Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2021 | May 06, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | PHX MINERALS INC | |
Entity Central Index Key | 0000315131 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-31759 | |
Entity Tax Identification Number | 73-1055775 | |
Entity Address, Address Line One | Valliance Bank Tower | |
Entity Address, Address Line Two | Suite 1100 | |
Entity Address, Address Line Three | 1601 NW Expressway | |
Entity Address, City or Town | Oklahoma City | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 73118 | |
City Area Code | (405) | |
Local Phone Number | 948-1560 | |
Entity Incorporation, State or Country Code | OK | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 30,401,168 | |
Title of each class | Class A Common Stock, $0.01666 par value | |
Trading Symbol(s) | PHX | |
Name of each exchange on which registered | NYSE |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 1,270,482 | $ 10,690,395 | |
Natural gas, oil, and NGL sales receivables (net of $0 allowance for uncollectable accounts) | 4,712,793 | 2,943,220 | |
Refundable income taxes | 2,448,871 | 3,805,227 | |
Other | 752,248 | 351,088 | |
Total current assets | 9,184,394 | 17,789,930 | |
Properties and equipment at cost, based on successful efforts accounting: | |||
Producing natural gas and oil properties | 329,708,071 | 324,886,491 | |
Non-producing natural gas and oil properties | 21,012,897 | 18,993,814 | |
Other | 582,444 | 582,444 | |
Gross properties and equipment, at cost, based on successful efforts accounting | 351,303,412 | 344,462,749 | |
Less accumulated depreciation, depletion and amortization | (265,863,136) | (263,590,801) | |
Net properties and equipment | 85,440,276 | 80,871,948 | |
Operating lease right-of-use assets | 649,500 | 690,316 | |
Other, net | 593,150 | 669,641 | |
Total assets | 95,867,320 | 100,021,835 | |
Current liabilities: | |||
Accounts payable | 672,507 | 997,637 | |
Derivative contracts, net | [1] | 3,000,530 | 281,942 |
Current portion of operating lease liability | 129,672 | 127,108 | |
Accrued liabilities and other | 1,382,066 | 1,297,363 | |
Short-term debt | 1,750,000 | ||
Total current liabilities | 5,184,775 | 4,454,050 | |
Long-term debt | 23,500,000 | 27,000,000 | |
Deferred income taxes, net | 1,041,007 | 1,329,007 | |
Asset retirement obligations | 2,927,662 | 2,897,522 | |
Derivative contracts, net | [1] | 625,179 | 425,705 |
Operating lease liability, net of current portion | 856,142 | 921,625 | |
Stockholders' equity: | |||
Class A voting common stock, $0.01666 par value; 36,000,500 shares authorized; 22,825,226 issued at March 31, 2021, and Class A voting common stock, $0.01666 par value; 24,000,500 shares authorized; 22,647,306 issued at September 30, 2020 | 380,268 | 377,304 | |
Capital in excess of par value | 11,150,749 | 10,649,611 | |
Deferred directors' compensation | 1,633,939 | 1,874,007 | |
Retained earnings | 54,402,724 | 56,244,100 | |
Stockholders' Equity | 67,567,680 | 69,145,022 | |
Less treasury stock, at cost; 390,267 shares at March 31, 2021, and 411,487 shares at September 30, 2020 | (5,835,125) | (6,151,096) | |
Total stockholders' equity | 61,732,555 | 62,993,926 | |
Total liabilities and stockholders' equity | $ 95,867,320 | $ 100,021,835 | |
[1] | See Note 10: Fair Value Measurements for further disclosures regarding fair value of financial instruments. |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Statement Of Financial Position [Abstract] | ||
Allowance for uncollectable accounts | $ 0 | $ 0 |
Common stock, par value | $ 0.01666 | $ 0.01666 |
Common stock, shares authorized | 36,000,500 | 24,000,500 |
Common stock, shares issued | 22,825,226 | 22,647,306 |
Treasury stock, shares | 390,267 | 411,487 |
Condensed Statements Of Operati
Condensed Statements Of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||||
Revenues | $ 8,345,825 | $ 7,217,618 | $ 14,770,804 | $ 14,811,456 |
Gains (losses) on derivative contracts | (2,348,143) | 4,071,577 | (2,602,179) | 3,253,683 |
Gain on asset sales | 23,257 | 43,525 | 3,272,888 | |
Revenues | 6,079,493 | 11,311,287 | 12,272,137 | 21,887,818 |
Costs and expenses: | ||||
Lease operating expenses | 1,030,651 | 1,542,199 | 2,035,063 | 2,723,870 |
Transportation, gathering and marketing | 1,319,514 | 1,356,628 | 2,600,479 | 2,739,629 |
Production taxes | 443,154 | 373,754 | 719,180 | 701,035 |
Depreciation, depletion and amortization | 1,777,817 | 3,373,518 | 4,038,466 | 6,329,219 |
Provision for impairment | 29,545,702 | 29,545,702 | ||
Interest expense | 267,865 | 346,573 | 569,763 | 717,238 |
General and administrative | 2,059,476 | 2,174,661 | 3,790,573 | 4,397,689 |
Other expense (income) | (102,261) | 40,066 | (98,944) | 29,136 |
Total costs and expenses | 6,796,216 | 38,753,101 | 13,654,580 | 47,183,518 |
Income (loss) before provision (benefit) for income taxes | (716,723) | (27,441,814) | (1,382,443) | (25,295,700) |
Provision (benefit) for income taxes | (217,000) | (6,987,000) | (286,000) | (6,733,000) |
Net income (loss) | $ (499,723) | $ (20,454,814) | $ (1,096,443) | $ (18,562,700) |
Basic and diluted earnings (loss) per common share | $ (0.02) | $ (1.24) | $ (0.05) | $ (1.12) |
Basic and diluted weighted average shares outstanding: | ||||
Common shares | 22,429,777 | 16,384,687 | 22,403,678 | 16,362,057 |
Unissued, directors' deferred compensation shares | 178,597 | 139,390 | 177,923 | 186,443 |
Basic and diluted weighted average shares outstanding | 22,608,374 | 16,524,077 | 22,581,601 | 16,548,500 |
Dividends declared per share of common stock and paid in period | $ 0.01 | $ 0.04 | $ 0.02 | $ 0.08 |
Dividends declared per share of common stock and to be paid in quarter ended June 30 | $ 0.01 | |||
Natural Gas, Oil and NGL [Member] | ||||
Revenues: | ||||
Revenues | $ 8,345,825 | $ 7,217,618 | $ 14,770,804 | $ 14,811,456 |
Lease Bonuses and Rental Income [Member] | ||||
Revenues: | ||||
Revenues | $ 58,554 | $ 22,092 | $ 59,987 | $ 549,791 |
Statements Of Stockholders' Equ
Statements Of Stockholders' Equity - USD ($) | Total | Class A voting Common Stock [Member] | Capital in Excess of Par Value [Member] | Deferred Directors' Compensation [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balances at Sep. 30, 2019 | $ 79,309,533 | $ 281,509 | $ 2,967,984 | $ 2,555,781 | $ 81,848,301 | $ (8,344,042) |
Balances, shares at Sep. 30, 2019 | 16,897,306 | |||||
Balances, Treasury shares at Sep. 30, 2019 | (558,051) | |||||
Net income (loss) | 1,892,114 | 1,892,114 | ||||
Purchase of treasury stock | (7,635) | $ (7,635) | ||||
Purchase of treasury stock, shares | (632) | |||||
Restricted stock awards | 148,515 | 148,515 | ||||
Dividends | (1,319,899) | (1,319,899) | ||||
Distribution of restricted stock to officers and directors | 93 | (82,821) | $ 82,914 | |||
Distribution of restricted stock to officers and directors, shares | 5,546 | |||||
Increase in deferred directors' compensation charged to expense | 86,212 | 86,212 | ||||
Balances at Dec. 31, 2019 | 80,108,933 | $ 281,509 | 3,033,678 | 2,641,993 | 82,420,516 | $ (8,268,763) |
Balances, shares at Dec. 31, 2019 | 16,897,306 | |||||
Balances, Treasury shares at Dec. 31, 2019 | (553,137) | |||||
Balances at Sep. 30, 2019 | 79,309,533 | $ 281,509 | 2,967,984 | 2,555,781 | 81,848,301 | $ (8,344,042) |
Balances, shares at Sep. 30, 2019 | 16,897,306 | |||||
Balances, Treasury shares at Sep. 30, 2019 | (558,051) | |||||
Net income (loss) | (18,562,700) | |||||
Balances at Mar. 31, 2020 | 60,051,137 | $ 281,509 | 3,264,383 | 2,092,426 | 61,965,702 | $ (7,552,883) |
Balances, shares at Mar. 31, 2020 | 16,897,306 | |||||
Balances, Treasury shares at Mar. 31, 2020 | (505,252) | |||||
Balances at Dec. 31, 2019 | 80,108,933 | $ 281,509 | 3,033,678 | 2,641,993 | 82,420,516 | $ (8,268,763) |
Balances, shares at Dec. 31, 2019 | 16,897,306 | |||||
Balances, Treasury shares at Dec. 31, 2019 | (553,137) | |||||
Net income (loss) | (20,454,814) | (20,454,814) | ||||
Restricted stock awards | 343,101 | 343,101 | ||||
Distribution of deferred Directors' compensation | (1) | (112,396) | (603,485) | $ 715,880 | ||
Distribution of deferred directors' compensation, shares | 47,885 | |||||
Increase in deferred directors' compensation charged to expense | 53,918 | 53,918 | ||||
Balances at Mar. 31, 2020 | 60,051,137 | $ 281,509 | 3,264,383 | 2,092,426 | 61,965,702 | $ (7,552,883) |
Balances, shares at Mar. 31, 2020 | 16,897,306 | |||||
Balances, Treasury shares at Mar. 31, 2020 | (505,252) | |||||
Balances at Sep. 30, 2020 | $ 62,993,926 | $ 377,304 | 10,649,611 | 1,874,007 | 56,244,100 | $ (6,151,096) |
Balances, shares at Sep. 30, 2020 | 22,647,306 | |||||
Balances, Treasury shares at Sep. 30, 2020 | (411,487) | (411,487) | ||||
Net income (loss) | $ (596,720) | (596,720) | ||||
Equity offering | 225,758 | $ 2,555 | 223,203 | |||
Equity offering, shares | 153,375 | |||||
Restricted stock awards | 122,978 | 122,978 | ||||
Dividends | (454,936) | (454,936) | ||||
Distribution of restricted stock to officers and directors | 353 | (316,886) | $ 317,239 | |||
Distribution of restricted stock to officers and directors, shares | 21,220 | |||||
Increase in deferred directors' compensation charged to expense | 44,527 | 44,527 | ||||
Balances at Dec. 31, 2020 | 62,335,886 | $ 379,859 | 10,678,906 | 1,918,534 | 55,192,444 | $ (5,833,857) |
Balances, shares at Dec. 31, 2020 | 22,800,681 | |||||
Balances, Treasury shares at Dec. 31, 2020 | (390,267) | |||||
Balances at Sep. 30, 2020 | $ 62,993,926 | $ 377,304 | 10,649,611 | 1,874,007 | 56,244,100 | $ (6,151,096) |
Balances, shares at Sep. 30, 2020 | 22,647,306 | |||||
Balances, Treasury shares at Sep. 30, 2020 | (411,487) | (411,487) | ||||
Net income (loss) | $ (1,096,443) | |||||
Balances at Mar. 31, 2021 | $ 61,732,555 | $ 380,268 | 11,150,749 | 1,633,939 | 54,402,724 | $ (5,835,125) |
Balances, shares at Mar. 31, 2021 | 22,825,226 | |||||
