PHX LISTED NYSE 1 East Coast IDEAS Investor Conference June 13, 2019
PANHANDLE OIL AND GAS OVERVIEW Market Overview Investment Highlights New York Stock Exchange PHX Focused on perpetual mineral ownership Shares Outstanding (1) 16.6 MM Share Price (2) 13.00 Ownership in multiple top tier resource…
CORPORATE STRATEGY Manage Mineral Ownership as a Portfolio to Maximize Value and Generate Optimal Free Cash Flow o Actively lease our mineral acreage o Acquire additional mineral rights on accretive basis o Sell mineral rights when…
WHY MINERALS 1927 1949 1970 1978 1990 2019 & Beyond Electrical Logging Hydraulic Seismic Measurement Shale Future Fracturing Technology While-Drilling Fracturing Technology Perpetual option to benefit from future development and…
MINERAL AND LEASEHOLD POSITION BAKKEN/THREE FORKS SCOOP/STACK PERMIAN FAYETTEVILLE BASIN ARKOMA WOODFORD - PHX MINERALS - PHX LEASEHOLD - PHX OWNERSHIP COUNTIES EAGLE FORD 6 East Coast IDEAS Investor…
SCOOP / STACK POSITION 10,600 net mineral acres Current Net Production (1) 140 bbl of oil, 288 bbl of NGL and 4,168 Mcf of gas per day Acquired 374 net mineral acres for 1.8 million during first half of fiscal 2019 13 rigs…
BAKKEN/THREE FORKS POSITION 2,700 net mineral acres Current Net Production (1) 162 bbl of oil, 16 bbl of NGL and 311 Mcf of gas per day May 28, 2019 - Completed first of two closings on acquisition of 319 net mineral acres for 3.48…
ARKOMA WOODFORD POSITION 11,800 net mineral acres Current Net Production (1)(2) 52 bbl of NGL and 5,340 mcf of gas per day 1 rig operating on PHX acreage and 6 rigs operating within 2.5 miles of PHX acreage 30 permits filed on PHX…
PERMIAN BASIN POSITION 33,000 net mineral acres NEW MEXICO Current Net Production (1) 77 bbl of oil, 10 bbl of NGL and 62 Mcf of gas per day 2 rigs operating on PHX acreage and 16 rigs operating within 2.5 miles of PHX acreage 55…
FAYETTEVILLE POSITION 10,000 net mineral acres ARKANSAS Current Net Production (1) 5,860 Mcf of gas per day No rigs currently operating Recent leasehold transactions involving Flywheel and Merit could generate renewed interest in…
EAGLE FORD POSITION 1,800 net acres (leasehold) o Non-op working interest position in the oil window of the Eagle Ford TEXAS play o 100% HBP o 86 undeveloped locations with average WI of 16% and NRI of 12% in the AMI Current Net…
NET MINERAL ACREAGE (1) Over 70% of Panhandles net mineral position is currently open o Provides opportunity to generate additional cash flow from bonus payments and royalties without spending additional capital; and participate as a…
SEC PROVED RESERVES(1) PDP Proved Developed Producing Reserves PDNP Proved Developed Non-Producing Reserves PUD Proved Undeveloped Reserves (requires capital to develop) (1) As of March 31, 2019 14 East Coast IDEAS Investor…
PROVED, PROBABLE & POSSIBLE RESERVES(1) Total Proved, Probable and Possible reserves represent less than 26% of total acreage o Conservative undeveloped reserve bookings in premier resource plays o Additional reserve potential outside…
MINERAL PRODUCTION: STEADY GROWTH Proven organic growth from existing mineral portfolio 10 YR CAGR (2008 - 2018) Oil 12.35% Natural Gas 3.75% NGL 13.77% Total 5.90% Notes: (1) 2019 YTD represents first six fiscal months ended…
MINERAL REVENUE: ROYALTY & LEASE BONUS Actively focused on leasing open acres to generate additional lease bonus revenue and future royalty revenue Notes: (1) Average exclude 219 YTD (2) 2019 YTD represents first six fiscal months…
CASH MARGIN PER MCFE Revenues generated from mineral ownership generate compelling cash margin across various hydrocarbon pricing scenarios Notes: (1) Averages exclude 219 YTD (2) 2019 YTD represents first six fiscal months ended…
ACTIVE MINERAL MANAGEMENT Unleased mineral acres have significant value and ability to generate cash flow / earnings o Over 30 mil of cash flow generate from acres in this category in last 5 years with no additional capital investment…
DRILLING & COMPLETION CAPEX Panhandle is applying higher return requirements for its future investment in working interest assets and is focusing primarily on minerals Panhandle has not elected to participate in any working interest…
HEDGE POSITION AS OF MAY 9, 2019 Calendar Collar Average Collar Average Year Product Volume Mcf/Bbl Swap Price Floor Price Ceiling Price 2019 Natural Gas 3,400,000 2.99 2020 Natural Gas 1,260,000 2.81 2019 Crude Oil 58,000 59.31…
FINANCIAL HIGHLIGHTS For the Six Months Ended March 31, 2019 2018 Working Interest Sales 13,505,476 18,668,088 Royalty Interest Sales 7,926,562 6,485,367 Lease bonus 723,303 596,157 Total revenue(1) 33,965,207 23,911,784 Lease…
CONDENSED BALANCE SHEET Targeted debt to TTM Adjusted EBITDA < 2.0x Currently 1.50x as of quarter end March 31, 2019 March 31, 2019 September 30, 2018 Current assets 8,928,739 8,246,176 Net property and equipment 196,571,271…
INVESTMENTS HIGHLIGHTS Focused on perpetual mineral ownership o PHX generates revenue whether we participate with a Working Interest or take a Lease Bonus plus a Royalty Interest o Mineral rights provide a perpetual option to benefit…
Appendix 25 East Coast IDEAS Investor Conference June 13, 2019
PORTFOLIO MANAGEMENT Fiscal YTD (1) 2018 2019 Mineral Portfolio Management Minerals Leased Out Net Acres 2,304 1,092 Bonus Payment Received per Acre 679 676 Average Royalty 23.4% 20.1% Total Lease Bonus 1,564,225 737,812 Minerals…
MINERAL OWNERSHIP IN A DRILLING UNIT Working Interest Participation 640 acres - 100% Panhandle Working Interest - 100% Panhandle Revenue Interest - 100% 640 Acre Drilling Unit Lease out Mineral Acreage Negotiated Upfront Cash…
DEFINITIONS Mineral Ownership o The right to extract all minerals below the surface at any depth Working Interest o Responsible for capital investments and operating expenses o Receives revenue from natural gas, oil and NGL sales o…
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