PHX - Earnings call transcript Q3 2022

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Operator

Hello and welcome to the PHX Minerals, Inc.

Third Quarter Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It’s now my pleasure to turn the call over to your host, Ralph D’Amico, Vice President and CFO. Please go ahead, sir.

Ralph D’Amico

us discuss joining fiscal XXXX for results. quarter you today our to third Thank the for Danielle call Chad on me With today and of Executive President Stephens, prepared Chief Officer Vice and Mezo, Engineering. President are remarks prepared to Q&A call session. up a we open After remarks, the will the The earnings on was website. is also issued press Relations yesterday release posted that Investor

expected plans are the estimates and I results revenue, the and forward-looking that to during involve in everyone turn to annual recent detailed the like expressed Form and remind actual make opportunities plans, uncertainties different materially the Before future company. unknown may call, earnings, on call Q&A from including those and I’d our most statements other risks of forward-looking we over on estimates be or regarding and report to cause risks that XX-K. Chad, These expectations session, today’s may other implied known call. These

XX-Q reports amended As The or maybe to Form call Exchange during and the statements such, reports are subsequent made Commission. information the supplemented quarterly as of filed PHX upon PHX known the Securities conference no with With Executive Chief call. on presented of the time update call call. or to to that, Chad based date in by today’s like turn Stephens, PHX’s this information I’d obligation the assumes to and over Officer. other

Chad Stephens

Southern and basically grading Haynesville while dividends quarter XXXX to company. our areas simple being with continued the is thanks Oklahoma. asset of old the of more rather and call. the the if assets. Out XXX% a PHX It our of to third PHX’s Ralph, our it. to in sincerely constant flow acquire Thanks, operating have conference This model. cash our is a SCOOP in interest base. core in working This appreciate new, line everyone business has the the after free time of you’ll minerals participating We on in interest with divesting concentration, and allocate in your high for

implementing non-op volumes XX% by that acquisition and our our from volumes royalty producing increased two-thirds will represent relative our of over mineral had cash royalties decreased flow interest our volumes have royalty Currently, our and You by strategy, XX%, given higher note XX%. interest of working since working to year-over-year interest. margins

the confidence over and EBITDA will royalty are annual we high in areas that growing known years out are royalty excellent net proportionately. We refer areas staying developed. acquire well-capitalized concentration quality This annual sight grow volumes, income with realize us we of will growing several With volumes as this our rock of under see in bit. acquiring minerals clear our as a to of drill we core provides minerals operators line active strategy the development, the next front we in of expected

As we employed on capital improved our as grow net our income, return we see well. will

XXXX and approximately interest. acquired that activity of the This acquired over have of the of August this Since $X fiscal have now If thorough earlier. timing approximately and development, we our $XX million. locations August that have these total study remaining volumes, we is inception capabilities, and as of PHX’s on value yesterday, acquisitions, to Also and you With with for with customary divest locations. rig fiscal determine Louisiana approximately year-to-date, we and assets to interest a EBITDA working the drilled program, adjustments return XXXX, on books we million strategy been Haynesville drilling mineral quarter fiscal growing developed. third on of and of have to minerals inventory execution capital our an purchase Shale $XX will foundation and closing a Haynesville and converted of $XX successful sale announced in early producing we estimate company’s These improving X, reserve XXXX as recent XXXX, is third the of non-op rather the XXXX, in our to last Based of the expected and year operator productive improve agreement SCOOP. a of and of Fayetteville on to minerals in royalty months, by are In in annualize individual September. quarter closed more as to return capital and the I subject late XX%, year, expected locations year mineral each geologic net employed will mineral mentioned on engineering be these million our mainly continue this X, locations fiscal of XX identified our employed million, estimate X,XXX we XXX closing conservative. of expect acquisition undeveloped represents approximately each

corporate call This update build presentation, pace will provides XXXX shareholder year you’ll development her EBITDA this asset can time value. slide million estimated that website. materials activity. and Danielle will we XXXX will drilling portfolio our in frame. $XX current that You the the on view to between now and by and EBITDA fiscal on our annual a to annual annual find that for on improving million deck volumes, IR increasing over to turn annual return mineral outlook In of capital I turn have growing discuss the summarize, continue royalty employed. $XX posted the drive to To