Balances, Treasury shares at Mar. 31, 2021 | (390,267) | (390,267) | ||||
Balances at Dec. 31, 2020 | $ 62,335,886 | $ 379,859 | 10,678,906 | 1,918,534 | 55,192,444 | $ (5,833,857) |
Balances, shares at Dec. 31, 2020 | 22,800,681 | |||||
Balances, Treasury shares at Dec. 31, 2020 | (390,267) | |||||
Net income (loss) | (499,723) | (499,723) | ||||
Equity offering | (29,240) | (29,240) | ||||
Restricted stock awards | 161,170 | 161,170 | ||||
Dividends | (289,997) | (289,997) | ||||
Distribution of restricted stock to officers and directors | (1,268) | $ (1,268) | ||||
Distribution of deferred Directors' compensation | $ 409 | 339,913 | (340,322) | |||
Distribution of deferred directors' compensation, shares | 24,545 | |||||
Increase in deferred directors' compensation charged to expense | 55,727 | 55,727 | ||||
Balances at Mar. 31, 2021 | $ 61,732,555 | $ 380,268 | $ 11,150,749 | $ 1,633,939 | $ 54,402,724 | $ (5,835,125) |
Balances, shares at Mar. 31, 2021 | 22,825,226 | |||||
Balances, Treasury shares at Mar. 31, 2021 | (390,267) | (390,267) |
Statements Of Stockholders' E_2
Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | |||
Dividends per share | $ 0.01 | $ 0.02 | $ 0.08 |
Condensed Statements Of Cash Fl
Condensed Statements Of Cash Flows - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Activities | ||
Net income (loss) | $ (1,096,443) | $ (18,562,700) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 4,038,466 | 6,329,219 |
Impairment of producing properties | 29,545,702 | |
Provision for deferred income taxes | (288,000) | (4,711,000) |
Gain from leasing fee mineral acreage | (57,493) | (544,979) |
Proceeds from leasing fee mineral acreage | 64,047 | 559,462 |
Net (gain) loss on sales of assets | (62,097) | (3,265,449) |
Directors' deferred compensation expense | 100,254 | 140,130 |
Total (gain) loss on derivative contracts | 2,602,179 | (3,253,683) |
Cash receipts (payments) on settled derivative contracts | 315,883 | 1,530,912 |
Restricted stock awards | 284,148 | 491,616 |
Other | 31,544 | 7,225 |
Cash provided (used) by changes in assets and liabilities: | ||
Natural gas, oil and NGL sales receivables | (1,732,801) | 1,168,943 |
Other current assets | (388,864) | (232,349) |
Accounts payable | (340,404) | 117,561 |
Income taxes receivable | 1,356,356 | (2,072,428) |
Other non-current assets | 56,545 | 50,010 |
Accrued liabilities | (206,213) | (1,189,850) |
Total adjustments | 5,773,550 | 24,671,042 |
Net cash provided by operating activities | 4,677,107 | 6,108,342 |
Investing Activities | ||
Capital expenditures | (425,098) | (139,755) |
Acquisition of minerals and overrides | (7,934,504) | (10,254,016) |
Proceeds from sales of assets | 21,000 | 3,376,049 |
Net cash provided (used) by investing activities | (8,338,602) | (7,017,722) |
Financing Activities | ||
Borrowings under Credit Facility | 5,561,725 | |
Payments of loan principal | (5,250,000) | (8,986,725) |
Net proceeds from equity issuance | (53,482) | |
Purchases of treasury stock | (7,635) | |
Payments of dividends | (454,936) | (1,319,899) |
Net cash provided (used) by financing activities | (5,758,418) | (4,752,534) |
Increase (decrease) in cash and cash equivalents | (9,419,913) | (5,661,914) |
Cash and cash equivalents at beginning of period | 10,690,395 | 6,160,691 |
Cash and cash equivalents at end of period | 1,270,482 | 498,777 |
Supplemental Schedule of Noncash Investing and Financing Activities: | ||
Dividends declared and unpaid | 289,997 | |
Additions to asset retirement obligations | 4 | |
Gross additions to properties and equipment | 8,759,616 | 10,229,121 |
Equity offering used for acquisitions | (250,000) | |
Net (increase) decrease in accounts payable for properties and equipment additions | (150,014) | 164,650 |
Capital expenditures and acquisitions | $ 8,359,602 | $ 10,393,771 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Principles | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Principles | NOTE 1: Basis of Presentation and Accounting Principles Basis of Presentation The accompanying unaudited condensed financial statements of PHX Minerals Inc. have been prepared in accordance with the instructions to Form 10-Q as prescribed by the SEC. Management believes that all adjustments necessary for a fair presentation of the financial position and results of operations and cash flows for the periods have been included. All such adjustments are of a normal recurring nature. The results are not necessarily indicative of those to be expected for the full fiscal year. The Company’s fiscal year runs from October 1 through September 30. Certain amounts and disclosures have been condensed or omitted from these financial statements pursuant to the rules and regulations of the SEC. Therefore, these condensed financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020. Unless indicated otherwise or the context requires, the terms “we,” “our,” “us,” “PHX” or “Company” refer to PHX Minerals Inc. Recent Accounting Pronouncements Standard Description Date of Adoption Impact on Financial Statements or Other Significant Matters New Accounting Pronouncements yet to be Adopted ASU 2019-12, Simplifying the Accounting for Income Taxes This standard is intended to clarify and simplify the accounting for income taxes by removing certain exceptions and amending existing guidance. Q1 2022 This standard is effective for public business entities beginning after December 15, 2020, with early adoption permitted. The Company does not believe the adoption of this standard will have a material impact on its financial statements and related disclosures. Other accounting standards that have been issued or proposed by the FASB, or other standards-setting bodies, that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. |
Revenues
Revenues | 6 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | NOTE 2: Revenues Lease bonus income The Company generates lease bonus revenue by leasing its mineral interests to exploration and production companies. A lease agreement represents the Company's contract with a third party and generally conveys the rights to any natural gas, oil or NGL discovered, grants the Company a right to a specified royalty interest and requires that drilling and completion operations commence within a specified time period. Control is transferred to the lessee and the Company has satisfied its performance obligation when the lease agreement is executed, such that revenue is recognized when the lease bonus payment is received. The Company accounts for its lease bonuses as conveyances in accordance with the guidance set forth in ASC 932 (Extractive Activities—Oil and Gas), and it recognizes the lease bonus as a cost recovery with any excess above its cost basis in the mineral being treated as a gain. The excess of lease bonus above the mineral basis is shown in the lease bonuses and rental income line item on the Company’s Statements of Operations. Natural gas and oil derivative contracts See Note 9 for discussion of the Company’s accounting for derivative contracts. Revenues from Contracts with Customers Natural gas, oil and NGL sales Sales of natural gas, oil and NGL are recognized when production is sold to a purchaser and control has transferred. Oil is priced on the delivery date based upon prevailing prices published by purchasers with certain adjustments related to oil quality and physical location. The price the Company receives for natural gas and NGL is tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality and heat content of natural gas, and prevailing supply and demand conditions, so that the price of natural gas fluctuates to remain competitive with other available natural gas supplies. These market indices are determined on a monthly basis. Each unit of commodity is considered a separate performance obligation; however, as consideration is variable, the Company utilizes the variable consideration allocation exception permitted under the standard to allocate the variable consideration to the specific units of commodity to which they relate. Disaggregation of natural gas, oil and NGL revenues The following table presents the disaggregation of the Company's natural gas, oil and NGL revenues for the three and six months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 Six Months Ended March 31, 2021 Royalty Interest Working Interest Total Royalty Interest Working Interest Total Natural gas revenue $ 2,366,427 $ 2,006,670 $ 4,373,097 $ 3,556,592 $ 4,275,306 $ 7,831,898 Oil revenue 1,717,069 1,427,852 3,144,921 2,814,021 2,671,966 5,485,987 NGL revenue 410,851 416,956 827,807 641,189 811,730 1,452,919 Natural gas, oil and NGL sales $ 4,494,347 $ 3,851,478 $ 8,345,825 $ 7,011,802 $ 7,759,002 $ 14,770,804 Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Royalty Interest Working Interest Total Royalty Interest Working Interest Total Natural gas revenue $ 1,057,610 $ 1,444,976 $ 2,502,586 $ 2,330,724 $ 3,685,305 $ 6,016,029 Oil revenue 2,548,648 1,641,643 4,190,291 3,961,859 3,693,944 7,655,803 NGL revenue 196,311 328,430 524,741 419,088 720,536 1,139,624 Natural gas, oil and NGL sales $ 3,802,569 $ 3,415,049 $ 7,217,618 $ 6,711,671 $ 8,099,785 $ 14,811,456 Prior-period performance obligations and contract balances The Company records revenue in the month production is delivered to the purchaser. As a non-operator, the Company has limited visibility into the timing of when new wells start producing, and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded within the natural gas, oil and NGL sales receivables line item on the Company’s Balance Sheets. The difference between the Company's estimates and the actual amounts received for natural gas, oil and NGL sales is recorded in the quarter that payment is received from the third party. For the three and six months ended March 31, 2021 and 2020, revenue recognized in these reporting periods related to performance