PHX Minerals Announces Closing of Previously Announced Working Interest Divestiture and Additional Mineral Acquisitions
PHX Minerals Inc. (NYSE: PHX) has completed the divestiture of 210 legacy non-operated working interest wellbores in the Fayetteville Shale for $6,050,000.
Sentiment and the balance of points
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Rhea-AI Summary
PHX Minerals Inc. (NYSE: PHX) has completed the divestiture of 210 legacy non-operated working interest wellbores in the Fayetteville Shale for $6,050,000. This sale reduces the company's asset retirement obligations by approximately $212,000. In a strategic move, PHX also acquired 575 net royalty acres in Louisiana for $6,226,489, redeploying the funds from the divestiture. These transactions aim to enhance the asset base by focusing on higher-margin royalty minerals in active natural gas production areas, potentially increasing cash flows in future quarters.
Positive
- Successful divestiture of 210 legacy wellbores enhances balance sheet by reducing asset retirement obligations by $212,000.
- Acquisition of 575 net royalty acres in Louisiana allows for reinvestment of proceeds from the divestiture, focusing on higher-margin royalty minerals.
- The new acquisitions are located in active drilling areas, potentially increasing future royalty volumes and cash flows.
Negative
- None.
Details
News Market Reaction – PHX
The recorded move for PHX in the trading session of this news was +1.14%.
Data tracked by StockTitan Argus. Session date unavailable.
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FORT WORTH, Texas, Oct. 12, 2022 /PRNewswire/ -- PHX Minerals Inc., (NYSE: PHX), today announced that it has closed on the previously announced sale of all its remaining legacy non-operated working interest wellbores in the Fayetteville Shale play in Arkansas to an undisclosed buyer for a total of
Additionally, PHX completed the acquisition of approximately 575 net royalty acres located primarily in Caddo and DeSoto Parishes, Louisiana, for
Chad Stephens, President and CEO, said, "These transactions are a continuation of our strategy to high grade PHX's asset base by divesting legacy non-operated working interest wellbores and reinvesting the proceeds in higher margin royalty minerals in our core areas of focus.
"Also, we anticipate the core focus areas in which we are acquiring minerals to be the leading basins in U.S. natural gas production growth over the next several years. Reputable, well-capitalized operators are actively developing these areas. As such, we expect royalty volumes to continue to increase from the development of acquired minerals in future quarters, which will drive higher future cash flows."
PHX Minerals Inc. (NYSE: PHX) Fort Worth-based, PHX Minerals Inc. is a natural gas and oil mineral company with a strategy to proactively grow its mineral position in its core areas of focus. PHX owns mineral acreage principally located in Oklahoma, Texas, Louisiana, North Dakota and Arkansas. Additional information on the Company can be found at www.phxmin.com.
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SOURCE PHX MINERALS INC.
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