Earnings call transcript Q3 2023

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Operator

Good morning and thank you for attending today's PHX Minerals June 30th, 2023 Quarter End Earnings Conference Call. At this time, all lines will be muted during the presentation of the call with an opportunity for question-and-answer session at the end.

As a reminder, this call is being recorded.

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

Rob Fink

us end discuss results. joining XXth, Minerals for quarter XXXX you today PHX to June Thank President Officer; Hosting President of Officer; Vice and call Engineering. Chief Chief the today Executive Ralph are D'Amico, Vice Mezo, PHX's Danielle Chad Stephens, and President Financial Senior

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

expected the Before revenue, the forward-looking that during everyone like to I remind make opportunities, plans, turn the future company. may call, earnings, call Q&A including and over statements of management to regarding Chad, I'd expectations session, today's other

involve These and materially estimates and on the other forward-looking cause implied to or risks statements may uncertainties be actual call. expressed results known that and those from different unknown

annual or as may or SEC. report on These by detailed supplemented other the risks on are Form be reports such recent in Form amended quarterly most PHX reports subsequent with XX-Q filed XX-K Minerals'

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

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

Chad Stephens

the all Thanks XXXX in in PHX's appreciate call quarter We Rob June end and this company. to on of interest your XX, thanks you for participating conference call.

we public be letter we WhiteHawk to proposal regarding will interest expression not the have a Board nothing letter this WhiteHawk its seen issued few matter indicating about may At of this time, evaluating you questions a merging ago, carefully. in As the and say Minerals. further with will moments in reviewing WhiteHawk's taking be interest. The have PHX Energy

macro I and encouraged the For am low significant gas performance future natural with prices historically improvement about quarters, I'm in the dynamics. pleased the our given despite quarter, second

improvement commodity experience a prices, second the weak focus of operating activities Despite acreage. notable quarter, in there share During robust our rigs our across was we market within continue to areas.

of inventory we permitting in to earlier meeting we Based production, on production forecast in are the well conversions wells, and communicated in the our confident year. activities the

As improving higher to-date, are visibility. more we progress lower and guidance on Ralph a based fact, raising on end of conditions, slightly will enhanced our later. matter of this discuss the

I year-over-year As previously basis stated, accurate a on to royalty timing. sequential growth have quarter. a operator it of our the eliminates more instead is This created volume by lumpiness measure

to believe to XX% annual In quarter second fact, appears supply growth, bottom improve. to we of and natural prices volume gas the on royalty are be year-over-year XXXX. calendar achieve imbalances track the We approximately in continue demand as

and demand from As forward export significant XXXX, will driver to we be the toward look XXXX a natural LNG gas market. demand

HOAs of or with the signed gas operators. quarter, have operators natural Heads Agreements During LNG several

of the feed As as we sentiment Haynesville LNG additional in to these LNG improvement it source facilities, will draw to well prices. the closer primary we drive be believe commissioning facilities. these will as

ample liquidity, at Even cash maintain of model. the fund quarter, continued demonstrating low PHX this gas prices to acquisitions, generate business were though natural advantage flow, mineral historical our and levels

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

Danielle Mezo

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

sequential total For prior MMcfe. quarter to XXth, decreased from our June ended quarter, XXXX X,XXX X% production

Ford full January a assets Note month were Eagle divested production Arkoma from XXXX. of XXst, our and legacy that that last quarter's volumes contained on

quarter. from from Excluding these assets prior divested volumes, sequential total the our just decreased production X%

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

sequentially decreased X% production to MMcfe. royalty X,XXX Quarterly

quarter, year-over-year volumes flat royalty relatively XX%. to last remained have by compared While volumes increased

that with a some note business basis on volatility to volumes do important a on model rolling well associated can there holder, quarter-to-quarter It be and control our mineral on we development, is basis. not are so timing as evaluated XX-month a better

production MMcfe quarter as well interest declined legacy in XX% side, Arkoma On the XXth, working Ford of the XXXX June X,XXX to sequentially above. the of sale as XXst, Eagle and volumes a working January on our interests result stated

a XXst working The the production March assets. volumes associated with of from interest contained quarter full divested these month

volumes, Excluding flat quarter-over-quarter. volumes interest remained these working divested

volumes represented Royalty our total of quarter. during June XX% production XXth

royalty XXXX, total our calendar at of recently, XX% -- only volumes As were

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

divestiture With working corporate we coming virtually estimate volumes quarters. in steady total assets our reflect will our complete, the of growth the interest

