PHX MINERALS INC. Announces Increase in Borrowing Base and Acquisition in Haynesville


THE CITY OF OKLAHOMA, December 9, 2021 / PRNewswire / – PHX Minerals Inc. (NYSE: PHX) (“PHX” or the “Company”) today announced that it has entered into an amendment to its Revolving Credit Facility (“Credit Facility”) under which the borrowing base of the credit facility has changed from $ 27.5 million at $ 32.0 million as part of its new regular semi-annual determination. In addition, PHX has entered into purchase and sale agreements to acquire 426 acres of net royalties in total in Caddo Parish, La., for $ 5,787,272 in cash from two private sellers, subject to customary closing adjustments (the “Acquisition”). The acquisition will be financed by a combination of cash and borrowings under the Company’s credit facility. Pro forma of the acquisition, the Company’s total indebtedness drawn on the credit facility will be approximately $ 20.0 million. PHX Board of Directors unanimously approved the acquisition, which is expected to be finalized by December 15, 2021.

Chad stephens, President and CEO, said, “Acquisition assets provide almost immediate cash flow from wells being completed and do a good job of helping to replace volumes associated with the announced divestiture. previously from some of our older direct interest wells. The increase in the borrowing base of our credit facility reflects a much stronger PHX with an improving asset base and high quality outlook. “

Highlights of acquisitions

  • About 426 acres of net royalties in Caddo Parish, La., focused on the Hayneville game;
  • The assets are operated by Blue Dome and include 4 rough PDP wells, 4 rough in progress wells expected to be commissioned within the next 30 days and approximately 4 gross undrilled locations;
  • Reserves estimated at 3.8 Bcfe1;
  • Current net production 0.15 Mmcfe / d2; and
  • Estimated net production for 2022 totaling between 1,700 and 2,100 Mcfe / d, made up of 100% natural gas.

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1 As of 01/11/2021

2 Mmcfe / d is on a 6: 1 basis; estimated production in November 2021

PHX Minerals Inc. (NYSE: PHX) Oklahoma City-based, PHX Minerals Inc. is a natural gas and petroleum mining company with a strategy to proactively grow its mineral position in its core areas of focus. PHX owns approximately 251,000 net mineral acres primarily located in Oklahoma, Texas, Louisiana, North Dakota, and Arkansas. Additional information about the Company is available at www.phxmin.com.

Caution regarding forward-looking statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Words such as “anticipates”, “plans”, “estimates”, ” believes, “” expects “,” intends “,” will “,” should “,” may “and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect PHX’s current views on future events. Forward-looking statements may include, without limitation, statements relating to: the ability of PHX to execute its business strategies; the volatility of realized prices for natural gas and petroleum; the level of production on its properties; estimates of the quantities of natural gas, petroleum and NGL reserves and their values; general economic or industrial conditions; legislation or regulatory requirements; the conditions of the securities markets; the ability to raise capital; changes in accounting principles, policies or guidelines; financial or political instability; acts of war or terrorism; defects in title to properties in which PHX invests; and other economic, competitive, government, regulatory or technical factors affecting our properties, operations or prices. Although the Company believes that its expectations reflected in these and other forward-looking statements are reasonable, the Company cannot guarantee that its expectations will prove to be correct. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. These forward-looking statements involve certain risks and uncertainties which could cause the results to differ materially from those expected by the management of the Company. Information regarding these risks and other factors can be found in the company’s filings with the Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q, available at the company’s website or the SEC’s website at www. .sec.gov.

Investors are cautioned that these forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof, and the Company assumes no obligation to update any forward-looking statements as a result of new information, future events or otherwise.

SOURCE MINERALS PHX INC.

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