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Investor Presentation March 2025 NYSE: PHX
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2 This presentation is for informational purposes only. This presentation does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any security of PHX Minerals Inc. (“PHX” or the “Company”). No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or an exemption therefrom. Cautionary Statement Regarding Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included in this presentation that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward looking statements. The words “anticipates”, “plans”, “estimates”, “believes”, “expects”, “intends”, “will”, “should”, “may”, “goal”, “forecast”, “target”, and similar expressions may be used to identify forward-looking statements. Forward-looking statements may include, but are not limited to, statements regarding estimates of quantities of natural gas, oil and NGL reserves and their values and forecasts of financial and performance metrics. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, the Company can give no assurance such statements will prove to be correct. Such forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Particular risks and uncertainties that could cause our results to differ materially from those expected by the Company’s management include, but are not limited to: our ability to execute our business strategies; the volatility of realized natural gas and oil prices; the level of production on our properties; estimates of quantities of natural gas, oil and NGL reserves and their values; general economic or industry conditions; legislation or regulatory requirements; conditions of the securities markets; our ability to raise capital; changes in accounting principles, policies or guidelines; financial or political instability; acts of war or terrorism; title defects in the properties in which we invest; and other economic, competitive, governmental, regulatory or technical factors affecting our properties, operations or prices. Information concerning these risks and other factors can be found in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, available on the Company's website or the SEC’s website at www.sec.gov. Readers are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this presentation are made as of the date hereof, and the Company does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise. Use of Non-GAAP Financial Information This presentation includes certain non-GAAP financial measures. Adjusted EBITDA is a supplemental non-GAAP measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. PHX defines “Adjusted EBITDA” as earnings before interest, taxes, depreciation and amortization, or EBITDA, excluding non-cash gains (losses) on derivatives and gains (losses) on asset sales, impairment expense, and restricted stock and deferred directors’ expense, and including cash receipts from (payments on) off-market derivatives. PHX references Adjusted EBITDA in this presentation because it recognizes that certain investors consider Adjusted EBITDA a useful means of measuring our ability to meet our debt service obligations and evaluating our financial performance. Adjusted EBITDA has limitations and should not be considered in isolation or as a substitute for net income, operating income, cash flow from operations or other consolidated income or cash flow data prepared in accordance with GAAP. Because not all companies use identical calculations, the Company’s calculations of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Oil and Gas Reserves The SEC generally permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are reserve estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions, and certain probable and possible reserves that meet the SEC’s definitions for such terms. The Company discloses only estimated proved reserves in its filings with the SEC. The Company’s estimated proved reserves as of December 31, 2024, referenced in this presentation were prepared by Cawley, Gillespie and Associates, Inc, an independent engineering firm, and comply with definitions promulgated by the SEC. Additional information on the Company’s estimated proved reserves is contained in the Company’s filings with the SEC, including its Annual Report on Form 10-K. Cautionary Statement Regarding Forward-Looking Statements
