Subsequent Events

12 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

15. SUBSEQUENT EVENTS

Name Change

Effective October 8, 2020, the Company officially changed its name to PHX Minerals Inc. to more accurately reflect its business strategy.

Acquisitions

On October 8, 2020, the Company closed on the purchase of 297 net royalty acres in Grady County, Oklahoma, and 257 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.

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 December 4, 2020, the Company signed a purchase and sale agreement to purchase an additional 87 net mineral acres in San Augustine County, Texas for a purchase price of $1 million, subject to customary closing adjustments. The Company expects this acquisition to close in the first fiscal quarter of 2021.

Borrowing Base Redetermination

The Eighth Amendment to the Credit Facility was signed on December 4, 2020.  This 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.

Derivative Contracts

Subsequent to September 30, 2020, the Company entered into new derivative contracts as summarized in the table below:

	Production volume
Contract period	covered per month	Index	Contract price
Natural gas costless collars
August 2021 - July 2022	100,000 Mmbtu	NYMEX Henry Hub	$2.50 floor / $3.17 ceiling
February - June 2022	100,000 Mmbtu	NYMEX Henry Hub	$2.50 floor / $3.15 ceiling
Oil costless collars
August 2021 - July 2022	1,500 Bbls	NYMEX WTI	$37.00 floor / $47.10 ceiling
Oil fixed price swaps
February - June 2022	4,000 Bbls	NYMEX WTI	$	39.51
July - December 2022	1,500 Bbls	NYMEX WTI	$	39.51
March - December 2022	1,000 Bbls	NYMEX WTI	$	43.78
March - December 2022	1,000 Bbls	NYMEX WTI	$	43.50
March - December 2022	1,000 Bbls	NYMEX WTI	$	43.05