PANHANDLE OIL AND GAS INC. Announces Closing of Acquisitions in the Core of the SCOOP and Haynesville Plays

Panhandle Oil and Gas Inc. (NYSE: PHX) has finalized the acquisition of two mineral and royalty packages in Grady County, Oklahoma, and Panola and Harrison Counties, Texas, for approximately $5.5 million and 153,375 shares of common stock.

Rhea-AI Summary

Panhandle Oil and Gas Inc. (NYSE: PHX) has finalized the acquisition of two mineral and royalty packages in Grady County, Oklahoma, and Panola and Harrison Counties, Texas, for approximately $5.5 million and 153,375 shares of common stock. This deal allows Panhandle to benefit from cash flow starting June 1, 2020. CEO Chad L. Stephens highlighted the importance of this acquisition in transitioning the company's focus towards minerals and expressed optimism about future market opportunities.

Positive

• Closure of acquisition enhances mineral holdings and cash flow starting June 1, 2020.
• Strategic shift towards mineral focus positions company for growth.
• Acquisition reinforces Panhandle's status as a consolidator in the minerals sector.

Negative

• None.

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OKLAHOMA CITY, Oct. 12, 2020 /PRNewswire/ -- PANHANDLE OIL AND GAS INC., "Panhandle," "PHX" or the "Company," (NYSE: PHX), today announced that it has closed the previously announced purchase of two mineral and royalty packages in Grady County, Okla., and Panola and Harrison Counties, Texas, from Red Stone Resources, LLC (the "Assets") for approximately $5.5 million in cash and 153,375 shares of Panhandle common stock (the "Acquisitions"), which are subject to the customary closing adjustments.  Panhandle is entitled to the cash flow from production attributable to the Acquisitions beginning on and after June 1, 2020. 

Chad L. Stephens, President and CEO, commented "The closing of the Red Stone acquisitions is another important milestone for Panhandle in a challenging market as we continue our transition to a company focused on minerals. As 2020 draws to a close and we start looking toward 2021, I am optimistic about the other opportunities in the market place and look forward to Panhandle continuing to be a consolidator in the mineral space."

Panhandle Oil and Gas Inc. (NYSE: PHX) Oklahoma City-based, Panhandle Oil and Gas Inc. is an oil and natural gas mineral company with a strategy to proactively grow its mineral position in our core areas of focus. Panhandle owns approximately 253,000 net mineral acres principally located in Oklahoma, North Dakota, Texas, New Mexico and Arkansas. Approximately 71% of this mineral count is unleased and undeveloped. Additional information on the Company can be found at www.panhandleoilandgas.com.  

 

View original content:http://www.prnewswire.com/news-releases/panhandle-oil-and-gas-inc-announces-closing-of-acquisitions-in-the-core-of-the-scoop-and-haynesville-plays-301149564.html

SOURCE PANHANDLE OIL AND GAS INC.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was the acquisition amount for Panhandle Oil and Gas Inc.?

The acquisition amount was approximately $5.5 million in cash and 153,375 shares of common stock.

What regions are included in the acquisition by PHX?

The acquisition includes mineral and royalty packages in Grady County, Oklahoma, and Panola and Harrison Counties, Texas.

When does Panhandle Oil and Gas Inc. expect to start receiving cash flow from the acquisition?

Panhandle expects to start receiving cash flow from production attributable to the acquisition beginning June 1, 2020.

What is the strategic importance of the acquisition for PHX?

The acquisition is strategically important as it supports Panhandle's transition towards a mineral-focused company and enhances its cash flow.

What is Panhandle Oil and Gas Inc.'s long-term strategy after this acquisition?

Panhandle aims to continue growing its mineral position and consolidating in the mineral space as opportunities arise.