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

our XXXX, to XXXX. as reserves, working production XXth, proved as assets, volumes well of corporate June our This reserves months reserves as XX.X XXth, Bcfe fiscal is end September volumes in reflected decrease of interest due off. is Bcfe primarily of were growth Our sales of year in XX.X as royalty rolling This compared nine of our also to

result significantly royalty quarters of natural proved the over despite remained same conversion reserves have lower reserves the prove steady prices. gas flat probable a Over of timeframe, to three last our as

wells June converted growth X.XX XXst, XXXX, net XXX or ended the wells WIP acreage third-party producing to gross converted net quarter X.X to web XX the operators ended active in to on or March compared During in XXXX. mineral or progress PBT XXth, quarter our

compared wells At are remained time, SCOOP. consistent wells gross new our and wells of the XXX located in the XXX in X.XX wells March of at XXst, X.XX to or majority or of net inventory same reported progress the the Haynesville XXXX. as online gross brought The net

conversions track continued of or strategy. and repeatability well business of inventory in progress the The WIP, the replenishment our wells of record shows of

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

operator WIP, our third-party PHX on XXth. as our monitor to rate XX areas present addition focus activities of in regularly we observed acreage and rigs July Minerals In

active X.X of miles rigs ownership. PHX Additionally, we within XX had

natural in total of Haynesville decrease in gas play recent the our has market the prices, share active doubled. rigs Despite

As of of year economics PHX's was this compared all We X% which owning competitive active environments. minerals basin a we believe XX% share a of the result pricing of is July ago. in focus rigs to with the XXst, across various in core

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

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

Ralph D'Amico

$X.X decreased NGL because you this commodity total on basis X% thank decreased being on everyone prices. royalty Thanks call gas, sales production today. sequential quarter million a XX% and realized $X.X a million. further, in number for decline revenues Danielle a Breaking XX% the XX% volumes Natural of to and revenues of royalty oil, to and lower sales to down

June still and had X full also month revenues lower XXst production the $X that result you price the divestiture affecting a of million Eagle the -- XX% Arkoma volumes quarter the had Working assets, of talked them. as a XX% commodity interest revenues XXst of to for lower realized about the interest areas which quarter with as associated sales production the May March from working recall XXth decreased Ford these and Danielle

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

were for the $X Realized hedge gains million. quarter

For respectively. volumes quarter, of our XX% gas, and approximately production prices natural the of X% of oil hedged at our XX% $XX.XX, average our and NGL $X.XX were of

production has natural of gas our XXXX remaining Mcf. per $X.XX downside calendar anticipated XX% Approximately approximately at protection

has protection our the oil On at downside side, production per XX% approximately barrel. $XX.XX approximately anticipated of

of the that also natural $X costless range. volumes are Most which have collars, to hedges we on structured upside these up our gas as means

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

gathering a meaningful $X.XX $XXX,XXX decreased XX% quarter have marketing volumes on transportation where a and because primarily of transportation, which costs a total Haynesville lower higher basis number to sequential as volumes, cost-free per a Total of we of on Mcfe associated and decreased XX% percentage and have leases. to basis

sales basis production decreased taxes a to tax to revenues, not quarter in and Production due volumes its production which higher on by Louisiana, offset rate to revenues. sequential to applies $XXX,XXX lower approximately XX%

basis decreased impact quarter the is LOE Arkoma quarter the of working interest a January. clean on associated This without with the interests, wells and first our Ford legacy late sequential non-operated Eagle XX% $XXX,XXX. to in which working sold we

$X.XX quarter. X% was to primarily prior up associated sequential compared costs work legal million to quarter, during due Cash and work with G&A the to additional tax the

shorter a compared Adjusted quarter compared June conversion wells to overriding significant that depreciable production minerals $X.X new million production in depreciated ended these was XXst prior producing the to of XXth as million to $X.X new and which million unit up XX% in quarter. approximately royalty due sequential quarter, to come to DD&A on minerals, have and a March EBITDA of nonproducing life online. the royalty basis is was $X.X our

or Net loss sales quarter, per $X.XX for per share. unrealized the or quarter. $X.X on $XXX,XXX mark-to-market our $XX,XXX income share $X.XX million prior was $X.XX for XX% for and in or of approximately hedges per gain share the Adjusting compared pre-tax quarter the to to the decreased effectively sequential the on net net June income

opportunities. debt on liquidity as future balance million $XX and total of enhancing XXXX, maintaining $XX.XX have focus as strong million June of continued a We potential XXst of to to compared as had acquisition March we sheet XXth, for

