- **Resilient 2024 Performance**: +5% total production, +8% royalty volumes vs 2023, despite industry headwinds. $8M asset sale cuts debt to $19.8M.
- **Dividend Growth**: 33% dividend increase in Q3 2024 reflects strong cash flow.
- **2025 Outlook**: Improving gas prices (> $4) and 71 gross well conversions in Q4 set stage for production growth. 2,400 undrilled locations provide long-term upside.
- **Financial Strength**: Adjusted EBITDA $21.3M for 2024. Pro forma leverage <1x after debt reduction.

**【CEO Opening Remarks】**
- 2024 Results: Total production volumes up 5% YoY, royalty volumes up 8% YoY, despite challenging macro environment (low natural gas prices, reduced industry CapEx). EBITDA slightly down YoY, supported by hedging program.
- Strategic Asset Sale: Sold nonproducing minerals for $8M in January 2025, reducing debt to $19.8M (pro forma leverage <1x). Dividend increased 33% in Q3 2024.
- Outlook: Optimistic on 2025 with improving natural gas prices (> $4 gas strip), high well conversion rates (71 gross wells in Q4 2024), and 2,400 undrilled probable locations.

**【CFO Financial Highlights】**
- Q4 2024 Revenue: Natural gas sales $8.9M (+13% QoQ), oil/NGL $33.7M (-8% YoY). Realized gas prices $2.64/Mcf (up 13% QoQ), oil $69.82/bbl (-7% QoQ).
- Cost Control: Transportation expenses down 9% QoQ to $1M, production taxes down 33% QoQ to $284K. Adjusted EBITDA $5.4M (up 10% QoQ), full year $21.3M (-6% YoY).
- Liquidity: Total debt $29.5M as of Dec 31, 2024 (1.38x debt/EBITDA). Post-sale debt reduction to $19.8M.

**【Danielle Mezo Operational Update】**
- Reserves: Proved reserves 63.7 Bcfe (-11% YoY) due to gas price drop. Royalty reserves 52.5 Bcfe (-9% YoY).
- Well Activity: 71 gross wells converted to production in Q4 2024 (up 54% vs Q3). 225 gross wells in progress (DUCs/drilling/permits).
- Industry Metrics: 16 rigs on PHX acreage, 62 rigs within 2.5 miles as of Feb 3, 2025.

**【Q&A Key Takeaways】**
- Strategic Alternatives: Process ongoing, no updates yet. Business continues as usual with no change to M&A/leasing strategy.
- 2025 Outlook: Flat to modest growth in production volumes expected, based on 2023-2024 trends despite low gas prices.
- No Guidance: Management declines to provide 2025 financial guidance during strategic review period.

PHX Minerals Inc. (PHX) Q4 2024 Earnings Call Transcript

PHX Minerals (PHX)-7 Nov 24-2024 Q3 Earnings call transcript

- **Revenue decline**: Q1 revenue $7.1 million (-17% QoQ) due to lower prices and volumes. 
- **EBITDA resilience**: Adjusted EBITDA $4.6 million (+2% QoQ) despite macro headwinds. 
- **Hedging strength**: 48% of 2024 gas production hedged at $3.34/Mcfe. 
- **Debt reduction**: $2 million debt paydown to $29.75 million. 
- **Future growth**: 7 BCF LNG export capacity by 2027-28 and 30% AI-driven power demand growth. 
- **Operational momentum**: 85 gross wells converted in Q1, 230 in progress. 
- **Liquidity**: Borrowing base reaffirmed at $50 million. 
- **Risk**: 34 rigs in Haynesville (vs. 40 needed to maintain volumes).

**【CEO Summary Section】**
- PHX reported steady EBITDA and cash flow despite a 40% drop in natural gas prices, with year-over-year EBITDA down materially but sequential EBITDA up slightly due to hedging. 
- Debt reduced by $2 million to $29.75 million, with borrowing base reaffirmed at $50 million. 
- Future growth driven by LNG export capacity (7 BCF by 2027-28) and AI-driven power demand (+30% by 2030). 
- 85 gross wells converted to producing in Q1, up from 46 in prior quarter, though lower-rate wells offset Haynesville curtailments. 
- Inventory of 230 gross wells in progress, with 15 rigs active on PHX acreage. 

**【Operational Overview】**
- Total production down 6% QoQ to 1,857 Mmcfe, with 88% natural gas, 11% oil, and 9% NGLs. 
- 85 gross wells converted in Q1, but new wells deferred due to low gas prices. 
- 230 gross wells in progress, with 1.099 net wells. 

**【CFO Financial Commentary】**
- Q1 revenue $7.1 million (-17% QoQ), with realized prices $3.35/Mcfe (-12% QoQ). 
- Hedge gains $1.67 million, protecting 48% of 2024 gas production at $3.34/Mcfe. 
- Adjusted EBITDA $4.6 million (+2% QoQ), net loss $200,000. 
- Debt-to-EBITDA 1.58x, with $2 million debt reduction. 

**【Q&A Highlights】**
- 2024 guidance reflects slower H1 activity, with potential H2 acceleration. 
- Cautious M&A strategy, with $1.1-2 million in small deals. 
- LNG export capacity expected to balance supply by 2025, driving price normalization. 
- SpringBoard III 4,000-acre position in SCOOP seen as future growth driver. 
- Operator rig count in Haynesville at 34 (vs. 40 needed to maintain volumes).

PHX Minerals Inc. (PHX) Q1 2024 Earnings Call Transcript

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PHX Minerals (PHX)-11 May 19-2019 Q2 Earnings call transcript

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