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Source: Company information and Enverus 1 Based on $4.00 per share as of 12/31/2024 and 37.9 million shares outstanding on a fully diluted basis as of 12/31/2024 2 Market Cap plus debt of $29.5 million minus cash on hand of $2.2 million as of 12/31/2024 3 Calculated as working capital (current assets less current liabilities excluding current derivatives) plus availability on the borrowing base. See Non-GAAP reconciliation in Appendix 4 Based on $0.16 annualized Dividend per share 5 Total Debt / TTM Adjusted EBITDA; See Non-GAAP Reconciliation in Appendix 6 See Non-GAAP reconciliation in Appendix 7 3P Reserves per 12/31/2024 CGA at 12/31/2024 SEC price deck of $73.48 per bbl of oil, $20.97 per bbl of NGL, $2.05 per mcf of gas (proved volume weighted average price) 8 As of 12/31/2024; average royalty rate of ~16%; PHX also owns 168,966 unleased net mineral acres. This does not reflect the divestiture of 165,326 non-producing acres for ~$8 million on 1/31/2025 or the acquisition of 50 net royalty acres for ~$0.6 million on 1/2/2025 9 At mid-point of production outlook (see page 10) 10 Since 12/31/2024, the Company has paid down $9.8 million of debt, bringing the debt balance to $19.8 million as of Mar. 5, 2025. Company Snapshot Key Statistics Market Cap1 $151.7 Enterprise Value2,10 $179.0 Liquidity3,10 $27.1 Dividend Yield4 4.0% Leverage5,10 1.38x LTM Adjusted EBITDA6 $21.3 LTM Discretionary Cash Flow Yield6 ~12% LTM ROCE6 ~8% Percent of 3P Reserves – Natural Gas7 ~70% Net Leased Royalty Acres8 89,135 Sustainable Organic Royalty Production Growth MMCFE 3 $ in millions
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Strategy Execution 4 Goals Set in early 2020 Achievements Through Dec. 31, 2024 High Grade Asset Base • Grow royalty production • Increase inventory of undeveloped locations • Improve operating margins • Exit working interest assets • Royalty production volumes up ~278% • 2P royalty reserves up ~130% • Completed ~$139 million1 in mineral acquisitions • Built a 10+ year inventory of mineral locations with line-of-sight to development and conversion to cash flow • Increased discretionary cash flow margin from 36% to 56% • Divested ownership in 1,380 working interest wellbores Build a strong and sustainable balance sheet • Maintained leverage ratio between 1.0x and 1.5x compared to over 2.5x in 2020 • Entered into a new and improved commercial bank relationship Become a consolidator in the mineral space • Allocate capital to generate the best possible returns to shareholders • Mineral acquisitions completed: 911 • Focus on smaller acquisition in targeted areas: ~$1.5 million average1 deal size generates higher returns with less competition Generate return on capital employed (ROCE) • Generated annual ROCE2 between 7% and 15% since 2021; up from ~0% in 2019 and 2020 • Return profile driven by royalty volume growth associated with new wells converting from undeveloped locations • Improve balance sheet designed to withstand commodity price volatility 1 This does not reflect PHX’s most recent acquisition of 50 net royalty acres for ~$0.6 million on 1/2/2025 2 See Non-GAAP reconciliation in Appendix
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Focused in SCOOP and Haynesville 5 Key Operators of PHX Minerals Source: Company info and Enverus 1 Rig data from Enverus as of 12/31/2024 • PHX targets areas in key plays with significant active operator development activity • Provides line of sight to conversion of undeveloped locations to cash flow SCOOP 19 Haynesville 27 Gross Active Rigs by Play1
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Royalty Cash Flow Driving Shareholder Value 6 Royalty Production and Realized Natural Gas Price Adjusted EBITDA1 Discretionary Cash Flow Margin2 Return on Capital Employed3 $ in millions Source: Company filings ; All quarters are in Calendar Year 1 Calculated as net income excluding non-cash gain/loss on derivatives, income tax expense, interest expense, DD&A, non-cash impairments, non-cash G&A, gain(losses) on asset sales and cash receipts from/payments on off-market derivatives; See Non-GAAP reconciliation in Appendix 2 Calculated as Adjusted EBITDA minus interest expense divided by total oil and gas sales 3 See Non-GAAP reconciliation in Appendix $2.8 $1.3 $2.2 $2.9 $3.6 $5.0 $4.2 $4.4 $5.8 $7.2 $8.4 $5.3 $7.7 $4.1 $6.3 $4.5 $4.6 $6.4 $4.9 $5.4 $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $0 $2 $4 $6 $8 $10 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Adjusted EBITDA Realized Gas Price ($/MCFE) 34%31% 37% 41%40% 44% 33%31% 38%35% 36% 32% 60% 49% 65% 44% 55% 59% 54% 54% $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 0% 10% 20% 30% 40% 50% 60% 70% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Discretionary Cash Flow Margin Realized Gas Price ($/MCFE) 1% -1% 9% 15% 9% 8% $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2019 2020 2021 2022 2023 2024 ROCE Realized Gas Price
