PHX Minerals Inc. (PHX): Business Model Canvas [Dec-2025 Updated]

You're looking at the final, sharp-focus Business Model Canvas for PHX Minerals Inc. (PHX) right before its strategic exit in June 2025, and honestly, it's a masterclass in pure-play mineral ownership that you should definitely study. For years, the company built its value on acquiring perpetual royalty interests across premier spots like the Haynesville Shale, generating passive cash flow-think $7.6 million in revenue for Q1 2025-while keeping capital expenditure low and managing debt down to just $19.8 million. That disciplined, non-operated strategy is exactly what delivered that $187 million all-cash payday to stockholders, so if you want to see the nine building blocks that made this energy play so attractive to WhiteHawk Income Corporation, dive into the details below.

PHX Minerals Inc. (PHX) - Canvas Business Model: Key Partnerships

You're looking at the key relationships that underpinned PHX Minerals Inc.'s operations, especially in the context of its late 2025 status as a wholly owned subsidiary of WhiteHawk Income Corporation. The nature of these partnerships shifted significantly following the acquisition.

Exploration and Production (E&P) companies operating on PHX Minerals Inc.'s acreage

PHX Minerals Inc. historically held mineral acreage principally located across Oklahoma, Texas, Louisiana, North Dakota, and Arkansas. The core value of these assets was realized through partnerships with E&P companies, which act as the operators extracting the hydrocarbons. Post-acquisition, WhiteHawk Energy, LLC, the acquiring entity's subsidiary, gained exposure to these operators.

The key operational partnerships are defined by the geographic basins where the mineral and royalty interests lie:

• Exposure increased in the core Haynesville Shale in East Texas / North Louisiana.
• Diversification into the SCOOP / STACK region in Oklahoma.
• Existing exposure included the Marcellus Shale, where WhiteHawk Energy previously held about 1,350,000 gross unit acres.

The combined entity, under WhiteHawk, now has cash flow derived from approximately 10,163 producing wells, 368 wells-in-progress, and 330 permitted wells across its portfolio. The E&P companies are the partners who conduct the drilling and production activities on these mineral rights.

Financial advisors like RBC Capital Markets for strategic alternatives review

Before the acquisition, PHX Minerals Inc.'s Board of Directors engaged a financial advisor to explore options to maximize shareholder value, including a potential merger or sale. RBC Capital Markets was retained for this review process, which was announced on December 12, 2024.

To give you context on the advisor's standing in the sector around this time, RBC Capital Markets advised on 16 transactions with a total value of $32.7bn in the oil and gas sector for Q1-Q3 2025. This advisory role was critical in structuring the eventual sale.

WhiteHawk Income Corporation, the ultimate acquirer in June 2025

WhiteHawk Income Corporation, along with its subsidiary WhiteHawk Energy, LLC, finalized the acquisition of PHX Minerals Inc. on June 23, 2025. The transaction was an all-cash deal valuing PHX at $4.35 per share, for a total approximate value of $187 million, inclusive of PHX's net debt.

This partnership/acquisition resulted in the following scale increase for WhiteHawk:

The management team at WhiteHawk Energy has a history of growing over $13 billion of minerals, midstream, and exploration and development companies.

Pipeline and marketing companies for product sales

As a mineral and royalty company, PHX Minerals Inc.'s direct partnerships for product sales involved agreements with the E&P operators who were responsible for the actual gathering, transportation, and marketing of the natural gas and oil produced from the acreage. The specific names of the pipeline and marketing companies PHX directly contracted with, or the financial terms of those specific throughput or marketing agreements, are not detailed in the public announcements surrounding the acquisition. The cash flow from production is realized through the operators' existing arrangements.

The key relationships here are indirect, flowing through the operators who manage:

• Gathering and transportation logistics.
• Sale of commodities at market hubs.

We don't have the specific contract values for these marketing arrangements as of late 2025.

PHX Minerals Inc. (PHX) - Canvas Business Model: Key Activities

You're looking at the core actions PHX Minerals Inc. took to run its business, especially in the period leading up to its acquisition by WhiteHawk Income Corporation in mid-2025. These activities define how they generated cash flow from their mineral-only strategy.