Danielle Mezo

everyone call. participating Thanks, to Chad good and on morning the

During active PDP majority Haynesville plays. the to XXX producing quarter, operators converted X.XX second the in or gross third and third-party SCOOP our wells net the wells wells located quarter, to new the to with in minerals on net of converted gross XX the or compared X.XX

of XXX these direct XXX Additionally, and executing successfully mineral The commodity elevated earnings on industry overall Haynesville the plays. PDP wells as our SCOOP sustained majority the prior gross result third net high quarter-over-quarter, is of in inventory our of or net X.X paired quarter rates progress compared located wells wells reported with acquisition activity. X.XX also are to and in was conversation The the in wells wells our end prices gross gross strategy at to the call. our of or

continue the wells with free we inventory measured all to WIP what new flow in Additionally, drive drilling our coming cash to converted progress. producing by of will in royalty continued and is net replace quarters. replenishment This volumes increasing the wells

areas. wells to well rigs of XX and rigs In PHX focus our regularly active observed rig rigs we of quarter. acreage operator ownership second XX see XX XX to PHX on on within indicates present on activity X.X Minerals our and heightened will addition converted PDP. June The WIP and to inventory the Minerals continue XX our reported rigs as near within X.X inventory, activity strong encouraging monitor to third-party that and compared is in we in we present We are as a miles miles that

to will to back financials. Ralph the turn Now call I discuss

Ralph D’Amico

Thanks, on Danielle for everyone and thanks the to today. call being

stream. are adjacent of For indicated shut attributable has in a X% primarily Ford volumes the SCOOP to sequential newly wells to our Haynesville being in set wells. volumes, to production comprised Eagle to The Eagle the in, and volumes in Ford that operator This temporarily play X hydrocarbon quarter be Shale over next X.XX the gas in XX, to prior hydrocarbon work quarterly decreased increase working of X.XX of total volumes decline these or was back fiscal third in XX% our us quarter total our were the XXXX, primarily months. an production another ended another projected of Natural order Bcfe. the XX% from June record royalty completed to Royalty in X% in represented record quarterly wells of total a attributable online Bcfe drilled interest X% plays wells and to and volumes.

indicated last royalty two approximately than fiscal anticipate we fiscal have higher ‘XX the XXXX. I to As in calls, XX% earnings for be volumes year-over-year

of will of prices, XXXX from gas, gas We were quarter volumes natural XXXX. NGLs total XX% XX% as sales. also minerals received a basis to on sales continue in and our for are sales an and total the gas, realized on $XX.X and and this We Realized up were volumes. legacy the interest and quarter Mcfe effect quarter developed growth sequential compared prices oil prior fiscal oil working Royalty basis higher hired to oil the believe the in Natural the percentage sequential show are $X.XX total offset to of declined to XX% remaining accounted driven increased by natural or hedging non-operated million. slightly lower increasing losses quarters for similar that corporate monetized. revenues of NGL by sales for our Average a mature quarter excluding $X fiscal hedge million. anticipate

volumes entered remaining time in February oil as and the advantage The in during at gains at were these oil contracts and $X.X natural relative gas, roll X XX, valuation layered hedge were environment see million plus contracts and and of last quarter, by over strike in added the in quarters, less hedged of have into The represent XXXX the hedge mid of by of will For during during prices our you the late months the the our COVID new future of production that adjustments XX% mark-to-market prices the and $XX.XX we differences our completely caused higher totaled much realized Unrealized X% approximately NGL average pricing XXXX. $X.XX continued contracts of every levels. majority took respectively. to volumes better XX% mark-to-market price. will pricing of quarter. of to quarter The impact hedged off macro changes to June gas improved In XXXX.

