PHX Minerals Inc. (PHX) is up 8.54% in the pre-market trading session at the price of $2.67 despite any recent news.
PHX Published At-The-Market Equity Offering Program
On 25th August 2021, PHX declared that it had filed a prospectus supplement with the U.S. Securities and Exchange Commission. It has entered into an At-The-Market Equity Offering Sales Agreement with Stifel, Nicolaus & Company. Under the deal, the company may offer and sell, from time to time to Stifel. The company will acquire up to 3,000,000 shares of its common stock through an “at-the-market” equity offering program. PHX aims to use the net proceeds from the sale of shares for general corporate purposes, including to fund working capital and acquisitions.
Third Quarter 2021 Financial Results
On 5th August 2021, PHX published financial and operating results for the third quarter ended 30th June 2021. Production volumes for the third quarter of 2021 grew 31% to 2,493 Mmcfe from 1,904 Mmcfe in the third fiscal quarter of 2020. It increased 9% from 2,297 Mmcfe in the second fiscal quarter of the previous year. Net loss was $1.4 million or $0.05 per share in the third fiscal quarter of 2021. For the third quarter of 2020, net loss was $3.6 million or $0.21 per share. A net loss of $0.5 million or $0.02 per share, reported in the second fiscal quarter of 2021. Net loss on derivative contracts was $5,487,483 in the 2021 quarter. For the same quarter of 2020, a net loss was $838,282. The net loss on derivative contracts was principally due to the natural gas, oil collars, and fixed price swaps.
PHX reported a nine-month net loss of $2,453,037 or $0.10 per share in the 2021 period. Net loss was $22,117,915 or $1.34 per share in the 2020 same period. The change in net loss was principally the result of increased natural gas, oil, and NGL sales and decreased LOE, DD&A, impairment expense, and G&A. The change was partially offset by an increase in losses on derivative contracts, transportation, gathering, and marketing expenses, production taxes, and income tax benefit. Net loss on derivative contracts was $8,089,662 in the 2021 period. The net gain on derivative contracts was $2,415,401 in the 2020 period.
Chad L. Stephens, CEO of PHX, remarked that they had reduced their debt to $19.9 million at quarter-end. It represents a 15% decrease to the prior quarter and a 34% decline compared to the year-over-year quarter. It has put them in a great financial position and will allow them to allocate a majority of their growing free cash flow to mineral acquisitions. They look forward to informing their results to drive shareholder value in the future, he added.
