PHX Minerals (PHX) Q4 2024 earnings summary

Executive summary

• 2024 results were shaped by challenging natural gas fundamentals, with lower rig counts, reduced industry CapEx, and macroeconomic uncertainty, yet production volumes increased 5% and royalty volumes rose 8% year-over-year.

• PHX Minerals has focused on royalty production growth, high-grade asset base, and disciplined capital allocation, achieving a ~278% increase in royalty production volumes and ~130% growth in 2P royalty reserves since 2020.

• Net income for Q4 2024 was $0.1M ($0.00/share), and $2.3M ($0.06/share) for the year, down from $13.9M ($0.39/share) in 2023.

• A 33% dividend increase was announced in Q3 2024, and non-producing legacy mineral assets were sold for $8 million in January 2025, with proceeds used to reduce debt.

• Strategic alternatives review began in December 2024 and is progressing as planned to maximize stockholder value.

Financial highlights

• Q4 2024 sales revenues rose 13% sequentially to $8.9 million; full-year revenues fell 8% to $33.7 million, with total 2024 revenue at $34.6 million, down from $44.5 million in 2023.

• Adjusted EBITDA for Q4 was $5.4 million, with full-year adjusted EBITDA at $21.3 million, down from $22.7 million in 2023.

• Net income for 2024 was $2.3 million, down from $13.9 million in 2023; Q4 net income was $0.1 million.

• Paid down $9.8 million of debt post-year-end, reducing debt to $19.8 million as of March 5, 2025.

• Dividend yield at 4.0% and LTM discretionary cash flow yield at ~12%.

Outlook and guidance

• Management expects improved financials in 2025 as natural gas prices recover, with a gas strip above $4.

• Focused on continuous conversion of undrilled inventory and targeted acquisitions to drive future royalty volume growth.

• Mix of hedges in place for 2025–2026 to protect cash flows while maintaining upside exposure.

• No formal production guidance provided due to ongoing strategic review, but recent trends suggest stable production into 2025.