PHX Minerals Inc.

Greetings, and welcome to the PHX Minerals, Inc. Fourth Quarter and Year-End 2024 Earnings Call. At this time, all participants are in listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn local over to your host, Stephen Lee, Investor Relations. Please go ahead.

Thank you, Operator, and thank you for everyone for joining us today to discuss PHX Minerals December 31, 2024, quarterly and annual results. On the call today are Chad Stephens, President and Chief Executive Officer, Ralph D'Amico, Executive Vice President and Chief Financial Officer, and Danielle Mezzo, Vice President of Engineering. The earning 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 forelooking statements regarding expected revenue, earnings, future plans, opportunities, and other expectations of the company. These estimates and other forelooking 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 caller reports on Form 10-Q or other reports filed with the Security and Exchange Commission. The statements made during this call are based upon information known to PHX as of today, March 13th, 2025, And the company does not intend to update these four 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 Stephens, PHX Chief Executive Officer. Chad?

Thanks, Stephen, and thanks to all of you on this call for participating in PHX's December 31st, 2024 quarter and annual earnings conference call. We appreciate your interest in the company. Bear with me. Stand by. Computer just went down. Thank you. Our results in calendar 2024 were largely influenced by natural gas macro fundamentals. As we eliminated throughout this past year, the macro headwinds created difficult industry conditions with lower rig counts and reduced industry CapEx budgets. The general uncertainty in the U.S. election cycle and the Fed's decision to maintain current interest rates added to these headwinds. But PHX delivered commendable financial results this year, even considering this unfavorable environment. Despite slower industry activity, our total production volumes were up approximately 5% year-over-year, with royalty volume up 8% for the year. EBITDA was down slightly year-over-year and was supported by our traditional hedging program. Over the last several quarters, and as we weathered the low natural gas prices, we opined on an imminent improvement in the natural gas macro story. Our forecast then for improving fundamentals is resonating now with a gas trip well over $4. This will improve our financials and should translate into increased industry activity on our strategically located mineral assets. I also highlight that our total well conversions to production remained at historical levels in 2024, and our well activity remains high, which will drive future well conversions in 2025 and beyond. All of this speaks to the high quality of our assets and resulted in a 33% increase in our dividend announced in the third quarter of 2024. As disclosed in our subsequent events section, we sold non-producing minerals for $8 million at the end of January 2025. These minerals were old legacy assets, that had no production, cash flow, or reserves associated with them. They were located in areas with little to no industry activity and thus had no strategic value to the company's core business. We have always maintained a strong conservative balance sheet. Upon the sale of our non-core minerals, closing in January 25, we applied these sale proceeds to reducing debt. Ralph will discuss more about leverage in a moment. As previously disclosed, we formally began evaluating strategic alternatives in December, and that process is progressed as planned. We are committed to keeping shareholders informed and will provide an update on the outcomes once the process is complete. 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.