PHX Minerals Inc.

Good morning, and thank you for attending today's PHX Minerals December 31st, 2023 year-ended 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 Stephen Lee with FNK IR. Thank you. Please go ahead.

Thank you, and good morning. Thank you for joining us today to discuss PHX Minerals, December 31st, 2023 annual results. Joining us on the call today are Chad Stevens, President and Chief Executive Officer, Ralph D'Amico, Senior Vice President and Chief Financial Officer, and Danielle Mezzo, Vice President of Engineering. The earnings press release that was issued yesterday after the close is also posted on PHX Investor Relations website. Before I turn the call over 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 may be amended or supplemented by subsequent quality 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, March 13, 2024, 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 would like to turn the call over to Chad Stephens, PHX Chief Executive Officer. Chet?

Thanks, Stephen, and thanks to all of you on this call for participating in PHX's December 31st, 2023 fiscal year-end earnings conference call. We appreciate your interest in the company. I am pleased to report another strong year for PHX. We delivered a 23% increase in royalty volumes, expanded our 2P royalty reserves by 12%, and generated significant operating cash flow as well as net income. This performance enabled us to increase our quarterly dividend by 33%, reflecting our confidence in our business strategy and ability to continue to generate consistent cash flows. I'm especially pleased of these accomplishments despite another challenging year in the natural gas market. This demonstrates the value of our risk mitigated business model as we can deliver strong profitability even during a period of challenging pricing. During the past year, PHX deployed more than 30 million to acquire nearly 2,400 net royalty acres in the Hainesville and Scoot Plays. The acquisition of these high-quality minerals will further drive our royalty volumes, margin expansion, and cash flow over the course of the next two to three years. We continue to maintain modest leverage backed by a strong balance sheet, and our M&A activity is built on proven processes focused on high-quality minerals that can convert to production quickly. With our strong financial position and a highly focused acquisition strategy, we are poised to unlock value for our shareholders as the commodity pricing environment improves. In the fourth quarter, PHS continued to experience robust activity on our mineral acreage, which Danielle will discuss in more detail in a moment. We are encouraged by the quarter's well-in-progress inventory, which stands at an all-time high for the company, including ducts, whips, and permits. The number of rigs present on PHX and its surrounding acreage remains strong. This provides good visibility for our production growth in the coming quarters. I direct you to our latest IR slide deck posted last night that explains in detail the pace of operator development on our minerals and our inventory of undrilled locations. It is this inventory that fuels the development that drives our year-over-year royalty volume growth. As natural gas prices touched a four-year low last month, we began to see natural gas-focused E&Ps begin reducing budgets deferring well completions into the future awaiting better prices the latest being eqt which announced two weeks ago they are curtailing one bcf a day of production at least through march and cnx yesterday announced they are deferring completion of a number of wells and curtailing their current production until natural gas prices improve despite slower industry-wide development activities We are expecting a 4% increase in royalty volume and 2% increase in total corporate volumes in 2024, speaking to the quality of our assets. Please reference our press release and corporate presentation for our full 2024 guidance. With reduced drilling and production activities just discussed, and the expected increases in demand from new LNG export facilities coming online in 2024 and 2025, We believe this will balance the market and improve commodity prices as we move forward. At this point, I'd like to turn the call over to Danielle to provide a quick operational overview and then to Raoul to discuss the financials.