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2Q 2022 Earnings Presentation – PHX Minerals Inc.

PHX Minerals Inc. · Aug 5, 2022 · 33 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 1
    Investor Presentation August 2022
  2. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 2
    Investment Considerations Actively pursue high-quality positions in the Strategy of growth via accretive mineral highly fragmented minerals space acquisitions Minimal incremental G&A required to meaningfully scale Acquisitions…
  3. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 3
    Company Overview Key Statistics Royalty Interest Production Growth Net Leased Royalty Acres1 85,025 Average Net Interest on Producing Royalty Interest Wells 0.63% 1,800,000 1,600,000 3Q22 Net Production (MMcfe/d)1 26.7 1,400,000 3Q22…
  4. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 4
    Focused in SCOOP and Haynesville SCOOP Haynesville - PHX LEASED MINERALS - PHX OWNERSHIP COUNTIES Top Operators of PHX Minerals1 Mineral position in the SCOOP and Haynesville will drive near term growth Source:…
  5. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 5
    Reserves Value Summary PV10 Value (mm) Reserve Category SEC1 Strip2 100 / 6.003 PDP 168.1 148.5 196.2 PUD4 23.5 34.1 41.5 Total Proved Reserves 191.6 182.6 237.7 Probable4,5 220.0 172.3 242.7 Possible5 31.2 25.4 35.4 Total 3P…
  6. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 6
    Royalty Interest Inventory by Basin Undeveloped Locations Gross Sub-region PDP Wells Average NRI1 Wells In Progress1 Average NRI2 Permits1 Average NRI2 PROB3 POSS Contingent SCOOP 1,008 0.40% 46 0.37% 20 0.18% 1,040 369 211…
  7. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 7
    Continued Replenishment of Drilling Inventory Gross WIP Conversions Fiscal Q3 20221 2 3 Net WIP Conversions Fiscal Q3 20221 2 3 The majority of conversions were in SCOOP (39 gross wells) and Haynesville (12 gross…
  8. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 8
    Continued Replenishment of Drilling Inventory Gross WIP Conversions Fiscal 2022 YTD1 2 3 Net WIP Conversions Fiscal 2022 YTD1 2 3 New Wells in Progress are replenishing inventory converted to Proved Developed Producing…
  9. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 9
    Acquisition Summary Q1 2021 through Q3 2022 Acquisitions total over 63 million Acquisitions by Basin by Quarter 20,000,000 Focused on highest quality rock in the SCOOP and Haynesville plays 15,000,000 Targeting a mix of…
  10. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 10
    Acquisition History SCOOP Acquisitions targeting the highest return inventory, controlled by premier operators with solvent balance sheets to ensure continuous development SCOOP Acquisitions Since Q1 2021 NET PROD GROSS DATE…
  11. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 11
    Acquisition History - Haynesville Acquisitions targeting concentrated tracts delivering high NRIs with multiple WIPs for near term growth in cash flow and investor returns Haynesville Acquisitions Since Q1 2021 NET PROD GROSS…
  12. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 12
    PHX SCOOP Position Core NMA2 Prod.1 Net Royalty Acres1 Net Production (MMcfe/d)1 9% 11% Portfolio Contribution 22% 91% 89% 33% 47% 6% 9,738 72% 2.81 20% Producing Leased But Not Producing Open Oil NGL Gas Key…
  13. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 13
    Springboard III Update Highest resource in-place per DSU in the midcontinent, co-developing the Mississippian Sycamore & the Woodford Shale Key operators shifting into development mode and drilling multiple wells per DSU PHX SB III AOI…
  14. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 14
    SCOOP Springboard Plays Springboard III, just like Springboard IV (Core SCOOP), has 3X the hydrocarbons in-place compared to the MERGE Sycamore & Woodford produces super-rich gas (1,350 BTU) with minimal produced water SCOOP…
  15. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 15
    PHX Haynesville Position Core NMA2 Prod.1 Net Royalty Acres1 Net Production (MMcfe/d)1 9% Portfolio 30% Contribution 100% 100% 91% 70% 4,928 7.95 HAYNESVILLE SHALE PLAY Producing Gas Key Statistics1 Top Operators5…
  16. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 16
    North Haynesville Update Operators are drilling 3-5 wells per unit, and a positive indication of near term volumes and cashflows Since 2019, core development areas have been extended as new completion designs have lowered breakevens…
