PHX - Earnings call 4 2023 | PHX Minerals Inc.

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Operator

Good morning, and thank you for attending today's PHX Minerals September 30, 2023 Quarter End Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded.I would now like to turn the call over to Rob Fink with FNK IR. Please go ahead.

Rob Fink

Thank you, operator. Hosting the call today are Chad Stephens, President and Chief Executive Officer; Ralph D'Amico, Senior Vice President and Chief Financial Officer; Danielle Mezo, Vice President of Engineering. I'd that on yesterday I of and PHX's call future to and release is the turn opportunities during press everyone plans, regarding over posted remind company. expected management the also Investor Chad, forward-looking the earnings Q&A was today's expectations may after issued close the that session, The during to make call statements like other Relations earnings, website.Before revenues, risks forward-looking from These that involve implied statements and estimates unknown to different uncertainties cause and materially on other those results actual and may known or the be call. expressed These Form PHX XX-K. in Minerals' on annual report risks are most detailed recent

the does of this call that PHX as by yours. whether upon like update As quarterly Chad. not and law.With all other Form now these said, the future to reports Securities such, to the call call unless information Commission.The Chad, known by November to on today, with statements, otherwise, the turn information, or or and made new to statements are be forward-looking may Exchange intend or based during required company result over supplemented I'd XXXX, X, subsequent XX-Q of a is as filed amended events reports

Chad Stephens

in the over gas for one gas continued price prices realized financial macro you low from and interest indicates the few have natural the the your forecasted supply/demand XXXX. shown XX-month Recent projected in in of we Rob, versus reflects macro and spring, XXXX Thanks, improvement express Novembers has normalization reflect to this environment, volatility of since thanks which for continued price.Just call. improvement. to improvement early which recovered our steady the Since has the weather, weeks, the of our We appreciate portfolio the our on participating quarterly in natural strip call this results all gas last warmest and strengthening historically rationale PHX's natural steady sequential conference September of XX, in prices. company.The

EIA or construction be natural However, shows from schedule. facilities continues on increase new including and tight LNG to data basis.Demand basis for grid the a to power year-over-year underlying appears weekly on a gas fundamentals, a market on storage undersupplied weather-adjusted

we the this our of III our we believe PHX quarters.During will I specifically to to source bodes we in will XXXX feed additional started these environment and where for Haynesville will LNG Continental robust believe As as LNG improving well in sentiment business believe minerals, these mid- X that draw activity demand improvement experience significant Springboard to of LNG development play field full be quarter, to as primary to XXXX. the closer commissioning operators play XXXX, in late SCOOP currently facilities, prices on with it of facilities. the have Oklahoma the future the drive a well and rigs export and be other in there. in appear continued third driver operating

commodity production growth similar which will last represents continue well-in-progress growth about rate we and the expect will drive communicated remain been in in to in in play quarter, talked while last high the which production our still results calendar about current date exceeded about the prices. encouraged ever actively is coming spite meeting has production when as development, inventory, to growth the being this we reflects I of minerals took annual a benefits have XXXX we implemented XXXX strategy we quarters. be achieved PHX. a for years. CEO over Haynesville royalty forecast in developed, for challenging the we the we have stages This over continue it are early and year-over-year what which We And talk have full-time catalyst are be exceeding also to of Danielle We to as confident consistently the moment, updated few expectations.Our of to XX%.Additionally, our of production periods royalty as

PHX in will This guidance maintain provide cash early to We XXXX.With ample as detailed program. our more generate strong acquisition to continues our fund as liquidity well margins, us allows significant flow. mineral

aggregate of XXXX this operational fourth since discuss $X.XX Danielle Given point, business, to and provide of an strength quick to a per XXX% XXXX the rate This fixed to share our to overview XX% I'd over the a and increase to approved increase per the then Board financials. dividend represents rate.At dividend the to call Ralph of the like from turn increase Directors the our in quarter. has is

