PHX Minerals Inc. (NYSE:PHX) Q1 2024 Results Conference Call May 9, 2024 11:00 AM ET

Company Participants

Stephen Lee - FNK Investor Relations
Chad Stephens - President & Chief Executive Officer
Danielle Mezo - Vice President, Engineering
Ralph D'Amico - Senior Vice President & Chief Financial Officer

Conference Call Participants

Derrick Whitfield - Stifel
Charles Meade - Johnson Rice
Jeff Grampp - Alliance Global Partners
Donovan Schafer - Northland Capital Markets

Operator

Good morning, and thank you for attending today's PHX Minerals' March 31, 2024, Quarter End Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded.

I would now like to turn the call over to Stephen Lee with FNK IR. Please go ahead, sir.

Stephen Lee

Thank you, operator. And thank you for joining us today to discuss PHX Minerals' March 31, 2024, quarterly results. Joining us on the call today are Chad Stephens, President and Chief Executive Officer; Ralph D'Amico, Executive Vice President and Chief Financial Officer; and Danielle Mezo, Vice President of Engineering.

The earnings press release that was issued yesterday after the close is also posted on PHX Investor Relations website.

Before I turn the call over to Chad, I would like to remind everyone that during today's call, including the Q&A session, management may make forward-looking statements regarding expected revenue, earnings, future plans, opportunities, and other expectation of the company. These estimates and other forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those expressed or implied on the call. These risks are detailed in PHX Minerals' most recent annual report on Form 10-K, as such may be amended or supplemented by subsequent quarterly reports on Form 10-Q or other reports filed with the Securities and Exchange Commission.

The statements made during this call are based upon information known to PHX as of today, May 9, 2024, and the company does not intend to update these forward-looking statements whether as a result of new information, future events, or otherwise, unless required by law.

With that, I would like to turn the call over to Chad Stephens, PHX's Chief Executive Officer. Chad?

Chad Stephens

Thanks, Stephen, and thanks to all of you on this call for participating in PHX's March 31, 2024, Quarter End Earnings Conference Call. We appreciate your interest in the company.

In spite of a 40% drop in natural gas prices from a year ago, PHX reported steady, positive adjusted EBITDA and cash flow, while operators are curtailing their existing production and deferring bringing new wells to sales due to low gas prices. PHX's year-over-year and sequential quarter royalty volumes were down slightly. With prices and volumes lower, our year-over-year EBITDA was down materially. However, our EBITDA compared to the prior sequential quarter was up slightly and reflects our solid hedging program built to protect our financial plan. This allowed us to service our dividend, reduce debt, and close on a modest amount of acquisitions, approximately $1.1 million, $2 million, and $1.5 million respectively.