Earnings call transcript Q2 2023

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Operator

Good morning, and thank you for attending today's PHX Minerals March 31, 2023 Quarter End Earnings Conference Call. At this time, all lines will be muted during the presentation of the call with an opportunity for a Q&A session at the end.

As a reminder, this call is being recorded.

And I would now like to turn the call over to Rob Fink with FNK, IR. Thank you, Rob. sir. ahead, go Please

Rob Fink

and and PHX everyone, quarter Minerals call President after Officer; and and Stephens, Investor Hosting also operator, Ralph today end on the joining President close PHX's Danielle that release Relations Financial to the President earnings PHX's Chad The is are discuss March today Engineering. Executive thank press you, Chief Officer; for website. was D’Amico, Vice you, us Mezo, results. Chief Thank XX, Vice Senior of issued yesterday posted XXXX

future statements Before based or other XXXX. these not risks information, I today, are most statements over Q&A to intend result call, otherwise, known supplemented forward-looking a and law. like PHX expectations PHX or as earnings, and risks call. during actual to may unless involve I'd with XX-K such report by statements, reports Form SEC. session, company. are that Form Chad, May those call upon or on different cause amended filed the events information The as may The opportunities expected new the the regarding annual everyone during turn of in of update reports to the other These and required the that subsequent plans, including forward-looking be XX-Q XX, quarterly company by to call does to recent whether as on or made other Minerals forward-looking future remind unknown make revenue, be management results materially may These and detailed expressed today's from estimates known statements on uncertainties implied the of

to the like said, call the is Chad. that I'd yours. to turn all With Chad, call now over

Chad Stephens

in yesterday. in Rob, March interest XXXX, and we We reported pleased financial XX, end PHX's participating this of for appreciate thanks conference your company with on the the and results call. Thanks, quarter you call are all to

demonstrated even value significant in benefits impact through our its in commodity volumes, results EBITDA business generated other prices the quarter divested model. lower of current the flow on creation assets. a interest and much as non-op weak navigate inherent extraordinarily on volumes commodity royalty minerals-only The reflects we have first adjusted which margins the the a prices This and We decrease cash higher in realized in better period interest than potential improvement financial as of performance cash improvement working we industry. working and expenses LOE

risk generate margins, asset half commodity second With improvement higher reduce and us natural demand depressed, growth gas when believe the remain of will cash results we as prices our our we even supply encouraging prices, for materially improve, are even year low. in base, imbalances our the as to We believe in an if in model enables commodity opportunities near-term by further demonstrated quarter. this prices are especially see there and commodity

rigor an quality rock in the end quarter activity at in counts demonstrates is XX up in the areas of during This XX% the securing and rig to approximately and the highest acreage rigs, it and but quarter. from for of Haynesville encouraging evaluating minerals best have and January us, drilling identifying, to we XX went from in the the employed on Rig XX PHX dropped sign activity. discipline XX

Scoop. and We commodity we about of the down our downturn. last portfolio have Haynesville asset efforts base now seeing in that highest our should high a spoken we We to in to dynamic think quality be which projects, a have the are slow play consistently grade out and

from can continue at our as selling locations lower with non-operating focus last prices. pace a into cash commodity year, manage to flowing cash the core converting higher our even well to leverage. as proceeds build in versus portfolio our slightly minerals Operators assets We this prudently wells areas are to acquisitions year convert

in over acquisitions quarter, declined the little capital flow. our to with in see note, $XX to cash the scoop adding a periods the versus completed emphasis model of flexibility during and We ample quarter, base our our the as continue greater deal on million deployment. reflecting positive as for debt flow Of generation royalty future balance December asset well

financials. this over call and turn a At to to overview to discuss the point, operational to quick provide I'd the to Danielle Ralph like then

Danielle Mezo

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

March production XX% to This primarily royalty the from new quarterly increased our sequentially Quarterly Scoop on result Haynesville, ended to record. a X,XXX and the MMcfe. Bakken XX% MMcfe, sequential XX, a production. being was of For wells increased total production X,XXX company put XXXX prior in quarter, quarter increase

The we to of where volume majority our Haynesville despite purchased part gross high were due royalty halt as of is royalty eight constraints. undeveloped Also this quarter experiencing of interest execution of drill acquisitions our wells ahead the as have strategy. This indication of achieved the a pipeline note intermittent that acquisition which we record locations a production successful clear during bit.