X% only. company’s contracts will on settlements. for in value increased settle prevailing period, hedge basis, in receive the decreased to we per The will $X.XX Mcfe these but which absolute the $XXX,XXX X% hedge of LOE mark-to-market price based working that volumes interest As the on an future, offset to revenues

portion see fluctuate sequential per a we share Mcfe due as basis a our basins decreased quarter lower assets, of quarter an sequential million they our expect to as a also or prices. of such remaining working Haynesville. cost to X% basis production grow $X.XX taxes realized XX% our divest on this volumes. marketing transportation, absolute continue We continue we but significant see as overall $X.XX business gathering interest to larger royalty and increased commodity are to less to higher on as we to Total the Production on basis metric shift the a

Our $X.X compared the was to EBITDA Adjusted quarter. sequential production from XXXX sequential prior our in million fiscal $X.X flat quarter. prior Cash was the flat G&A tax rate remained million for third quarter to sequential was Net in quarter. XXXX income as compared quarter. to the quarter this during $X.X loss the $X.X fiscal of million prior million $X at a million compared second

announced previously as of mineral acquisitions to XXXX March This $XX June million and of is Haynesville total with increased $XX.X XXXX. XX, on the from XX, in debt SCOOP. the line increase development with Our sight associated million

stands trailing debt Our to XX-month EBITDA at X.XXx.

With We us are footing metrics with solid help to are our liquidity strategy. like I’d over some believe our execute final to on the and and turn for remarks. Chad growth leverage that, call pleased they on to

Chad Stephens

Thanks, Ralph.

particularly positive space, gas see energy fundamentals macro in the to the continue natural We in sector.

to mineral confident of are on We strategy. ability continue acquisition our to execute our

look As volumes, embraced we royalty advice open toward hard would joining increasing the Operator, on our flow for This who already prepared remarks and and build like our dedication. on invaluable also us translate with shareholder and to our success up the to of annual keeping I improving for Thanks today. queue questions. forward demonstrated, have dedication. we to their please very you this again enthusiasm employees call. let’s acquisition progress. I Directors Board for worked of appreciation They my We the and updated concludes the express associated am the will PHX proud of cash value. wisdom success. our strategy in have portion the provide

Operator

from Our [Operator Alliance from today coming first Partners. question is Campbell Jeffrey Instructions] Global

now is Your live. line

Jeffrey Campbell

divestments approach I Good congratulations divest other noticed targeting unusual quarter. on interest the this the PSA wondered a morning in I the the opportunity? was or working strong to Fayetteville working regional interest to an just and events. you are

Chad Stephens

Yes.

the to were set was small them we set legacy will second the of few mature non-op mineral Eagle this rid is non-op this There Texas non-op royalty Fayetteville, completely in portfolio is interest. but non-op standpoint, working only part, a place. then concentrated spread Oklahoma For interest out Fayetteville. that year clears is it of very and legacy from Fayetteville interest were over owned our rest in The the our gets us our the in We a assets was a And interest the that the that Jeff, last other the the operator and Panhandle. of portion spread working we asset Ford. the retain only working these all assets interest of all most assets sold a concentrated, over – one

Jeffrey Campbell

Referring growth is production Okay. much to owned wondered XXXX assets as I the in you. opposed acquired? just to currently anticipated I mentioned to future appreciate that remarks, color. expected Thank that of his come how Ralph be that to assets or perhaps from

Chad Stephens

That’s assets already want disproportionate we Ralph, a own. or amount that? great color A add you is to question. from large to Danielle

Ralph D’Amico

Yes. Thanks, Chad.

if So remember, when acquisitions, not right. you really are Jeff, are PDP heavy we we we buying – make assets,

significant PUD So wells awaiting have we in we locations of proportion already what then well. or been completion a progress spud call or as to them tend buy permits has and high-quality on as that

from let’s a a, for us online, volumes So, a call – for wells up to significant and happening X-month is portion to them. X it, usually the to the lag what those come book of right ends is there

look of XX if vast going acquisitions come volumes next or to are so. you that months over the the XX from completed to So for months, forward XX the we last those have majority

