Oklahoma City’s PHX Minerals Inc. reported a first quarter net loss of $0.6 million or 3 cents a share compared to $1.9 million net income or 11 cents a share a year earlier. But the company also made strides in reduction of its debt and increased production.
The results were released Monday after the close of markets as the company reported increased production in the quarter that ended Dec. 31, 2020.
Production went from 2,038 Mmcfe in the fourth fiscal quarter of 2020 to 2,074 MMcfe in the just completed first fiscal quarter.
The company managed to reduce its total debt by 6% from $28.8 million as of Sept. 30, 2020 to $27 million by the end of 2020. But the debt was cut even further to $26 million as of Feb. 1, 2021.
“Our first quarter of 2021 was much improved over the fourth quarter of 2020 with adjusted EBITDA excluding gain on asset sales(1) increasing by 37% and debt decreasing by 6%, or $1.8 million,” said Chad L. Stephens, President and CEO in announcing the fiscal report.
PHX’s adjusted EBITDA excluding gain on asset sales for the first quarter was $2.7 million, up from the $2 million in the fourth fiscal quarter of 2020. But it was also down $3.9 million from the first fiscal quarter of 2020.
PHX Minerals also announced the closing last fall on the purchase of 297 net royalty acres in Grady County, Oklahoma and another $237 net mineral acres in Harrison, Panola and Nacogdoches Counties in Texas. The closing was in consideration of $5.5 million and 153,375 shares of PHX common stock.
In November, the company completed two other acquisitions totaling 223 net mineral acres in San Augustine, Texas for a total of $1.75 million.
The closings totaled $7.3 million as the company used proceeds from an equity offering completed in September 2020.
Source: PHX Mineral press release.