on the would higher. even our wells been quarter, been those full for have Had volumes royalty production

informed time. that have at been the online by these operator wells this We back are

MMcfe the quarter. On XXXX interest production the XX% side, XXX.X March sequentially volumes declined working in to XX,

the XXXX; Arkoma of decline the XX, a legacy interest and As natural reserves. interest on sale of January Eagle working our and of working the Ford wells result

our Note part the also of XXXX the a consistent XX, that in month exit with had next our business. working full as assets. This with strategy March decrease associated quarter will interest is stated production divested volumes this quarter of the to

of XX% March Royalty production quarter. volumes XXXX XX, during our represented total

XX% as royalty year only our XXXX, total of volumes recently were volume. calendar As

corporate the the several with our have gain will is in by working last quarters, you our assets, note offset sale due Reflecting on volumes volumes the relatively the royalty our This total loss remained associated flat. volumes reported over growing of interest of to volume.

in our Significantly, quarters. we working volumes the our interest January, of working total moment sequentially down discussed virtually despite sale corporate reflect I royalty volumes, the assets are working as complete, steady of to coming estimate interest corporate our by which XX% non-op a XX% were XX% now in With being divestiture due the growth up interest volumes ago. assets will

grown As we divested enhanced asset base our improving non-operating the our royalty volumes of is our interest, with and margins. of quality have

XX% NGL transition of XX% future. our volumes natural represented quarterly sustainable gas, Additionally, that energy long-term production natural for aligns with X%. volumes our key were a production Oil is of and represented position the which gas fuel

March progress the X.XX to net to new in PDP wells majority in or the wells of converted operators gross producing acreage and mineral on converted During Haynesville, Bakken. or to XXXX. XXXX, located quarter XX WIP gross December the or XX, Scoop the brought quarter online ended are net in WIP, active XX, third-party X.XX ended our wells XXX The compared

X.XX At the same inventory wells or XXX the of and gross in record or as strategy. net XX, well time, wells wells inventory wells of our X.XX shows track of business XXX repeatability gross compared WIP, of progress, of the in continued of December XXXX. to replenishment our reported remained progress consistent net conversions the at The or

mineral inventory continue to activity. gross a have will locations interest this deep X,XXX we feed WIP of that approximately Additionally, under undrilled

focus XX WIPs, our our to areas In acreage present observed third-party on in and rigs rig we regularly operator activities April Mineral as addition PHX monitor XX. of

increased with active X.X of focus result in on of believe basins rigs in recent we decrease despite actually gas within which a natural active PHX prices. We the is rigs of XX competitive The acreage number had this owning the pricing miles minerals environments. ownership. has our mineral across the various quarter-over-quarter in we of core economics Additionally,

on both acquired volumes. In recently summary, mineral lead development we increasing to our steady annually legacy see which continue should assets, to and royalty

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

Ralph D’Amico

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

we our fiscal calendar a recently reminder, a changed As to year year.

I ended mean refer when to So March I QX, quarter. XX,

for and file then XX-Qs quarters, December ended will September period. XX-K June for the XX We and the a

gas, sales of lower on basis was X% sales decreased as down million. number revenues further, result total to to a a $XX.X commodity Natural realized royalty a and this volumes higher $XX.X NGL production but sequential volumes, Breaking quarter decreased prices. million of oil XX%

Working and prices. well as revenues assets commodity million lower a XX% associated divestiture with of as the to interest Arkoma decreased volumes of realized lower as Ford production Eagle sales $X.X result the

gas barrel, XX% per lower prices prior per the than quarter. $X.XXXX Realized $X.XX averaged sequential NGLs averaged prices averaged oil XX% $XX.XX natural and lower. per Mcf, barrel, Realized X% lower,

have hedge Realized we number where quarter were the derivatives any $XXX,XXX. and COVID-induced received, cash not is of This gains total off-market the that, for contracts. off-market associated the XXXX remaining do inclusive we derivatives received $XXX,XXX. Note we with of

the contracts our the of financials easier So for our understanding be lot and should in forward going accounting everybody follow. to a hedge

our hedged were protection natural of XX% X% $XX.XX XX% downside XX% $X.XX production respectively. our remaining through and has approximately $X.XX volumes contracts of at production NGL of gas, quarter, approximately of calendar the anticipated average XXXX For Approximately of per hedge our Mcf. and our at oil prices natural gas

