FORT
WORTH, Texas, Aug. 24,
2023 /PRNewswire/ --
Acquisition Highlights
- Expected to be immediately accretive on a cash flow per share
basis
- Builds upon our existing mineral and royalty positions in the
Haynesville and the SCOOP
- Approximately 988 net royalty acres (~86% targeting the
Haynesville play)
- Anticipated next 12-month production of between 1.2 and 1.4
Bcfe (99% natural gas, 1% oil, 0% NGL), generating an estimated
$4.0 to $4.3
million of cash flow at NYMEX strip pricing as of
Aug. 9, 2023 (implies a transaction
multiple of 3.3x)
- Expected to add approximately 31 gross (0.27 net) wells in
progress; increasing our net inventory by approximately 31%
- Expected to reduce G&A per mcfe of production by
approximately 13% over the next 12 months
- Maintains a conservative balance sheet with expected pro forma
leverage as measured by debt to EBITDA of under 1.50x following
closing
PHX Minerals Inc. (NYSE: PHX) ("PHX" or the "Company") today
announced that it has agreed to acquire approximately 988 net
royalty acres targeting the Haynesville play in Louisiana and Texas and the SCOOP play in Oklahoma from five separate sellers for
aggregate consideration of $13.6
million in cash (the "Acquisitions"), subject to certain
closing conditions and adjustments. The Acquisitions will be funded
using a combination of cash on hand and borrowings under the
Company's existing credit facility and are expected to close in
mid-September. The Acquisitions have been unanimously
approved by the Board of Directors.
PHX estimates total reserves associated with the Acquisitions to
be approximately 6.9 Bcfe (94% natural gas, 6% oil, 0% NGL). The
assets associated with the Acquisitions include high interest
locations concentrated in the core of the Haynesville and SCOOP under active operators
including Aethon and Chesapeake Energy. PHX already owns interests
in 50 of the 108 total locations being acquired, increasing our net
revenue interests per well. Estimated next 12-month production, as
of Sept. 1, 2023, is between 1.2 and
1.4 Bcfe (99% natural gas, 1% oil, 0% NGL), generating
approximately $4.0 to $4.3 million of cash flow at NYMEX strip pricing
as of Aug. 9, 2023.
Chad Stephens, President and
Chief Executive Officer, said, "These acquisitions demonstrate our
team's ability to source and execute on accretive transactions
targeting our core areas in the Haynesville and SCOOP. As I have previously
stated, PHX has always been keenly focused on maintaining financial
discipline while evaluating acquisition opportunities. This
discipline allowed us to build liquidity during the downturn in
commodity prices we saw in the first half of 2023, which we can now
deploy to fund these attractive acquisitions. We believe similar
opportunities to this transaction and its return profile will
continue to be accessible to PHX. Additionally, as these
acquisitions demonstrate, our focus on internally aggregating
transactions allows us to achieve significantly better risk
adjusted returns compared to broadly marketed asset packages while
still scaling up the business."
PHX Minerals Inc. (NYSE: PHX) Fort
Worth-based, PHX Minerals Inc. is a natural gas and oil mineral
company with a strategy to proactively grow its mineral position in
its core focus areas. PHX owns mineral acreage principally located
in Oklahoma, Texas, Louisiana, North
Dakota and Arkansas. Additional information on the
Company can be found at www.phxmin.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Words such as "anticipates," "plans," "estimates,"
"believes," "expects," "intends," "will," "should," "may" and
similar expressions may be used to identify forward-looking
statements. Forward-looking statements are not statements of
historical fact and reflect PHX's current views about future
events. Forward-looking statements may include, but are not limited
to, statements relating to: the Company's ability to execute its
business strategies; the volatility of realized natural gas and oil
prices; the level of production on the Company's properties;
estimates of quantities of natural gas, oil and NGL reserves and
their values; general economic or industry conditions; legislation
or regulatory requirements; conditions of the securities markets;
the Company's ability to raise capital; changes in accounting
principles, policies or guidelines; financial or political
instability; acts of war or terrorism; title defects in the
properties in which the Company invests; and other economic,
competitive, governmental, regulatory or technical factors
affecting properties, operations or prices. Although the Company
believes expectations reflected in these and other forward-looking
statements are reasonable, the Company can give no assurance such
expectations will prove to be correct. Such forward-looking
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Company.
These forward-looking statements involve certain risks and
uncertainties that could cause the results to differ materially
from those expected by the Company's management. Information
concerning these risks and other factors can be found in the
Company's filings with the SEC, including its Annual Reports on
Form 10-K and Quarterly Reports on Form 10-Q, available on the
Company's website or the SEC's website at www.sec.gov.
Investors are cautioned that any such statements are not
guarantees of future performance and that actual results or
developments may differ materially from those projected in
forward-looking statements. The forward-looking statements in this
press release are made as of the date hereof, and the Company does
not undertake any obligation to update the forward-looking
statements as a result of new information, future events or
otherwise.
View original
content:https://www.prnewswire.com/news-releases/phx-minerals-announces-accretive-acquisitions-in-haynesville-and-scoop-301909562.html
SOURCE PHX MINERALS INC.