PHX Minerals Acquires ~988 Net Royalty Acres Targeting The Haynesville Play In Louisiana And Texas And The SCOOP Play In Oklahoma From Five Separate Sellers For Aggregate Consideration Of $13.6M In Cash
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PHX Minerals Inc. (NYSE:PHX) has agreed to acquire approximately 988 net royalty acres targeting the Haynesville play in Louisiana and Texas and the SCOOP play in Oklahoma from five separate sellers for an aggregate consideration of $13.6 million in cash. The acquisition is expected to be immediately accretive on a cash flow per share basis and is expected to close in mid-September. The assets associated with the acquisitions include high interest locations concentrated in the core of the Haynesville and SCOOP under active operators including Aethon and Chesapeake Energy.
August 24, 2023 | 8:31 pm
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POSITIVE IMPACT
PHX Minerals' acquisition of 988 net royalty acres is expected to be immediately accretive and add to the company's existing mineral and royalty positions. The deal, which is expected to close in mid-September, will be funded using a combination of cash on hand and borrowings under the company's existing credit facility.
The acquisition is expected to be immediately accretive, which means it should increase PHX's earnings per share. This is typically seen as a positive sign by investors and could lead to an increase in the company's stock price. Additionally, the deal will add to PHX's existing mineral and royalty positions, which could further enhance the company's revenue and profitability.
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