the has On of of also means $X barrel. which the natural our gas volumes our as approximately anticipated protection costless remaining approximately are production that side, hedges Most downside XXXX have collars, to range. XX% oil $XX.XX those per at we upside structured in

filed position hedge is XX-Q. available our most in current recently Our

compared of basis and Arkoma, our which Mcfe in much a transportation, primarily non-op Total a assets. to a are per decreased tied decreased These the basis XX% marketing to working metrics royalty primarily in divestitures $X.XX, XX% to gathering million to $X.XX Ford had result interest sequential expenses unit quarter or per and Eagle on volumes. unit and on production changes as higher our

primarily quarterly movements interest associated basis in legacy quarter-over-quarter decreased nonoperated sequential are volumes X% our a decreased -- on basis XX% wells, prices. These $XXX,XXX. taxes sequential commodity to on working both tied quarter-over-quarter with $XXX,XXX. a to to Production expenses production approximately LOE and

Note would still the that results. closed of Removing month part which those quarterly a a shown January approximately the LOE XXXX, full of had sales, associated with and Arkoma have on of XX, the LOE asset expense quarterly $XXX,XXX. assets LOE as Eagle Ford

the associated as G&A December incurred with quarter terminating compared ended our million million $X.XX XX, the XXXX quarter, Cash the was in to $X.XX prior million program. to costs XX% was sequential prior XX, compared quarter EBITDA in $X.XX as the Adjusted XXXX, March ATM down quarter. to

better lower was interest a Adjusted sale prices. total sale on of EBITDA by offset being which asset. while volumes decrease $X.X the margin than the with have commodity assets, working Eagle interest Ford The working impacted with our associated associated and higher of volumes, much cash of the primarily expenses, gain noncash interest million divestiture non-op positively XX% by in was lower-margin, working royalty

Net and accounting Recall that are the with noncash the these all our held-for-sale properties. from $X.X quarter or to prior per that of for a this Note share million had we $X.XX compared items. impairment the this Arkoma quarter. associated the $X.X for million quarter last $X.XX $X.X impairment in noncash income Again, share includes quarter, or note the was quarter. sequential per prior million gain

we We Adjusting $X.X for approximately on the items level increased our to December a as of the net pricing $X.XX mark-to-market the share. as debt total of gas compared and hedges, portion well and million million XXXX, interest as use to of current December or environment. million discretionary our Arkoma debt unrealized cash of the $XX Ford XXXX, $XX.X XX, per working the flow had of as XX, as from these in pretax of Eagle income light XXX% assets, natural proceeds sale reduce to

was X.XX trailing March XXXX. to XXst, at EBITDA XX-month debt Our times

XX% reduction base of redetermination, pricing not of a of environment This to or our Lastly, associated base and borrowing borrowing our $X regularly as natural our scheduled million million. $XX was assets. with semiannual reflection current quality the gas macro is reduced by part

with pricing we commodity across forward have and group relationship We them continue continue our with environments. a partner to to look all bank to great

interest Our million currently associated obligation with $X as or ARO of XXst, asset XXXX. retirement liability at March working assets stands

our $X.X We by continuous our at $X.X since This just again million. balance when million XXth, have reflects decreased XXXX profile. sheet this improvement September on liability stood ARO

the the generated of Eagle quarter. taxable quarter Ford was will by forward in anticipate loss federal an recorded all payable working net XXXX income divestiture into to the This we interest, an tax this due carried offset which a We to of compared previous receivable in $XXX,XXX of and XXXX. operating be income change $XXX,XXX income tax

which decrease increase reduce allows program, excellent size pivot Lastly, all capital coverage our mineral very to or acquisition while dividend. commitments, to only quickly to necessary it minimal strategy on capital as us of the our debt, be our maintaining reallocate has

over call final to I'd With that, the like turn some to remarks. for Chad

Chad Stephens

Thank you, Ralph.

