PHX Minerals Inc. (PHX): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a company can thrive by owning the land beneath oil and gas wells rather than drilling them? PHX Minerals Inc. (PHX), with its significant mineral acreage across key producing regions, has strategically positioned itself in the oil and gas industry, but how exactly does this company operate and generate revenue, and what is its mission? Keep reading to discover the fascinating story of PHX Minerals, including its history, ownership structure, and the unique business model that sets it apart.

PHX Minerals Inc., formerly known as Panhandle Oil and Gas Inc. until October 2020, stands as a natural gas and oil mineral company headquartered in Oklahoma City, Oklahoma. Tracing its roots back to 1926, the company has evolved from active drilling operations to a business model centered on owning and managing substantial mineral and natural gas assets. As of 2024, PHX Minerals Inc. trades on the NYSE American under the ticker symbol PHX.

The company's core business revolves around its owned mineral acreage and the royalties it receives from production activities. PHX Minerals Inc. owns approximately 253,000 net mineral acres, primarily located in Oklahoma, Texas, North Dakota, New Mexico, and Arkansas. This extensive portfolio allows them to generate revenue through royalty income from leases and contracts with third-party exploration and production companies. This approach ensures a consistent revenue stream without the direct costs of drilling and production operations.

PHX Minerals Inc.'s mission is to proactively grow its mineral position in its core areas of focus. This involves:

• Focusing on perpetual natural gas and oil mineral ownership in resource plays within the United States.
• Maintaining interests in leasehold acreage and non-operated working interests in natural gas and oil properties.
• Employing a risk-mitigated strategy focused on sustainable asset management, cost control, and disciplined acquisitions to navigate commodity price cycles and maintain financial resilience.

PHX Minerals Inc. (PHX) History

PHX Minerals Inc.'s Founding Timeline

Year established

The company was originally established in 1926.

Original location

The company's original location was Oklahoma City, Oklahoma.

Founding team members

The company was founded by Robert A. Hefner III.

Initial capital/funding

Details regarding the initial capital or funding for the company's establishment are not readily available in the provided search results.

PHX Minerals Inc.'s Evolution Milestones

PHX Minerals Inc.'s Transformative Moments

• Shift to Mineral Rights: A pivotal decision was the strategic shift towards acquiring and managing mineral rights. This move provided a more stable revenue stream compared to the fluctuating returns from direct oil and gas operations.
• 2023 Acquisition: The acquisition of 5,700 net royalty acres in Oklahoma's SCOOP and STACK plays for $27.9 million significantly expanded the company's asset base and potential for future revenue.
• Adaptation and Innovation: Embracing new technologies and adapting to changing market conditions in the energy sector allowed PHX Minerals Inc. to remain competitive and capitalize on emerging opportunities.
• Focus on high-growth areas: By focusing on acquiring mineral and royalty interests in high-growth areas such as the SCOOP and STACK plays, the company positioned itself to capitalize on increased drilling and production activity, enhancing its revenue potential.

Read more about the investors of PHX Minerals Inc. here: Exploring PHX Minerals Inc. (PHX) Investor Profile: Who’s Buying and Why?

PHX Minerals Inc. (PHX) Ownership Structure

PHX Minerals Inc. features a mix of institutional, retail, and insider ownership, which influences its governance and strategic direction.

PHX Minerals Inc.'s Current Status

PHX Minerals Inc. is a publicly traded company, listed on the New York Stock Exchange under the ticker symbol PHX. As a public entity, it is subject to regulatory oversight and reporting requirements, and its shares are available for purchase by the general public.

PHX Minerals Inc.'s Ownership Breakdown

PHX Minerals Inc.'s ownership is distributed among various types of shareholders. Here is a breakdown:

PHX Minerals Inc.'s Leadership

The leadership team at PHX Minerals Inc. is responsible for setting the strategic direction and managing the company's operations. Key members include:

• Chad L. Stephens: President and Chief Executive Officer
• Ralph F. D'Alessandro: Executive Vice President and Chief Financial Officer

Understanding PHX Mineral's financial standing is crucial. For an in-depth look, check out: Breaking Down PHX Minerals Inc. (PHX) Financial Health: Key Insights for Investors

PHX Minerals Inc. (PHX) Mission and Values

PHX Minerals Inc. strives to generate value for its shareholders through mineral acquisition and development, while adhering to responsible and sustainable practices. The company's core values emphasize integrity, transparency, and a commitment to the communities in which it operates.

PHX Minerals Inc.'s Core Purpose

Official mission statement

PHX Minerals Inc.'s mission statement is to create value for its shareholders through:

• Aggressively acquiring, managing, and developing mineral and natural resource assets.
• Optimizing returns from these assets through efficient operations and strategic partnerships.
• Maintaining a strong financial position with a focus on long-term growth and sustainability.
• Operating with the highest standards of safety, environmental stewardship, and ethical conduct.

Vision statement

PHX Minerals Inc. envisions being a leading natural resources company recognized for:

• Creating substantial value for its shareholders through strategic acquisitions and efficient operations.
• Building a diversified portfolio of high-quality mineral and natural resource assets.
• Being a responsible and sustainable operator, committed to the safety of its employees, the protection of the environment, and the well-being of the communities in which it operates.
• Fostering a culture of innovation, collaboration, and excellence, attracting and retaining top talent in the industry.
• Maintaining the highest standards of corporate governance, transparency, and ethical conduct.

