The chart below shows how PHX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PHX sees a +3.34% change in stock price 10 days leading up to the earnings, and a +2.56% change 10 days following the report. On the earnings day itself, the stock moves by +0.44%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Production Volume Increase: Despite challenging industry conditions, PHX Minerals Inc. achieved a 5% year-over-year increase in total production volumes and an 8% increase in royalty volume for the year.
Dividend Increase Announcement: The company maintained a strong dividend policy, announcing a 33% increase in dividends in the third quarter of 2024, reflecting confidence in its financial health.
Debt Reduction Strategy: PHX Minerals successfully sold non-producing minerals for $8 million, allowing for debt reduction and strengthening the balance sheet.
Sales Revenue Resilience: The company reported a 13% increase in natural gas, oil, and NGL sales revenues for the fourth quarter, indicating resilience in revenue generation despite market challenges.
Q4 Adjusted EBITDA Increase: Adjusted EBITDA for the fourth quarter increased to $5.4 million, up from $4.9 million in the previous quarter, showcasing operational efficiency.
Inventory Potential for Growth: The company has a robust inventory of over 2,400 undrilled probable locations, which supports future growth and production increases.
Strong Well Conversion Rates: Well conversion rates remained strong, with 71 gross wells converted to production in the fourth quarter, reflecting effective asset management and operational execution.
Negative
Proved Reserves Decline: Total proved reserves decreased 11% to 63.7 BCFE, primarily due to a large year-over-year drop in gas prices.
Royalty Reserves Decline: Improved royalty reserves decreased 9% to 52.5 BCFE, indicating a decline in asset value due to market conditions.
Natural Gas Price Decline: Realized natural gas prices for the full year 2024 averaged $2.19, down from $2.61 in 2023, reflecting a significant price drop.
Declining Oil Prices: Oil prices averaged $74.59 in 2024, down from $76.76 in 2023, indicating a downward trend in oil revenue.
Debt Concerns and Leverage: Total debt as of December 31, 2024, was $29.5 million, which raised concerns about leverage despite subsequent reductions.
Net Income Decline: Net income for the quarter was only $109,000, a significant drop from $1.1 million in the prior sequential quarter, indicating profitability challenges.
Decline in Adjusted EBITDA: Adjusted EBITDA for the full year decreased to $21.3 million from $22.7 million in 2023, showing a decline in operational profitability.
Rising Operational Costs: Cash G&A increased to $2.34 million in the fourth quarter, indicating rising operational costs despite overall cost control efforts.
PHX Minerals Inc. (NYSE:PHX) Q4 2024 Earnings Call Transcript
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