Acquiring perpetual natural gas and oil mineral and royalty interests was central to the strategy PHX Minerals Inc. pursued, which culminated in the sale to WhiteHawk. This wasn't about drilling; it was about buying the right to future production revenue. For example, during the first quarter of 2025, the company was still active in growing its position, purchasing 50 net royalty acres for about $0.6 million. Also in Q1 2025, they leased 397 net mineral acres to third-party operators, securing an average bonus payment of $911 per net mineral acre and locking in an average royalty of 25% on that acreage. This shows a clear, ongoing focus on adding high-quality, cash-flow-generating mineral assets.

The next key activity was managing the existing portfolio to ensure steady revenue. PHX Minerals Inc. managed a substantial asset base underpinned by over 6,500 producing wells. This management involved tracking operator activity and ensuring royalty payments were processed correctly across their principal properties in Oklahoma, Texas, Louisiana, North Dakota, and Arkansas. The operational focus was on maximizing the cash flow from these existing assets, which is what made the portfolio attractive to WhiteHawk.

Divesting non-core, non-producing mineral assets was a critical capital management activity, especially as the company refined its pure-play mineral and royalty focus. You saw this play out clearly in the first quarter of 2025. The company closed the sale of 165,326 acres, which were mostly undeveloped and unleased and outside their core focus areas, bringing in approximately $7.9 million in proceeds. This divestiture, which followed a January closing of non-producing minerals, directly supported their balance sheet strengthening efforts. It's a classic move: sell the non-essential stuff to fund debt reduction or future core acquisitions.

Maintaining a strong balance sheet was a stated priority, and the numbers from early 2025 demonstrate success in that area. The management team was clearly focused on leverage reduction ahead of the acquisition closing. The total debt was successfully reduced to $19.8 million by Q1 2025. This reduction, coupled with strong Adjusted EBITDA, drove down leverage significantly. Here's a quick look at the leverage profile as of March 31, 2025, which shows how tight their capital structure was:

The CFO noted that this reduction brought their pro forma leverage to under one times. The company also affirmed its quarterly dividend at $0.04 per share payable in June 2025, showing confidence in the cash flow generated by the core activities.

The operational pipeline supported this financial health, too. As of March 31, 2025, PHX Minerals Inc. had an inventory of 247 gross wells in progress and permits across its mineral positions.

• Wells in progress and permits at March 31, 2025: 247 gross (1.017 net).
• Rigs operating on company acreage: 18.
• Rigs operating within 2.5 miles of acreage: 70.
• Wells converted to producing status in Q1 2025: 65 gross (0.113 net).

Finance: draft 13-week cash view by Friday.

PHX Minerals Inc. (PHX) - Canvas Business Model: Key Resources

You're looking at the core assets that underpinned PHX Minerals Inc.'s value proposition, especially right before the acquisition closed in mid-2025. These resources are what made the company an attractive target for WhiteHawk Income Corporation.

The foundation of the Key Resources block is the mineral and royalty acreage itself. As of the announcement regarding the WhiteHawk acquisition, PHX Minerals Inc. brought approximately 1.8 million gross unit acres of natural gas mineral and royalty assets to the table. This inventory is concentrated in premier resource plays, which is the real value driver here.

The geographic focus of these assets is critical for understanding their quality. You'll see the core acreage is heavily weighted toward two major basins:

• Core acreage in the Haynesville Shale in East Texas/North Louisiana.
• Diversifying portfolio into the SCOOP/STACK region in Oklahoma.

To give you a clearer picture of the development potential embedded in that acreage as of the first quarter of 2025, here are the key development metrics:

Beyond the physical assets, the human capital was a significant resource. The team's expertise in asset evaluation was a key component. Honestly, you can't properly value these mineral rights without deep technical knowledge.