Before highlight Ralph's important like we couple of a close, Danielle's to I from comments. points would and both

our First, which with interest royalty growth increasing working corporate driven largely to we volumes, our will our primarily non-op divestitures by in be volumes. resume complete, expect

by Secondly, this is the and favorable this anticipate was result despite with of EBITDA higher of quarter. which higher increased our that a XX% sequential royalty XX% quarterly the revenue, versus This cash volumes drop a quarter mix forward. higher higher a our operating margin XX% in We quarter. margins created XX% last of the margins going XX%

out, have now pointed the height of the our as we banks hedges the insistence established Lastly, we COVID of off. completely rolled have at at

book upside much provides while maintaining exposure. current hedge Our downside better protection,

remarkable progress the three years made and communicated achieved transforming over plans on market. in have PHX the we the last established and specific We have to originally

even further flow keeping position the from look forward assets using We and updated. cash are now and to our to strong free positioned grow you quality financial

to-date. dedicated hard Deservingly, I employees and like them achievements on congratulate to for our their our work would also thank

strategy. wisdom and our provide in corporate Board Directors to like our their support insightful for would executing they I Additionally, of thank

This queue questions. of please concludes portion the remarks up for prepared call. Operator, the the open

Operator

sir. you, Thank

We will [Operator be first Stifel. proceed Whitfield question the with question-and-answer your from session. conducting with Please of the And line the Instructions] now Derrick comes question.

Derrick Whitfield

Good and on start to a morning XXXX congrats strong

Chad Stephens

Derrick Thanks,

Ralph D’Amico

Thanks, Derrick

Derrick Whitfield

For wanted focus on I my question, XXXX to guidance. first

activity assets and the you we XXXX somewhat your macro yet, and activity. softening material across for is -- your a slowdown of still WIP seen gas-focused the expectation feel further seen we've opposite fact, the with in outlined light comfortable do environment, While In guidance as haven't a in in

Ralph D’Amico

in really I minerals of right, buy -- I do. you you those focused core, think assets at Chad point, from. be Yes, we've minerals if And best if Again, out, the the Ralph. those rig you're you the a as margins. an So on this last drop it's would core right? theory, Derik, in right, at have activity we operator, the the on mean, pointed that rig our and look where

have there count coming of what We have think year activity. stated And a rig the may terms rig this some is from this the Haynesville. be operators the in all third of in publicly we softening towards followed quarter standpoint,

curve if think if I to forward ability looks hedge like But into you're those operator looking they're right, XXXX be the volumes, you're going and an and have the what to they to the them versus they rigs and -- keep about drop decisions did have some to they're a whether stronger right, XXXX. XXXX actually or hedge make operating, much going into they

in some the very maybe offset both the in also activity you where any or but our that be on -- decline are. Anadarko they whether Haynesville seeing and our country not as Bakken nets performance see the other high, think continue I oil it are the we're would where the potential Uinta Basin, assets, in in we areas still prices have to And the that strong interest in of liquids-rich with Basin

very to say the that here of all comfortable that we with guidance we're is, we still as provided. So sit today,

Derrick Whitfield

is And Haynesville And present in and seeing? environment, gas you're for the opportunities great. pullback further, capital allocation speak That's to the with at present, what given M&A between in you're seeing then prices? Anadarko to preference your what the the respect could you at market

Chad Stephens

is a January, buyers. Yes, the bit. Chad. had stunning Since gap widened plunge, we've has this sellers bid seen Derrick ask really a prices The quite gas and breathtaking between Hi,

So to expectations transact the difficult what given mineral are it's the are. think real and us the seller's Haynesville, where for in values we

do we hard seller Haynesville even at to acquiring capital allocation our value. minerals the to though transact see slowed down has us for it's flow, more in So deal expectations

operators there. are areas having in springboard area to be more slowly SCOOP/STACK the area quality we've and drilling liquids-rich, we're that and So quality more in going allocating wells more SCOOP/STACK and some the that in capital toward pivoted higher the success are where rock in

Ralph D’Amico

Yes.

any to not would the the And animals, make So Derrick, I we're thing very add, clearly so. sense business, of the grow right? capital allocate economic That want right, is growing. for look, rates return. other we're are that to is doesn't we The going if the our to while also economics to best of grow not there, sake strategy

Chad Stephens

Yes.

loosely performance nomenclature were well from a has headline clear, years it that SCOOP/STACK, be word bankruptcies several I when in the real when around ramping me across used just bad that area. ago Let some news

area well to rock quality very band that a willing on minerals of performance. have We in acquire and we're tight based

So area. focus the fairway. we're to get thin that very going we're stay that That's area not of on to going within outside and

Ralph D’Amico

again, the the Yes. And there if is down continue deal or we'll there, flow to not not pay valuation is debt.

these come I down or assets hold point, think some at to going just continue have hold -- going to these to are expectations assets. to you're sellers'

patient capital very how these going we improving very to transactions. when And a keep balance of maintaining time we're position we comes. terms a for the we're strong it great in to But at want right the financial And that upon and in be time. appropriate allocate evaluate to sheet

Derrick Whitfield

areas on the of on focus, strong understood this again update great. and That's congrats morning.

