PHX Minerals (PHX) Update from Stifel - Aug 9

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

PHX Minerals (PHX) Update from Stifel - Aug 9

Post by dan_s »

PHX Minerals Inc. (PHX, $3.31, Buy; Target $6.70)
- Announces a mixed quarter but royalty volumes and line-of-sight development continue to grow - Derrick Whitfield -
We view this release as neutral to slightly positive. The positives include: i) increased
activity on/near PHX's acreage (+7 rigs on PHX acreage vs. Q122, +10% within 2.5
miles of PHX's acreage vs. Q122), ii) an increase in gross active permits on PHX
acreage (+13.0 gross active permits vs. Q122), and iii) continued A&D success in high
grading portfolio (purchased SCOOP/Haynesville minerals and sold Fayetteville non-
op working interest). The negatives include: i) a total equivalent and oil production
miss (4.3% and 2.2% below consensus, respectively, 2.0% and 0.8% below Stifel,
respectively) driven by working interest production, and ii) an adjusted EBITDA miss
(11.2% below consensus, 5.5% below Stifel) driven by lower volumes and higher than
expected costs (10.7% above Stifel). Net-net, PHX's strategy of acquiring minerals in
the core of the Haynesville and SCOOP continues to pay dividends as the company's
near-term line of sight development continues to grow.


I will be updating my valuation tomorrow.
Dan Steffens
Energy Prospectus Group
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