Flash Alert for owners of CLR and CRK

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dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Flash Alert for owners of CLR and CRK

Post by dan_s »

We have a very informative webinar scheduled for Thursday, May 12 at 10AM CT.

If you own Comstock Resources (CRK) or Continental Resources (CLR), I highly recommend that you attend our webinar tomorrow that is being hosted by PHX Minerals. Our speakers, Chad Stephens, CEO and Ralph D'Amico, CFO, are experts on the core areas of these two Sweet 16 companies.

PHX Minerals (NYSE: PHX) is an oil & gas minerals acquisition company that has a management team with extensive experience and relationships in the Mid-Continent region. The Company held 246,196 net minerals acres as of 3-31-2022 in Oklahoma, North Dakota, Louisiana and Arkansas.

I believe that PHX has significant upside for us thanks to rising natural gas and NGL prices, which should increase drilling activity on their acreage in the Haynesville and SCOOP plays. These are core areas of operations for Comstock and Continental.

You can register for the webinar on the EPG website home page or send an email to Sabrina at energyprospectus@gmail.com
Dan Steffens
Energy Prospectus Group
Fraser921
Posts: 2955
Joined: Mon Mar 22, 2021 11:48 am

Re: Flash Alert for owners of CLR and CRK

Post by Fraser921 »

I'm there and can't wait
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Flash Alert for owners of CLR and CRK

Post by dan_s »

I talk to the CFO of PHX this afternoon. You will like the fact that all of their hedges are collars with high ceilings.
Dan Steffens
Energy Prospectus Group
Fraser921
Posts: 2955
Joined: Mon Mar 22, 2021 11:48 am

Re: Flash Alert for owners of CLR and CRK

Post by Fraser921 »

Very Nice !!
Fraser921
Posts: 2955
Joined: Mon Mar 22, 2021 11:48 am

Re: Flash Alert for owners of CLR and CRK

Post by Fraser921 »

Great presentation on PHX

I think we (me) need a webinar on just the mineral companies and their business models
I know you like NOG, not sure if you classify that as a mineral company

Difference between a mineral company and a non operator company

PHX pays close to 10 %, not too shabby with a growth component as well so a little of both
mooneytim66
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Joined: Thu Sep 16, 2021 8:36 pm

Re: Flash Alert for owners of CLR and CRK

Post by mooneytim66 »

Great Podcast by n PHX management
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Flash Alert for owners of CLR and CRK

Post by dan_s »

Northern Oil & Gas (NOG) is not a "minerals" company. It is a working interest owner of the vast majority of its producing assets, but it does not operate any of them. It is a pure "Non-Op" company.

To learn more about what a minerals company does go here: https://resourceroyaltyllc.com/what-we-do/

Mineral Owners
> Actually own the rights to all of the oil, gas, ngls and other things like metals under their land. Surface owners hold the water rights.
> They own them for life. Leasehold expires according to a "Lease Agreement" between the mineral owner and the upstream operating company.
> Mineral owners get a "Bonus" when the Lease Agreement is sign and the usually are paid Delay Rentals each year of the lease term until a well is drilled.
> Mineral owners have no drilling or completion cost or operating expenses. The Working Interest owners pay 100% of those expenses.
> When the operator completes a successful well, Mineral owners get a percentage of the production revenues ("royalty") less severance taxes; usually 12.5% to 25% right off the top. There are a lot of very rich mineral owners in Texas.
> Minerals companies have very low expenses. Take a look at the MNRL forecast models and you will see that operating cash flow is 76% of gross revenues in Q1 and their dividends are ~60% of operating cash flow.

As you heard today, PHX is only distributing ~10% of operating cash flow because they are in "growth mode"; rapidly increasing their royalty income. As they grow and sell off their working interests they will gradually increase dividends. Their business plan + high commodity prices should result in a big increase in Net Asset Value per share this year.
Dan Steffens
Energy Prospectus Group
Fraser921
Posts: 2955
Joined: Mon Mar 22, 2021 11:48 am

Re: Flash Alert for owners of CLR and CRK

Post by Fraser921 »

Thanks Dan, I learned something new
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