PHX LISTED NYSE 1 Corporate Presentation August 2019
PANHANDLE OIL AND GAS OVERVIEW Investment Highlights Market Overview New York Stock Exchange PHX Focused on perpetual mineral ownership Shares Outstanding (1) 16.4 MM Share Price (2) 10.97 Ownership in multiple top-tier resource plays…
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 Corporate Presentation August…
SCOOP / STACK POSITION 10,600 net mineral acres Current Net Production (1) 4,183 Mcf of gas, 302 bbl of NGL and 108 bbl of oil per day 6 rigs operating on PHX acreage and 60 rigs within 2.5 miles of PHX acreage (1) 337 permits…
BAKKEN/THREE FORKS POSITION 2,700 net mineral acres Current Net Production (1) 149 bbl of oil, 21 bbl of NGL and 600 Mcf of gas per day 2 rigs operating on PHX acreage and 12 rigs operating within 2.5 miles of PHX acreage (1) 30…
ARKOMA WOODFORD POSITION 11,800 net mineral acres Current Net Production (1) 5,277 mcf of gas and 51 bbl of NGL per day 2 rigs operating on PHX acreage and 3 rigs operating within 2.5 miles of PHX acreage (1) 79 permits filed on…
PERMIAN BASIN POSITION 33,000 net mineral acres Current Net Production (1) 100 bbl of oil, 23 bbl of NGL and 110 Mcf of gas per day No rigs operating on PHX acreage and 2 rigs operating within 2.5 miles of PHX acreage (1) 57…
FAYETTEVILLE POSITION 10,000 net mineral acres Current Net Production (1) 4,979 Mcf of gas per day No rigs currently operating 2 permits across PHX acreage (2) Recent leasehold transactions involving Flywheel and Merit could…
EAGLE FORD POSITION 1,800 net acres (leasehold) o Non-op working interest position in the oil window of the Eagle Ford 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 Corporate Presentation…
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 nine fiscal months ended…
ACTIVE PORTFOLIO MANAGEMENT Fiscal YTD (1) 2018 2019 Mineral Portfolio Management Minerals Leased Out Net Acres 2,304 1,244 Bonus Payment Received per Acre 679 777 Average Royalty 23.4% 20.0% Total Lease Bonus 1,564,225 966,195…
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 2019 YTD (2) 2019 YTD represents first nine fiscal months…
CASH MARGIN PER MCFE Revenues generated from mineral ownership generate compelling cash margin across various hydrocarbon pricing scenarios Notes: (1) Averages exclude 2019 YTD (2) 2019 YTD represents first nine 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 generated from acres in this category in last 5 years with no additional capital…
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 AUGUST 8, 2019 Calendar Collar Average Collar Average Year Product Volume Mcf/bbl Swap Price Floor Price Ceiling Price 2019 Natural Gas 2,000,000 2.98 2020 Natural Gas 1,260,000 2.81 2019 Crude Oil 40,000 60.00…
FINANCIAL HIGHLIGHTS For the Nine Months Ended June 30, 2019 2018 Working Interest Sales 20,164,713 26,505,701 Royalty Interest Sales 11,049,662 9,850,434 Lease bonus 952,378 1,080,455 Total revenue(1) 50,307,601 33,469,721 Lease…
CONDENSED BALANCE SHEET Targeted debt to TTM Adjusted EBITDA < 2.0x Currently 1.26x as of quarter end June 30, 2019 June 30, 2019 September 30, 2018 Current assets 11,471,961 8,246,176 Net property and equipment 194,708,209…
INVESTMENTS HIGHLIGHTS Focused on perpetual mineral ownership o PHX generates revenue whether we take a Lease Bonus plus a Royalty Interest or participate with a Working Interest o Mineral rights provide a perpetual option to benefit…
Appendix 26 Corporate Presentation August 2019
ACTIVITY SUMMARY BY REGION SCOOP / Bakken / Arkoma STACK Three Forks Woodford Permian Fayetteville Eagle Ford Other Total Q3 2019 Production (Mcfe/d) 6,640 1,621 5,580 849 4,979 3,545 5,559 28,773 % Oil 9.7% 55.2% 0.0% 70.6% 0.0%…
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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