PHX Minerals Inc. acquired 923 net royalty acres in the SCOOP and Haynesville plays for approximately $13.5 million in its fiscal fourth quarter of 2022, the company announced Dec. 13.
PHX closed on another 930 net royalty acres in the plays for approximately $10.3 million since it closed its fiscal fourth quarter on Sept. 30.
In all, since the start of its fiscal fourth quarter, PHX acquired about 1,853 royalty acres for $23.8 million.
PHX disclosed the deals in its fiscal fourth quarter and fiscal year report.
The new acquisitions in the Haynesville and SCOOP plays offset decreases in oil production from declining wells in the Eagle Ford and Bakken Plays – as well as the divestiture of Fayetteville Shale working interest. The deals also balance out natural declines in high-interest, liquids-rich wells in the Arkoma STACK.
For fiscal year 2022, PHX’s total acquisitions added 4,750 net royalty acres for approximately $48 million.
PHX also reported an increase in net income of $20.4 million or $0.59 per share. Income rose on natural gas sales of $32.1 million, 85% higher compared to fiscal year 2021 due to commodity price increases.
The company reported fourth quarter income of $9.1 million, or $0.26 per share. Increased natural gas, oil and NGL sales; gains on asset sales; and decreased losses associated with hedge contracts bumped up PHX’s net income from 2021’s net loss of $3.7 million, or $0.12 per share.
“Our plan remains steadfast: to utilize the majority of our free cash flow to acquire additional mineral and royalty assets in our core focus areas with the expectation that these acquisitions will quickly convert to additional royalty production volumes,” said Chad L. Stephens, president and CEO of PHX. “As we work to continue to scale and expand profitability, we should be positioned to continue to increase our cash dividend which has risen 125% over the last 6 quarters."
In 2023, PHX’s fiscal year will begin Jan. 1 and end Dec. 31. The change was approved by the board Dec. 9 and will replace the previous fiscal year of Oct. 1 to Sept. 30.
Recommended Reading
Exxon Appoints Maria Jelescu Dreyfus to Board
2024-05-08 - Dreyfus is CEO and founder of Ardinall Investment Management, a sustainable investment firm, and currently serves on the board of Cadiz Inc. and Canada-based pension fund CDPQ.
E&P BW Energy Undergoes ‘Technical’ Ownership Restructuring
2024-05-08 - The restructuring will not involve any change to the ultimate control of BW Energy as the shares currently held by BW Group will be sold to BW Energy Holdings.
Hess Midstream Subsidiary Plans Private Offering of Senior Notes
2024-05-08 - The proposed issuance is not expected to have a meaningful impact on Hess Midstream’s leverage and credit profile, according to Fitch Ratings.
Wood Mackenzie Appoints Jason Liu as CEO
2024-05-07 - Liu replaces former CEO Mark Brinin, who is departing to pursue other opportunities, Wood Mackenzie said.
Utility, Clean Energy Company Allete to Go Private in $6.2B Deal
2024-05-06 - The Minnesota-based utility said on May 6 it agreed to be acquired by a partnership led by Canada Pension Plan Investment Board and Global Infrastructure Partners.