So those volumes, of somewhere terms future total. acquisitions, I relative percentage a to probably around very small the say, XX%, It’s say, there. in new are would let’s

Jeffrey Campbell

advantage answer. could appears on And of I I it Okay, if appreciate on to headquarters the you the to as corporate in and Texas-Louisiana know location? was Oklahoma based wanted Worth not good. that that considering be see your interesting point border. I an am I expectations growth expand your finally, just bulk royalty Fort the arguing in that thought Permian you

Chad Stephens

probably – our of looking where a necessarily couple One, are not couple Yes, locate corporate our are. reasons. we offices to assets

offices the activity corporate We and are the the is. industry our flow overall looking locate where deal to of

boutique Dallas that that The Forth and are deal other located flow. area outfits companies in in guys the mineral and small are the

So, it’s us. important to

as we and to grow small relatively want as still way. can are an We accretive in quickly we NAV

is put just the be us to the brand deals the miss involved and to on middle us. important company to out so fairway And out and not of potential in

assure way. we in there of we So, to am flow, computer excited and middle sure the being the Oklahoma be with use whether Worth Worth Ralph, on as is The I City of support from the am somewhere in activity or in strategy. to couple will be in Similar felt make on I area executing but our located CFO, rest we like ourselves I watch and deal flow that Dallas our in to of the in-person with the screens involved my office computers Fort I along efficiencies chance work it will Worth. for and Worth. able success was the of important am Forth deal so Fort I commuting Oklahoma or the in a other don’t was being City he any to be time. of if team ability I – am in located and about Fort located and Worth poor City. to remain It a And locate remotely, and located really highest out required, deals the in Oklahoma fairway with will meet deal in staff. Forth lose

Jeffrey Campbell

Well, the makes sense. answer. that perfect for Thanks

Operator

[Operator Stifel. next coming from Derrick question is Instructions] from Whitfield Our

line Your live. now is

Derrick Whitfield

and all congrats morning on progress. A&D your recent Good

Chad Stephens

Derrick. Thanks

Derrick Whitfield

are near-term your NRIs WIPs. the Can share certainly comments to will six on With presentation, be packages you some appreciated. on up NGL. my over any the It average coming focus Any next I really appears question, months? have higher expecting wanted in from you comment sizable well first you the you can

Chad Stephens

Ralph on or let to that. going Danielle am I comment Yes,

Ralph D’Amico

Yes.

But a Danielle this I and the just is will nature. chime think in. me Let crack take

at each Haynesville. the quarters had prior quarters high production quarter. you brought you that we this of quarter, look And If sets this growth of two than were the in prior two the each of higher saw some in that pads were or NRI in substantially because wells online very that’s

where This several also are being wells the and of the online. that the pads terms as average we We of in additional have quarter, completed gross speak, it right. came wells NRI well was in Haynesville, drilled more do an

see the quarter these quarters, quarter, in will of NRI the online. should either next we next the over always at depending on suspect well growth. you current you coming it pads terms is would I months. on interest on of within future XX-month online terms look right, – an two But that production of three in target each And they in rolling can when we mineral I volume the So, are some volatility be or business, in But the growth. higher it’s which royalty in see that was right which book you just there quarters, the lag a revenue. that little particular a And that have, with last basis, year-over-year and said the we of a XX% on of how comes bit what quarter-to-quarter of of if nature much

Danielle Mezo

our we highly Ralph, sections, focused acquisition larger on and development. WIPs are on get have on in that acres. wells really – we so NRI concentrations and sight strategy, we focused get so of near-term a line a like good have some for those near-term permits, of bit we quite We concentrated

Derrick Whitfield

working interest top growth presentation? And follow-up your Jeff’s speak noted a earlier, Page for outlook recent confidence in work question as you could sales? as of adjusted the And the your interest XX and both to for Terrific. production views volumes to on royalty line in expected your royalty