obligations satisfied in prior reporting periods for existing wells was immaterial and considered a change in estimate. As noted above, as a non-operator, there are instances when the Company is limited by the information operators provide to us. Through cash received on new wells, in the 2021 second quarter, the Company identified several producing properties on our minerals that had production dates prior to the 2021 second quarter. Estimates of the natural gas and oil sales related to those properties were made and are reflected in the second quarter Natural gas, oil and NGL sales on the Company’s Statements of Operations and on the Company’s Balance Sheets in Natural gas, oil and NGL sales receivables. In connection with obtaining more relevant information on new wells on Company acreage, we have recorded a change in estimate for new wells to Natural gas, oil and NGL sales totaling $562,428 of which $246,405 related to the production periods before October 1, 2020, and $316,023 related to the first quarter of 2021. Through the use of new technological platforms as well as cash received on new wells, in the 2020 second quarter, the Company identified several producing properties on our minerals that had production dates prior to the 2020 second quarter. Estimates of the natural gas and oil sales related to those properties were made and are reflected in the second quarter Natural gas, oil and NGL sales on the Company’s Statements of Operations and on the Company’s Balance Sheets in Natural gas, oil and NGL sales receivables. In connection with obtaining more relevant information identifying additional new wells on Company acreage, we have recorded a change in estimate for new wells to Natural gas, oil and NGL sales totaling $1,140,171 of which $651,681 related to the production periods before October 1, 2019, and $488,490 related to first quarter of 2020. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 3: Income Taxes The Company’s provision for income taxes differs from the statutory rate primarily due to estimated federal and state benefits generated from excess federal and Oklahoma percentage depletion, which are permanent tax benefits. Excess percentage depletion, both federal and Oklahoma, can only be taken in the amount that it exceeds cost depletion which is calculated on a unit-of-production basis. Excess tax benefits and deficiencies of stock-based compensation are recognized as provision (benefit) for income taxes in the Company’s Statements of Operations. Both excess federal percentage depletion, which is limited to certain production volumes and by certain income levels, and excess Oklahoma percentage depletion, which has no limitation on production volume, reduce estimated taxable income or add to estimated taxable loss projected for any year. The federal and Oklahoma excess percentage depletion estimates will be updated throughout the year until finalized with detailed well-by-well calculations at fiscal year-end. Federal and Oklahoma excess percentage depletion, when a provision for income taxes is expected for the year, decreases the effective tax rate, while the effect is to increase the effective tax rate when a benefit for income taxes is expected for the year. The benefits of federal and Oklahoma excess percentage depletion and excess tax benefits and deficiencies of stock-based compensation are not directly related to the amount of pre-tax income (loss) recorded in a period. Accordingly, in periods where a recorded pre-tax income or loss is relatively small, the proportional effect of these items on the effective tax rate may be significant. The effective tax rate for the six months ended March 31, 2021, was a 21% benefit as compared to a 27% benefit for the six months ended March 31, 2020. The effective tax rate for the quarter ended March 31, 2021, was a 30% benefit as compared to a 25% benefit for the quarter ended March 31, 2020. The federal Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020. The CARES Act provides relief to corporate taxpayers by permitting a five-year |
Basic And Diluted Earnings (Los
Basic And Diluted Earnings (Loss) Per Common Share | 6 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic And Diluted Earnings (Loss) Per Common Share | NOTE 4: Basic and Diluted Earnings (Loss) per Common Share Basic and diluted earnings (loss) per common share is calculated using net income (loss) divided by the weighted average number of voting common shares outstanding, including unissued, vested directors’ deferred compensation shares during the period. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 5: Long-Term Debt The Company has a $200,000,000 credit facility with a group of banks headed by Bank of Oklahoma (BOK) with a borrowing base of $29,400,000 as of March 31, 2021, and a maturity date of November 30, 2022 (as amended, the “Credit Facility”). The Credit Facility is subject to at least semi-annual borrowing base determinations, wherein BOK applies its commodity pricing forecast to the Company’s reserve forecast and determines a borrowing base. The Credit Facility is secured by all of the Company’s producing oil and gas properties. The interest rate is based on BOK prime plus from 1.00% to 1.75%, or 30-day LIBOR plus from 2.50% to 3.25%. The election of BOK prime or LIBOR is at the Company’s discretion. The interest rate spread from BOK prime or LIBOR will be charged based on the ratio of the loan balance to the borrowing base. The interest rate spread from LIBOR or the prime rate increases as the ratio of loan balance to the borrowing base increases. At March 31, 2021, the effective interest rate was 4.00%. The Company’s debt is recorded at the carrying amount on its Balance Sheets. The carrying amount of the Credit Facility approximates fair value because the interest rates are reflective of market rates. Debt issuance costs associated with the Credit Facility are presented in Other, net on the Company’s Balance Sheets. Total debt issuance cost net of amortization as of March 31, 2021 was $195,073. The debt issuance cost is amortized over the life of the Credit Facility. Determinations of the borrowing base are made semi-annually (usually in June and December) or whenever the banks, in their discretion, believe that there has been a material change in the value of the Company’s natural gas and oil properties. On December 4, 2020, the Company entered into the eighth amendment to the Credit Facility. The amendment reduced the Quarterly Commitment Reductions from $1,000,000 to $600,000, reduced the consolidated cash balance in the anti-cash hoarding provision from $2,000,000 to $1,000,000, and changed the debt to EBITDA ratio from 4.0:1.00 to 3.50:1.00. The borrowing base after Quarterly Commitment Reductions was reaffirmed at $ 30,000,000 . The next redetermination occurred in April 2021. See Note 12: Subsequent Events for further discussion. The Credit Facility contains customary covenants which, among other things, require periodic financial and reserve reporting and place certain limits on the Company’s incurrence of indebtedness, liens, payment of dividends and acquisitions of stock. In addition, the Company is required to maintain certain financial ratios, a current ratio (as defined in the Credit Facility) of no less than 1.0 to 1.0 and a funded debt to EBITDA ratio (as defined in the Credit Facility) of no more than 3.5 to 1.0 based on the trailing twelve months. Pursuant to the Credit Facility, the Company is also required to enter into and maintain certain Swap Agreements (as defined in the Credit Facility) for a period of eighteen (18) months fixing prices on oil or gas expected to be produced. At March 31, 2021, the Company was in compliance with the covenants of the Credit Facility, had $23,500,000 outstanding under the Credit Facility and had $5,900,000 of borrowing base availability under the Credit Facility. |
Deferred Compensation Plan For
Deferred Compensation Plan For Non-Employee Directors | 6 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Deferred Compensation Plan For Non-Employee Directors | NOTE 6: Deferred Compensation Plan for Non-Employee Directors Annually, non-employee directors may elect to be included in the Deferred Compensation Plan for Non-Employee Directors. This plan provides that each outside director may individually elect to be credited with future unissued shares of Company common stock rather than cash for all or a portion of the annual retainers, Board meeting fees and committee meeting fees. These unissued shares are recorded to each director’s deferred compensation account at the closing market price of the shares (i) on the dates of the Board and committee meetings, and (ii) on the payment dates of the annual retainers. Only upon a director’s retirement, termination, death or a change-in-control of the Company will the shares recorded for such director be issued under this plan. Directors may elect to receive shares, when issued, over annual time periods of up to ten years. The promise to issue such shares in the future is an unsecured obligation of the Company. |
Restricted Stock Plan
Restricted Stock Plan | 6 Months Ended |
Mar. 31, 2021 | |
Restricted Stock Plan [Abstract] | |