Danielle Mezo

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

result is sustainable mineral production Compared of XX, mineral the control a acquisition has our do the the note to quarter, fuel program.It volumes that the for increased and Oil transition XX successful of royalty represented XX% growth timing and last trailing X,XXX were production For September natural volume X% Mmcfe. XX% holder, sequential is X%.Quarterly of our of Mmcfe. quarter by corporate XX% to not XXXX to gas, X% total for the a the last aligns quarter as energy same from key to gas quarters. on our represented prior well we increased XX% production production quarterly over our X position with important increased long-term sequentially natural volume execution months volumes development. future. is that year, X,XXX The NGL which royalty a

model our with basis.Our basis were down a corporate rolling volumes early and nonop to the can XX-month sale a associated our there is X% on due year-over-year, which So be of assets total interest some on evaluated in volatility business are better working quarter-to-quarter XXXX. volumes

production result to become less business.Royalty decrease are production total and XX, being September volumes XXXX of the not our interest Mmcfe to XXX and represented interest volumes working XX% natural relevant a the working the participating as in by the so operators. September that interest new working we volumes XXXX Note continue in worked our On decline XX, total declined quarter. some wells, to side, will sequentially during to relative quarter, X% of volumes wells over

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

we interest, grown will our shortly. about nonop the quality royalty at volumes enhanced have As talk Ralph and base working improving of divested which our is asset our with margins,

At to X.XX business continued the XXX September net As filed, our XX a net to we operators mineral quarter quarter the The of well and majority have provides XX.The track all-time the wells wells of asset of compared and wells PDP gross third-party inventory gross SCOOP. our to X.X strategy. XXX facility.During producing or are increased gross on of with and our base repeatability in XX, brought the high X.XXX of Haynesville bank acreage net located high DUC, base, progress of this stronger June which graded or compared our replenishment converted same much ended wells our inventory as progress XX or in on permits in or minerals, record to wells wells which time, in wells, X.X ended support active collateral wells online XX. conversions the new of the progress being WIP drilled to wells includes our reported net or an gross the converted June in to shows credit

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

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

acquired ownership.In discuss of XX we we volume.Now increasing and PHX recently within the summary, active rigs lead both miles royalty see to to should had turn X.X Additionally, to assets, I in mineral will financials. Ralph which to steady development our legacy call annually continue

Raphael D'Amico

of $X.X to in oil Thanks, total call and to sequential production increase to to higher commodity volumes quarter. production oil on X% being today. averaged increased And per royalty million sales XX% averaged Realized a barrel, and for gas averaged X% the $XX.XX higher. basis gains Working X% sales interest everyone increased number thank higher NGL increased further, Mcf, sequential $X gas were you a $XX.XX than XX% natural commodity volumes X% $XXX,XXX. Realized higher. realized prices. million. hedge result higher Breaking prices the lower prices quarter per NGLs $X.XX this to on barrel, revenues revenues for per quarter $X.X XX% and royalty prices.Realized prior and sales down million XX% as a due Danielle, revenues X% of realized a Natural the

our natural has For and approximately at approximately oil and NGL of were XX% downside XX% Mcf. the our of remaining of $X.XX gas calendar at $X.XX of none XXXX production per hedged anticipated of our natural prices $XX.XX, XX% average gas, respectively.Approximately volumes production protection quarter, our

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

Our $XXX,XXX Mcfe to primarily Haynesville XX% to LOE to of have Louisiana, and current decreased have Mcf, tax to associated recently and our position higher a decreased with associated meaningful sequential basis is as and interest XX% quarter which due $XXX,XXX. to legacy quarter volumes basis transportation, lower number percentage expenses in to total volumes, approximately basis working per a hedge we gathering of not most quarter-over-quarter a where a $XXX,XXX marketing volumes filed XX-Q.Total which on production a XX% its basis wells our sequential revenues. in on available taxes because costs sequential on per a production decreased on and rate transportation $X.XX leases.Production cost-free XX% nonoperated of higher increased applies