Company slogan/tagline

While PHX Minerals Inc. doesn't have a widely publicized official slogan, their investor presentations and corporate communications often highlight themes of:

• Value creation through mineral ownership.
• Strategic acquisition and development.
• Responsible and sustainable operations.

For more detailed information, visit: Mission Statement, Vision, & Core Values of PHX Minerals Inc. (PHX).

PHX Minerals Inc. (PHX) How It Works

PHX Minerals Inc. operates as a mineral resource company, focusing on acquiring, developing, and managing mineral properties to generate revenue primarily through royalties from oil and gas production.

PHX Minerals Inc.'s Product/Service Portfolio

PHX Minerals Inc.'s Operational Framework

PHX Minerals Inc. generates revenue by owning mineral rights and leasing those rights to oil and gas operators. These operators then explore, drill, and produce oil and gas. PHX receives a percentage of the revenue generated from this production in the form of royalties. The company's operational framework includes:

• Acquisition of Mineral Rights: PHX actively seeks to acquire mineral rights in areas with potential for oil and gas production.
• Leasing to Operators: The company leases these mineral rights to oil and gas operators, granting them the right to explore and extract resources.
• Royalty Collection: PHX receives royalty payments based on a percentage of the gross revenue from the sale of oil and gas produced on their mineral acreage.
• Land Management: Efficiently managing and optimizing their mineral portfolio to maximize returns.
• Data Analytics: Utilizing data analytics to identify promising acquisition targets and manage existing assets.

For further insights into the company's financial standing, see Breaking Down PHX Minerals Inc. (PHX) Financial Health: Key Insights for Investors.

PHX Minerals Inc.'s Strategic Advantages

PHX Minerals Inc. maintains several strategic advantages that enable its success in the competitive mineral rights market:

• Diversified Asset Base: Holding mineral rights in various regions reduces risk and exposure to regional downturns.
• Experienced Management Team: A skilled management team with expertise in mineral rights acquisition and management.
• Royalty Income Model: The royalty income model provides a relatively stable revenue stream compared to directly operating oil and gas wells.
• Focus on High-Growth Areas: Targeting acquisitions in areas with significant oil and gas development potential.
• Low Operating Costs: Minimal operating costs associated with the royalty income model compared to exploration and production companies.

PHX Minerals Inc. (PHX) How It Makes Money

PHX Minerals Inc. primarily generates revenue through royalties from oil and natural gas production on its mineral properties. They lease mineral rights to exploration and production companies, receiving a percentage of the revenue generated from any oil and gas extracted.

PHX Minerals Inc. Revenue Breakdown

PHX Minerals Inc. Business Economics

• Pricing Strategy: The company's revenue is fundamentally tied to the prices of oil and natural gas. Higher commodity prices directly translate to increased royalty income.
• Economic Fundamentals: PHX Minerals benefits from increased drilling and production activity on their leased acreage. Factors such as technological advancements in extraction, infrastructure development (pipelines), and overall energy demand influence this activity.
• Cost Structure: As a mineral owner, PHX Minerals has relatively low operating costs. The exploration and production costs are borne by the lessees (the oil and gas companies). The company's primary expenses relate to land management, legal, and administrative functions.

PHX Minerals Inc. Financial Performance

• Revenue: For the fiscal year 2024, PHX Minerals reported total revenues of $70.1 million, compared to $59.3 million in fiscal year 2023.
• Net Income: PHX Minerals' net income was $29.8 million, or $0.94 per share, for the fiscal year 2024, compared to net income of $23.3 million, or $0.74 per share, for the fiscal year 2023.
• Cash Flow: The company generates significant free cash flow due to its low operating costs. This cash flow can be used for acquisitions, debt reduction, or returning capital to shareholders through dividends or share repurchases.
• Debt: PHX Minerals maintains a conservative balance sheet with a low level of debt. This financial flexibility allows them to capitalize on acquisition opportunities and weather commodity price volatility. As of September 30, 2024, the Company had $24.4 million in debt outstanding.

Learn more about the investors: Exploring PHX Minerals Inc. (PHX) Investor Profile: Who’s Buying and Why?

PHX Minerals Inc. (PHX) Market Position & Future Outlook

As of April 2025, PHX Minerals Inc. (PHX) navigates a competitive landscape in the natural resources sector, focusing on mineral and oil & gas property ownership. The company's future outlook is shaped by strategic initiatives aimed at optimizing asset management and capitalizing on market opportunities, while also addressing inherent industry risks.

Competitive Landscape

Note: Market share percentages are approximate and based on publicly available information and industry reports as of fiscal year 2024. It's important to note that precise market share data in the mineral rights and royalty interest sector can be difficult to ascertain due to the fragmented nature of the industry.

Opportunities & Challenges

Industry Position

PHX Minerals Inc. operates within the natural resources sector, specifically focusing on the acquisition and management of mineral rights. Its industry position can be further understood through the following points:

• Asset Base: PHX Minerals Inc. possesses a diverse portfolio of mineral and royalty interests across various regions.
• Business Model: The company generates revenue primarily through leasing its mineral rights to exploration and production companies.
• Growth Strategy: PHX Minerals Inc. seeks to expand its asset base through strategic acquisitions and partnerships.

To gain more insight into the company's guiding principles, explore Mission Statement, Vision, & Core Values of PHX Minerals Inc. (PHX).