Restricted Stock Plan | NOTE 7: Restricted Stock Plan On March 22, 2021, the Company awarded 125,000 time-based shares of the Company’s common stock as restricted stock to its non-employee directors. These time-based shares had a fair value on their award date of $396,252. On January 5, 2021, the Company awarded 303,750 market-based shares of the Company’s common stock as restricted stock to certain officers. Upon vesting, the market-based shares that do not meet certain performance criteria are forfeited. The market-based shares contain non-forfeitable rights to receive dividends and to vote the shares during the vesting period. These market-based shares had a fair value on their award date of $826,457. Compensation expense for the restricted stock awards is recognized in G&A. Forfeitures of awards are recognized when they occur. The dilutive impact of all restricted stock plans is immaterial for all periods presented. The following table summarizes the Company’s pre-tax compensation expense for the three and six months ended March 31, 2021 and 2020, related to the Company’s market-based, time-based and performance-based restricted stock: Three Months Ended Six Months Ended March 31, March 31, 2021 2020 2021 2020 Market-based, restricted stock $ 79,118 $ 200,761 $ 89,365 $ 274,903 Time-based, restricted stock 82,052 142,340 194,783 216,713 Performance-based, restricted stock - - - - Total compensation expense $ 161,170 $ 343,101 $ 284,148 $ 491,616 A summary of the Company’s unrecognized compensation cost for its unvested market-based, time-based and performance-based restricted stock and the weighted-average periods over which the compensation cost is expected to be recognized are shown in the following table: As of March 31, 2021 Unrecognized Compensation Cost Weighted Average Period (in years) Market-based, restricted stock $ 804,745 2.67 Time-based, restricted stock 764,298 1.21 Performance-based, restricted stock - Total $ 1,569,043 |
Properties And Equipment
Properties And Equipment | 6 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Properties And Equipment | NOTE 8: Properties and Equipment Properties and equipment and related accumulated DD&A as of March 31, 2021, and September 30, 2020, are as follows: March 31, 2021 September 30, 2020 Properties and equipment at cost, based on successful efforts accounting: Producing natural gas and oil properties $ 329,708,071 $ 324,886,491 Non-producing natural gas and oil properties 21,012,897 18,993,814 Other property and equipment 582,444 582,444 351,303,412 344,462,749 Less accumulated depreciation, depletion and amortization (265,863,136 ) (263,590,801 ) Net properties and equipment $ 85,440,276 $ 80,871,948 Divestitures During the first and second quarters of 2021, the Company had no significant divestitures. During the second quarter of 2020, the Company had no significant divestitures. During the first quarter of 2020, PHX closed on the sale of 530 net mineral acres in Eddy County, New Mexico, for $3.4 million. At the time of sale, the assets were mostly amortized and therefore had minimal net book value. Almost all of the value received was a gain on the sale of assets, $3.3 million, in the first quarter of 2020. The Company utilized a like-kind exchange under Internal Revenue Code Section 1031 to defer income tax on all of the gain by offsetting it with the STACK/SCOOP mineral acreage acquisition that was purchased during the quarter using qualified exchange accommodation agreements. Acquisitions On January 21, 2021, the Company closed on the purchase of 11 net mineral acres in Harrison County, Texas, for a consideration of $362,486. On December 17, 2020, the Company closed on the purchase of an additional 89 net mineral acres in San Augustine County, Texas, for a purchase price of $1 million On November 12, 2020, the Company closed on the purchase of 134 net mineral acres in San Augustine County, Texas, for a purchase price of $750,000 On October 8, 2020, the Company closed on the purchase of 297 net royalty acres in Grady County, Oklahoma, and 237 net mineral acres and 12 net royalty acres in Harrison, Panola and Nacogdoches Counties, Texas, for a purchase price of $5.5 million and 153,375 shares of PHX common stock. This purchase was largely funded with cash from the common stock offering that closed on September 1, 2020 These fiscal year 2021 purchases were accounted for as asset acquisitions. During the second quarter of 2020, the Company had no significant acquisitions. During the first quarter of 2020, PHX closed on the purchase of 700 net mineral acres in Kingfisher, Canadian and Garvin Counties, Oklahoma, for a purchase price of $9.3 million. Natural Gas, Oil and NGL Reserves Management considers the estimation of the Company’s natural gas, oil and NGL reserves to be the most significant of its judgments and estimates. Changes in natural gas, oil and NGL reserve estimates affect the Company’s calculation of DD&A, provision for retirement of assets and assessment of the need for asset impairments. On an annual basis, with a semi-annual update, the Company’s Independent Consulting Petroleum Engineer, with assistance from Company staff, prepares estimates of natural gas, oil and NGL reserves based on available geologic and seismic data, reservoir pressure data, core analysis reports, well logs, analogous reservoir performance history, production data and other available sources of engineering, geologic and geophysical information. Between periods in which reserves would normally be calculated, the Company updates the reserve calculations utilizing appropriate prices for the current period. The estimated natural gas, oil and NGL reserves were computed using the 12-month average price calculated as the unweighted arithmetic average of the first-day-of-the-month natural gas, oil and NGL price for each month within the 12-month period prior to the balance sheet date, held flat over the life of the properties. However, projected future natural gas, oil and NGL pricing assumptions are used by management to prepare estimates of natural gas, oil and NGL reserves and future net cash flows used in asset impairment assessments and in formulating management’s overall operating decisions. Natural gas, oil and NGL prices are volatile and affected by worldwide production and consumption and are outside the control of management. Impairment All long-lived assets, principally natural gas and oil properties, are monitored for potential impairment when circumstances indicate that the carrying value of the asset may be greater than its estimated future net cash flows. The evaluations involve significant judgment since the results are based on estimated future events, such as: inflation rates; future drilling and completion costs; future sales prices for natural gas, oil and NGL; future production costs; estimates of future natural gas, oil and NGL reserves to be recovered and the timing thereof; the economic and regulatory climates and other factors. The need to test a property for impairment may result from significant declines in sales prices or unfavorable adjustments to natural gas, oil and NGL reserves. Between periods in which reserves would normally be calculated, the Company updates the reserve calculations to reflect any material changes since the prior report was issued and then utilizes updated projected future price decks current with the period. For the three and six months ended March 31, 2021, the assessment resulted in no impairment provisions on producing properties. During the quarter ended March 31, 2020, the Company recorded an i mpairment in the carrying value of evaluated oil and gas properties of |
Derivatives
Derivatives | 6 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 9: Derivatives The Company has entered into commodity price derivative agreements, including fixed swap contracts and costless collar contracts. These instruments are intended to reduce the Company’s exposure to short-term fluctuations in the price of natural gas and oil. Fixed swap contracts set a fixed price and provide payments to the Company if the index price is below the fixed price, or require payments by the Company if the index price is above the fixed price. Collar contracts set a fixed floor price and a fixed ceiling price and provide payments to the Company if the index price falls below the floor or require payments by the Company if the index price rises above the ceiling. These contracts cover only a portion of the Company’s natural gas and oil production and provide only partial price protection against declines in natural gas and oil prices. The Company’s derivative contracts are currently with Bank of Oklahoma. The derivative contracts with Bank of Oklahoma are secured under the Credit Facility with Bank of Oklahoma (see Note 5: Long-Term Debt). The derivative instruments have settled or will settle based on the prices below: Derivative contracts in place as of March 31, 2021 Contract period (Calendar Year) Contract total volume Index Contract average price Natural gas costless collars Remaining 2021 2,207,500 Mmbtu NYMEX Henry Hub $2.35 floor / $3.04 ceiling 2022 2,200,500 Mmbtu NYMEX Henry Hub $2.40 floor / $3.12 ceiling 2023 86,000 Mmbtu NYMEX Henry Hub $2.25 floor / $2.96 ceiling Natural gas fixed price swaps Remaining 2021 1,166,500 Mmbtu NYMEX Henry Hub $2.80 2022 377,500 Mmbtu NYMEX Henry Hub $2.61 2023 84,000 Mmbtu NYMEX Henry Hub $2.56 Oil costless collars Remaining 2021 33,500 Bbls NYMEX WTI $36.76 floor / $45.00 ceiling 2022 68,500 Bbls NYMEX WTI $40.25 floor / $50.35 ceiling Oil fixed price swaps Remaining 2021 87,000 Bbls NYMEX WTI $39.37 2022 59,000 Bbls NYMEX WTI $41.51 The Company has elected not to complete all of the documentation requirements necessary to permit these derivative contracts to be accounted for as cash flow hedges. The Company’s fair value of derivative contracts was a net liability of $3,625,709 as of March 31, 2021, and a net liability of $707,647 as of September 30, 2020. Cash receipts or payments in the following table reflect the gain or loss on derivative contracts which settled during the respective periods, and the non-cash gain or loss reflect the change in fair value of derivative contracts as of the end of the respective periods: Three Months Ended Six Months Ended March 31, March 31, 2021 2020 2021 2020 Cash received (paid) on derivative contracts: Natural gas costless collars $ (122 ) $ - $ (9,089 ) $ - Natural gas fixed price swaps 3,105 500,520 1,242 1,220,320 Oil costless collars (112,590 ) 87,997 (23,646 ) 201,696 Oil fixed price swaps (187,824 ) 40,622 347,376 108,896 Cash received (paid) on derivative contracts, net $ (297,431 ) $ 629,139 $ 315,883 $ 1,530,912 Non-cash gain (loss) on derivative contracts: Natural gas costless collars $ (81,881 ) $ 21,983 $ 597,080 $ 27,883 Natural gas fixed price swaps (6,291 ) (113,956 ) 282,596 (685,765 ) Oil costless collars (696,360 ) 954,260 (1,107,246 ) 473,804 Oil fixed price swaps (1,266,180 ) 2,580,151 (2,690,492 ) 1,906,849 Non-cash gain (loss) on derivative contracts, net $ (2,050,712 ) $ 3,442,438 $ (2,918,062 ) $ 1,722,771 Gains (losses) on derivative contracts, net $ (2,348,143 ) $ 4,071,577 $ (2,602,179 ) $ 3,253,683 The fair value amounts recognized for the Company’s derivative contracts executed with the same counterparty under a master netting arrangement may be offset. The Company has the choice of whether or not to offset, but that choice must be applied consistently. A master netting arrangement exists if the reporting entity has multiple contracts with a single counterparty that are subject to a contractual agreement that provides for the net settlement of all contracts through a single payment in a single currency in the event of default on or termination of any one contract. Offsetting the fair values recognized for the derivative contracts outstanding with a single counterparty results in the net fair value of the transactions being reported as an asset or a liability in the Company’s Balance Sheets. The following table summarizes and reconciles the Company's derivative contracts’ fair values at a gross level back to net fair value presentation on the Company's Balance Sheets at March 31, 2021, and September 30, 2020. The Company has offset all amounts subject to master netting agreements in the Company's Balance Sheets at March 31, 2021, and September 30, 2020. March 31, 2021 September 30, 2020 Fair Value (a) Fair Value (a) Commodity Contracts Commodity Contracts Current Assets Current Liabilities Non-Current Assets Non-Current Liabilities Current Assets Current Liabilities Non-Current Liabilities Gross amounts recognized $ 106,480 $ 3,107,010 $ 177,756 $ 802,935 $ 864,466 $ 1,146,408 $ 425,705 Offsetting adjustments (106,480 ) (106,480 ) (177,756 ) (177,756 ) (864,466 ) (864,466 ) - Net presentation on Condensed Balance Sheets $ - $ 3,000,530 $ - $ 625,179 $ - $ 281,942 $ 425,705 (a) See Note 10: Fair Value Measurements for further disclosures regarding fair value of financial instruments. The fair value of derivative assets and derivative liabilities is adjusted for credit risk. The impact of credit risk was immaterial for all periods presented. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 10: Fair Value Measurements Fair value is defined as the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants, i.e., an exit price. To estimate an exit price, a three-level hierarchy is used. The fair value hierarchy prioritizes the inputs, which refer broadly to assumptions market participants would use in pricing an asset or a liability, into three levels. Level 1 inputs are unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: ( i ) quoted prices for similar assets or liabilities in active markets; (ii) quoted prices for identical or similar assets or liabilities in markets that are not active; (iii) inputs other than quoted prices that are observable for the asset or liability; or (iv) inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 inputs are unobservable inputs for the financial asset or liability. The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis at March 31, 2021: Fair Value Measurement at March 31, 2021 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair (Level 1) (Level 2) (Level 3) Value Financial Assets (Liabilities): Derivative Contracts - Swaps $ - $ (2,472,697 ) $ - $ (2,472,697 ) Derivative Contracts - Collars $ - $ (1,153,012 ) $ - $ (1,153,012 ) Level 2 – Market Approach - The fair values of the Company’s swaps and collars are based on a third-party pricing model, which utilizes inputs that are either readily available in the public market, such as natural gas curves and volatility curves, or can be corroborated from active markets. These values are based upon future prices, time to maturity and other factors. These values are then compared to the values given by our counterparties for reasonableness. The following table presents impairments associated with certain assets that have been measured at fair value on a nonrecurring basis within Level 3 of the fair value hierarchy: Quarter Ended March 31, 2021 2020 Fair Value Impairment Fair Value Impairment Producing Properties (a) $ - $ - $ 5,288,710 $ 29,315,807 Six Months Ended March 31, 2021 2020 Fair Value Impairment Fair Value Impairment Producing Properties (a) $ - $ - $ 5,288,710 $ 29,315,807 (a) When indicators of impairment are present, the Company assesses the carrying value of its producing properties for impairment. This assessment utilized estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future natural gas, oil and NGL prices using a forward NYMEX curve adjusted for projected inflation, locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values. This table excludes impairments on properties that were written off during the three months ended March 31, 2020 in the amount $229,895. At March 31, 2021, and September 30, 2020, the carrying values of cash and cash equivalents, receivables, and payables are considered to be representative of their respective fair values due to the short-term maturities of those instruments. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11: Commitments and Contingencies Litigation The Company may be the subject of threatened or pending legal actions and contingencies in the normal course of conducting our business. The Company provides for costs related to these matters when a loss is probable and the amount can be reasonably estimated. The effect of the outcome of these matters on our future results of operations and liquidity cannot be predicted because any such effect depends on future results of operations and the amount or timing of the resolution of such matters. For certain types of claims, the Company maintains insurance coverage for personal injury and property damage, product liability and other liability coverages in amounts and with deductibles that it believes are prudent, but there can be no assurance that these coverages will be applicable or adequate to cover adverse outcomes of claims or legal proceedings against the Company. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12: Subsequent Events Bank Redetermination On April 7, 2021, the Company entered into a Ninth Amendment (the “Amendment”) to its Amended and Restated Credit Agreement, dated November 25, 2013 (as amended from time to time, the “Credit Facility”) with BOKF, NA dba Bank of Oklahoma, as lender, issuing bank and administrative agent for several banks and other financial institutions and lenders thereto. The Amendment, among other things, reduces Additionally, the Amendment increases the Company’s distribution allowance from $1.0 million to $1.5 million per annum for a period of one year from the date of the Amendment and extends this allowance beyond the date that is one year following the date of the Amendment so long as (i) the Available Commitment is greater than or equal to 20% of the Total Commitment and (ii) the Leverage Ratio on a pro forma basis does not exceed 2.75 to 1.00. The existing prohibition of all Restricted Payments other than the subject distribution allowance and the existing requirement that immediately after giving effect to a permitted Restricted Payment, no Default or Event of Default may exist or result therefrom are to remain in effect. The Amendment also provides that any cash actually received by the Company in an equity raise is considered “Excluded Cash” (previously, this was limited to cash actually received by the Company in an equity raise on or prior to December 24, 2020) and that such cash may be used for acquisitions by the Company without BOKF’s prior written consent. The capitalized terms which are not defined in this description of the Amendment shall have the meaning given to such terms in the Credit Facility. Debt Payment Subsequent to March 31, 2021, the Company paid down an additional $1,750,000 under the Credit Facility, bringing the total outstanding debt balance to $21,750,000, as of April 28, 2021. Equity Offering Subsequent to March 31, 2021, the Company closed on an underwritten public offering of 6,175,000 common shares (inclusive of overallotment option) with estimated net proceeds of $11.2 million to the Company. Acquisition On April 30, 2021, the Company closed on the acquisition of certain mineral and royalty assets located in Stephens, Carter, Canadian, McClain, Murray, and Garvin Counties, Oklahoma, for aggregate consideration of approximately $10,939,875 (the “Acquisition”), pursuant to a Purchase and Sale Agreement (the “Purchase Agreement”) entered into by the Company with Palmetto Investment Partners, LLC, Palmetto Investment Partners II, LLC and Crestwood Exploration Partners, LLC, on April 14, 2021. The Acquisition includes mineral and royalty assets totaling approximately 2,514 net royalty acres and 1,889 net mineral acres in the SCOOP play. The Acquisition has an effective date of November 1, 2020. Total consideration for the Acquisition after purchase price adjustments included a cash payment of approximately $8,539,875 and the issuance of 1,200,000 shares of common stock (the “Equity Consideration”), which are being held in escrow to satisfy potential indemnification claims under the Purchase Agreement. The Purchase Agreement includes registration rights relating to the Equity Consideration pursuant to which the Company agrees to register with the Securities and Exchange Commission the shares constituting the Equity Consideration. The Company agrees to file a resale registration statement and to use reasonable best efforts to cause such registration statement to be declared effective as promptly as possible after the filing thereof |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Principles (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements of PHX Minerals Inc. have been prepared in accordance with the instructions to Form 10-Q as prescribed by the SEC. Management believes that all adjustments necessary for a fair presentation of the financial position and results of operations and cash flows for the periods have been included. All such adjustments are of a normal recurring nature. The results are not necessarily indicative of those to be expected for the full fiscal year. The Company’s fiscal year runs from October 1 through September 30. Certain amounts and disclosures have been condensed or omitted from these financial statements pursuant to the rules and regulations of the SEC. Therefore, these condensed financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020. Unless indicated otherwise or the context requires, the terms “we,” “our,” “us,” “PHX” or “Company” refer to PHX Minerals Inc. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Standard Description Date of Adoption Impact on Financial Statements or Other Significant Matters New Accounting Pronouncements yet to be Adopted ASU 2019-12, Simplifying the Accounting for Income Taxes This standard is intended to clarify and simplify the accounting for income taxes by removing certain exceptions and amending existing guidance. Q1 2022 This standard is effective for public business entities beginning after December 15, 2020, with early adoption permitted. The Company does not believe the adoption of this standard will have a material impact on its financial statements and related disclosures. Other accounting standards that have been issued or proposed by the FASB, or other standards-setting bodies, that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Natural Gas, Oil and NGL Revenues | The following table presents the disaggregation of the Company's natural gas, oil and NGL revenues for the three and six months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 Six Months Ended March 31, 2021 Royalty Interest Working Interest Total Royalty Interest Working Interest Total Natural gas revenue $ 2,366,427 $ 2,006,670 $ 4,373,097 $ 3,556,592 $ 4,275,306 $ 7,831,898 Oil revenue 1,717,069 1,427,852 3,144,921 2,814,021 2,671,966 5,485,987 NGL revenue 410,851 416,956 827,807 641,189 811,730 1,452,919 Natural gas, oil and NGL sales $ 4,494,347 $ 3,851,478 $ 8,345,825 $ 7,011,802 $ 7,759,002 $ 14,770,804 Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Royalty Interest Working Interest Total Royalty Interest Working Interest Total Natural gas revenue $ 1,057,610 $ 1,444,976 $ 2,502,586 $ 2,330,724 $ 3,685,305 $ 6,016,029 Oil revenue 2,548,648 1,641,643 4,190,291 3,961,859 3,693,944 7,655,803 NGL revenue 196,311 328,430 524,741 419,088 720,536 1,139,624 Natural gas, oil and NGL sales $ 3,802,569 $ 3,415,049 $ 7,217,618 $ 6,711,671 $ 8,099,785 $ 14,811,456 |
Restricted Stock Plan (Tables)
Restricted Stock Plan (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Restricted Stock Plan [Abstract] | |
Summary Of Pre-Tax Compensation Expense | The following table summarizes the Company’s pre-tax compensation expense for the three and six months ended March 31, 2021 and 2020, related to the Company’s market-based, time-based and performance-based restricted stock: Three Months Ended Six Months Ended March 31, March 31, 2021 2020 2021 2020 Market-based, restricted stock $ 79,118 $ 200,761 $ 89,365 $ 274,903 Time-based, restricted stock 82,052 142,340 194,783 216,713 Performance-based, restricted stock - - - - Total compensation expense $ 161,170 $ 343,101 $ 284,148 $ 491,616 |
Summary Of Unrecognized Compensation Cost | A summary of the Company’s unrecognized compensation cost for its unvested market-based, time-based and performance-based restricted stock and the weighted-average periods over which the compensation cost is expected to be recognized are shown in the following table: As of March 31, 2021 Unrecognized Compensation Cost Weighted Average Period (in years) Market-based, restricted stock $ 804,745 2.67 Time-based, restricted stock 764,298 1.21 Performance-based, restricted stock - Total $ 1,569,043 |
Properties And Equipment (Table
Properties And Equipment (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Properties and Equipment and Related Accumulated DD&A | Properties and equipment and related accumulated DD&A as of March 31, 2021, and September 30, 2020, are as follows: March 31, 2021 September 30, 2020 Properties and equipment at cost, based on successful efforts accounting: Producing natural gas and oil properties $ 329,708,071 $ 324,886,491 Non-producing natural gas and oil properties 21,012,897 18,993,814 Other property and equipment 582,444 582,444 351,303,412 344,462,749 Less accumulated depreciation, depletion and amortization (265,863,136 ) (263,590,801 ) Net properties and equipment $ 85,440,276 $ 80,871,948 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary Of Derivative Instruments Contracts | Derivative contracts in place as of March 31, 2021 Contract period (Calendar Year) Contract total volume Index Contract average price Natural gas costless collars Remaining 2021 2,207,500 Mmbtu NYMEX Henry Hub $2.35 floor / $3.04 ceiling 2022 2,200,500 Mmbtu NYMEX Henry Hub $2.40 floor / $3.12 ceiling 2023 86,000 Mmbtu NYMEX Henry Hub $2.25 floor / $2.96 ceiling Natural gas fixed price swaps Remaining 2021 1,166,500 Mmbtu NYMEX Henry Hub $2.80 2022 377,500 Mmbtu NYMEX Henry Hub $2.61 2023 84,000 Mmbtu NYMEX Henry Hub $2.56 Oil costless collars Remaining 2021 33,500 Bbls NYMEX WTI $36.76 floor / $45.00 ceiling 2022 68,500 Bbls NYMEX WTI $40.25 floor / $50.35 ceiling Oil fixed price swaps Remaining 2021 87,000 Bbls NYMEX WTI $39.37 2022 59,000 Bbls NYMEX WTI $41.51 |
Summary of Gain or Loss on Derivative Contracts, Net | Cash receipts or payments in the following table reflect the gain or loss on derivative contracts which settled during the respective periods, and the non-cash gain or loss reflect the change in fair value of derivative contracts as of the end of the respective periods Three Months Ended Six Months Ended March 31, March 31, 2021 2020 2021 2020 Cash received (paid) on derivative contracts: Natural gas costless collars $ (122 ) $ - $ (9,089 ) $ - Natural gas fixed price swaps 3,105 500,520 1,242 1,220,320 Oil costless collars (112,590 ) 87,997 (23,646 ) 201,696 Oil fixed price swaps (187,824 ) 40,622 347,376 108,896 Cash received (paid) on derivative contracts, net $ (297,431 ) $ 629,139 $ 315,883 $ 1,530,912 Non-cash gain (loss) on derivative contracts: Natural gas costless collars $ (81,881 ) $ 21,983 $ 597,080 $ 27,883 Natural gas fixed price swaps (6,291 ) (113,956 ) 282,596 (685,765 ) Oil costless collars (696,360 ) 954,260 (1,107,246 ) 473,804 Oil fixed price swaps (1,266,180 ) 2,580,151 (2,690,492 ) 1,906,849 Non-cash gain (loss) on derivative contracts, net $ (2,050,712 ) $ 3,442,438 $ (2,918,062 ) $ 1,722,771 Gains (losses) on derivative contracts, net $ (2,348,143 ) $ 4,071,577 $ (2,602,179 ) $ 3,253,683 |
Summary Of Derivative Contracts | March 31, 2021 September 30, 2020 Fair Value (a) Fair Value (a) Commodity Contracts Commodity Contracts Current Assets Current Liabilities Non-Current Assets Non-Current Liabilities Current Assets Current Liabilities Non-Current Liabilities Gross amounts recognized $ 106,480 $ 3,107,010 $ 177,756 $ 802,935 $ 864,466 $ 1,146,408 $ 425,705 Offsetting adjustments (106,480 ) (106,480 ) (177,756 ) (177,756 ) (864,466 ) (864,466 ) - Net presentation on Condensed Balance Sheets $ - $ 3,000,530 $ - $ 625,179 $ - $ 281,942 $ 425,705 (a) See Note 10: Fair Value Measurements for further disclosures regarding fair value of financial instruments. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary Of Fair Value Measurement Information For Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis at March 31, 2021: Fair Value Measurement at March 31, 2021 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair (Level 1) (Level 2) (Level 3) Value Financial Assets (Liabilities): Derivative Contracts - Swaps $ - $ (2,472,697 ) $ - $ (2,472,697 ) Derivative Contracts - Collars $ - $ (1,153,012 ) $ - $ (1,153,012 ) Level 2 – Market Approach - The fair values of the Company’s swaps and collars are based on a third-party pricing model, which utilizes inputs that are either readily available in the public market, such as natural gas curves and volatility curves, or can be corroborated from active markets. These values are based upon future prices, time to maturity and other factors. These values are then compared to the values given by our counterparties for reasonableness. |
Summary Of Impairments Associated With Certain Assets Measured At Fair Value On A Nonrecurring Basis Within Level 3 | The following table presents impairments associated with certain assets that have been measured at fair value on a nonrecurring basis within Level 3 of the fair value hierarchy: Quarter Ended March 31, 2021 2020 Fair Value Impairment Fair Value Impairment Producing Properties (a) $ - $ - $ 5,288,710 $ 29,315,807 Six Months Ended March 31, 2021 2020 Fair Value Impairment Fair Value Impairment Producing Properties (a) $ - $ - $ 5,288,710 $ 29,315,807 (a) When indicators of impairment are present, the Company assesses the carrying value of its producing properties for impairment. This assessment utilized estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future natural gas, oil and NGL prices using a forward NYMEX curve adjusted for projected inflation, locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values. This table excludes impairments on properties that were written off during the three months ended March 31, 2020 in the amount $229,895. |