We discussions assets the by and escalating Mcfe G&A G&A compared to legacy costs a per was sequential million regarding On charges.Cash quarter. with to $X.XX working XX% basis, decreased our down continue operators interest XX%. to prior operating overhead have of

as XXXX expect EBITDA to while for in and a grow to million or on in we debt the of minerals decrease as to million of million previously success was to to June $X.X to we will have only quarter. quarters.Adjusted million G&A per also to continue are that line Net with to we margins effectively September as continue EBITDA compared recent income net in side continue higher We as cost least been on XX and prior per to that down like show ended scale compared and XX, maintaining was quarter. XXXX, our of our the $XX,XXX share quarter than September at years out continue million debt. to of compared the June scale our acquisition business point in quarter.We going last $XX.XX loss as sequential package we million expect was totaling to forward announced strategy, $X.XX absolute business.DD&A I'd $X.X with the as up $X expand they X in $X.X the business sequential $XX.X in the the focus production we quarter the X% compared or G&A costs funded cash the $XX.XX of million the total $X as for September our prior per had share partially cash and hand XX XX, margins

trailing X.XXx September debt was Our XX-month at XXXX. to EBITDA XX,

redetermination, to bank million $XX during I'd borrowing Additionally, year. base remind fiscal from to our regularly group our year a our increased announced calendar about change like $XX our scheduled to previously million.Lastly, everyone advance rate

XXXX, Chad to will remarks. I'd final be early for call our for ended year will like for in the December As be report turn over that, released XX, the earnings XXXX.With such, some full March next which

Chad Stephens

Thanks, Ralph.

I last in year moving over very commented and provides are opening As we our us momentum my the into it the achievements with pleased XXXX. remarks,

We rig around activity have both on position the in mineral current and and SCOOP Haynesville. our good

in XX% our trending in Board from acquisition for growth $XX on production and approved remains our generate per bank dividend $XX $X.XX borrowing with a our Our million Directors to growth good growth in cash royalty flow.Additionally, of flow, we increased of quarter, trend our XXXX, operating volume group continue million. double-digit and deal base our to increase

the highlight wisdom by sustainability hard notable work keen our business important of provided dedicated company our of base make X our only continues asset and the and to through employees our Board. progress think model.The I events quality these

prepared closing, remarks We do in thank queue their to please of for So look keeping up them you the the forward questions. I call.Operator, updated. concludes the for portion open efforts. This

Operator

the with Derrick question first from Stifel. Our of Instructions] line [Operator Whitfield comes

Derrick Whitfield

respectively? the you help growth For understanding question, XXXX next you'll oil improving trajectory regions, your that Haynesville experienced given offer this focus outlook on wanted to to guidance WIP quarter growth with in Could your and my in and strength you that have first firm Anadarko the the inventory quarter. flattish you I frame the

Chad Stephens

to want you talk do about that? Ralph,

Raphael D'Amico

Yes. basis, well I to I mean, progress we being active see X.X on progress all inventory, that new I that on to the mean you net and a you development think, with And level our Derrick, confidence in right? I week we -- monitor continue right? filed have of in permits think minerals it's on see wells us continue every it. given

assumption I based good months just coming I -- think it's be that XXXX.And on pretty online that to Clearly, wells over next, in can XX should end activity is right, as we can over on the of be as coming of progress, XX same few well. the guess, rate those a online wells think the accelerated, that amount that we if the years. achieve through we growth additional have there last rig

mentioned as numbers So we'll more early some in provide specific XXXX. more some guidance, Chad

Chad Stephens

this Chad. Derrick, is

But prepared year-over-year the my wells. higher Bakken that excited of the DUCs oil early There's The those is rig you're oil Continental some The were wells all completed was WIPs. remarks, wells seeing really that the in to that the those performance up some with was it, really these than specifically related some said a there. of in that than As III increased of growth we of we're Springboard double-digit, and completed. component to talk that referring area and to activity XX% to have greater activity, -- continue I've performance about. the we're about the more been

Derrick Whitfield

ask focused follow-up, M&A on That's great. I And markets. perspective the your to your in my landscape wanted for for

and Xx are aware, guys likely approximately asset yesterday Sitio Basin the announced sold for for a our Anadarko an package PSA in on Appalachian you is As EBITDA numbers.

appear on what it competitive your and read-through bit is the getting a landscape on environment would competitive you're While transaction your in definitely those share positive you thoughts from or a valuation Could you, basins. a for perspective areas side? that the seeing more

