- PHX Minerals acts something like a royalty trust in that it purchases land that it then leases out to oil and gas producers.
- The company has a huge percentage of unleased land, which could offer growth potential but likely will not.
- The company is heavily weighted towards natural gas and the price of natural gas is likely to increase going forward, which will benefit PHX Minerals.
- The company has a remarkably low debt load, which is nice to see.
- The dividend could be sustainable but the lack of free cash flow is a real problem.
For further details see:
PHX Minerals: An Interesting But Lagging Natural Gas Player