Revenues (Summary of Disaggrega
Revenues (Summary of Disaggregation of Company's Natural Gas, Oil and NGL Revenues) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | $ 8,345,825 | $ 7,217,618 | $ 14,770,804 | $ 14,811,456 |
Royalty Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 4,494,347 | 3,802,569 | 7,011,802 | 6,711,671 |
Working Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 3,851,478 | 3,415,049 | 7,759,002 | 8,099,785 |
Oil [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 3,144,921 | 4,190,291 | 5,485,987 | 7,655,803 |
Oil [Member] | Royalty Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 1,717,069 | 2,548,648 | 2,814,021 | 3,961,859 |
Oil [Member] | Working Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 1,427,852 | 1,641,643 | 2,671,966 | 3,693,944 |
NGL [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 827,807 | 524,741 | 1,452,919 | 1,139,624 |
NGL [Member] | Royalty Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 410,851 | 196,311 | 641,189 | 419,088 |
NGL [Member] | Working Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 416,956 | 328,430 | 811,730 | 720,536 |
Natural Gas [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 4,373,097 | 2,502,586 | 7,831,898 | 6,016,029 |
Natural Gas [Member] | Royalty Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | 2,366,427 | 1,057,610 | 3,556,592 | 2,330,724 |
Natural Gas [Member] | Working Interest [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Natural gas, oil and NGL sales | $ 2,006,670 | $ 1,444,976 | $ 4,275,306 | $ 3,685,305 |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||||||
Revenue, practical expedient, financing component | true | |||||||
Revenues | $ 8,345,825 | $ 7,217,618 | $ 14,770,804 | $ 14,811,456 | ||||
Natural Gas, Oil and NGL [Member] | ||||||||
Disaggregation Of Revenue [Line Items] | ||||||||
Revenues | $ 8,345,825 | $ 7,217,618 | 14,770,804 | 14,811,456 | ||||
Natural Gas, Oil and NGL [Member] | New Wells on PHX Acreage [Member] | ||||||||
Disaggregation Of Revenue [Line Items] | ||||||||
Revenues | $ 316,023 | $ 488,490 | $ 562,428 | $ 1,140,171 | $ 246,405 | $ 651,681 | ||
Minimum [Member] | ||||||||
Disaggregation Of Revenue [Line Items] | ||||||||
New wells production statements period | 30 days | |||||||
Maximum [Member] | ||||||||
Disaggregation Of Revenue [Line Items] | ||||||||
New wells production statements period | 90 days |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | Jul. 28, 2020 | Mar. 27, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Sep. 30, 2020 |
Income Tax Contingency [Line Items] | ||||||||
Effective tax rate | (30.00%) | (25.00%) | (21.00%) | (27.00%) | ||||
Tax receivable associated with carryback of net operating loss | $ 2,448,871 | $ 2,448,871 | $ 3,805,227 | |||||
CARES Act [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Net operating losses carryback term | 5 years | |||||||
Net operating losses carryback term start year | 2018 | |||||||
Net operating losses carryback term end year | 2020 | |||||||
Net operating losses carryback percentage. | 80.00% | |||||||
Net operating losses percentage of increase limitation on interest expense deductibility | 50.00% | 30.00% | ||||||
Net operating losses carryback percentage of adjusted taxable income | 50.00% | |||||||
Total Deferred tax assets | $ 0 | |||||||
Refundable tax credit due to AMT credits | $ 1,400,000 | |||||||
Federal [Member] | CARES Act [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Tax receivable associated with carryback of net operating loss | $ 2,200,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) - Revolving Credit Facility [Member] - USD ($) | Dec. 04, 2020 | Jun. 24, 2020 | Mar. 31, 2021 |
Line Of Credit Facility [Line Items] | |||
Revolving loan credit facility | $ 200,000,000 | ||
Borrowing base of credit facility | $ 30,000,000 | $ 29,400,000 | |
Credit facility maturity | Nov. 30, 2022 | ||
Effective Interest rate | 4.00% | ||
Debt issuance cost net of amortization | $ 195,073 | ||
Borrowing base of credit facility, quarterly reduction amount | $ 600,000 | $ 1,000,000 | |
Borrowing base of credit facility, quarterly reduction term description | The amendment reduced the Quarterly Commitment Reductions from $1,000,000 to $600,000 | ||
Consolidated cash balance in anti-cash hoarding provision | $ 1,000,000 | $ 2,000,000 | |
Funded debt to EBITDA ratio | 350.00% | 400.00% | 350.00% |
Swap agreement period | 18 months | ||
Credit facility outstanding amount | $ 23,500,000 | ||
Availability under outstanding credit facility | $ 5,900,000 | ||
Minimum [Member] | |||
Line Of Credit Facility [Line Items] | |||
Current ratio | 100.00% | ||
Minimum [Member] | Prime Rate [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 1.00% | ||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 2.50% | ||
Maximum [Member] | Prime Rate [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 1.75% | ||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 3.25% |
Deferred Compensation Plan Fo_2
Deferred Compensation Plan For Non-Employee Directors (Details) | 6 Months Ended |
Mar. 31, 2021 | |
Maximum [Member] | |
Deferred Compensation Plan For Directors [Line Items] | |
Period outside directors may elect to receive shares | 10 years |
Restricted Stock Plan (Narrativ
Restricted Stock Plan (Narrative) (Details) - USD ($) | Mar. 22, 2021 | Jan. 05, 2021 |
Time-Based Restricted Stock [Member] | Non Employee Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded | 125,000 | |
Fair value of shares awarded | $ 396,252 | |
Market-Based Restricted Stock [Member] | Officer [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares awarded | 303,750 | |
Fair value of shares awarded | $ 826,457 |
Restricted Stock Plan (Summary
Restricted Stock Plan (Summary Of Pre-Tax Compensation Expense) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 161,170 | $ 343,101 | $ 284,148 | $ 491,616 |
Market-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 79,118 | 200,761 | 89,365 | 274,903 |
Time-Based Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 82,052 | $ 142,340 | $ 194,783 | $ 216,713 |
Restricted Stock Plan (Summar_2
Restricted Stock Plan (Summary Of Unrecognized Compensation Cost) (Details) | 6 Months Ended |
Mar. 31, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 1,569,043 |
Market-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 804,745 |
Weighted Average Period (in years) | 2 years 8 months 1 day |
Time-Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 764,298 |
Weighted Average Period (in years) | 1 year 2 months 15 days |
Properties And Equipment - Summ
Properties And Equipment - Summary of Properties and Equipment and Related Accumulated DD&A (Details) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Properties and equipment at cost, based on successful efforts accounting: | ||
Producing natural gas and oil properties | $ 329,708,071 | $ 324,886,491 |
Non-producing natural gas and oil properties | 21,012,897 | 18,993,814 |
Other property and equipment | 582,444 | 582,444 |
Gross properties and equipment, at cost, based on successful efforts accounting | 351,303,412 | 344,462,749 |
Less accumulated depreciation, depletion and amortization | (265,863,136) | (263,590,801) |
Net properties and equipment | $ 85,440,276 | $ 80,871,948 |
Properties And Equipment (Detai
Properties And Equipment (Details) | Jan. 21, 2021USD ($)a | Dec. 17, 2020USD ($)a | Nov. 12, 2020USD ($)a | Oct. 08, 2020USD ($)ashares | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)a | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) |
Property Plant And Equipment [Line Items] | |||||||||
Proceeds from sales of assets | $ 21,000 | $ 3,376,049 | |||||||
Gain on sale of oil and gas properties | $ 23,257 | $ 43,525 | $ 3,272,888 | ||||||
Purchase price of mineral acreage acquired | $ 5,500,000 | ||||||||
Shares issued as consideration | shares | 153,375 | ||||||||
Common stock offering closing date | Sep. 1, 2020 | ||||||||
Computation of Natural Gas, Oil and NGL Reserves | 12 months | ||||||||
Impairment | $ 0 | $ 29,500,000 | $ 0 | ||||||
Percentage of discount rate for developed location | 10.00% | ||||||||
Undeveloped location assigned value | $ 0 | ||||||||
Eddy County, New Mexico [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Mineral acreage sold | a | 530 | ||||||||
Proceeds from sales of assets | $ 3,400,000 | ||||||||
Gain on sale of oil and gas properties | $ 3,300,000 | ||||||||
Harrison County, Texas [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Mineral acreage acquired | a | 11 | ||||||||
Purchase price of mineral acreage acquired | $ 362,486 | ||||||||
San Augustine County, Texas [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Mineral acreage acquired | a | 89 | 134 | |||||||
Purchase price of mineral acreage acquired | $ 1,000,000 | $ 750,000 | |||||||
Grady County, Oklahoma [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Royalty Acres Acquired | a | 297 | ||||||||
Harrison, Panola and Nacogdoches Counties, Texas [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Mineral acreage acquired | a | 237 | ||||||||
Royalty Acres Acquired | a | 12 | ||||||||
Kingfisher, Canadian and Garvin Counties, Oklahoma [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Mineral acreage acquired | a | 700 | ||||||||
Purchase price of mineral acreage acquired | $ 9,300,000 | ||||||||
Fayetteville Shale [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Impairment | 19,300,000 | ||||||||
Eagle Ford [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Impairment | 7,300,000 | ||||||||
Other Producing Assets [Member] | |||||||||
Property Plant And Equipment [Line Items] | |||||||||
Impairment | $ 2,900,000 |
Derivatives (Summary Of Derivat
Derivatives (Summary Of Derivative Instruments Contracts) (Details) | Mar. 31, 2021MMBTU$ / MMBTU$ / bblbbl |