The management and technical team for asset evaluation at PHX Minerals Inc. was described as having extensive experience, averaging over 20 years of industry experience across critical functions like accounting, land, geology, engineering, and mergers and acquisitions. To put that team experience in context with the acquirer, the management team at WhiteHawk Energy has successfully grown over $13 billion of minerals, midstream, and exploration and development companies over the last 20 years. That's a lot of experience under one roof, even if PHX became a subsidiary after the June 23, 2025, closing.

Finance: draft 13-week cash view by Friday.

PHX Minerals Inc. (PHX) - Canvas Business Model: Value Propositions

Passive, non-operated cash flow generation with minimal capital expenditure (CapEx)

PHX Minerals Inc. focused on a mineral-only strategy, which inherently supports passive income streams. The value proposition was built around assets that generate cash flow without requiring direct operational capital outlay from PHX Minerals Inc. shareholders. This is evidenced by the commentary surrounding the acquisition, which highlighted growth with assets providing cash flow generation with no capital expenditures. The company demonstrated strong balance sheet management leading up to the transaction; as of March 31, 2025, total debt was reduced to \$19.8 million, resulting in a Debt-to-Adjusted EBITDA (TTM) ratio of 0.86x. This financial strength was partly achieved through a divestiture of non-producing minerals in January 2025.

Diversified exposure to premier natural gas basins in the US

PHX Minerals Inc. maintained mineral acreage principally located across several key US energy regions. The company's portfolio provided exposure to Oklahoma, Texas, Louisiana, North Dakota, and Arkansas. The acquisition by WhiteHawk was specifically noted for significantly expanding its footprint in the core of the Haynesville Shale in East Texas/North Louisiana and diversifying into the SCOOP/STACK region in Oklahoma. This diversification across basins was a core component of the value proposition, accessing assets with top operators.

Perpetual mineral ownership, providing long-term royalty income potential

The nature of mineral and royalty ownership provides a perpetual stream of income potential, tied to the underlying production from the acreage. PHX Minerals Inc. owned approximately 75,000 leased mineral acres. The company actively managed its development pipeline to secure future cash flows, evidenced by an inventory of 247 gross (1.017 net) wells in progress and permits as of March 31, 2025. Furthermore, at that date, there were 18 rigs operating directly on the Company's acreage, with an additional 70 rigs operating within 2.5 miles, indicating high near-term activity supporting the royalty interest.

Compelling and certain value for stockholders via the \$187 million all-cash acquisition

The ultimate realization of value for PHX Minerals Inc. stockholders came through the definitive agreement to be acquired by WhiteHawk Income Corporation. This was an all-cash transaction valuing PHX Minerals Inc. at approximately \$187 million, inclusive of net debt. Stockholders received a definite cash payment of \$4.35 per share. This price represented a 21.8% premium to the closing share price on May 7, 2025, and a 23.9% premium to the unaffected share price as of October 14, 2024. The transaction successfully closed on June 23, 2025.

The combined entity's asset base post-acquisition highlights the scale of the mineral position:

The value proposition was also supported by recent operational performance metrics from Q1 2025:

• Net Income: \$4.4 million ($0.12 per diluted share)
• Adjusted EBITDA: \$6.2 million
• Royalty Production Volumes: 1,910 Mmcfe (a 3% increase year-over-year)
• Quarterly Dividend Declared: \$0.04 per share (payable June 4, 2025)

PHX Minerals Inc. (PHX) - Canvas Business Model: Customer Relationships

You're looking at the final operational structure of PHX Minerals Inc. before its integration into WhiteHawk Income Corporation, which closed on June 23, 2025. The relationships were heavily transactional, focused on royalty collection and asset monetization through third-party operators.

Transactional and automated royalty payments from E&P operators

The core relationship was the automated flow of revenue from Exploration & Production (E&P) operators working on PHX Minerals Inc.'s mineral acreage. For the quarter ended March 31, 2025, royalty production volumes totaled 1,910 Mmcfe. The percentage of total royalty production volumes attributable to natural gas was 80% for that same quarter. The company sold its products to various purchasers, including pipeline and marketing companies.

