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.
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