Chad Stephens

Thanks, Derrick.

Operator

comes And the Please your with with Grampp Jeff question. Alliance question from next Global the proceed of Partners. line

Jeff Grampp

guys. morning Good

Chad Stephens

Good morning.

Jeff Grampp

Sticking guys the the deals? – going topic, commentary noteworthy. managing deals forward obvious bid-ask in juxtaposing more to given quarter, continue you million sticking almost that more the bank's even about kind of finding on topic strategy of the on liquidity cuts price-related on given which borrowing with seems thinking ND $XX and the are Hi. royalty base your of How your spreads

kind a are of means kind or thinking two ever point, a And of liquidity those related of enter guys the that kind components. managing preserving of about does of how conflicting just gap funding, in acquisition and wondering equity conversation bridging terms you as

Ralph D’Amico

And changed get we debt the goal Well, in a strategy, early I our was standpoint I has CEO became or sheet we've of liquidity back when to the standpoint, last, to and where from I exactly somewhere to around times a for balance back think right? to one terms mean, almost going quarters, the even XXXX XXXX. maintain our strategy, from And times, that nothing of from there. to a five debt-to-EBITDA, changed full-time leverage times four Chad or been plan continue think from one the times that. X.X high that's think, I about to in three the right, is

debt a just a flexibility Not from interest it's do, obligations royalty this business tremendous us the in us may acquisitions turns coming of you it's bid pay again, in reallocate non-op amount whether that favor. still working advance our think timing, quickly or on the which the is to in access can their the of intrasite where regardless not ask of to component -- bills. I banks That's rates. what whether any not Minerals the less the -- industry, of just across standpoint, you spread capital. having working business, the does, the is terms bank control the but react non-op to to, available to on gives on We don't very the beauty got related

I acquisitions, of other. we've at that terms on for nothing have we always It's -- the fund important But that consider. there's we're sheet to mean that's balance we've In way mean, and deal right? one nothing specific, said said wait Certainly, very something see. always is how to looking or the I everything across just the table. you us is flexibility

Chad Stephens

and very the in it's working value in we for using We company. the non-op that. in was like a hybrid. and royalty to about old company, let I Yes. company difficult identified investing revenue, as add words from the when to company and me interest. the get And the where company Jeff, anybody really talk the was And to transforming half are royalty really in was had today Half reserves XXXX interested of

years, the around the minerals So completely our that's royalty completely mineral royalty we, into acquiring transformed growth last reserves. and in increasing three story company over reserves, a

of We or at at selling. of kind have So has in and a non-operating we'll interest, virtually overhang, hybrid been point some still bit value small removed. that, look consider

great of is -- our and with The guess overhang clean But that, now size. sheet, leverage, real, high just we're flow kind right so clean low balance margins. I cash

at So look we and deals. continue need to to will -- Ralph I larger-size

size they're Our this million, that too needle for $X to our bread no small one to and groups. really peer deals the $X million else has $X of focuses million move most on, been million larger butter $X to

right able So is a transact little spread to we're the the Haynesville wide now. bid-ask in

need transact methodically, larger to to look this of area, able we're competition. some not past right do likely that deals. larger, at but we most value at do going will lower consider consider the some We're and going a time do at lot -- they're using equity, and right so. to the we'll grow, would But and we're at And value, point, would there's to so Board and we've because if use demonstrated have right the equity at to the to the deal that for we patiently in

-- gotten to we're deal continue to going execute on some that's around while down, to larger. landscape looking are horizon, today, where we're head that the also So keep we the our the us on size, we for

Jeff Grampp

I Got all that appreciate it. commentary.