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Stable Balance Sheet & Ample Liquidity 7 Net Debt 1 Percentage Drawn on Credit Facility Advance Rate Debt / Adjusted EBITDA2 (TTM) Liquidity3 $ in millions $ in millions Source: Company filings ; All quarters are in Calendar Year 1 Total debt less cash 2 Total Debt / Adjusted EBITDA; See Non-GAAP reconciliation in Appendix 3 Calculated as working capital (current assets less current liabilities excluding current derivatives) plus availability on the borrowing base; See Non-GAAP reconciliation in Appendix 4 Since 12/31/2024, the Company has paid down $9.8 million of debt, bringing the debt balance to $19.8 million as of Mar. 5, 2025. $31.5 $28.0 $18.1 $25.8 $22.2 $17.0 $15.1 $18.4 $22.3 $23.8 $24.9 $31.2 $24.8 $22.5 $29.5 $31.9 $29.1 $26.5 $25.1 $27.3 $0 $5 $10 $15 $20 $25 $30 $35 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 71% 94%93%90% 80% 70% 64% 63% 48% 57%57% 67% 52%53% 62%66%62% 58%56% 59% 0% 20% 40% 60% 80% 100% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2.0 2.4 2.7 2.9 2.3 1.5 1.1 1.2 1.2 1.3 1.1 1.2 0.9 0.9 1.3 1.5 1.6 1.3 1.4 1.4 0.0 0.5 1.0 1.5 2.0 2.5 3.0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 $5.8 $2.1 $13.7 $8.0 $7.0 $8.3 $9.2 $7.6 $9.8 $16.2 $14.5 $14.6 $7.8 $6.3 $5.2 $5.0 $4.6 $6.1 $4.9 $6.6 $13.0 $2.0 $2.3 $3.0 $5.9 $8.6 $10.0 $12.0 $26.0 $21.7 $21.7 $16.7 $24.0 $21.3 $19.3 $17.3 $19.3 $21.3 $22.3 $20.5 $0 $5 $10 $15 $20 $25 $30 $35 $40 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Working Capital Borrowing Availabilty
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3,307 4,658 6,613 8,123 8,760 0 2,000 4,000 6,000 8,000 10,000 YE 2020 YE 2021 YE 2022 YE 2023 YE 2024 62,555 98,222 140,705 157,340 143,973 0 40,000 80,000 120,000 160,000 200,000 2020 2021 2022 2023 2024 PDP WIP Probable Royalty Reserve Growth 8 Sustainable royalty reserve and production growth through conversion of existing mineral location inventory Royalty Reserves Royalty Production MMCFEMMCFE
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Yearly Conversions To Producing Wells 9 Strong drilling activity on our mineral assets provides sustainable annual royalty production growth Gross Conversions Net Conversions 207 175 313 314 255 2020 2021 2022 2023 2024 0.59 0.61 1.15 1.03 1.11 2020 2021 2022 2023 2024
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147166138128157174179184191164145127 3047 3 10 98 111171412 8 107 24 39 75 102 9494 9593868676 64 65 52 18 33 225 278 241230 263278272284279 236220 186 72 119 Q4'24Q3'24Q2'24Q1'24Q4'23Q3'23Q2'23Q1'23Q4'22Q3'22Q2'22Q1'22Q4'21Q3'21 Wells Waiting On Completion Wells Being Drilled Permits 0.590.610.56 0.770.830.79 0.480.62 0.800.830.75 0.55 0.18 0.36 0.010.050.03 0.070.020.02 0.03 0.02 0.030.030.03 0.05 0.07 0.09 0.310.270.34 0.25 0.44 0.28 0.40.24 0.220.210.21 0.23 0.06 0.08 0.910.930.93 1.09 1.29 1.09 0.910.89 1.051.071.00 0.83 0.31 0.53 Q4'24Q3'24Q2'24Q1'24Q4'23Q3'23Q2'23Q1'23Q4'22Q3'22Q2'22Q1'22Q4'21Q3'21 Wells Waiting On Completion Wells Being Drilled Permits Quarterly Near-Term Drilling Inventory 10 Continuous conversion of undrilled location inventory will drive future royalty volume growth Gross Inventory Net Inventory
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57% 13% 14% 5% 9% 2% SCOOP Haynesville STACK Bakken Arkoma Stack Fayetteville Other 4%2% 23% 36% 35% WIP PERMIT Technical PUD PROB POSS Royalty Interest Inventory by Basin 11 Sub-region Gross PDP Wells1,6 Net PDP Wells1,3,6 Undeveloped Locations1 Gross Wells In Progress2 Net Wells in Progress3 Gross Permits Net Permits3 Gross Technical PUDs4 Net Technical PUDs3,4,5 Gross PROB Net PROB3,5 Gross POSS Net POSS 3,5 SCOOP 1,255 4.985 58 0.194 28 0.068 380 1.011 719 1.981 1,146 4.021 Haynesville 712 4.016 63 0.320 23 0.077 160 0.487 273 1.031 34 0.075 STACK 411 1.752 13 0.022 9 0.083 197 0.723 242 0.747 126 0.402 Bakken 634 1.858 5 0.006 8 0.040 71 0.143 136 0.478 3 0.045 Arkoma Stack 504 4.523 3 0.015 4 0.030 112 0.477 96 0.235 135 0.352 Fayetteville 1,070 6.438 0 0.000 0 0.000 0 0.00 0.00 0.00 0.00 0.00 Other 1,983 15.988 8 0.042 3 0.014 32 0.00 30 0.180 16 0.00 Total 6,569 39.560 150 0.599 75 0.312 952 2.976 1,496 4.652 1,460 4.964 Gross Undeveloped Locations 4,133 4,133 Note: 1 As of 12/31/2024 2 Wells in Progress includes wells currently being drilled and wells waiting on completion 3 Net interest on wells are internal estimates and subject to confirmation from operator 4 Technical PUDs, reviewed and approved by Cawley, Gillespie and Associates, Inc., share all technical merits of PUDs but development timing is uncertain. PHX Technical PUDs are most likely PUDs in their respective operator’s reserve report. 5 Technical PUDs, PROB, and POSS net wells assume 10,000 ft. laterals 6 This does not reflect PHX’s most recent acquisition of 50 net royalty acres for ~$0.6 million on 1/2/2025 2 Continuous conversion of undrilled location inventory will drive future royalty volume growth
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Analyst Coverage 12 Firm Analyst Contact Johnson Rice Charles Meade cmeade@jrco.com Alliance Global Partners Jeff Grampp jgrampp@allianceg.com Texas Capital Derrick Whitfield derrick.whitfield@texascapital.com
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13 Appendix