XXth, XX-month XXXX. Our to EBITDA debt X.XX June times at trailing was

X.X Lastly, company is for X.X higher outlook royalty now outlook our in to X.X the to forecasted estimated production X.X prior confidence to updated we The range compared reflect to volumes. XXXX calendar of Bcfe. Bcfe

as and We to reflect range significant also sales associated gathering and to which a where costs marketing talked from $X.XX a we Haynesville, coming a $X.XX I have per unit about, higher number cost-free to leases. to $X.XX range $X.XX percentage volumes of of the reduced lower transportation costs a the estimated has to compared

higher to being revenues. sales percentage being Haynesville pre-hedge to a Production as to again production of our volumes X.XX% not X.XX%, increased a and as X% of tax X.X% in the tax to and from is applied result Louisiana volumes volumes

the end to $X.XX estimates unit basis. an production to from side, absolute higher volumes On reflect reduced the G&A metric G&A we've a our on per high stable and of $X.XX the cash production

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

Chad Stephens

established made plans then. you, In over Ralph. achieved originally last back have PHX progress in remarkable we three specific we and on years have conclusion, the Thank transforming

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

important like I of Before we points. a to close, couple highlight would

volumes. First, divestiture for corporate with working complete, corporate driven be resume our growth a is largely by our increasing royalty non-op volumes, to expect primarily level interest at will which we

macro market low royalty gas are which coming our minerals, in the natural Two, its natural on dynamics core as SCOOP. opportunities activity additional in we the drive robust to improve, the prices, consolidation areas and will in see growth spite gas record of PHX continues volume quarters in Haynesville seeing

We shareholder about rigorous in these opportunities are evaluate to same these approach prospects, value. use excited we'll and order to drive the

always, recognize of dedicated wisdom insightful As would I like support they their and hard employees for work the our their Directors and provide. for our and Board to thank

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

Operator

Thank you. Instructions] [Operator

with Please Our Derrick first Whitfield question proceed. Stifel. is from

Derrick Whitfield

Good morning and all thanks for time. your

Chad Stephens

Hi Derrick.

Derrick Whitfield

I to first growth outlook. question, on wanted For your focus my

shaping While we in the macro perhaps a of reduction half raising increasing assets? across on to second Could band trajectory expected for your your is guidance. share your are and the is relative Haynesville are your how WIP, you activity the seeing environment views your for the XXXX minerals and your speak lower up market you in

Chad Stephens

Ralph, and I'll that, follow want up with to closing a address comment. you do

Ralph D'Amico

LNG Look, Sure. which the Haynesville in an on Derrick. be is is I natural our focus motto about focus if Hey the playing think, natural you're we right? basin improvement cycle the commodity what and price key again, -- in this mean, -- gas, I gas as we like to exports,

basin the at market right, economic. rates, that core even highly operating really to of the of think the prices on share the these And we're are what's the I And us right? the core, increase fact focused enabled

is margins. acreage us that that that the means in first they last is rig to economic core so rig, So as right? down cycle, a down what in that to around core. operators even So, to it the the of would opposed the We're be our the we're is laid not

which focused right? of purely growing maintaining helps just The operators on production, operators. fragmented. are under us, It's are highly There's steady. focused production not we that on They're good lots also

acreage kind every see being continue to us to And a and our of enables on visibility that world we so the convert, And that look level day. confidence permitting active have worked are at high we going the of on to say, right? wells

So Haynesville. it we're pertains encouraged about the future to as the

you it's like taste SpringBoard you Continental, seeing they if look at certainly the if a you up are that right? then the corporate the permitting at they right? And look of It always our And of coming predicted we that play, would. amount you're map, just presentation, there, look thought as out at picking III and seems

So, drive gives cash the I on royalty that side, up of us think volumes and we conviction flow. just continue the we revenues -- built inventory all that converted to production and be should revenue that