For a my out XXXX. you more on looking follow-up on tacked the into hedging side the guys like of looks hedge for book it to little XXXX, things, bit

a strong royalty asset have sheet, not the You very intensive base. capital given guys obviously balance

And more about hedge thinking locking flow providing guys, guys for upside of some on you some significant, -- it pricing, upside? XXXX that that constructive are not thinking book you is the kind pricing in to giving to thereby view gas cash fair be price versus some the going probably balancing so or is about have expect to you

Chad Stephens

about view I'm macro. going hedges, then you the Ralph actual the let of to gas and talk our I'll give

Ralph D’Amico

are there's volumes fairly it's not because right, got -- wells currently about we think component, that. yet coming high So we even books, right? online, -- I growth So, actually that royalty XXXX cannot in our get mean volume from right? I two as into think are new you you and XXXX, to some things, right, XXXX, Yes. hedge those have

production been, that look, is up fully be we have, price, to a both right, what are let's let's existing PDP – in movements philosophy commodity right, So our we think be exposed those always and the insurance down. component, has where right? PDP right, example. as an and it, let's I way the think catastrophe that about use think in on use really is Because of locking aggressive I’ll collars, that – we're it more just bit little But

Let's it's into XXXX, say, right.

by -- on $X $X. really stays in PDP We even the if stays in the at $X, We to exposed those cash I and $X that exposing still – flow gave. going online lock can it. existing X we're are up have with example still are well. And ourselves the hedge -- generate You to contracts. market And below then come volumes we XXX% good to

I remain catastrophe it's second, of will gas. layer expenses So or in the of way the to a about amount thing think kind That dividend as prudent go Chad covers payment, to a That's say about minimal forward. fixed here of our amount which it it. to be appropriate a a basically we exposed of better on talking talk to that then is natural was -- covers all insurance we continue right. that and bullish upside, the and in hedges our I

they today, a And forward been the market, So structure. That's where think ahead, appropriate -- are the in that's than Chad. are that's strategy. right. Contango prices higher Go we

Chad Stephens

macro on way that alluded bank picture somewhat gas the to, on So – as how hedge, to there you news were XX%. quite when Heating days right time. mildest requirements. winter and at of tied, how two had degree the and the coming a pieces out that, in following look up picture Jeff, of we've of why were down and some weather it by the is really two winter, the tied view of -- gives you we miserable kind now, Ralph But XX almost -- if bank our headline obviously, it

to out LNG LNG to been Bcf June. service last down it about Freeport down from of alone, demand That demand out by the XXX took Bcf. Freeport, winter last to absence date of for June has terminal export XXX the Freeport, since And of today, the Freeport

So that in Freeport, gas one since and between January you really January, collapsed, have like XXXX. prices and sharpest natural of gas the in prices weather drops saw

associated demand coal. resilient has to industry. has being the remained responsive got of by power power and demand So the PRB gas priced attention natural really surprisingly, that really been with

so is gas and demand the to weather. milder month, price you And feed under coal, natural power just price for for past the the price PRB more By there's saw demand. current is at

in the about to amount in of the market XX change. Bcf per XXX half, about you XXX So storage, increase inventory Bcf actually but expected saw expected

not We're be believes as on metric. in terminals as day does as market the Freeport quite as there not couple supply that service a Bcf and per So it of of we're maybe will the now with of suggest oversupplied a to end that that period. fully July back balancing and and into going back you coming June, capacity coming think But maintenance Freeport the some have in in in service winter, are all fall we back with going there'll when be export LNG this have reach the the a will March, equilibrium.

the prices of up and and that's normal on kind capacity And $X with based LNG, normal how our of why that kind will move export heating hedge normal on back days for view if above we winter have degree and a view. we overall

Jeff Grampp

right. appreciate Thanks the so All Got Danielle. it. time. much I

Chad Stephens

Sure.

Operator

Northland comes Markets. your Capital [Operator with proceed with question. Schafer of Please next Instructions] question line the Donovan Our from

Donovan Schafer

separately. for the to quarter, natural I uplift my so pricing Thanks guys. gas off quite that not want since start Hi taking for questions. report from It's than with a this excluding came you -- I hedges. bit expected, in NGL better

from if pre-hedge wondering, quarter than to XX% fourth timing but Hub being lag at something your fell a benchmark when first that. the more the is company, So fell than quarter I'm Henry prices, there's if meaningfully here less realizations a there I look royalty

maybe something So because is of revenue like that the just changes a gets recognized? in lag month kind or of or way there is differentials, royalty

Chad Stephens

a of little lag Yeah, a bit there. there's in

well. already well, say let's new January we production, new is it. available up. that, a -- true so So way. But It's on for right, then, an announced up the if going a where giving exact when check. an if This well as we on I'm to just But as example, accrue an it's I'm can actually -- that a XX, on it right, not example. publicly book it make well get this and is is we we

single is happens a up, on owners well able you're December Xst actually it the right? December lag And the online So this company sometimes that every But that Xst, XXst, into mineral baked out quarter, right, about that well. to sometimes so available normal making every book there. down. effectively for the of And data that reflection right? current -- gets it's into December just talking of It's came should production to operators be quarter, that gets baked the that mineral

Donovan Schafer

Okay.