Natural Gas Costless Collars [Member] | Remaining 2021 [Member] | |
Derivative [Line Items] | |
Contract total volume - Gas/Natural gas | MMBTU | 2,207,500 |
Natural Gas Costless Collars [Member] | Remaining 2021 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract average price | 2.35 |
Natural Gas Costless Collars [Member] | Remaining 2021 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract average price | 3.04 |
Natural Gas Costless Collars [Member] | 2022 [Member] | |
Derivative [Line Items] | |
Contract total volume - Gas/Natural gas | MMBTU | 2,200,500 |
Natural Gas Costless Collars [Member] | 2022 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract average price | 2.40 |
Natural Gas Costless Collars [Member] | 2022 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract average price | 3.12 |
Natural Gas Costless Collars [Member] | 2023 [Member] | |
Derivative [Line Items] | |
Contract total volume - Gas/Natural gas | MMBTU | 86,000 |
Natural Gas Costless Collars [Member] | 2023 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract average price | 2.25 |
Natural Gas Costless Collars [Member] | 2023 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract average price | 2.96 |
Natural Gas Fixed Price Swaps [Member] | Remaining 2021 [Member] | |
Derivative [Line Items] | |
Contract total volume - Gas/Natural gas | MMBTU | 1,166,500 |
Contract average price | 2.80 |
Natural Gas Fixed Price Swaps [Member] | 2022 [Member] | |
Derivative [Line Items] | |
Contract total volume - Gas/Natural gas | MMBTU | 377,500 |
Contract average price | 2.61 |
Natural Gas Fixed Price Swaps [Member] | 2023 [Member] | |
Derivative [Line Items] | |
Contract total volume - Gas/Natural gas | MMBTU | 84,000 |
Contract average price | 2.56 |
Oil Costless Collars [Member] | Remaining 2021 [Member] | |
Derivative [Line Items] | |
Contract total volume - Oil | bbl | 33,500 |
Oil Costless Collars [Member] | Remaining 2021 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 36.76 |
Oil Costless Collars [Member] | Remaining 2021 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 45 |
Oil Costless Collars [Member] | 2022 [Member] | |
Derivative [Line Items] | |
Contract total volume - Oil | bbl | 68,500 |
Oil Costless Collars [Member] | 2022 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 40.25 |
Oil Costless Collars [Member] | 2022 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 50.35 |
Oil Fixed Price Swaps [Member] | Remaining 2021 [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 39.37 |
Contract total volume - Oil | bbl | 87,000 |
Oil Fixed Price Swaps [Member] | 2022 [Member] | |
Derivative [Line Items] | |
Contract average price | $ / bbl | 41.51 |
Contract total volume - Oil | bbl | 59,000 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Fair value of derivative contracts, liability | $ 3,625,709 | $ 707,647 |
Derivatives (Schedule of Gain o
Derivatives (Schedule of Gain or Loss on Derivative Contracts, Net) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative [Line Items] | ||||
Cash received (paid) on derivative contracts, net | $ (297,431) | $ 629,139 | $ 315,883 | $ 1,530,912 |
Non-cash gain (loss) on derivative contracts, net | (2,050,712) | 3,442,438 | (2,918,062) | 1,722,771 |
Gains (losses) on derivative contracts, net | (2,348,143) | 4,071,577 | (2,602,179) | 3,253,683 |
Natural Gas Costless Collars [Member] | ||||
Derivative [Line Items] | ||||
Cash received (paid) on derivative contracts, net | (122) | (9,089) | ||
Non-cash gain (loss) on derivative contracts, net | (81,881) | 21,983 | 597,080 | 27,883 |
Natural Gas Fixed Price Swaps [Member] | ||||
Derivative [Line Items] | ||||
Cash received (paid) on derivative contracts, net | 3,105 | 500,520 | 1,242 | 1,220,320 |
Non-cash gain (loss) on derivative contracts, net | (6,291) | (113,956) | 282,596 | (685,765) |
Oil Costless Collars [Member] | ||||
Derivative [Line Items] | ||||
Cash received (paid) on derivative contracts, net | (112,590) | 87,997 | (23,646) | 201,696 |
Non-cash gain (loss) on derivative contracts, net | (696,360) | 954,260 | (1,107,246) | 473,804 |
Oil Fixed Price Swaps [Member] | ||||
Derivative [Line Items] | ||||
Cash received (paid) on derivative contracts, net | (187,824) | 40,622 | 347,376 | 108,896 |
Non-cash gain (loss) on derivative contracts, net | $ (1,266,180) | $ 2,580,151 | $ (2,690,492) | $ 1,906,849 |
Derivatives (Summary Of Deriv_2
Derivatives (Summary Of Derivative Contracts) (Details) - USD ($) | Mar. 31, 2021 | Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||
Gross amounts recognized - Current Assets | [1] | $ 106,480 | $ 864,466 |
Offsetting adjustments - Current Assets | [1] | (106,480) | (864,466) |
Gross amounts recognized - Non-Current Assets | [1] | 177,756 | |
Offsetting adjustments - Non-Current Assets | [1] | (177,756) | |
Gross amounts recognized - Current Liabilities | [1] | 3,107,010 | 1,146,408 |
Offsetting adjustments - Current Liabilities | [1] | (106,480) | (864,466) |
Derivative contracts, net | [1] | 3,000,530 | 281,942 |
Gross amounts recognized - Non-Current Liabilities | [1] | 802,935 | 425,705 |
Offsetting adjustments - Non-Current Liabilities | [1] | (177,756) | |
Derivative contracts, net | [1] | $ 625,179 | $ 425,705 |
[1] | See Note 10: Fair Value Measurements for further disclosures regarding fair value of financial instruments. |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Fair Value Measurement Information For Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) | Mar. 31, 2021USD ($) |
Swap [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | $ (2,472,697) |
Swap [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | (2,472,697) |
Collars [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | (1,153,012) |
Collars [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Financial Assets (Liabilities) | $ (1,153,012) |
Fair Value Measurements (Summ_2
Fair Value Measurements (Summary Of Impairments Associated With Certain Assets Measured At Fair Value On A Nonrecurring Basis Within Level 3) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2020 | ||
Fair Value Disclosures [Abstract] | |||
Producing Properties, Fair Value | [1] | $ 5,288,710 | $ 5,288,710 |
Producing Properties, Impairment | [1] | $ 29,315,807 | $ 29,315,807 |
[1] | (a) When indicators of impairment are present, the Company assesses the carrying value of its producing properties for impairment. This assessment utilized estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future natural gas, oil and NGL prices using a forward NYMEX curve adjusted for projected inflation, locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values. This table excludes impairments on properties that were written off during the three months ended March 31, 2020 in the amount $229,895. |
Fair Value Measurements (Summ_3
Fair Value Measurements (Summary Of Impairments Associated With Certain Assets Measured At Fair Value On A Nonrecurring Basis Within Level 3) (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Fair Value Disclosures [Abstract] | |
Impairment for written-off wells | $ 229,895 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) | Apr. 30, 2021USD ($)ashares | Apr. 28, 2021USD ($) | Apr. 23, 2021USD ($)shares | Apr. 15, 2021USD ($) | Apr. 14, 2021USD ($) | Apr. 07, 2021USD ($)Ratio | Apr. 06, 2021USD ($) | Dec. 04, 2020USD ($) | Jun. 24, 2020USD ($) | Dec. 31, 2020shares | Mar. 31, 2021USD ($) |
Subsequent Event [Line Items] | |||||||||||
Estimated net proceeds | $ (53,482) | ||||||||||
Class A voting Common Stock [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Public offering of shares (inclusive of overallotment option) | shares | 153,375 | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Borrowing base of credit facility | $ 30,000,000 | $ 29,400,000 | |||||||||
Credit facility maturity | Nov. 30, 2022 | ||||||||||
Borrowing base of credit facility, quarterly reduction amount | $ 600,000 | $ 1,000,000 | |||||||||
Borrowing base of credit facility, quarterly reduction term description | The amendment reduced the Quarterly Commitment Reductions from $1,000,000 to $600,000 | ||||||||||
Credit facility outstanding amount | $ 23,500,000 | ||||||||||
Subsequent Event [Member] | Sellers [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Purchase and sales agreement date | Apr. 14, 2021 | ||||||||||
Aggregate consideration | $ 10,939,875 | ||||||||||
Royalty Acres Acquired | a | 2,514 | ||||||||||
Mineral acreage acquired | a | 1,889 | ||||||||||
Cash consideration | $ 8,539,875 | ||||||||||
Equity consideration | shares | 1,200,000 | ||||||||||
Subsequent Event [Member] | Class A voting Common Stock [Member] | Underwritten Public Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Public offering of shares (inclusive of overallotment option) | shares | 6,175,000 | ||||||||||
Estimated net proceeds | $ 11,200,000 | ||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Credit facility paid | $ 1,750,000 | ||||||||||
Credit facility outstanding amount | $ 21,750,000 | ||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | BOKF, NA dba Bank of Oklahoma [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Borrowing base of credit facility | $ 29,000,000 | ||||||||||
Credit facility maturity | Nov. 30, 2023 | ||||||||||
Borrowing base of credit facility, quarterly reduction amount | $ 500,000 | $ 600,000 | |||||||||
Borrowing base of credit facility, quarterly reduction term description | Quarterly Commitment Reductions from $600,000 to $500,000, commencing on April 15, 2021. | ||||||||||
Distribution allowance | $ 1,500,000 | $ 1,000,000 | |||||||||
Percentage of available commitment to total commitment for increasing distribution allowance | 20.00% | ||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Maximum [Member] | BOKF, NA dba Bank of Oklahoma [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Leverage ratio | Ratio | 2.75 |