PHX Minerals Inc.

For the quarter ended December 31, 2024, natural gas, oil, and NGL sales revenues were $8.9 million, up 13% from the prior sequential quarter. Full-year 2024 sales revenues were $33.7 million, down from $36.5 million in full-year 2023. Adjusted EBITDA was $5.4 million in Q4 versus $4.9 million in Q3, and $21.3 million for full-year 2024 versus $22.7 million in 2023. Net income was $109,000, or $0.00 per share, versus $1.1 million, or $0.03 per share, in Q3. Realized natural gas prices averaged $2.64 per Mcf in Q4 versus $2.00 in Q3; full-year natural gas prices averaged $2.19 versus $2.61 in 2023. Total proved reserves were 63.7 BCFE, down 11%, and improved royalty reserves were 52.5 BCFE, down 9%, both due mainly to lower gas prices. Total debt was $29.5 million at December 31, 2024, and was later reduced to $19.8 million after the January 2025 sale of non-producing minerals. Management did not provide production or financial guidance, saying it is not giving guidance while the strategic process is underway.

Chad Stephens framed 2024 as a difficult year driven by weak natural gas macro conditions, lower rig counts, and reduced capex, but said PHX still delivered commendable results. He emphasized higher production, strong well conversions, a 33% dividend increase announced in Q3 2024, and the $8 million sale of non-core minerals as evidence of asset quality and disciplined capital allocation. His tone was constructive and optimistic, pointing to a gas strip above $4 and saying the company is well positioned for improving fundamentals and future growth.

Ralph D’Amico focused on the numbers: Q4 sales revenues of $8.9 million, adjusted EBITDA of $5.4 million, and net income of $109,000, with a $1.5 million non-cash hedge mark-to-market loss weighing on earnings. He noted full-year realized prices fell 12% versus 2023, while volumes rose 5%, and he broke out cost trends including transportation expense of about $1 million in Q4, production taxes of $284,000, LOE of $307,000, and cash G&A of $2.34 million. He also highlighted the balance sheet, citing $29.5 million of debt at year-end and a reduction to $19.8 million after the post-quarter asset sale, taking pro forma leverage to under 1x.

The main analyst question focused on the ongoing strategic alternatives review and what it means for M&A and leasing. Chad declined to comment on the process but said the company continues to operate the business as usual with no change to its approach. On 2025 production, he would not give guidance, but said the last two years’ well conversions and production trends could suggest that the current trajectory may continue into 2025.