Chad Stephens

today a we in And minerals forth and SpringBoard Haynesville rig best Ralph. and And and our two back to operators thanks, six we on the strategy unchanged III, rig areas, recently counts to look same can rock look and at can really count. months quality and when we put virtually the the best being core you -- in our ago the

to quality speaks of quality that the and the the So, really assets operators. the of

watch said, are that Ralph wells are wells DUCs, completion. week-over-week been the are drilled these converted. weekly month-over-month flat And permitting as continues being relatively and our that on drilled and remains acreage have and on the as the we a And waiting that and being wells on

royalty very of alluded think SpringBoard of our Again, be expectation. lumpiness our you III Spring of going we should We as to very we're we're what next really it lot trajectory III into to. a given a as confident, That's year. think But growth. year we in see we growth the there's next Continental driving our asked, volume bit confident

about excited operator. great asset, pretty So, Great that. we're

Derrick Whitfield

That’s And and the prices opportunities? commodity perspective could for firming your present, Anadarko preference speak in then mineral you're follow-up, to my perhaps color. speak at to Haynesville market seeing allocation the also at from you between an great present for M&A what given the capital of and

Chad Stephens

two areas. Well, those focus on we continue to

areas. great We have great had in knowledge have those success and technical both

one in comes whichever an asset the competing, evaluate best pretty those one try provides best in close areas, if we're opportunistic both economics, to best whichever whichever So, we'll best, on. first, returns, we'll economics we're

a time three buyers. having much the or were little hard success months between couldn't in ago, we prices a in the transacting of III not over so Six months really the had sellers gas there ago the in of Haynesville. the in but And bottom, spread a bit couple last months we SpringBoard bid/ask We've when were -- Haynesville. the acquiring area, was wide at and

inbound But we've we're well. at opportunities a in And looking had Haynesville then recently, excited the we're as now. of lot a about really opportunities couple of right

sellers to of is ago, realized to have to able So, $X.XX, to going able be to today we the therapy was at have got the $X bit six think gotten what down and a and strip be not market transact months gas transact. come they're that they've little that

So, our on we're come spread seeing bid-ask narrow that the or way.

now. So, at we're right we're the excited looking about opportunities

Ralph D'Amico

environment, acquisition very patient favor, we rigorous I approach And commodity regardless other Derik, how One evaluate to Yes. it's I opportunities, the thing, being use think we right? that our price to mean works the in note important I of right? think same,

are what months significantly Haynesville opportunities today, And evaluation and And is our our seeing seeing doing not of just not sake at that being were for better a rigorous being we're of ago. doing which the prices in a overly right, they off. that's lot paying deals, that the has never than approach, we're been few deals with

Derrick Whitfield

time. That’s great. Thanks again for your

Chad Stephens

Thanks Derrick.

Operator

Global is Please Our Instructions] question Jeff proceed. [Operator with Grampp next from Alliance Partners.

Jeff Grampp

guys. Morning

Chad Stephens

morning. Good

Jeff Grampp

opportunities thinking you and But from larger sense those the want shareholders' are you understand boxes about when broadly comment main it kinds whether opportunities, on of M&A guys off obviously can't think its WhiteHawk that makes as about when a you directly checked evaluating PHX better. perspective? I guys the speaking, what

Chad Stephens

with and you the sincere and all is to When interest rigor the the effort. serious inbounds they're have requests, all of -- at opportunity a opportunities, best obviously going Board, look Board shareholders. any to same going is at in that all the look the same every We

of from is shareholders So, we sure the make and to in that perspective. protect those shareholders, that best any the NAV interest to is want accretive proposal

-- deal a deal, the always shareholders that's guess So, our value for best the from the hurdle it right the main is perspective. I

Ralph D'Amico

Derrick, mean Jeff. X. of day it always It the and core? -- it again, Derrick, What the I quality from think I right, the right? is the rock, in has sorry, Chad And -- Is mean, I'm Yes. Jeff, this, And always with I the always starts and right? rock, said core of

the of quality operators assets to we've it is at always on evaluated those rate growth accretive? are is And developed? every same be them? size deal the What of rock which the Regardless the What's deal, exact for the going the way.

we've look the And growing led had the same grown terms has mean, think what's think we've We key royalty terms volumes the to is way. consistency I always last growth of those our I a we've in over on royalty years. compounded the what of And at consistency in achieved that annual the been it XX% that at success that that side. over success I to three rate.