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Company Leadership 14 Management Team Title Years with Company Experience Chad Stephens President, CEO and Board Director 6 • CEO for PHX since 2019 • SVP –Corporate Development of Range Resources for 30 years until retiring in 2018 • B.A. in Finance and Land Management from University of Texas Ralph D’Amico Executive Vice President, CFO 6 • CFO for PHX since 2020 • 20 years of investment banking experience • Bachelor’s in Finance from University of Maryland; MBA from George Washington University Chad True S.V.P. of Accounting 5 • >17 years of accounting experience • Audit and accounting positions with Grant Thornton LP, Tiptop Oil & Gas and Wexford Capital LP • B.S. and Masters in Accounting from Oklahoma State University Danielle Mezo V.P. of Engineering 5 • >15 years reservoir engineer experience • Reservoir engineer, acquisitions, and corporate planning positions at SandRidge Energy • B.S. in Petroleum Engineering from University of Oklahoma and licensed Professional Engineer Kenna Clapp V.P. of Land 5 • >15 years of land experience • Various land positions with Chesapeake Energy in Haynesville, Eagleford, Mid-Continent and Barnett shales • B.S. in Accounting and Finance from Oklahoma State University; JD from Oklahoma City University Taylor McClain V.P. of Geology 1 • >10 years of experience across multiple basins including Appalachia, Haynesville, Permian and Mid -Continent • Various exploration and production Geologist positions with Range Resources, UBS and Redfield Energy • B.S. in Geoscience from Pennsylvania State University and a Masters in Geology from West Virginia University Board of Directors Title Years with Company Experience Mark T. Behrman Chairman 8 • CEO of LSB Industries, Inc. since 2018 and Chairman of LSB Industries, Inc. since August of 2024 • Managing Director and Head of Investment Banking of the Industrial and Energy Practices of Sterne Agee from 2007 to 2014 • MBA in Finance from Hofstra University and B.S. in Accounting, Minor in Finance from Binghamton University Glen A. Brown Director 4 • SVP – Exploration for Continental Resources from 2015 through 2017 • Exploration manager for EOG Resources Midcontinent from 1991 through 2003 • Bachelor’s in Geology from State University of New York; Master’s in Geology from New Mexico State University in Las Cruces Lee M. Canaan Director 9 • Founder and portfolio manager of Braeburn Capital Partners, LLC • Board member for EQT Corporation and Aethon Energy, LLC • Bachelor’s in Geological Sciences from USC, Master’s in Geophysics from UT -Austin, and MBA in Finance from Wharton Steven L. Packebush Director 3 • Founder and partner in Elevar Partners, LLC • President of Koch Ag & Energy Solutions upon his retirement in 2018 after 30 years with the company • Bachelor’s in agricultural economics from Kansas State John H. Pinkerton Director 4 • CEO of Range Resources Corporation from 1992 through 2012 • Executive Chairman and Chairman of Board of Directors for Encino Energy from 2017 through 2022 • B.A. in Business Administration from Texas Christian University; Master’s from the University of Texas at Arlington
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Scoop Haynesville Bakken Stack Arkoma Fayetteville Other Total Production Mix Net Production (MMcfe/d)1,3 4.16 14.19 1.20 2.97 1.08 0.88 2.47 26.96 Leased Net Royalty Acres2 9,615 8,979 4,026 6,691 9,839 8,394 41,591 89,135 Permits on File1 28 23 8 9 4 - 3 75 Rigs Running on PHX Acreage 4 6 4 2 0 - - 1 13 Rigs Running Within 2.5 miles of PHX Acreage 4 18 10 16 4 - - 12 60 Key Operators 1 As of 12/31/2024 2 As of 12/31/2024; average royalty rate of ~16%; PHX also owns 168,966 unleased net mineral acres. This does not reflect the divestiture of 165,326 non-producing acres for ~$8 million on 1/31/2025 or the acquisition of 50 net royalty acres for ~$0.6 million on 1/2/2025 3 Includes both royalty and working interest production 4 Rig data from Enverus as of 12/31/2024 Portfolio Overview by Basin 15 29% 8% 29% 63% 5% 95% 35% 15% 50% 100% 54% 21% 25% 100% 11% 8% 81% 21% 15%64%
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TRINITY | BYRD 23-26-35 | 3 WELL AVG 1st Prod 3/2024 PHX NRI 0.410% LL 10,450’ IP24hr 18.2 MMCFPD NRM PROP 4,200 #/FT IP30 12.5 MMCFPD CHESAPEAKE | ARK 9&16&21-15-16HC 001 1st Prod 1/2024 PHX NRI 0.563% LL 12,500’ IP24hr 30.7 MMCFPD NRM PROP 3,900 #/FT IP30 25.9 MMCFPD Texas / Louisiana Haynesville Update 16 Notable Well Results5 CHESAPEAKE | L 14-23-26-35 HC 001 1st Prod 3/2024 PHX NRI 0.416% LL 10,450’ IP24hr 39.5 MMCFPD NRM PROP 4,200 #/FT IP30 32.2 MMCFPD AETHON | BURNS FOREST / MOJO MINERALS DSU | 5 WELL AVG 1st Prod 1/2024 PHX NRI 4.671% LL 9,800’ IP24hr 21.8 MMCFPD NRM PROP 4,700 #/FT IP30 11.7 MMCFPD Source: Company info and Enverus 1 As of 12/31/2024 2 Wells in Progress includes wells currently being drilled and wells waiting on completion 3 Active natural gas and oil horizontal permits filed 4 Rig data from Enverus as of 12/31/2024 5 NRIs are internal estimates and are subject to confirmation from operator • 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 • Key Operators: Aethon, Trinity, Chesapeake, Silverhill, Blue Dome and Paloma • PHX TX / LA AOI Haynesville Ownership1: 7,874 NRA (total PHX Haynesville ownership 8,979 NRA) oGross Wells In Progress on PHX1,2: 55 (total PHX Haynesville gross active WIPs 63) oGross Active Permits on PHX1,3: 23 (total PHX Haynesville gross active permits 23) oTotal Active Rigs in TX / LA AOI4: 21 1 2 3 4 1 2 4 3