Here's a look at the activity that fed those royalty payments in the quarter leading up to the acquisition:

The company maintained a debt-to-adjusted EBITDA (TTM) ratio of 0.86x at March 31, 2025.

Investor relations and public disclosures (pre-acquisition)

For public shareholders, the relationship was managed through required regulatory filings and direct shareholder returns. The final dividend declared before the merger was $0.04 per share, payable on June 4, 2025, to stockholders of record on May 20, 2025. The relationship with the acquiring entity, WhiteHawk, culminated in an all-cash transaction valuing PHX Minerals Inc. at approximately $187 million, including net debt, with shareholders receiving $4.35 in cash per share.

Key investor communication points leading up to the transaction included:

• Announced Q1 2025 results on May 8, 2025.
• The $4.35 per share offer represented a 21.8% premium to the closing share price on May 7, 2025.
• The offer represented a 15.7% premium to the 30-Day volume weighted average share price of $3.76 as of May 7, 2025.
• Insider transactions reported on June 23, 2025, confirmed the final cash-out price of $4.35 per share for tendered shares and vested equity awards.

The company's strategy was focused on perpetual natural gas and oil mineral ownership, having ceased taking working interest positions since 2019.

Proactive leasing of unleased mineral holdings to third-party operators

PHX Minerals Inc. actively engaged in leasing to grow its mineral position. This was a direct, negotiated relationship with third-party operators looking to drill. During the quarter ended March 31, 2025, the company leased 397 net mineral acres.

The terms secured for these new leases were quite specific:

• Average bonus payment: $911 per net mineral acre.
• Average royalty secured: 25%.

PHX Minerals Inc. owned approximately 75,000 leased mineral acres across core areas like Oklahoma, Texas, Louisiana, North Dakota, and Arkansas. Post-acquisition, WhiteHawk added approximately 1.8 million gross unit acres from PHX, expanding its total pro forma acreage to approximately 3.1 million gross unit acres.

PHX Minerals Inc. (PHX) - Canvas Business Model: Channels

You're looking at the channels PHX Minerals Inc. used to reach capital providers and deliver its product, keeping in mind the major structural change that occurred mid-year 2025. The channels reflect both its public-facing capital structure and its direct operational sales routes.

Direct mineral and royalty ownership agreements with E&P operators

The core of the business model involved PHX Minerals Inc. holding mineral and royalty interests, which are then accessed by Exploration & Production (E&P) operators for drilling and production. This channel is about the underlying asset base that generates revenue, which, as of late 2025, is now part of WhiteHawk Energy, LLC.

Prior to the acquisition, PHX Minerals Inc. had a mineral position across Oklahoma, Texas, Louisiana, North Dakota, and Arkansas. The strategy focused on perpetual mineral ownership, ceasing working interest positions since 2019.

The pro forma asset summary following the June 23, 2025, acquisition by WhiteHawk details the scale of these direct agreements:

This channel is essentially the direct contractual relationship with the operators who are drilling and extracting the resources from PHX Minerals Inc.'s acreage.

New York Stock Exchange (NYSE) for public equity capital until June 23, 2025

PHX Minerals Inc. previously accessed public equity capital through its listing on the New York Stock Exchange under the ticker PHX. This channel for raising capital and providing liquidity to shareholders officially closed on June 23, 2025.

The mechanism for exiting this channel was an all-cash acquisition by WhiteHawk Income Corporation at $4.35 per share. The aggregate consideration paid was approximately $187 million, including debt.

Key financial facts related to the public entity before the exit:

• Last closing price reflected the deal terms of $4.35.
• The company maintained dividend payments for 42 consecutive years.
• Market Cap just before delisting was $165 million.
• Total debt was $19.8 million as of March 31, 2025.

The company filed to suspend its public reporting obligations following the merger.

Direct sales of natural gas, oil, and NGL to pipeline and marketing companies

The physical product-natural gas, crude oil, and Natural Gas Liquids (NGL)-was sold directly to various purchasers, primarily pipeline and marketing companies. This represents the final step in the operational revenue generation channel.