Jeff Grampp

I guidance ducking for assumptions my What up making Great. potentially it of that. obviously, follow-up, operators in right regards now. the guys market pretty to kind And natural appreciate you dynamic gas it's XXXX thoughts understanding for material are you as to guidance? relates as XXXX. that just full risk view year all at Do of wells hitting that, kind unitholder? early control maybe of your a Or the out for obviously, is any

Chad Stephens

of volumes forecasted production and sales. into existing completed, are to they're when are the that of we are drilling of or this -- PDP be for idea year a most already being and wells the Yes, pretty our we base XXX% put for on good have going based

location they be idea where of to volumes. bit around XXXX and good footprint those assets, into the little those and again, given what going a are on and more coming risk them But get like the look what for of volumes pretty XXXX. the are you risk have and operators, volumes we of If a there's our

Ralph D'Amico

Jeff. we of a inventory, control range, right? of don't Yes, think in cetera, not -- range, I It they control ducking into but a So, doing it's that et why we and that account I that's right? a number, terms something somebody up cetera. that's possibility et takes mean, the

baked So, all our into assumptions. it's

Jeff Grampp

the for Thanks right. All guys. time

Operator

Our next with proceed. Capital is from Northland question Donovan Please Schafer Markets.

Donovan Schafer

if of a the question way. still apologies But juggling see you couple challenging a business been actually any kind I with have is I the way it's this already think calls model of environment so I'm guys. asked. the in Hi highlights how price of positive nice to has first kind of for like a breakeven up end the at it of kind quarter,

protection, kind historically, -- this more looks you of GAAP like that when of had you're downside you and you big losses. interest you working much it really covering just like could yet income almost performance at net you pretty maybe some have Is where have historical looking could as overhead -- just -- didn't wells, back and

kind kind a the of what of be still natural be of do we more in -- you're to it should of And I seems really So, that forward in emblematic kind and should Is being you position then that to and just mineral now of of really that strategy the gas validate prices future, see overhead. really burden some in floor just if breakeven? hedging, I the that kind able are kind and as this of the is now the to is thinking be you here? bottom, perspective that -- kind becomes looking going of by if can properly this representative floor, mean, this where size royalty cost guess, interest, you

Chad Stephens

Yes.

to five around we And we XX technical business deals business employees, seven is XXXX, we accountants I the started public scale. or think filings people other the evaluating January XXX people, in a built So, and to have year. do six XX We're month. financial and all and half deals our SEC we half a the evaluate the back-office

the said, or whether the a work. handful apply we because, it's We those a as technical few deal any Ralph acquisition, a do focus only $XXX,XXX $XX rigorous same use -- we technical a of rigorous to million,

So, the business built we're is grow. and set up scale to for

the close deal new bring add the and G&A. we stays G&A So, in-house, acquire on and don't every same. The we asset

So, will to to cash move flow we and a less we're burden that overall. acquire will we a and built and G&A our more as breakeven lower less And yes, forward grow. assets, become really as of use

Donovan Schafer

This Okay. college little Marcellus of might was on probably And then part, job the a it's Shale my from bit own of the sound shifting gears my first triaging a my paranoia experience, out and bit. like in Appalachia. little

greenlit -- looked Mountain has greenlight Ceiling so the Debt -- that anything. Act, kind And Valley helped I the different pipelines US and the Supreme of now Court closely the kind the the between to and Congress, of at interconnections various that pipeline also -- haven't or

think lots makes it of But prices. coming of natural some there about, just horizon having are downward in the kind putting me and -- on of time gas of kind longer-term Appalachia or pressure out of midterm any risks gas

Just trying such a with couldn't get there's to that such it's about it's gas if like -- prolific you gas historically but it the just out yes, pipeline. of basin, and a -- think

there? guys that? it? for -- of how are And in anything are there us you be you And watching kind mindful of monitoring are how is thinking what about So to you

Chad Stephens

of about that And US gas global it's the domestic context got become Well, really built question, and a fungible talking to were world of in to the natural look the natural a one, has then supply had through LNG this demand morning, overall that gas become commodity. I terminals all -- answer at this the fundamentals. you've -- and Ralph around

a of were to there strike, the of the Australia, LNG terminals workers in into going Europe. possibilities hurt couple that that and imports were instance, for And LNG

of of US, fungible have but impact news gas X% natural now despite didn't shows here, the morning. up today. is the It's that So, just European because up Hub way this world prices that nature gas natural an around Henry really you the in just or X% immediate prices morning this

goes your Mountain the So, Mountain Valley dynamics That to think any macro North southeastern serve of to United pipeline portion -- It's in way don't Pipeline the is going to kind to impact going US. Carolina. the States. I Valley the of materially question, in