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AETHON | ATTOYAC RIVER GAS UNIT | 4 WELL AVG 1st Prod 10/2023 PHX NRI 0.286% LL 6,400’ IP24hr 21.1 MMCFPD NRM PROP 4,500 #/FT IP30 12.5 MMCFPD AETHON | ATTOYAC RIVER - SCOGGINS GAS UNIT | 3 WELL AVG 1st Prod 10/2023 PHX NRI 0.184% LL 8,600’ IP24hr 22.8 MMCFPD NRM PROP 4,500 #/FT IP30 15.3 MMCFPD AETHON | CLARK – ARMSTRONG UNIT | 5 WELL AVG 1st Prod 5/2024 PHX NRI 0.138% LL 10,900’ IP24hr 16.8 MMCFPD NRM PROP 4,400 #/FT IP30 11.6 MMCFPD AETHON | SILVER HAMMER / PATZAKIS | 4 WELL AVG 1st Prod 6/2023 PHX NRI 0.490% LL 8,200’ IP24hr 21.8 MMCFPD NRM PROP 4,800 #/FT IP30 15.6 MMCFPD South Texas Haynesville Update 17 Notable Well Results5 Source: Company info and Enverus 1 As of 12/31/2024 2 Wells in Progress includes wells currently being drilled and wells waiting on completion 3 Active natural gas and oil horizontal permits filed 4 Rig data from Enverus as of 12/31/2024 5 NRIs are internal estimates and are subject to confirmation from operator • 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 • Key Operator is Aethon who has been the most active in the Shelby Trough • PHX South Texas Haynesville Ownership1: 1,105 NRA (total PHX Haynesville ownership 8,979 NRA) oGross Wells In Progress on PHX1,2: 8 (total PHX Haynesville gross active WIPs 63) oGross Active Permits on PHX1,3: 0 (total PHX Haynesville gross active permits 23) oTotal Active Rigs in South Texas AOI4: 5 1 2 3 4 1 2 3 4
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Springboard III Update 18 • Highest resource in-place per DSU in the midcontinent, co-developing the Mississippian Sycamore & Woodford Shale • Operators starting to infill existing DSUs; Early results suggest very little to no Parent-Child degradation • PHX Springboard III Ownership1,6: 4,129 NRA oGross Wells In Progress on PHX1,2: 23 oGross Active Permits on PHX1,3: 6 oGross Active Rigs in Springboard III4: 4 Notable Well Results5 Source: Company info and Enverus 1 As of 12/31/2024 2 Wells in Progress includes wells currently being drilled and wells waiting on completion 3 Active natural gas and oil horizontal permits filed 4 Rig data from Enverus as of 12/31/2024 5 NRIs are internal estimates and are subject to confirmation from operator 6 This does not reflect PHX’s most recent acquisition of 50 net royalty acres for ~$0.6 million on 1/2/2025 CONTINENTAL | COURBET 7-22-9XHW | WOODFORD 1st Prod 03/2023 PHX NRI 0.363% 10,700’ IP30 2,340 BOEPD NRM PROP 2,500 #/FT % OIL 52% CONTINENTAL | SUNDANCE KID 3-23-26-35XHM | SYCAMORE 1st Prod 03/2024 PHX NRI 0.418% LL 12,400’ IP30 2,150 BOEPD NRM PROP 2’500 #/FT % OIL 79% CONTINENTAL | COURBET 16-15-9XHM | SYCAMORE 1st Prod 03/2023 PHX NRI 0.771% LL 11,200’ IP30 3,230 BOEPD NRM PROP 2,500 #/FT % OIL 78% CONTINENTAL | HONDO 3-22-15XHM | SYCAMORE 1st Prod 02/2024 PHX NRI 2.584% LL 9,900’ IP30 3,400 BOEPD NRM PROP 2,500 #/FT % OIL 87% 1 2 3 4 1 2 3 4
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STACK MERGE SCOOP MERAMEC OSAGE/SYCAMORE WOODFORD SHALE STACK | MERGE | SCOOP 19 • The SCOOP is the premier play in Oklahoma with the highest resource in-place and most horizontal objectives • The transition between the SCOOP and STACK is the MERGE where the thickness prevents stacked development • The primary target in the STACK is the Meramec • All 3 regions are sourced by the Woodford and feature >1,350 btu gas and minimal produced water 1 PHX internally plans all undrilled inventory on a section-by-section basis, the above is a representation of the regional estimate of wells per section, however locally some areas will differ MERGE SCOOP STACK A A’ WOODFORD SHALE OSAGE MERAMEC WOODFORD SHALE SYCAMORE MERAMEC STACK MERGE SCOOP A A’ BOOKED LOCATION UNBOOKED LOCATION
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Robust Acquisition Process 20 • PHX believes that being the aggregator of choice in our core areas is a key component of our strategy – Royalties, just like any other hydrocarbon asset class, are naturally depleting assets and reinvestment is required to maintain and grow cash flows over time – We target minerals in our core areas (SCOOP and Haynesville) with full analysis of geology and established type curves in order to minimize execution risk – Typical profile of acquisitions includes an already producing component as well as royalties that are either in the process of being developed (WIPs) or will be developed over time (locations) by reputable and creditworthy operators to minimize timing risk – Focused on active operators in order to minimize development timing risk – Our acquisition program targets returns well in excess of our cost of capital (see ROCE) to drive increasing shareholder value • IRR • Payback • MOIC • Commodity Pricing • Geology • Type Curves • Title Review • Takeaway Capacity • Basin Differentials • Development Timing Inputs Requirements PHX’s A&D Methodology