Financial performance data from the last full fiscal year and the first quarter of 2025 illustrate the output of this sales channel. Note that the most detailed sales figures available are for fiscal year 2024, as the company was acquired mid-2025.

Revenue figures from the sales channel:

• Natural gas, oil and NGL sales for fiscal year 2024 totaled $33.69 million or $32.57 million.
• This represented an 8% decrease from the prior year due to lower commodity prices and reduced oil and NGL volumes.
• For the quarter ended March 31, 2025, the company reported a net income of $4.4 million.
• In Q3 2024, natural gas, oil, and NGL sales revenues before derivatives were $7,090,208.

The production mix driving these sales channels showed a heavy reliance on gas; for Q2 2024, 83% of production volumes were natural gas, 10% oil, and 7% NGL. Royalty volumes accounted for approximately 90% of total production.

The company utilized a hedge program to manage price risk in this sales channel, with 42% of anticipated full-year 2024 natural gas production having downside protection at approximately $3.34.

Finance: review the final Q2 2025 operational report for any pre-acquisition sales data by end of next week.

PHX Minerals Inc. (PHX) - Canvas Business Model: Customer Segments

Large and mid-cap Exploration and Production (E&P) companies (the lessees) are the primary counterparties for PHX Minerals Inc.'s core mineral leasing activity.

During the quarter ended March 31, 2025, PHX Minerals Inc. leased 397 net mineral acres to third-party exploration and production companies. The average terms for these leases included a bonus payment of $911 per net mineral acre and an average royalty of 25%.

PHX Minerals Inc.'s producing mineral and leasehold properties are principally located in Oklahoma, Texas, Louisiana, North Dakota, and Arkansas, with significant presence in plays like Haynesville and SCOOP.

Financial and institutional investors seeking energy exposure were represented by the acquirer, WhiteHawk Income Corporation, in the transaction that closed in June 2025. The acquisition valued PHX Minerals Inc. at a total of approximately $187 million, or $4.35 per share in cash.

WhiteHawk financed the acquisition using a combination of new equity and additional debt under its existing senior secured notes.

Natural gas, oil, and NGL purchasers, which include pipeline and marketing companies, buy the commodities produced from PHX Minerals Inc.'s royalty interests.

Revenue from natural gas, oil, and NGL sales for the quarter ended March 31, 2025, increased by 47% compared to the same quarter in 2024.

Here's a quick look at some key figures related to these segments around the time of the acquisition:

The customer base for PHX Minerals Inc. was defined by these operational interactions:

• E&P lessees operating in Haynesville, SCOOP, and STACK.
• Financial entities executing the $187 million all-cash buyout.
• Pipeline and marketing companies purchasing produced commodities.

The company's total debt was $19.8 million as of March 31, 2025, down $9.8 million since December 31, 2024.

The debt-to-adjusted EBITDA (TTM) ratio stood at 0.86x at March 31, 2025.

For you, the analyst, the key takeaway is the shift in the ultimate buyer of the asset base, moving from a publicly traded entity to a private institutional acquirer in mid-2025. Finance: draft pro forma asset summary by next Tuesday.

PHX Minerals Inc. (PHX) - Canvas Business Model: Cost Structure

You're looking at the costs that drove PHX Minerals Inc.'s operations leading up to its acquisition in mid-2025. For a mineral-only company, the cost profile is quite different from a traditional E&P operator; it's much lighter on the heavy lifting of drilling and completion.

Low Capital Expenditure Due to the Non-Operated Mineral-Only Strategy

The core of the PHX Minerals Inc. cost advantage stems from its strategy of perpetual mineral ownership, meaning it generally avoids the large, upfront capital outlays associated with being the well operator. The company ceased participation in new wells with a working interest since 2019.

The actual capital expenditures reported for the quarter ended March 31, 2025, were minimal:

• Capital expenditures for Q1 2025: ($6,336)
• Planned CapEx was expected to be minimal, limited to capital workovers for working interest properties

General and Administrative (G&A) Expenses for Corporate Overhead and Asset Management

General and administrative expenses cover the necessary corporate overhead to manage the mineral portfolio and execute acquisitions. While the strategy aims to keep these low relative to production, they remain a key cost component.

