FORT WORTH, Texas - PHX Minerals Inc. (NYSE: PHX), a natural gas and oil mineral company, announced today that its borrowing base of $50 million has been reaffirmed by its bank lending group, led by Independent Financial.
The review of the Company's senior secured credit facility, a routine semi-annual procedure, resulted in no changes to the terms, including pricing and covenants. Additionally, the maturity date of the credit facility has been extended from September 1, 2025, to September 1, 2028.
The President and CEO of PHX Minerals, Chad Stephens, expressed satisfaction with the outcome, stating, "The reaffirmation of our borrowing base demonstrates the quality and resiliency of our assets and our financial strength." He also acknowledged the bank lending group's ongoing support and confidence in the company.
PHX Minerals specializes in acquiring and managing mineral acreage primarily in the regions of Oklahoma, Texas, Louisiana, North Dakota, and Arkansas. The company adopts a proactive approach to expand its mineral holdings in these key focus areas.
This financial update is based on a press release statement issued by PHX Minerals Inc.
InvestingPro Insights
PHX Minerals Inc. (NYSE: PHX), with its solid financial practices and strategic management, continues to show signs of financial strength and stability. A closer look at the company's performance through InvestingPro's real-time data and expert analysis offers a comprehensive picture of its current market position.
InvestingPro Data indicates that PHX has a market capitalization of $123.37M, which is reflective of the company's size and market value. The company maintains an attractive price-to-earnings (P/E) ratio of 8.35, which suggests that investors are paying less for each dollar of PHX's earnings compared to many other companies in the same sector.
Moreover, the gross profit margin stands at an impressive 85.24% for the last twelve months as of Q4 2023, highlighting the company's efficiency in generating revenue over its cost of goods sold.
Two InvestingPro Tips that are particularly relevant to PHX Minerals' recent financial announcement include the company's impressive gross profit margins, which are likely a contributing factor to the bank lending group's confidence in reaffirming the borrowing base.
Moreover, the fact that PHX has maintained dividend payments for 41 consecutive years is a testament to its financial resilience and commitment to shareholder returns, aligning with the CEO's comments on the company's financial strength.
For those interested in a deeper dive into PHX Minerals' financials and future prospects, InvestingPro offers a wealth of additional tips and insights. Currently, there are 6 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/PHX. Readers looking to leverage these insights can enjoy an additional 10% off a yearly or biyearly Pro and Pro+ subscription by using the coupon code PRONEWS24.
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