gas they construction, -- I is to in the in future, the most these the LNG, most Haynesville. new about think as my Basin going LNG. the these ones XX from between supply Permian I natural are under and will X.X come LNG of come day comments, to these Bcf which at capacity, in service of the XXXX in And a Bcf growth -- alluded exporting as as into XXXX mean terminals, will day of be export additional US of a the the

is natural US the XX%. or XX% got You've gas decline at

you add Bcf to first LNG. of to X.X So, now got another from decline replace and the you've demand got

or a decide feed So recession in besides nobody if industrial-wise what's this don't or a it's we're just obvious I you know come can if the supply need of out going to more recession whether demand increase not. happen we to in

if capacity not that's But the you'll about LNG the sort in demand, industrial to most supply demand gas so I'm for economy export much get overall the the US includes any part, given going of years the really that too worried macro. commercial balance of and natural next couple

Ralph D'Amico

And talked the about of grow the that's returning Marcellus, intent the mean, too, think again, there. they right? communicated is, because, that I by I been What operators what thing desire one focus to think to is Donovan, I right? think operate in about pipeline, is the -- you the the X add, the regardless right, key if sort capital, versus And operators, on right? pressures to that And their face of we

fragmented piece you the of is when that think like private about to right? that I changes, mean don't think standpoint, I don't -- day Street return we And the have puzzle folks does But more operator of and Haynesville are if think wake every an ever lot Wall what about know I what thinking there's who I about, right? even it's about that's they other think more the from that not up capital, as a right?

So, in they to I production, take the at forward going opportunity provides for And to done over Haynes to right? standpoint. similar years grow provides the a market, X advantage want of the or that we've from continue they pace so to a lot want us to a what dynamic of last royalty grow think

Donovan Schafer

sense. valuation That's get last a actually can is if a seems do we some in, larger then And there's look companies question, one -- I probably just makes at much or they squeeze it that and focused like helpful And scale. perspective. out other, more Okay, minerals their driven when the really they there. certainly royalty premium by size

think I more bit a hands-off little be to seem they approach. and

to because counterargument could seems may going kind like -- effort the the go. a you where see So, well of proactive that's you're as it make good be more be maybe drill can you guys that doing a multiple to should assigned you to

do you've that matter growing valuation and you there feel kinds you take time. explains -- gap? Is of -- would are you it? help get larger to or there great or But there that of I leaving think do scale some just that things plan reduce can and it trying valuation things to are close over that to aside, kind other to from strides sort of you But that can a know of larger or start working or any interest other time? royalty that you think interest. made any Are do can can shifting that you where in gap that to you

Chad Stephens

daily alluded the hard years, to overall in can. the stocking comments. like bigger. We the new and ability small. we're investor it that's it into of we we've execution. question. question strategy, So, results -- every three the last the They float comes shareholders, out, They like that, pedaling get as And and comes to as the the potential shareholder need as down down I the probably day. like we existing to my we're over know the to or achieved And just get to -- we like We that they

that In better just of the as these overall can investors got in and issues. working out. to address the is to you -- get some And issue on things acquisitions, address, who day real are we interesting say, these how I think ability interested various we've get and larger for our all we're that's float

working that. So, that's we're on --

Ralph D'Amico

Yes. mean, et that and going look, think expansion all the to of rate important multiple look, right? et I good, at is expanding cetera, think, that cetera, right? And minerals, always Don, consider I with our pace also terms mean, But associated we're growth in it's I margins I the

I gap mineral cherry value and to and working behave think it some that top, the a not to there. upon do creation to group, that's we some group right, with the compress mean relative trade peer is that is peer going are we the always there way where we we the closing other in about do try of of That's on that dependent out on, spread.

flow, that that's what going royalty the well. to It's drives cash volumes, way executing at expansion. not you're growing on But the growing just as core create and It's of value, value multiple not day-to-day, right?

Donovan Schafer

Yes, absolutely. No, that makes sense.

of take guys. rest I'll Okay, thank questions you offline. the

Operator

remarks. over session. closing question-and-answer have conference the We of to like would the for our back to end turn I reached Chad

Chad Stephens

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

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

Operator

will today's This conference. conclude Thank you.

You your time you thank disconnect participation. at this lines again and may your for

PHX Minerals (PHX) 9 Aug 232023 Q3 Earnings call transcript