PHX Minerals Inc.

Good morning, and thank you for attending today's PHX Minerals September 30th, 2023 quarter end earnings conference call. At this time, all lines will be muted during the presentation of the call with an opportunity for Q&A at the end. As a reminder, this call is being recorded. I would now like to turn the call over to Rob Fink with FNK IR. Please go ahead.

Thank you, operator. Hosting the call today are Chad Stevens, President and Chief Executive Officer, Ralph D'Amico, Senior Vice President and Chief Financial Officer, Daniel Meza, Vice President of Engineering. The earnings press release that was issued yesterday after the close is also posted on PHX's Investor Relations website. Before I turn the call over to Chad, I'd like to remind everyone that during today's call and during the Q&A session, management may make forward-looking statements regarding expected revenues, earnings, future plans, opportunities, and other expectations of the company. These estimates and other forward-looking statements involve known and unknown risks and uncertainty 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 may be amended or supplemented by subsequent quarterly reports on Form 10Q or other reports filed with the Securities and Exchange Commission. The statements made during this call are based upon information known to PHX as of today, November 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 all that said, I'd like to now turn the call over to Chad. Chad, the call is yours.

Thanks, Rob, and thanks to all of you on this call for participating in PHX's September 30, 2023 quarterly conference call. We appreciate your interest in the company. The sequential improvement in our financial results and the continued strengthening of our portfolio reflect the steady normalization of the natural gas macroenvironment. which has recovered from historically low prices. Since early this spring, we have continued to express our rationale for projected improvement in the natural gas supply-demand macro and price. Just over the last few weeks, the 12-month strip price has shown steady improvement. Recent volatility in natural gas prices reflects realized versus forecasted weather, which indicates one of the warmest Novembers since 1950. However, underlying fundamentals, including weekly EIA storage data, shows a tight or undersupplied market on a weather-adjusted basis. Demand for natural gas from the power grid continues to increase on a year-over-year basis, and new LNG facilities construction appears to be on schedule. As we draw closer to the commissioning of these additional LNG facilities, We believe it will drive improvement in sentiment as well as prices in mid to late 2024. LNG export will be a significant demand driver in 2024 and 2025, and we believe that Hainesville will be the primary source to feed these LNG facilities. I believe this improving environment bodes well for our business in future quarters. During the third quarter, PHX continued to experience robust activity on our minerals, specifically in the Scoop play of Oklahoma, where Continental and other operators appear to have started full field development of the Springboard III play, with four rigs currently operating there. We have consistently talked about this play being a catalyst for PHX, and while we are still in the early stages of development, the results to date have exceeded our expectations. Our Haynesville minerals also continue to be actively developed and we are encouraged about our current well-in-progress inventory, which Danielle will talk about in a moment, which is as high as it has ever been and will continue to drive production growth in the coming quarters. We remain confident in meeting the updated 2023 production forecast we communicated last quarter, which represents year-over-year annual growth rate for royalty production exceeding 20%. Additionally, We expect calendar 2024 royalty production growth to be similar to what we've achieved over the last few years. This reflects the benefits of the strategy we implemented when I took over as full-time CEO in spite of periods of challenging commodity prices. We will provide more detailed guidance in early 2024. With our strong margins, PHX continues to generate significant cash flow. This allows us to maintain ample liquidity as well as fund our mineral acquisition program. Given the strength of our business, the Board of Directors has approved a 33% increase in our fixed dividend rate to $0.03 per share per quarter. This is the fourth dividend increase since 2020 and represents an aggregate increase of 200% from the 2020 rate. At this point, I'd like to turn the call over to Danielle to provide a quick operational overview and then to Ralph to discuss the financials.