Chad Stephens

Minerals We in Yes. from come justify. What discussions came a the at could much looked unsolicited merged Brigham around was some had we They after and originally of richer And had we Sitio. than old become couldn't to merger, paid to some that was actually those that just assets. that valuation. organization done

we But our the for we're that at it our for deal to price, decent They we're the us relevant we're our analysis about for getting So returns I demonstrates, the Sitio one, good buying out make and but to assets. that there use we're what that to was and price. a in were good in be flow, shareholders. marketplace return.So difficult -- also technical economic financial trying analysis disciplined that for get think

Raphael D'Amico

best Yes, that acquisitions call the is aggregate Derrick, the is And we our and on -- bread effectively. of There where on the add last achieve methodical we sort over continues litter be butter I to the now. disciplined of also sort think very I X the that smaller robust. flow possible as and by following have we the pick our would and same the is to try that deal view be returns can of risk-adjusted going our very process there just that years we it, deals we have enough that as

Operator

comes next Meade line with Rice. from Our the Charles question Johnson of

Charles Meade

Slide wanted Continental about referred ago. And wells I XX on I -- that updated presentation. think just to it's you your to those think specifically, bit I ask more a moment a the detail of

X Woodford south, targeting section. are to drilled to section.So north different were targeting And this. wells, You've X And I got, the like think, pads the looks pads that is to I X the they the question and my Continental. it by Sycamore were me were the bit core believe,

pleased results? question add then the a it or In both? down either/or line pleased is is Sycamore kind is Sycamore the Or the -- And a how stack of you pick choice First, south second target? can there whether in potential would other the you how sort to and thing are of do to north? one those the with is of you the -- Woodford the for a characterize versus words, Woodford like

Chad Stephens

engineer, tracks let as Danielle, question question. I'm the well Danielle? performance she and pretty good answer that going to our closely. reservoir results the Charles,

Danielle Mezo

you, Charles. Thank Yes.

concept results. So excellent Continental's pleased test we're very This of yes, with for an been them. has

do far, It well. in these those type our XX of play, an We've multiple there that this So schematic to rack SCOOP outperformance that the well on X co-produce side, part an original our are is on will they and This curve. extremely as that layers. definitely seen situation. we've benches.You together. either/or there's zones thick see we section corporate very can production Page presentation seen the coproduce wine not expect is fully that We and expect a of

here those thickness in benches X allow zones of them as would the Just each do well. to

stack So down beyond further expect we even recovery would further and have to this even future tests test, road. that the

pleased very with to that and model take and test, field across start there. that development we we're yes, walking the So expect the it fully of them results

Charles Meade

then. a And [ get buyers' the kinds wisdom done a or question. expectations seeing you're for on you dynamic to -- might if that because harder Ralph, you and M&A that if to could trying deals valid there's of we that's volatility guess, you you, the are in so Well, if to overlap. that's of see upside maybe do? harder for less I generally is get to more a of whether and to comment it's sellers' just chance that get could guys wonder deals But wonder whether this is it's you in characterize baseline lot I the earlier conventional commodity ] prices, us, from the I when took be expectations

Raphael D'Amico

and I But look shows think September, look in what there our lot would when I running if I with at size did that we is when basically lot to deal deals that -- is, again, that at that -- you even that. average of room, mean we deal I is volatility. a of a the mean, agree flow an there extent,

for be think in prices to it's to right? gas But if it just I which is whipsawing of like recovery even it pretty there's it's think holding are I a let's whatever pass if in not ability probably every very patient, that additional mineral at $X.XX, cost may to we and between expectations get we I we $X for then that there's and the exactly deals prices just good asset and be, you of are true substantially don't $X, the that below September. use they a that go, When think moving, acquisitions.Some to in worth get to think then continues waiting were the profile. look $X, $X, we prices. And effectively on gas choose great sellers' find when opportunities we transact, acquisitions dollar set of of spring, saw like what holders a $X $X make, and us reasonable.I hypothetically experienced we where little go is we price, still -- an executed at

Some is of it pricing.

