Energy Prospectus

Beta sent an initial letter on February 3, 2023, which was followed by a meeting between Beta's CEO and the Independent Director of PHX. After the meeting, Beta sent a follow up letter of concern on March 2, 2023.
As a significant shareholder of PHX, Beta is voting against the majority of current proxy materials presented by PHX management.
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About Beta Shale, LLC
Beta Shale, LLC, established in 2004, is a privately-owned opportunistic investor in oil and gas, primarily focused on non-operated working interests with assets in the Arkoma and Delaware Basins under management of Derby Energy, LLC

They own 1.0 m shares

Letters can be found here

Both letters can be found at www.betashalenews.com. Beta encourages all PHX shareholders to review these materials and to assess PHX's performance and future potential under existing management

Dan is this good , bad, or nothingburger?

They had crap hedges in 2022 which they took time to talk about in yesterdays call. They said banks made them do it.
Now we have crap prices but their hedges are better in 2023. longer term NG looks good but short term headwinds prevail

I ignore stuff like this. PHX is sticking to their business strategy and it is profitable. It is a "growth stock", not a high yield stock. Beta is arguing that G&A is too high. Maybe, but the upside of their two core areas looks very promising to me.

I like their hedging program going forward.

I appreciate the comments.

Well, the G&A appears out of control relative to peers so they make a good point there.

I view PHX as a call option on higher NG prices. They need more than 3 for NG even with the "good hedges". The hedges are only good because current prices are crap , even though they are up in last few weeks.

1.0m for the CFO in a small cap is ridiculous, imho.