PHX Minerals Inc. (NYSE: PHX) Surpasses EPS Estimates but Misses on Revenue

• PHX Minerals Inc. (NYSE:PHX) reported an EPS of $0.21, significantly beating the estimated $0.04.
• The company's revenue of $7.6 million fell short of the estimated $10.3 million.
• PHX demonstrated a strong financial position with a debt-to-adjusted EBITDA ratio of less than 1x and a current ratio of 3.19.

PHX Minerals Inc. (NYSE:PHX) is a company that focuses on the acquisition, development, and management of oil and natural gas mineral rights. On May 8, 2025, PHX reported earnings per share (EPS) of $0.21, significantly surpassing the estimated $0.04. Despite this impressive EPS, the company's actual revenue of approximately $7.6 million fell short of the estimated $10.3 million.

PHX's strong start to the year is evident in its financial and operating results for the quarter ending March 31, 2025. The company experienced significant cash flow and adjusted EBITDA growth both sequentially and year-over-year. This growth was supported by the successful divestiture of non-producing minerals in January, as highlighted by President and CEO Chad L. Stephens. This move, along with robust cash generation, allowed PHX to reduce its debt to $19.8 million by the end of the quarter.

The reduction in debt resulted in a debt-to-adjusted EBITDA ratio of less than 1x, underscoring PHX's commitment to maintaining a strong and flexible balance sheet. The natural gas market saw notable improvements in the first quarter, driven by tighter supply-demand dynamics, colder-than-expected winter weather, and increased demand for liquefied natural gas (LNG) exports. These factors contributed to PHX's positive financial performance.

PHX's financial metrics provide further insight into its valuation. The company has a price-to-earnings (P/E) ratio of approximately 27.51, indicating how much investors are willing to pay per dollar of earnings. Its price-to-sales ratio stands at about 3.92, reflecting the value placed on each dollar of sales. The enterprise value to sales ratio is 4.66, which includes its debt and cash positions relative to its sales.

Additionally, PHX's enterprise value to operating cash flow ratio is 8.71, suggesting how the company's cash flow is valued in relation to its enterprise value. The earnings yield of 3.63% shows the percentage of each dollar invested that was earned by the company. With a debt-to-equity ratio of 0.23, PHX maintains a relatively low level of debt compared to equity. The current ratio of 3.19 suggests that PHX has a strong ability to cover its short-term liabilities with its short-term assets.