PHX Minerals (PHX) Valuation Update - Aug 11

Post Reply
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

PHX Minerals (PHX) Valuation Update - Aug 11

Post by dan_s »

PHX closed on August 11 at $3.41, which compares to First Call's Price Target of $5.35.

On 7/22/2022 Derrick Whitfield at Stifel Nicolaus rated PHX a Buy with a price target of $6.70.

I have updated my forecast model for PHX for their fiscal Q3 results. My valuation increases by $0.85 to $5.85.

I still don't have a high level of confidence in my forecast model for this recent addition to our Small-Cap Growth Portfolio, but the Company has generated $29.17 million ($0.83/share) of operating cash flow during the last three quarters and appears to be on-track for $1.15 operating CFPS this year and $1.21 CFPS next year. Since minerals companies have very low annual capex requirements, they are generating enough FCF to fund their growth strategy of acquiring minerals in the Central Oklahoma SCOOP/STACK and in the Haynesville Shale play. I am very bullish on both of their core areas that have a lot of natural gas.

My current valuation multiple of 5X annualized operating CFPS is conservative for a minerals company.

My updated model has been posted to the EPG website.
Dan Steffens
Energy Prospectus Group
Post Reply