Some us, buyer's of today, it's of gas -- in it is But with last you've to it's a weeks, still couple here combination a the of over seen sit we what market. where both. even prices

Operator

the question [Operator with line of Grampp Jeff Alliance Global Partners. comes from Our Instructions] next

Jeffrey Grampp

allocation guys. A for question a you on -- question the capital

to return was program. the as capital part increase nice of So dividend the see

in think part of you the kind fund business long balance of having acquisition which well. the guys core sufficient dividend of pipeline is the of as the kind scaling term business, about capital So the wondering to versus growth still the obviously how and optimal

Chad Stephens

assets, into material working get nonop assets, X over and or we year, last I until of volumes we let interest which cash kind we've our volumes areas SCOOP and nonop an those capital material working into and we've is Haynesville. alluded XX% working redeploying sale detail Danielle be We're lot to years, greater, growth for allocation. coming the as toward and us the were And the increasing doing meaningfully we're selling interest X highest But we to we're going the came this our or cash amount assets. core some our But the specific represents, redeploying as and dividend. rid and the material in proceeds selling And now flow be. there, higher-margin our divested X assets the and we driving better into that capital a focused, royalty think looking of was on nonop about which at flow allocate of into assets. I'll got of working of we any of will in volume divesting were and these into cash So XXXX Ralph the been flow a of to, material interest our years.It level, that assets feel what difficult be to not of it going

it of gives more cash flow, us confidence lot conviction a whole allocating free our toward a portion a and dividend. around So higher flow cash operating

kind So give there. his to Ralph what around going thoughts we're of I'm let doing

Raphael D'Amico

on that now of we prices that Yes, want that's sound company mean, really whatever is fixed of it I of flows. is I going. better right, lot think complete, sure the dividend that, So may terms as has of right. cycles for be of term, reminder, lack better make dividend, a regardless a regardless our the right? dividend in dividends to there you -- and cash safe been and And visibility -- transformation a policy based think future right, commodity just the is a all is I

discuss And makes -- to that towards return so, it the high door, when working questions right? And return it's acquisitions we capital the balance. acquisitions sense I of much it's effectively capital, the deploy dividend, a versus a the of is, think rate the Board, of that can where is enough generate that every now with easier.Clearly, out is the interest one there quarter,

to spring, -- down we're isn't balance.But increase -- much trying with force debt liquidity, find M&A as right, if going the the scenario slows the deal capital going flow good. to not this that in it. So acquisition again, market good we're mean consider, down It time for again, We're we're that the just to aren't more acquisition create market over if and the returns that pay like more doesn't return that reason, of means in whatever there. if well

a something basis. thorough. been and we that So past, doing going I consistent very think what it's in We're with We've the quarterly on forward. discuss keep about Board think the going to that's and we're

Jeffrey Grampp

Great. a risk appreciate That to a at And dead my being acquisition I makes lot sense. of of on that. another horse follow-up go that the question, topic. I'll nonetheless

the it announced pretty So August. on seems the like the you spot that in during we're acquisitions quarter, with transactions back guys

Is kind on it of, back under that the future onion guess call what's of for of imply I terms those I So kind in bit hoping thoughts. potential bit opportunities.So deal X wondering seems just would little just you flow on quarter that what's Or guess, reconcile funnel kind to the a of of to a the commentary side. flow more on, of the going of a kind deal seem very discussions? about things function optimistic acquisition was today understand and just in are guys. that The peel to where quieter rest to the

Raphael D'Amico

array quarter that deals closed right? some an the end. different stages, -- in of have various is There been Some since

PSA. under are Some

would -- characterize seeing quarter themselves But is the is capitalizing by on the to and relative M&A And looks they're sort And release. what right? not necessarily evaluating And material quarter.It's we it time are their a right? would on it's on up certainly acquisition the I we're how own unlike on good to press so say adds different this front activity. all stages, the are it. in quarter of speak, none of all last spring front, as better deserves them like We're -- we it. Some the

that closer get as year, end a the in more detail. I'm that we sure of the group we'll discuss to As

Chad Stephens

$XXX,XXX And every on that, X week, I'm encouraged. million to the range. point no Yes. the closed, We've it's $X.X Jeff, as of in deals I Ralph release those. just to a said, on think just in have last in doing here follow-up press one there's

Just -- don't us. didn't really anything do for they

pleased the the So stuff I'm the in that's and with activity queue.