Chad Stephens

Yes. the that Ralph part I am question. second of let to answer going

more are we we part, see deals see robust out can were more the segue, a flow, got continue to there first than we deal excited activity The than about. real afford. what – deals can so we We is deal

as grow the hard to was small, can as price are asking going want about? us. to opportunity set pretty continue before to are find line talk to company. continue but about at he excited the deals We the growth are But top the right we pedal the right about we we the and you Ralph, still

Ralph D’Amico

Sure.

in forma So, minerals. talked about into wells pro operating comments came divestiture as volumes so XX% Chad this from for flow would XX% cash about our that we probably Fayetteville, pipeline account are the and only minerals volumes, his forma these Pro – our that from flow of in of cash I this but of And in cash we are of proceeds we the XX% that the right. say, replacing sale roughly have X% acquiring, quarter, with the with flow. other the

you to operating – if all you if So, cash is expect it, I forma XX%, of XX% close north XX% coming see from of roughly, pro try to of volumes in, of and that flow. royalties what call

So, allocated and all royalty from net expenses royalties working to proportionately of interest volumes. coming

we stated X getting year So, if pretty about be or within, are X volumes. we Chad well of north operating years that close – a cash royalty should from remember, let’s coming of XX% flow ago, to you say, years, our

target he this I are that ago almost point. on meet to that at right years we made X think prediction

our the opinion, working in So, is plan business very well.

Chad Stephens

sale. And I the of that estimated was add Ralph talking asking for think projections Fayetteville think, Derrick forma questions I is pro Ralph, that, is about is to one the to volume the

Ralph D’Amico

right. to out, Correct. under Yes. the net be What’s nets XX the Fayetteville that the we volumes PSA are are That’s of currently that – on divested. Page includes

Derrick Whitfield

and guys, share final your performance touch as one Terrific. the PHX you I follow-up to has wanted purchases recent guys I And while recent cycle. more. know well, experienced stock you some as your for in expect up performance on

one drive performance? the two your are what Given to targeting year are this items or relative you valuation,

Chad Stephens

is facts, enterprise basis. look in probably like think – you value Boston. when just talked it company Yes. you I CEOs debt half But value enterprise I Derrick, the total and about undervalued. are to on at say at we I their it trading All feel up often, a total

We to a what, our group Ralph, what X.Xx groups be peer of multiple may are is, half trading at peer what about Xx, X.Xx. maybe

and and So, shares amount clearly and size from those traded of the stay shares. value we overall probably our it’s float. behind, more up are of size, coming The

going million overall in gas $X.X acquired the We are we that think what I worth trading given about maybe the the and stock day. of active know a overall, natural macro, the operators the But quality we be to Haynesville have are knowing of doing. assets by what

want acquiring. return generated information that? I capital there the and And what’s the SCOOP that We we or and decent trading have to going going employed, to are undervalued just our speak asset do are speaks of of our pretty on show going and the than don’t group closely. get to do little the assets. about point, just anything. is to we peer that expansion And some years. it am the about frustration really should, well we understand that’s next us I I capital And is, what whether hard. on income of at III price. our why Xx for. just think sort. some be be volumes you stock gets it going recently, bit as But that’s out we couple more will from a Springboard continue excited over more some watch of that add – on we are – I multiple royalty some the on to the net in Ralph, to know what high are to kind based assets to of number deliver yes, just if why don’t or that more quality we but trading bought didn’t market return us those pedal Xx I employed, We to on

Ralph D’Amico

the over we do. your what I we X sentiment. No. going these exactly Chad earnings have mean I that’s I I done said we to think and that heard were years last on anybody calls echo to

executed plan business well. the think being I is

stock. value We is happy every We stock company The of us. there buying is don’t just quarter, price with mystery almost we to get see it. look, us keep and are going. a the where But both

right. think putting we we – I shares, keep right. about how a it, feel more keep that buying about says So, We lot

there that me, means upside. more So, to that is

Derrick Whitfield

time terrific. That’s thanks Well, for your guys.

