1. PHX achieved highest production volumes since 2019, enhancing cash flow. 2. Net income dropped significantly, affected by derivative losses. 3. Sold 165,000 net acres to reduce non-productive assets. 4. New wells in Haynesville and SCOOP drove royalty production increases. 5. Cash dividends were returned to stockholders, despite lower annual revenues.
Despite achieving high production, net income and revenue have decreased significantly, reflecting potential financial instability. Historical examples show that decreased profits can pressure stock prices downward despite strong production metrics.
The significant changes in financial results, including production increases and the sale of assets, directly impact stockholder perspectives, which can influence stock price movements.
The immediate effects of financial results and sales will be visible in upcoming trading sessions, influencing short-term investor sentiment.
"PHX" or the "Company" (NYSE: PHX), today reported financial and operating results for the quarter and year ended Dec. 31, 2024.
(1) This is a non-GAAP measure. Refer to the Non-GAAP Reconciliation section.
Chad L. Stephens, President and CEO, commented,
"PHX delivered solid results in 2024. Notably, we achieved our highest total corporate production volumes for a full calendar year since 2019. We also recorded our two highest royalty production volume quarters in company history during 2024, specifically the second and third calendar quarters. The strength of our asset base allowed us to generate strong cash flow, reduce debt and return capital to stockholders through our dividend." Mr. Stephens added, "We are continuing our previously announced process with RBC to evaluate possible strategic alternatives to maximize stockholder value.
"As referenced in our subsequent events, we closed on the sale of approximately 165,000 net mineral acres for $8.0 million. These minerals are old legacy minerals located in the U.S. on the margins of various basins with little to no near-term developmental resource potential, have no cash flow or reserve value associated with them and have had no leasing activity over the last 6 years," concluded Mr. Stephens.
| Metric | Q3 2024 | Q4 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Royalty Interest Sales | $7,874,377 | $7,378,650 | $29,851,728 | $31,593,351 |
| Working Interest Sales | $1,011,545 | $1,170,133 | $3,838,924 | $4,942,934 |
Three Months Ended Dec. 31, 2024
The Company recorded net income of $0.1 million, or $0.00 per diluted share, for the quarter ended Dec. 31, 2024.
The Company recorded net income of $2.3 million, or $0.06 per diluted share, for the year ended Dec. 31, 2024.
During the quarter ended Dec. 31, 2024, the Company converted 71 gross (0.22 net) wells to producing status.
During the quarter ended Dec. 31, 2024, the Company leased 265 net mineral acres to third-party exploration and production companies.
PHX will host a conference call to discuss the Company's results at 11 a.m. ET on Mar. 13, 2025. To participate, please dial 877-407-3088 (toll-free domestic).
Rob Fink / Stephen Lee, FNK IR, 646.809.4048, email@example.com