PHX Minerals to Acquire Mineral and Royalty Interests

PHX Minerals Inc. has agreed to acquire in two separate transactions certain mineral and royalty interests totaling 817 net royalty acres in East Texas and Louisiana, targeting the Haynesville play for aggregate consideration of $7.2 million in cash and stock subject to customary closing adjustments. The purchase price consists of $728,214 in cash and $6.5 million in PHX common stock issued directly to the sellers of the assets.

The shares to be issued are subject to a 120-day lockup period. The PHX board of directors unanimously approved the acquisition, which is subject to certain closing conditions and is expected to close by the end of the month.

“The agreements we entered into involve additional acquisitions of exceptional mineral assets targeting the Haynesville play, where we have been active over the last 12 months,” says Chad Stephens, president and CEO. “These assets will provide the company increasing cash flow and natural gas volumes in the near-term with compelling upside potential and are located under some of the top operators with active drilling programs in the play.”