Chad Stephens

Derrick. Thanks

Operator

Thank you.

Schafer is Markets. Capital coming next Donovan from Your Northland question from

Your line is now live.

Donovan Schafer

Hi taking closing about ask think your out you my guys. the you of call. year, quarter. to this sort Thanks fiscal next reserves report that wanted will official I be for audited the I

you report months that a of sort probably So, quarter be of reserves couple coming after will like kind of out your during updated quarter. with fourth for calendar

And up based But sits have with the and don’t this may you true-up price But commodity some question always I things for with historically, up there course, the our having that. auditors exactly do off-cycle well, is where the stock the wells is this kind will of be of be value with this And you oh, so saying, of – of reserves course, that of the do at of seen PVXX then, doesn’t kind on of to much an these measure price you kind down is end years year. standardized couple economic of my first end will reserves. the you the historically course, line get vary, all says, of if kind pricing. landing guys timing, and stock prices an extra of and reporting where the want year tend And of course kind to necessarily do reaction? mean or sometimes, that. over of of will investor with

those just seen the historically, has to where wiggles to And the an preceding that months? reaction catalyst and is any disconnect more asking, the over so type of historically numbers of wiggles is investor of you And in then down again, way been sort up a there there XX is out. sort either thing official finally, official come some Have so another the sort there or those that actual upside and of versus, way downside? the of numbers

Chad Stephens

I good she Donovan, just fiscal weeks year-end seven XXth, Danielle, that’s now, process. coming September the started our question. has this already so a year weeks, since ends six from know, And

up, the $XXX, price a time or that’s – kind reserve of less of price flow the think I what as well share up values. have I seen book is. our most But supports what and of reaction of multiple I I value our $X think Slide have third, type And Over our X more I market E&P in these think multiple of report. this energy kind fluctuation reserve you cash mineral upstream based our on on X – do whether on sky the my more your SEC kind I any do guess. than book. years, or last days, have believe But any that. moves when will support stocks, never cash doing help the reserve price of release since stock sort deck, a enterprise IR when most book our value been on the down sort a because we reserve companies seen or material where trade they of and shows flow never be look in this, year-end strip of slide book. and reserve at reserve I I

Donovan Schafer

Okay. lot makes Well, a of sense. that

I think – ahead, else someone sorry, is… go

Ralph D’Amico

PHX it’s Well, companies, that years. at no going the operator, and you Donovan, be are they mineral all know company to SEC mineral reserves, going of an has need the next to you was the X predict within the the true right. Yes, out look drilled is right, that ability there PUD, not right, say, to I challenge is to because actually for if right, other SEC this

And We SEC, the insight in formal mineral of right. to this company, tell presentation, of to Springboard that have locations, any meet be right? X-year again, drilled we for all I well is, what corporate will have drilling the of of this in operator’s and example, when But vast the you is classify is, III companies. bet significant we reason that as it period end can have that us, us up don’t their you a is the that we is within them mineral time guideline, a probable. amount on at books, particularly any the as So, you for will for majority look this true a seeing PUDs are true this insight terms of

an it at So, up has get operator’s booked look We getting made there books. we as PUDs reserves number to SEC of look even because put as probable. probable PDP straight never a as they been PUDs. you on from there those books, drilled. onto ends year, get start And a proved They that paid, undeveloped standpoint right. They at production it high-quality on our and the were this significant if being even they went

they and meet technical So a they years. SEC engineering show to the be all being drilled will be don’t requirements probables from to developed insight for approved us, X and to resource. geology able that the We the have standpoint, within the or just those qualifications

So, when year-end a and nuance. reserves, be to you that’s to of right, because little that’s bit something that SEC the where a relative do you that look prior look us able to really companies there carefully and see at mineral the all at to disconnect, shake have out you is quarter something included, that of else right,

Donovan Schafer

Sure.

