GICS Sector : Energy
PHX Minerals Inc.operates as a natural gas and oil mineral company in the United States.The company produces and sells natural gas, crude oil, and natural gas liquids.
PHX Minerals Inc. navigated a challenging 2024 with a mixed performance, reflecting broader macroeconomic headwinds. Despite low natural gas prices and reduced industry activity, the company reported a 5% year-over-year increase in total production volumes and an 8% rise in royalty volumes. EBITDA decreased slightly, but the decline was mitigated by the company's hedging program, which provided stability in a volatile environment. Notably, PHX announced a 33% dividend increase in Q3 2024, signaling its commitment to returning capital to shareholders despite the challenging landscape. Analysts currently estimate a -0.8% decline in revenues for 2025, suggesting cautious optimism about the company's ability to stabilize and grow in the coming year.
Publication Date: Mar -14
PHX Minerals demonstrated operational resilience by achieving steady well conversion rates and maintaining development across both legacy and acquired assets. Danielle Mezo, CEO, highlighted the company's ability to execute on its growth strategy, emphasizing the robust inventory of 2,400 undrilled probable locations as a key driver of future growth. The sale of non-producing legacy assets for $8 million in January 2025 marked a strategic move to optimize the balance sheet, reducing debt to $19.8 million and lowering leverage to under one times trailing EBITDA. This deleveraging effort underscores management's focus on financial discipline and capital allocation efficiency.
From a valuation perspective, PHX Minerals appears reasonably priced relative to its peers. The company's trailing 12-month P/E ratio of 29.74 reflects investors' confidence in its long-term growth potential, despite near-term challenges. The dividend yield of 3.62% further enhances the stock's appeal, offering investors a steady income stream. Additionally, the company's strong free cash flow yield of 6.12% highlights its ability to generate returns through operations. With improving natural gas fundamentals and strategic initiatives to enhance shareholder value, PHX Minerals is well-positioned to navigate the evolving energy landscape and capitalize on future growth opportunities.
PHX Energy Services: Strong Cash Flows Fully Cover Generous Dividends
Nov -09
PHX Energy Announces Third Quarter Results & 2026 Capital Expenditure Budget
Nov -04
PHX Energy Receives TSX Approval for Renewal of Normal Course Issuer Bid
Aug -13
PHX Energy Announces Second Quarter Results and Record Second Quarter Revenue
Aug -05
PHX Energy Services: Raking In Dividends While Waiting For Share Price Appreciation
Jul -22
WhiteHawk Completes Acquisition of PHX
Jun -23
WhiteHawk Completes Tender Offer for Acquisition of PHX
Jun -21
PHX Energy Services Corp. Announces Quarterly Dividend
Jun -13
PHX Minerals Inc.'s 4.83% growth in Natural Gas is driven by increasing demand from power generation and industrial sectors, coupled with rising LNG exports. Additionally, the company's strategic acreage positions in the Haynesville and SCOOP/STACK plays, as well as its focus on operational efficiency and cost reduction, contribute to its growth momentum.
PHX Minerals Inc.'s 4.83% growth in oil is driven by increasing demand from the transportation sector, improved drilling efficiency, and strategic acquisitions. Additionally, rising global energy consumption, favorable government policies, and growing demand from emerging markets also contribute to this growth.
PHX Minerals Inc.'s 4.83% growth in Natural Gas Liquids is driven by increasing demand for petrochemical feedstocks, strong drilling activity in the Permian Basin, and strategic acquisitions. Additionally, improving infrastructure and transportation networks have enhanced access to markets, while favorable pricing and hedging strategies have supported revenue growth.
PHX Minerals Inc. owns a diverse portfolio of mineral royalties, providing a steady stream of revenue from oil and gas production on its properties.
The company acquires and manages working interests in oil and gas wells, providing a direct stake in the production and revenue of these wells.
PHX Minerals Inc. acquires and manages mineral acreage, providing a foundation for future oil and gas production and royalty generation.
The company provides access to a comprehensive database of oil and gas production data, well information, and market analytics.
The threat of substitutes for PHX Minerals Inc. is moderate, as there are alternative mineral exploration and production companies that can provide similar services.
The bargaining power of customers for PHX Minerals Inc. is low, as the company has a diverse customer base and is not heavily dependent on a single customer.
The bargaining power of suppliers for PHX Minerals Inc. is moderate, as the company relies on a few key suppliers for its operations, but has some flexibility to negotiate prices.
The threat of new entrants for PHX Minerals Inc. is high, as the mineral exploration and production industry is attractive and has relatively low barriers to entry.
The intensity of rivalry for PHX Minerals Inc. is high, as the company operates in a highly competitive industry with many established players.
| Value | |
|---|---|
| Debt Weight | 21.35% |
| Debt Cost | 3.95% |
| Equity Weight | 78.65% |
| Equity Cost | 6.88% |
| WACC | 6.25% |
| Leverage | 27.14% |
Value: 6.1
Growth: 7.1
Quality: 5.9
Yield: 10.0
Momentum: 3.5
Volatility: 4.0
1-Year Total Return ->
Value: 4.3
Growth: 2.0
Quality: 6.6
Yield: 7.0
Momentum: 9.0
Volatility: 7.7
1-Year Total Return ->
Value: 4.8
Growth: 4.8
Quality: 4.5
Yield: 10.0
Momentum: 2.5
Volatility: 6.0
1-Year Total Return ->
Value: 6.3
Growth: 8.9
Quality: 7.2
Yield: 0.0
Momentum: 7.0
Volatility: 2.7
1-Year Total Return ->
Value: 7.7
Growth: 9.4
Quality: 5.5
Yield: 3.0
Momentum: 0.0
Volatility: 3.0
1-Year Total Return ->
Value: 5.7
Growth: 2.7
Quality: 6.4
Yield: 7.0
Momentum: 1.0
Volatility: 5.7
1-Year Total Return ->