Benzinga | Nov 1, 2021 09:17AM EDT

PHX Minerals Announces Working Interest Divestiture, Mineral Acquisition; Sells 499 Non-Operated Legacy Working Interest Wellbores For $2.125M

PHX Minerals Inc. (NYSE:PHX) ("PHX" or the "Company") announced today that it has sold a package of 499 non-operated legacy working interest wellbores located in the Fayetteville Shale of Arkansas to an undisclosed buyer for $2,125,000. The buyer will also assume an asset retirement obligation in the amount of approximately $173,000 from the Company. PHX retains all mineral rights underlying the divested working interest wellbores and will continue to receive royalties where applicable. Additionally, PHX completed the acquisition of approximately 220 net royalty acres located primarily in Stephens County, Okla., for $1,216,374 (the "Acquisition"). The Acquisition is predominately in the same area of the SCOOP Springboard III play as the Company's previously closed April 2021 acquisition where current drilling activity continues to accelerate.

Chad Stephens, President and CEO, said, "These transactions are an important step in the execution of our corporate strategy that we embarked on almost two years ago when I became CEO. The corporate strategy includes high-grading our asset base and transforming PHX into a pure play mineral and royalty company. As we divest our non-operated low margin working interest assets and redeploy the proceeds along with our free cash flow into higher margin minerals, we will see our corporate margins improve and our royalty production volumes grow. We continue to see interest in the market place for our other non-operated working interest assets and are exploring additional divestiture opportunities. Our mineral and royalty acquisition pipeline remains strong. These transactions reflect the momentum we are gaining in the execution of this strategy."