  17. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 17
    Royalty Cash Flow Driving Shareholder Value Oil & Gas Sales and Realized Price Adjusted EBITDA1 20 19.6 7.2 in millions and / Mcfe 7 in millions 18 5.8 16 14.8 6 13.7 5.0 14 12.1 5 4.4 12 10.9 4.1 4.2 4.2 10 4 3.6 8.2 8.4 8.05 7.6…
  18. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 18
    Stable Balance Sheet & Ample Liquidity Total Debt Percentage Drawn on Credit Facility Advanced Rate 45 in millions 100% 94% 93% 90% 40 90% 35.4 35.0 80% 35 80% 32.0 71% 70% 30.0 70% 28.8 28.3 64% 63% 30 27.0 60% 57% 23.5 24.0 25…
  19. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 19
    PHX Long Term Outlook Royalty volume growth underpinned by conversions of high NRI locations primarily in the Haynesville and the SCOOP plays Projected Royalty Volume 12,000 10,000 8,000 Outlook MMcfe 6,000 Actual…
  20. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 20
    PHX Long Term Outlook PHXs growth strategy has the potential to significantly increase its operating cash flow to over 40 million annually by Fiscal Year 2024; representing a 100% increase from the current run rate Majority of…
  21. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 21
    Reconciliation of Non-GAAP Financial Measures Source: Company Filings 22
  22. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 22
    Hedge Position as of August 8, 2022 Hedging Program Reduces Risk, Protects Returns Date Contract Product Volume Contract Length Price Entered Type Trades Entered into since 1/1/22 02/24/22 Natural Gas Swap 20,000 mmbtu/Month April…
  23. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 23
    Why Invest in PHX 1 Strategy of growth via accretive mineral acquisitions 2 Growth underpinned by complete technical evaluation 3 Attractive valuation relative to mineral focused peer group 4 Highly fragmented mineral…
  24. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 24
    Appendix
  25. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 25
    Natural Gas Demand Natural Gas Electrical Generation2 200,000 180,000 US natural gas demand is expected to increase by over 10 Bcf/d by 2025 160,000 Thousand MWh 140,000 Industrial demand has been strong, up roughly 1.5…
  26. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 26
    Natural Gas LNG LNG Export Schedule1 Premium NG Pricing2 Natural Gas Supply Prices Lower 48 Onshore 16 4.00 15 3.75 Golden Pass T3, 0.7 Bcf/d 14 3.50 Golden Pass T2, 0.7 Bcf/d Export Capacity BCF/d 13 Golden Pass T1,…
  27. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 27
    Haynesville Historical and Future Development Haynesville Wells/Year Haynesville Dry Gas Production Historical & Forecast Historical & Forecast 600 18 LA TX 16 500 14 New Wells / Year 400 12 10 Bcf/d 300 8 200 6…
  28. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 28
    Bakken/Three Forks Position Net Royalty Acres1 Net Production (MMcfe/d)1 Core NMA2 Prod.1 4% 4% Portfolio 10% Contribution 25% 96% 96% 3,344 1.08 61% 14% 90% Producing Leased But Not Producing Open Oil NGL Gas Key…
  29. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 29
    Stack Position Net Royalty Acres1 Net Production (MMcfe/d)1 Core NMA2 Prod.1 9% 13% Portfolio 10% Contribution 4% 5% 91% 87% 27% 7,009 3.51 63% 91% Producing Leased But Not Producing Open Oil NGL Gas Key Statistics1 Top…
  30. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 30
    Arkoma Stack Position Net Royalty Acres1 Net Production (MMcfe/d)1 Core NMA2 Prod.1 13% 14% Portfolio 8% Contribution 23% 87% 86% 2% 13,089 3.72 75% 92% Producing Leased But Not Producing Open NGL Gas Key Statistics1…
  31. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 31
    Fayetteville Position Net Royalty Acres1 Net Production (MMcfe/d)1 Core NMA2 Prod.1 9% 14% Portfolio Contribution 27% 100% 91% 86% 9,870 3.86 73% Producing Open Gas Key Statistics1 Top Operators5 Permits on File 0…
  32. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 32
    Working Interest Wellbore Divestment Progress WI Wells Divested by Quarter Remaining WI Wellbores 800 2,500 708 700 2,000 1,897 1,883 1,814 600 1,789 500 1,500 400 1,081 1,078 1,031 300 1,000 200 69 500 100 25 47 2 14 3 0 0 Q1'21…
  33. 2Q 2022 Earnings Presentation – PHX Minerals Inc. – slide 33
    Company Leadership Years with Management Team Title Experience Company CEO for PHX since 2019 CEO and Board Chad Stephens 5 SVP Corporate Development of Range Resources for 20 years until retiring in 2018 Director B.A. in Finance…

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