Operator

Our with line Donovan Capital Schafer Markets. Northland next the of comes question from

Donovan Schafer

underwrite over Congratulations as strength you could in decision dividend you've Just first so then, it a on trying of can is a the want of to there nature acquisitions -- $XX the fixed, that can million solid legacy do part raise. that? in the was Or a because to those and both? results all it that intended but be you've the was it you economics the understand ones based in accretive with need Was the if long and there's your serious was and just so mentioned, done a of and it and like positive done the guys. to since to this acquisitions? it before? wondering it's period to guess it Or before that do is It's there. of time.Was -- I behind you now being dividend and underwritten, feel you on which relationship increase, the where be very commitment I I'm what certain primarily do ask, the be increase business you quarter, for combination

Chad Stephens

ago, Yes, volumes XX%. it's really, represent it to nonop material working a had I volumes working of dividends royalty our XX%. are and earlier as alluded time with to nonop XX% year, we not associated last because about assets. cash interest flow was we minute This increased Today, interest, divesting done

going knew assets. we sold selling were those to be So we and off we

they're public divestiture we've selling some flow cash bought quality when toward of dividend knew allocating to be So we toward having to overhang, dividend. December, successfully, of around through as year was and with that? we're have hard those to to that redeploy we going flow frame, kind we the b, into going in conviction divestiture we gave a through allocated around and a are cash the real sold were good adding and assets; see the ground that pretty into we no high-quality overhang going longer on in speak, a the certain and speak, interest to to conviction of between can be our going January which cash Ralph, flows, cash some a, pretty data non-op to want going add us we've completed assets the it volumes developed that as certain be of percentage that our percent what's flow.But increase proceeds to and working now this assets wells the being really time you

Raphael D'Amico

say No, -- I right? I don't one say, go had have all something hard to what think factors So of else it's the of back happened, -- a those thing, just that's you can't right. think it's been. would and a balance. together. not It's if exercise to It's dividend just good it's a what combination

Donovan Schafer

Well, maybe Chad I'll on kind of think through Sure. to it maybe think said. what the and linkages, the I relationships so rephrase based

I that's of a production, that So like you more more swapping out it's focus were of those positions overall the certain -- deploying [indiscernible] think into those the completed it capital growth be -- slow? that kind linkages achievement of same included interest seems part and part going orientation, the amount kind then of of certain -- you way swap working amount you that to acquisitions royalty an of to that dividend. returning growing almost on the the time, allows production portfolio grows while in that in turn, in production or now a the -- Is was indication in you're this you've release, in the royalty how reinvesting production.And that then to of raise at a you forward, plan

Chad Stephens

we that's growth interest the years volumes. the story royalty Relations X Danielle's deck notes made nonop to corporate and sold we historically, that's volume instead of working also our had royalty to rate the piece total nonop last amount a it's fact -- year-over-year X% that today, highlighted XX%. combined as grow we volume to of continuing down having growth is continued Investor our interest That's our main annual over interest. why now the will is the because assets, versus but And over of And focused, continue in production we be we business corporate.So that slide show volume not material working in volumes nonop growth where up volumes royalty royalty highlight reconcile total that compounded have our because the working had our were our corporate

So of that's growth, that we're and now percent a gone, bigger have dividend. from XX-plus a on we cash piece this focused that real conviction royalty allocating volumes into around those volume flow

Donovan Schafer

Got it.

a and part of just Okay. of about modeling Understood. oil sort a costs then as should Haynesville, we impact with little and trend of Mcf SCOOP a with becoming a to head And 'XX? kind of run the mix transportation the on on housekeeping new the keep mix, the falling also at costs it are we basis the -- in rate transportation from this thinking how production into gas the a as be And follow-up, is here? But XXXX? we should we expect Or just question. larger bit a natural of is