Okay. We That's that to Haynesville in and helpful. anything STACK, in like signs or turning about charge, Continental it's the of are SCOOP that, know activity the Continental SCOOP heard seeing and in the the stack? from back accelerating private kind of And Bakken. the is you we've then

Danielle Mezo

absolutely. Yeah,

springboard all that We well, getting they the and DUCs as increasing there results WIP some regularly they core have for their activity that pace in in, up out development to ramped of as play. So so, see bodes filed out in with pace. assume permitting. up And their well pick their they'll plays. see we future We come see course

Chad Stephens

Yeah.

to and July. speak, mineral that are where here they under interest we June one production should are wells XX them, watching mid- they as be going early Donovan a got on by completing So we we've area into late

Ralph D’Amico

Yeah.

is again, ramping Hamm have going So way play interest I later four the area. X if that in -- Continental again, of no think those presentation can if on other Continental to And corporate But there's to drilling always this will is posted on our this have fully just that that website is inventory. look you this them, an that you of at stated best leisure. you XX XX map our private, look in. they're And your those XX, There's say but his number this rock it. wells quality and prior the map, that up at look at the at SpringBoard we a that's has Harold in the Page

what is know would this again, going don't I to slow would mean, I you but that last I he's that, the down. think So place where means do,

Donovan Schafer

the on given making -- have was transition quarter, you year royalty average. to an royalty being last question, of been but last then kind pace progress And XX% only. sort rapid Okay. And guys of that very that's last just

and will your right to get So rate what's aggressive are sooner when XXX%, of time. run just XX get rush happy take you you then north XX% then -- north now? be kind kind to it of and later you of no plan or than how wanting Is of the

Chad Stephens

the range, we're mean new working to I it of for as depletes without online sort volumes participation start interest I come towards or about the think see think royalties is, in down, mid-XXs XX. And reinvestment wells, as yes, it move a way new in any and right, going to in -- to right? that you're

with that we've think wellbores, X,XXX. X,XXX started before this off we stated about sold and I we've have We maybe interest working around

we on sold. is to would there the assets pricing no left. say So don't we great that There's want it. doesn't pricing I XXX But probably in We environment, year make force last it this sense. got --

environment, is There's out pricing environment. think XX% We're not between it. say, value makes or But -- of and monetize no those we're this There's in to it's force So think going that's going let's XX% re-rank XX% the this the difference we it pricing real XX% focus and right? we're rule. to it XXX I to on in understanding if say, those those, anything -- bottom old we we I focus no the right, our all the a with assets, XXX, and minimis XX% way to a out that's have don't we would to XX-XX going about the bottom, any, being de on of it. of in from how we'll and value figure force our to to of don't think -- or sense cash kind reserves, right? need. But flow impact, So I wells,

Donovan Schafer

loan claim game, yes, totally You sense. makes

follow-up questions. I'll I helpful. That's if any have other Okay.

Chad Stephens

Thanks, Donovan.

Ralph D’Amico

Thanks, Donovan.

Operator

for no At any And this to Chad comments. back the time, are floor questions. to there turn further closing would over I like

Chad Stephens

operator. note and presentations marketing like conference continue and for also Again, I'd and over to coming a that you, months, and weeks I'd our aimed non-deal like of Thank employees expand series at road their to I investor to thank our will continued the activities shows through support. expanding awareness. Ralph shareholders investor

We to don't next reach have hosting and or you'd hesitate forward be Ralph, quarterly day. meeting, IR. to mid-August. a call out interested myself, our please in look folks If at Thank to in the you, good

Operator

today's This does Thank you, conference. conclude everyone.

your disconnect may You lines participation, and at Thank this your you great for time. have a day.

PHX Minerals (PHX) 10 May 232023 Q2 Earnings call transcript