flow, then valuation and also Chad’s Okay. reserve cash about – sort of Well undergirding comments the I and and appreciate that.

have of someone everything overly for And a to – – attention because – than curious a forecasts, own – be I reservoir a the of of of I a there more spirit my the acquisitions to a I they who that, these hammer, I nail. maybe more couple is had so acquisitions. am suppose, recent you shortcomings, like got so in some types them give deserve. a doing can’t guess you have And looks engineer as I reserves may of couple But saying help kind of just used but be I

the divestitures recent been I some months or may trailing remembering. may so divestiture. nine acquisitions the have There or additional be be – not there that may over You have

acreage of had into if can’t be but And I are you selling hypothetically, some even changes. dynamic. those so decline or to more reserves. ahead it could going you you to move could that book are And PDP have book then where with misleading you those bit. the in could reserves versus a an something the Fayetteville reserves optically maybe even maybe are PUD that be But mean

the extended feet of But kind results. fragmented that, of see you I myself, sometimes even response people gas, cubic into it hasn’t and where are the looking it, at though of do think increasing would there many Is curious, and barrels of wells standardized like all been and significantly could for am sometimes significantly that. because face there because there measure material hesitant But that of the pricing. those that I to engineers are heading So, a got have so increase things reserve on quite I you would see stock there anything the of curves. number type price

and up just of that volume value economic kind if So, numbers to acquisitions idea can takes the go see what have if the if curious talk you it’s if going to will be of real more or puts the on of the you any we kind and happens, expect to when just divestitures? and

Chad Stephens

Yes.

at CEO I participating over changed in that locations – probable took all a the some be top, no will with we as because add of to And them in associated completely non-op a company. going our if our January the drilling be recall, if full-time when wrote we that drilling it. we can to off PUD off and working longer have Danielle interest. from wrote and mineral-only of So, strategy you ‘XX, wells. were were But of We to we color point,

that with other of have all probables and our locations buying at that in these when that value all minerals. So, PUDs were our – we XXXX drilled our possibles book, are have point new were forward, we year. all And in associated being you since drilling these progress from acquired look with in the reserve created wells

to on don’t probables, PUDs are when they said, books, but know developed. are at as our So, operators’ we those Ralph going look be you

So, we just call them probables.

we as as buying – probable. into more developed, the So, are and PDPs, we on piling they are more the but convert probables to

I minerals. we acquired, booking purchases. statement? have we am my on $XX an is me in that if minerals accurate should there guess because So, new spent is, have are guess this let we be year an will and million increase I wrong, Danielle, reserves that and all the Danielle overall, of My buying from correct is, those

Danielle Mezo

is as will point. are on these as wells good make PUDs say, said, mineral progress I highly at or concentrated probs, merit difference you In into And as take account and lower only PUDs, or wells a Yes. particular, we interest Ralph the this divested our value is technical when as we in which these working our permits acquisitions.

We just old are much with the reserves higher-quality in and are really the assets, base with wells that exchanging higher quality, out higher value Chad as a and per new, asset lower in value so much overall. said, Mcfe,

Ralph D’Amico

is working are reserves. Fayetteville it. PDP non-op That’s we in selling old All the interest

Donovan Schafer

from good just helpful That’s own Okay. of really calibrating my know again perspective. to that it’s kind

guys. will So, awesome. you And Thank that. so you. much leave Thank helpful. it Very with I

Chad Stephens

Sure. Thanks.

Operator

over the end management of would session. like any closing turn I reached have back further our the to We floor comments. question-and-answer for to

Chad Stephens

Yes.

We and a to on set excited we next interest your you activity. keeping talk are good to before day. you the about up-to-date look will opportunity quarter. We forward appreciate Have us. our Thanks really and

Operator

does Thank you. That conclude today’s teleconference.

day. for line you You wonderful have this and today. time, may We disconnect your your participation at thank a

PHX Minerals (PHX) 14 Aug 222022 Q3 Earnings call transcript