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Acquisition Summary 21 Acquisitions by Basin by Year (in thousands) • Focused on highest quality rock in the SCOOP and Haynesville plays • Targeting a mix of production, near term development opportunities via wells in progress and additional upside potential under high quality operators • $35.6M in acquisitions in SCOOP and $94.0M in Haynesville since Q1 of 2020 Positioned For Growth Through Acquisitions • Total domestic US mineral market estimated at ~$0.5 - 1 trillion(2) Highly fragmented Predominantly owned by private individuals PHX well positioned to be one of the premier consolidators in our core areas Focus on smaller deals increases opportunity set and potential returns Total Public Company Enterprise Value(3): 3% Market Opportunity Midpoint (1) : 97% 1 As of 12/31/2024 2 Midpoint of market size estimate range. Based on production data from EIA and spot price as of 03/31/2021. Assumes 20% of royalties are on Federal lands and there is an average royalty burden of 18.75%. Assumes a 10x multiple on cash flows to derive total market size. Excludes NGL value and overriding royalty interests 3 Enterprise values of PHX, DMCP, KRP, BSM, STR and VNOM as of 03/31/2023 4 This does not reflect PHX’s most recent acquisition of 50 net royalty acres for ~$0.6 million on 1/2/2025 $17,165 $37,345 $46,730 $30,341 $7,781 $0 $10,000 $20,000 $30,000 $40,000 $50,000 2020 2021 2022 2023 2024 HSVL SCOOP STACK/SCOOP 4
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Acquisition History 22 All acreage currently owned in the Haynesville and predominately all acreage currently owned in Springboard III area of interest was acquired under current management team’s guidance Source: Company information and Enverus; Map of active rigs as of 12/31/2024 1 As of 12/31/2024 1 1
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Natural Gas – Continued Demand Growth 23 Natural Gas Electrical Generation1 Monthly Electrical Generation by Fuel Type1 Natural Gas Consumption1 1 Source: EIA • Natural gas demand from power generation continues to increase and dominate the power stack; increase in solar and wind are coming at the expense of coal • 20 additional gas fired power plants with total capacity of 7.7 GW expected to come online in 2024 – 2025 • LNG export capacity expected to increase as projects under construction come online in second half of 2024 and in 2025
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Natural Gas – Surging LNG Demand 24 Forecasted U.S. Export Annual Volume Growth1 Large Scale Approved Liquefaction Facilities 1 • Current LNG export capacity is fully committed • North America liquefied natural gas capacity is on track to more than double between 2024 and 2028 (US 9.7 Bcf/d, Canada 2.5 Bcf/d and Mexico 0.8 Bcf/d) • US exported more LNG in 2023 than any other country; increasing exports 12% compared to 2022 Source: EIA. 1 Capacity based on baseload nameplate capacity 2 Expected online in 2H 2025 – 1H 2026 3 Expected online by end of 2024 4 Expected online in 2026 5 Expected online 2027 6 Expected online 2027 / 2028 Project Name Bcf/d Project Name Bcf/d Operational Approved Sabine Pass Trains 1-6 3.6 Cameron LNG Train 4 0.9 Cove Point 0.7 Lake Charles LNG 2.2 Elba Island Trains 0.3 Driftwood LNG 3.6 Corpus Christi Trains 1- 3 1.8 Freeport LNG Train 4 0.7 Cameron Trains 1 - 3 1.8 Texas LNG 0.6 Freeport Trains 1 - 3 2.0 Rio Grande LNG 1.4 Calcasieu Pass Trains 1 - 9 1.3 Gulf LNG 1.4 Total Operational 11.4 Delfin FLNG 1.6 Alaska LNG 2.6 Under Construction Total Approved 14.9 Golden Pass Trains 1 - 3 2.0 (2) Plaquemines LNG Phase 1 1.3 (3) Plaquemines LNG Phase 2 1.3 (4) Corpus Christi Liquefaction Stage III 1.3 (3) Port Arthur Phase 1 1.6 (5) Rio Grande LNG Phase 1 2.2 (6) Total Operational or in Execution 21.1
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Current Hedge Position 25 Mix of collars and swaps designed to provide upside exposure while protecting downside risk Note: Volumes hedged through 12/31/2024 Gas hedge prices are in $/Mcf and Oil hedge prices are in $/bbl Total Gas Protection Volume Price Volume Floor Ceiling Volume 1Q'25 330,000 3.86$ 640,000 3.27$ 4.83$ 970,000 2Q'25 735,000 3.14$ 255,000 3.00$ 4.19$ 990,000 3Q'25 785,000 3.15$ 165,000 3.00$ 3.75$ 950,000 4Q'25 350,000 3.32$ 480,000 3.50$ 4.62$ 830,000 2025 2,200,000 3.28$ 1,540,000 3.27$ 4.54$ 3,740,000 1Q'26 65,000 4.21$ 720,000 3.50$ 4.62$ 785,000 2Q'26 150,000 3.10$ 225,000 3.00$ 3.60$ 375,000 3Q'26 - -$ 300,000 3.00$ 3.60$ 300,000 2026 215,000 3.44$ 1,245,000 3.29$ 4.19$ 1,460,000 Total Oil Protection Volume Price Volume Floor Ceiling Volume 4Q'24 5,100 68.42$ 500 67.00$ 77.00$ 5,600 2024 5,100 68.42$ 500 67.00$ 77.00$ 5,600 1Q'25 16,800 68.94$ - -$ -$ 16,800 2Q'25 15,750 69.94$ - -$ -$ 15,750 3Q'25 13,500 69.63$ - -$ -$ 13,500 4Q'25 11,750 69.24$ - -$ -$ 11,750 2025 57,800 69.44$ - -$ -$ 57,800 1Q'26 9,000 69.77$ - -$ -$ 9,000 2Q'26 6,000 67.30$ - -$ -$ 6,000 2026 15,000 68.78$ - -$ -$ 15,000 Gas Swaps Gas Collars Oil Swaps Oil Collars
