PHX Minerals Inc.

Good morning, and thank you for attending today's PHX Minerals December 31st, 2022 quarter-end earnings conference call. At this time, all lines will be muted during the presentation of the call with an opportunity for a Q&A session at the end. As a reminder, this call is being recorded. I would now like to turn the call over to Rob Fink with FNKIR. Please go ahead, sir.

Thank you, Operator, and thank you, everyone, for joining us today to discuss discuss pH Minerals December 31st, 2022, quarter-end results. Joining us on the call today are Chad Stevens, President and Chief Executive Officer, Ralph D'Amico, Vice President and Chief Financial Officer, and Danielle Mezzo, Vice President of Engineering. The earnings release that was issued yesterday after the close is also posted to PHX's Investor Relations website. Before I turn over the call to Chad, I'd like to remind everyone that during today's call, including the Q&A session, management may make forward-looking statements regarding expected revenue, earnings, future plans, opportunities, and other expectations of the company. These estimates and other forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those expressed or implied on the call. These risks are detailed in PHX Minerals' most recent annual report on Form 10-K. As such, it may be amended or supplemented by subsequent quarterly reports on Form 10-Q or other reports filed with the FCC. The statements made during this fall are based upon information known to the company as of today, February 9, 2023. And the company does not intend to update these forward-looking statements, whether as a result of new information future events or otherwise unless required by law. With that, I'd like to turn the call over to Chad. Chad, the call is yours.

Thanks, Rob. And thanks to all of you for participating in PHX's December 31st, 2022 quarter-end conference call. We appreciate your interest in the company. The decline in natural gas prices that impacted the December quarter continued into the new year. PHX's quarterly financial results reflect a 26% sequential drop in realized natural gas prices. Since then, and in the month of January alone, natural gas front month prices have dropped a further 40%, this being the largest one-month drop since 2001, 22 years ago. This precipitous drop was driven by reduced demand due to warmer weather and less power burn, along with the Freeport LNG export terminals continued in service delay. This terminal represents 2.2 BCF a day of natural gas demand. This important LNG export terminal has been out of service due to an explosion since last summer and represents over 500 BCF of total gas demand being removed from the market. We estimate this event alone represents somewhere between $1 and $2 of negative impact to the current natural gas market. This drop in prices will reduce industry cash flow, which will additionally reduce industry capital expenditures. Though the total U.S. rig count has remained relatively flat over the last months, recent indications are that operators, especially in gas basins, will begin reducing their billing budgets and thus laying down rigs and frack crews, which should reduce domestic U.S. natural gas supply by roughly one BCF per day during the year of 2023. Under a conservative assumption of weather and Freeport vacuum service, officially announced February 1st of this year, it appears that during the second half of 2023 into the 2024 timeframe, natural gas supply demand macro should reach equilibrium and set the stage for a price rebound. PHX has purposely built a strong balance sheet and maintained ample liquidity supported by our hedge book to be able to withstand the current headwinds we face. You can access our hedge schedule that is in our latest investor relations slide deck on our corporate website. Over the last three years, we have enhanced our asset base by selling mature legacy assets Specifically, we exited our relatively higher cost, lower margin, non-op working interest business. We used the proceeds from these divestitures to build a high quality core mineral position in two of the most active areas under reputable credit worthy operators who are actively drilling. These minerals we have acquired are in the core of these basins. and can be economically developed by the operators at almost any commodity price environment. We believe this will allow us to continue to report year-over-year steady royalty volume growth. Our most recent quarter underscores this as our current quarter reflects a 33% royalty volume growth over the same quarter in 2021. During the quarter, we closed on $14.7 million of mineral acquisitions, and since the quarter end, we have closed on or signed binding agreements for an additional approximately $7 million. Our deal flow remains robust, and our disciplined approach evaluating each opportunity remains in place, and I am confident we can continue to build shareholder value. At this point, I would like to turn the call over to Danielle to provide a quick operational overview and then to Raoul to discuss the financials.