with derivative contracts.

For the entire year of 2024, net income stood at $2.3 million, or $0.06 per diluted share, down from $13.9 million, or $0.39 per diluted share in 2023. Additionally, the firm's total revenue for the year was reported to be $34.6 million, a decrease from $44.5 million in 2023.

Production and Revenue Insights

Adjusted EBITDA for Q4 2024 totaled $5.4 million, while the full year amounted to $21.3 million. Royalty production volumes for the fourth quarter were steady at 2,096 Mmcfe, with an annual increase to 8,760 Mmcfe, reflecting an 8% gain compared to 2023. However, the overall production volume showed a modest increase, reaching 9,841 Mmcfe for the year.

The report highlighted the successful conversion of 71 gross wells to producing status in Q4 and a total of 255 during the year, showcasing the company’s focus on expanding operational capabilities.

Strategic Initiatives and Outlook

Chad L. Stephens, President and CEO of PHX, remarked on the company's solid performance, attributing its highest annual production volumes to the strength of its asset base. He reaffirmed the commitment to returning value to shareholders through dividends, announcing a quarterly dividend of $0.04 per share, set for distribution on March 28, 2025.

Significantly, PHX confirmed the divestiture of 165,326 net mineral acres for approximately $8.0 million, aimed at focusing on more lucrative opportunities within its core areas, particularly in Oklahoma and Texas. This strategic move anticipates streamlining operations while offsetting losses from legacy assets.

On the operational front, as of February 2025, PHX had 225 net wells in various stages of progress and permitting, indicating robust activity in their core operational areas. This aligns with the company’s ongoing efforts to continue improving production metrics and shareholder returns.

Market Conditions and Future Challenges

Despite these positive outlooks, PHX’s financial report underscores the challenges posed by fluctuating natural gas and oil prices. The average sales prices per Mcf of natural gas and barrels of oil reflected downward pressure due to market conditions. This necessitates continued evaluation of PHX's operational and strategic alternatives, and management plans to work closely with RBC to explore these pathways further.

Closing Thoughts

As PHX Minerals continues to navigate the complexities of the energy market, its strategic focus on production efficiency, selective divestitures, and stakeholder returns positions it as a noteworthy entity in the mineral industry. Investors and stakeholders will be keen to observe how these strategies unfold in the upcoming quarters and impact overall performance. The company is scheduled to host a conference call on March 13, 2025, to discuss these results in more detail and to address inquiries from investors.

For more details about PHX Minerals Inc. and its operational directions, visit phxmin.com.

Conclusion

In summary, PHX Minerals is poised for growth and adaptation as it responds to market dynamics while maintaining a focus on strategic asset management and shareholder value enhancement.