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Reconciliation of Non-GAAP Financial Measures 26 Source: Company Filings Mar.31, 2020 Jun.30, 2020 Sept.30, 2020 Dec. 31, 2020 Mar.31, 2021 Jun.30, 2021 Sept.30, 2021 Dec. 31, 2021 Mar.31, 2022 Jun.30, 2022 Sept.30, 2022 Dec. 31, 2022 Mar.31, 2023 Jun. 30, 2023 Sept. 30, 2023 Dec. 31, 2023 Mar. 31, 2024 Jun. 30, 2024 Sept. 30, 2024 Dec. 31, 2024 Net Income ($20.5) ($3.6) ($1.8) ($0.6) ($0.5) ($1.4) ($3.8) $6.7 ($4.0) $8.6 $9.2 $3.3 $9.6 ($0.0) $1.9 $2.5 ($0.2) $1.3 $1.1 $0.1 (+) Non-Cash (Gains) Losses on Derivatives (3.4) 2.5 2.4 0.9 2.1 4.5 (3.1) (4.6) 11.8 (3.3) (1.6) (6.3) (3.2) 0.9 0.9 (2.9) 1.0 1.6 (0.2) 1.5 (+) Income Tax Expense (7.0) (0.9) (0.7) (0.1) (0.2) (0.8) 0.5 0.8 0.0 1.0 2.4 1.0 3.1 (0.2) 0.6 1.2 0.0 0.4 0.5 (0.0) (+) Interest Expense 0.3 0.2 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.3 0.5 0.6 0.6 0.5 0.6 0.7 0.7 0.7 0.6 0.6 (+) DD&A 3.4 2.5 2.5 2.3 1.8 2.1 1.6 1.6 2.1 2.0 1.6 1.8 1.9 2.2 2.0 2.4 2.4 2.3 2.4 2.6 (+) Impairment 29.5 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 (+) Cash Receipts from/Payments on Off-Market Derivatives 0.0 0.0 0.0 0.0 0.0 0.0 8.8 (2.7) (2.5) (1.3) (1.1) (0.9) (0.4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (+) Restricted Stock and Deferred Director's Exp 0.4 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.5 0.6 1.0 0.6 0.6 0.7 0.5 0.6 0.7 0.7 0.5 0.6 (-) Gains (Losses) on Asset Sales (0.0) (0.0) 0.7 0.0 0.0 0.0 0.2 (2.1) 2.3 0.7 3.6 0.9 4.4 0.0 0.2 0.1 0.1 0.4 0.0 0.0 Adjusted EBITDA $2.8 $1.3 $2.2 $2.9 $3.6 $5.0 $4.2 $4.4 $5.8 $7.2 $8.4 $5.3 $7.7 $4.1 $6.3 $4.5 $4.6 $6.4 $4.9 $5.4 (-) Interest Expense 0.3 0.2 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.3 0.5 0.6 0.6 0.5 0.6 0.7 0.7 0.7 0.6 0.6 Discretionary Cash Flow $2.4 $1.1 $1.9 $2.6 $3.3 $4.8 $4.0 $4.2 $5.6 $6.9 $7.9 $4.7 $7.1 $3.6 $5.8 $3.8 $3.9 $5.8 $4.3 $4.8 Discretionary Cash Flow Margin 34% 31% 37% 41% 40% 44% 33% 31% 38% 35% 36% 32% 60% 49% 65% 44% 55% 59% 54% 54% Adjusted EBITDA 2.8 1.3 2.2 2.9 3.6 5.0 4.2 4.4 5.8 7.2 8.4 5.3 7.7 4.1 6.3 4.5 4.6 6.4 4.9 5.4 (-) DD&A 3.4 2.5 2.5 2.3 1.8 2.1 1.6 1.6 2.1 2.0 1.6 1.8 1.9 2.2 2.0 2.4 2.4 2.3 2.4 2.6 EBIT ($0.6) ($1.1) ($0.3) $0.7 $1.8 $2.9 $2.7 $2.8 $3.7 $5.2 $6.9 $3.5 $5.9 $1.9 $4.3 $2.1 $2.3 $4.2 $2.5 $2.8 Annualized EBIT ($2.4) ($4.5) ($1.3) $2.6 $7.2 $11.5 $10.8 $11.3 $14.8 $20.8 $27.5 $14.0 $23.4 $7.5 $17.2 $8.2 $9.0 $12.8 $11.9 $11.7 Starting Debt 35.0 32.0 30.0 28.8 27.0 23.5 19.9 17.5 20.0 24.0 28.3 28.3 33.3 26.0 23.8 30.8 32.8 30.8 28.8 27.8 Ending Debt 32.0 30.0 28.8 27.0 23.5 19.9 17.5 20.0 24.0 28.3 28.3 33.3 26.0 23.8 30.8 32.8 30.8 28.8 27.8 29.5 Average Debt $33.5 $31.0 $29.4 $27.9 $25.3 $21.7 $18.7 $18.8 $22.0 $26.2 $28.3 $30.8 $29.7 $24.9 $27.3 $31.8 $31.8 $29.8 $28.3 $28.6 Starting Shareholders Equity 80.1 60.5 56.5 63.0 62.3 61.7 75.3 78.7 88.3 84.7 98.0 107.8 110.1 120.2 120.1 121.7 123.2 122.8 123.5 123.6 Ending Shareholders Equity 60.5 56.5 63.0 62.3 61.7 75.3 78.7 88.3 84.7 98.0 107.8 110.1 120.2 120.1 121.7 123.2 122.8 123.5 123.6 121.9 Average Shareholders Equity $70.3 $58.5 $59.7 $62.7 $62.0 $68.5 $77.0 $83.5 $86.5 $91.4 $102.9 $108.9 $115.2 $120.1 $120.9 $122.4 $123.0 $123.1 $123.6 $122.8 Total Capital $103.8 $89.5 $89.1 $90.5 $87.3 $90.2 $95.7 $102.3 $108.5 $117.5 $131.2 $139.7 $144.8 $145.0 $148.1 $154.2 $154.7 $152.9 $151.8 $151.4 ROCE -2% -6% -2% 3% 8% 13% 11% 12% 14% 18% 22% 10% 16% 5% 12% 5% 6% 8% 8% 8% ($ in millions) Quarter ended
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Reconciliation of Non-GAAP Financial Measures 27 Mar.31, 2020 Jun.30, 2020 Sept.30, 2020 Dec. 31, 2020 Mar.31, 2021 Jun.30, 2021 Sept.30, 2021 Dec. 31, 2021 Mar.31, 2022 Jun.30, 2022 Sept.30, 2022 Dec. 31, 2022 Mar.31, 2023 Jun. 30, 2023 Sept. 30, 2023 Dec. 31, 2023 Mar. 31, 2024 Jun. 30, 2024 Sept. 30, 2024 Dec. 31, 2024 Net Income ($70.1) ($78.3) ($24.0) ($26.4) ($6.5) ($4.3) ($6.2) $1.1 ($2.5) $7.5 $20.4 $17.1 $30.6 $22.0 $14.8 $13.9 $4.2 $5.5 $4.7 $2.3 (+) Non-Cash (Gains) Losses on Derivatives (3.4) 1.0 3.2 2.3 7.8 9.8 4.3 (1.1) 8.6 0.8 2.3 0.6 (14.4) (10.2) (7.6) (4.3) (0.1) 0.6 (0.4) 4.0 (+) Income Tax Expense (23.7) (25.8) (8.3) (8.6) (1.8) (1.8) (0.7) 0.2 0.4 2.2 4.2 4.4 7.5 6.3 4.5 4.7 1.7 2.2 2.1 0.8 (+) Interest Expense 1.7 1.4 1.3 1.2 1.1 1.1 1.0 0.9 0.8 0.9 1.2 1.6 2.0 2.2 2.3 2.4 2.5 2.6 2.7 2.6 (+) DD&A 17.1 15.2 11.3 10.6 9.0 8.7 7.7 7.1 7.4 7.3 7.3 7.5 7.3 7.5 7.9 8.6 9.0 9.1 9.4 9.6 (+) Impairment 106.4 106.7 29.9 29.9 0.4 0.0 0.1 0.1 0.1 0.0 0.0 6.1 6.1 6.1 6.1 0.0 0.0 0.0 0.0 0.1 (+) Cash Receipts from/Payments on Off-Market Derivatives 0.0 0.0 0.0 0.0 0.0 0.0 8.8 6.1 3.6 2.3 (7.5) (5.7) (3.6) (2.3) (1.3) (0.4) 0.0 0.0 0.0 0.0 (+) Restricted Stock and Deferred Director's Exp 1.1 1.0 1.0 0.9 0.7 0.9 1.0 1.2 1.4 1.7 2.4 2.6 2.8 2.9 2.4 2.4 2.5 2.5 2.5 2.5 (-) Gains (Losses) on Asset Sales 12.9 8.9 4.0 0.7 0.7 0.8 0.3 (1.8) 0.5 1.1 4.4 7.5 9.6 8.9 5.6 4.7 0.4 0.8 0.6 0.5 Adjusted EBITDA TTM $16.2 $12.4 $10.5 $9.2 $10.0 $13.7 $15.7 $17.2 $19.5 $21.6 $25.8 $26.7 $28.7 $25.6 $23.5 $22.7 $19.5 $21.9 $20.4 $21.3 Total Debt 32.0 30.0 