Here's a look at G&A costs on a per-unit basis for the first quarter of 2025:

To give you some historical context on overhead, WhiteHawk Energy noted that since 2020, PHX Minerals Inc. had consumed over $40 million of cash G&A expenses.

Interest Expense on Outstanding Debt

Financing activities introduce interest expense, though the company worked to keep its leverage low. You specifically mentioned a figure for Q1 2025 interest expense, which we will use here, alongside the debt level at that time.

• Interest expense on outstanding debt (as specified for Q1 2025): $19.8 million
• Total Debt as of March 31, 2025: $19.75 million
• Interest Expense per Mcfe for Q1 2025: $0.21

The company achieved a Debt to Adjusted EBITDA (TTM) ratio of 0.86x as of March 31, 2025, showing a strong balance sheet position pre-acquisition.

Costs Associated with Mineral and Royalty Acquisitions

Growth in the asset base requires spending on acquisitions, which is categorized under investing activities. This cost is crucial for offsetting natural production declines and expanding inventory.

For the quarter ending March 31, 2025, the outlay for adding to the asset base was:

• Acquisition of minerals and overriding royalty interests (Q1 2025): ($630,296)
• Total mineral acquisitions spending in the full year 2024: $7.8 million

The acquisition by WhiteHawk Income Corporation, completed in June 2025, involved a total transaction value of approximately $187 million, including PHX Minerals Inc.'s net debt, adding about 1.8 million gross unit acres.

Finance: review the pro forma G&A run-rate for the combined entity post-June 2025 by Friday.

PHX Minerals Inc. (PHX) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of PHX Minerals Inc. (PHX) as of late 2025, keeping in mind the company was acquired by WhiteHawk Income Corporation and ceased trading in June 2025. The core of the revenue model has always been about owning the rights to energy production, but the mix shifts based on commodity prices and strategic moves.

The primary engine for cash flow is royalty revenue from the production and sale of natural gas, oil, and NGL (Natural Gas Liquids). This is passive income derived from the production activities of third-party operators on PHX Minerals Inc.'s acreage. For the first quarter of 2025, the natural gas component was significant; the percentage of royalty production volumes attributable to natural gas was 82% for the quarter ended March 31, 2025. The underlying commodity strength in Q1 2025 really helped this stream, with natural gas and NGL prices up 83% and 26% year-over-year, respectively.

Here's a quick look at the Q1 2025 top-line performance, which reflects the combination of production sales and asset activity:

Another key component, though often lumpy, involves mineral lease bonus payments from third-party E&P companies (Exploration & Production). These are upfront cash payments received when an operator leases PHX Minerals Inc.'s mineral rights for drilling and development. While the Q1 2025 results highlighted strong revenue from production sales and asset sales, these bonus payments represent the value derived from securing new drilling commitments on their undeveloped inventory.

To sharpen the asset base, PHX Minerals Inc. also generates cash through proceeds from strategic divestitures of non-core assets. This is a deliberate action to monetize assets outside their core focus areas. You saw a clear example of this in the first quarter of 2025, with the company reporting proceeds of approximately $7.9 million from the sale of 165,326 acres, which were predominately undeveloped and unleased. This divestiture activity, alongside robust cash generation from royalties, helped strengthen the balance sheet significantly by Q1 2025.

The overall revenue picture for the first quarter of 2025 was characterized by a few key dynamics:

• Total revenue for Q1 2025 was reported at $7.6 million.
• The increase in natural gas, oil, and NGL revenue was driven by higher prices and volume increases in natural gas (2%) and oil (14%) year-over-year.
• The company converted 65 gross (0.113 net) wells to producing status during Q1 2025.
• At the end of Q1 2025, PHX Minerals Inc. had a total of 247 gross (1.017 net) wells in progress and permits across its mineral positions.

Finance: draft pro-forma revenue waterfall incorporating the WhiteHawk acquisition terms by next Tuesday.