Raphael D'Amico

is Donovan, between and -- and piece is think because Haynesville -- right, on SCOOP the the as a So the oil is I split bigger around mean, growing, I today. gas, Haynesville though growing the even well, XX% right? that the

more questions cost-bearing gas.And going lease, mineral as XXXX you some bearing it fluctuate cost-free your faster The XXXX the economics or be have of into having -- it should it to grow. than are we just We percentage to unit the to doesn't depending Haynesville, So -- around is to provide of Haynesville size, interest. Yes.It's leases points, even as of little come as none think grow right? is the see that a if quarters were metric, did, bit leases that to lease it than be SCOOP, couple per having any as you the the today in one minerals going the XXXX. on its any percentage get but way is working not given none a right? plus it is better increase. of oil every growing that natural The other probably drastic around unit it's guidance is couple -- leases, can from at working XX% But a you're there a going metrics decrease minus But really have of be to is on prior a online? of interest to other reflection given that to split -- higher early quarter We're a associated in or see right, the mitigate of you're clip really So points far leases going how going -- much be a cost or Is it's cost-free many going to right? the -- being a variability, there's go on X, I granular versus stabilize per where to same. with not right? the

I hope helps. that So

Donovan Schafer

Okay. we're price, I the at I coming time, more strong and definitely zooming in can supply/demand EIA daily on any blog down kind the that.I its have I out like gas natural Do squeeze the the but associated of come mean you same mean, And the of there's basins of at one even a one some one had No, rig from level. last oil-rich thoughts it if basins, just think -- macro has does. production gas in still getting gas-focused just thoughts? count that it something all? may the aren't of these gas, getting much have Henry the increases that, it.So you And Permian with going gas? How are don't for sell the produce talking would in highlight they're drilling about Permian gas where propagate or the there be but it any after people in prices or your know, post get places we're just gas there gee, natural depresses Hub they to I regional at do differences you production if to Permian. And oil, on to in

Chad Stephens

Well, at month, that, $X.XX, XX price trading weather forecast just X-day -- around, I $X.XX. at the above last bit like was over collapsed maybe the period. were days $X. And it's natural they a think, X- yes, little front a that $X.XX one week. right maybe weather down And prices, forecast down you flipped back to just to saw today, flipped, or warmer and there And like it up up was gas sometime about ago,

chance dramatic enough, Who supply data, is, this a is wild storage there's were because we're the not morning, all tight, it's days, storage I Nino weather supply storage phone and that related.When is it and December? EIA and out a El demand last today. drop, the I and you over EIA to at weeks, -- for when is the after number think is sets But the a of warmer-than-normal short haven't card. XX-day a that that number comes what X These my had So a the at the look and really look suggests knows? it call What it winter not in forecast. we're wildcard early XX-day happens weather in, period here,

be it's these because the from flaring flaring had Permian hard a But Kinder practices and the takeaway late that that's know were early what ExxonMobil Chevron articles. highest have service. and mid- the for Commission going exactly as So several amount natural comment out it's to Permian history is the Energy volumes Sempra's LNG to speak export those is were more LNG is flaring back Permian, facility And wells ExxonMobil's pipeline being comes to in in about, number read of line in of export Basin. capacity, -- from shame in we environmental to Energy coming and I prices operators into later Morgan be.But summer but us to Morgan once the be And the to they will 'XX, this up comes from what there facility gas Transfer wells forecast first built the completed, associated and thought when to associated some no volume.So trying Railroad Transfer an I in some quarter being your the in it's Basin, of Kinder right and into to 'XX, then service, There's the the the even to hard are gas stop of that's and in 'XX. service. going perspective. but that publicly went the gas flaring

probably And above. so gas of the have should adjusted.We -- if exit keep the at gas normal coming stay at the a balanced, winter timing the the market Permian into number weather spring of associated or from winter storage price a normal kind could $X

are warmer-than-normal winter the winter, a all We knows? for of rest have the bets off. Who

Operator

session. floor question-and-answer any to the comments. our concludes turn Stephens that final gentlemen, I'll and Ladies Mr. back for you. Thank

Chad Stephens

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

or in calendar to year-end look meeting, Have Thank don't next our out forward hesitate XXXX reach our March results. early If day. the full to you IR. would a folks be interested discuss FNK We to Ralph good at you. hosting please call myself, in to

Operator

This today's you. conference call. Thank concludes

at time. this lines you may disconnect your You Thank participation. for your

PHX Minerals (PHX) 9 Nov 232023 Q4 Earnings call transcript