28.8 27.0 23.5 19.9 17.5 20.0 24.0 28.3 28.3 33.3 26.0 23.8 30.8 32.8 30.8 28.8 27.8 29.5 Debt / Adjusted EBITDA TTM 2.0 2.4 2.7 2.9 2.3 1.5 1.1 1.2 1.2 1.3 1.1 1.2 0.9 0.9 1.3 1.5 1.6 1.3 1.4 1.4 ($ in millions) Mar.31, 2020 Jun.30, 2020 Sept.30, 2020 Dec. 31, 2020 Mar.31, 2021 Jun.30, 2021 Sept.30, 2021 Dec. 31, 2021 Mar.31, 2022 Jun.30, 2022 Sept.30, 2022 Dec. 31, 2022 Mar.31, 2023 Jun. 30, 2023 Sept. 30, 2023 Dec. 31, 2023 Mar. 31, 2024 Jun. 30, 2024 Sept. 30, 2024 Dec. 31, 2024 Borrowing Base 45.0 32.0 31.0 30.0 29.4 28.5 27.5 32.0 50.0 50.0 50.0 50.0 50.0 45.0 50.0 50.0 50.0 50.0 50.0 50.0 Debt 32.0 30.0 28.8 27.0 23.5 19.9 17.5 20.0 24.0 28.3 28.3 33.3 26.0 23.8 30.8 32.8 30.8 28.8 27.8 29.5 Borrowing Availabilty $13.0 $2.0 $2.3 $3.0 $5.9 $8.6 $10.0 $12.0 $26.0 $21.7 $21.7 $16.7 $24.0 $21.3 $19.3 $17.3 $19.3 $21.3 $22.3 $20.5 Current Assets 12.1 8.2 17.8 10.0 9.2 10.9 12.2 10.9 12.3 18.4 17.9 19.9 12.3 9.5 8.4 10.2 8.9 9.3 8.2 9.6 (-) Current Derivative Assets 4.2 1.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 1.4 0.6 3.1 2.4 0.9 0.8 0.0 Current Liabilites (2.1) (4.2) (4.5) (3.1) (5.2) (9.4) (15.1) (9.7) (17.3) (12.4) (11.3) (6.8) (2.4) (1.8) (2.6) (2.0) (1.8) (2.3) (2.6) (3.2) (-) Current Derivative Liabilities 0.0 0.0 (0.3) (1.2) (3.0) (6.8) (12.1) (6.4) (14.8) (10.2) (7.9) (1.5) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (0.3) Working Capital $5.8 $2.1 $13.7 $8.0 $7.0 $8.3 $9.2 $7.6 $9.8 $16.2 $14.5 $14.6 $7.8 $6.3 $5.2 $5.0 $4.6 $6.1 $4.9 $6.6 Liquidity $18.8 $4.1 $15.9 $11.0 $12.9 $16.9 $19.2 $19.6 $35.8 $37.9 $36.2 $31.3 $31.8 $27.5 $24.4 $22.3 $23.9 $27.3 $27.1 $27.1 Quarter ended TTM ended
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Reconciliation of Non-GAAP Financial Measures 28 Source: Company Filings ($ in millions) Sept. 30, 2016 Sept. 30, 2017 Sept. 30, 2018 Sept. 30, 2019 Sept. 30, 2020 Sept. 30, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 Net Income ($10.3) $3.5 $14.6 ($40.7) ($24.0) ($6.2) $17.1 $13.9 $2.3 (+) Non-Cash (Gains) Losses on Derivatives 4.6 (0.9) 3.9 (5.9) 3.2 4.3 0.6 (4.3) 4.0 (+) Income Tax Expense (7.7) 0.7 (12.7) (13.5) (8.3) (0.7) 4.4 4.7 0.8 (+) Interest Expense 1.3 1.3 1.7 2.0 1.3 1.0 1.6 2.4 2.5 (+) DD&A 24.5 18.4 18.4 18.2 11.3 7.7 7.5 8.6 9.6 (+) Impairment 12.0 0.7 0.0 76.8 29.9 0.1 6.1 0.0 0.1 (+) Cash Receipts from/Payments on Off-Market Derivatives 0.0 0.0 0.0 0.0 0.0 8.8 (5.7) (0.4) 0.0 (+) Restricted Stock and Deferred Director's Exp 1.1 1.0 1.0 1.0 1.0 1.0 2.6 2.4 2.5 (-) Gains (Losses) on Asset Sales 2.7 (0.1) (0.7) 18.7 4.0 0.3 7.5 4.7 0.5 Adjusted EBITDA $22.9 $24.7 $27.6 $19.2 $10.5 $15.7 $26.7 $22.7 $21.3 (-) DD&A 24.5 18.4 18.4 18.2 11.3 7.7 7.5 8.6 9.6 EBIT ($1.6) $6.3 $9.2 $1.0 ($0.8) $8.0 $19.2 $14.1 $11.7 Starting Debt 65.0 44.5 52.2 51.0 35.4 28.8 20.0 33.3 32.8 Ending Debt 44.5 52.2 51.0 35.4 28.8 17.5 33.3 32.8 29.5 Average Debt $54.8 $48.4 $51.6 $43.2 $32.1 $23.1 $26.7 $33.0 $31.1 Starting Shareholders' Equity 127.0 115.2 116.7 128.8 79.3 63.0 88.3 110.1 123.2 Ending Shareholders' Equity 115.2 116.7 128.8 79.3 63.0 78.7 110.1 123.2 121.9 Average Shareholders' Equity $121.1 $115.9 $122.7 $104.0 $71.2 $70.9 $99.2 $116.7 $122.6 Total Capital $175.8 $164.3 $174.3 $147.2 $103.2 $94.0 $125.9 $149.7 $153.7 ROCE -1% 4% 5% 1% -1% 9% 15% 9% 8% Fiscal Year Ended
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Reconciliation of Non-GAAP Financial Measures 29 ($ in millions) Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 Net Income $13.6 ($51.6) ($26.4) $1.1 $17.1 $13.9 $2.3 (+) Non-Cash (Gains) Losses on Derivatives (3.1) 2.0 2.3 (1.1) 0.6 (4.3) 4.0 (+) Income Tax Expense 3.5 (16.8) (8.6) 0.2 4.4 4.7 0.8 (+) Interest Expense 1.9 1.8 1.2 0.9 1.6 2.4 2.5 (+) DD&A 16.9 17.3 10.6 7.1 7.5 8.6 9.6 (+) Impairment 0.0 76.8 29.9 0.1 6.1 0.0 0.1 (+) Cash Receipts from/Payments on Off-Market Derivatives 0.0 0.0 0.0 6.1 (5.7) (0.4) 0.0 (+) Restricted Stock and Deferred Director's Exp 0.9 1.0 0.9 1.2 2.6 2.4 2.5 (-) Gains (Losses) on Asset Sales 8.7 12.9 0.7 (1.8) 7.5 4.7 0.5 Adjusted EBITDA $25.0 $17.6 $9.2 $17.4 $26.7 $22.7 $21.3 (-) Interest Expense 1.9 1.8 1.2 0.9 1.6 2.4 2.5 Discretionary Cash Flow $23.1 $15.8 $8.0 $16.5 $25.1 $20.3 $18.8 Year ended ($ in millions) Jun. 30, 2022 Sept. 30, 2022 Dec. 31, 2022 Mar. 31, 2023 June 30, 2023 Sept. 30, 2023 Dec. 31, 2023 Mar. 31, 2024 Jun. 30, 2024 Sept. 30, 2024 Dec. 31, 2024 General and administrative 2.9 3.8 3.1 3.0 3.2 2.8 3.1 3.3 2.7 2.7 2.9 (-) Restricted stock and deferred director's expense 0.6 1.0 0.6 0.6 0.7 0.5 0.6 0.7 0.7 0.5 0.6 Cash general and administrative $2.3 $2.7 $2.6 $2.3 $2.5 $2.2 $2.5 $2.6 $2.0 $2.2 $2.3 Gain/(loss) on Derivatives ($2.4) ($4.3) $3.3 $3.8 $0.2 ($0.3) $3.2 $0.6 ($0.4) $1.1 ($1.0) (-) Non-cash gain/(loss) on derivatives 3.3 1.6 6.3 3.2 (0.9) (0.9) 2.9 (1.0) (1.6) 0.2 (1.5) (+) Off-market derivative settlements (1.3) (1.1) (0.9) (0.4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total derivative settlements ($7.0) ($7.0) ($3.8) $0.3 $1.0 $0.6 $0.3 $1.7 $1.2 $0.9 $0.5 Quarter Ended