PHX Minerals Reports $4.4 Million Net Income in Q1 2025, Driven by 47% Sales Increase

PHX Minerals Inc. reported a significant turnaround in its financial performance for the first quarter of 2025, achieving a net income of $4.4 million, or $0.12 per diluted share, compared to a net loss of $183,615, or $(0.01) per diluted share, in the same period last year. This improvement was primarily driven by a 47% increase in natural gas, oil, and NGL sales, which totaled $10.4 million, up from $7.1 million in the prior year. The increase in revenue was attributed to higher prices for natural gas and NGLs, which rose by 83% and 26%, respectively, alongside a modest increase in production volumes.

The company's total assets decreased to $161.1 million as of March 31, 2025, down from $163.9 million at the end of 2024. This decline was largely due to a reduction in non-producing natural gas and oil properties, which fell to $45.5 million from $51.8 million. Current liabilities also increased significantly, rising to $5.5 million from $3.2 million, primarily due to a rise in derivative contracts. The company’s long-term debt decreased to $19.8 million from $29.5 million, reflecting ongoing efforts to manage its financial obligations.

Operationally, PHX Minerals continued to focus on its core strategy of maximizing the value of its mineral and royalty assets while ceasing participation in new working interest positions. The company reported a notable increase in lease bonuses and rental income, which surged by 116% to $328,203, reflecting heightened leasing activity. Additionally, the company successfully divested 165,326 acres for $7.9 million, resulting in a gain of $6.7 million, marking a significant operational achievement compared to the previous year when no significant divestitures occurred.

Looking ahead, PHX Minerals remains cautious about market conditions and the volatility of natural gas and oil prices. The company plans to continue leveraging its existing mineral interests while exploring opportunities for further acquisitions. As of March 31, 2025, the company had $2.5 million in cash and cash equivalents, an increase from $2.2 million at the end of 2024, and a positive working capital of $7.6 million. Management anticipates that cash generated from operations, along with available credit under its $100 million credit facility, will be sufficient to fund ongoing operations and strategic initiatives in the coming quarters.