SCHEDULE 13G/A: Investment Group Led by SRP Capital Advisors and Ryan A. Turner Discloses 8.2% Passive Stake in PHX Minerals Inc.

An amended Schedule 13G filing reveals that a group of investment entities, including SRP Capital Advisors LLC and managed by Ryan A. Turner, maintains a passive beneficial ownership of 8.2% in PHX Minerals Inc.'s Class A Common Stock.

Summary

• This is an Amendment No. 3 to a Schedule 13G filing for PHX Minerals Inc. (Issuer CUSIP: 69291A100).
• The filing group includes SRP Capital Advisors, LLC, SRP Opportunities II, LP, SRPO-II Partners I, LP, their respective General Partners, SRPO-II Manager, LP, various Portfolio Investment Entities (Crestwood Exploration Partners, LLC, Palmetto Investment Partners, LLC, Palmetto Investment Partners II, LLC), Portfolio Holding Companies, and individual Ryan A. Turner.
• The aggregate amount beneficially owned by the primary reporting persons (SRP Capital Advisors, LLC, SRPO-II Manager, LP, Palmetto Investment Partners II, LLC, PIPII-SRPOII Investments, LLC, and Ryan A. Turner) is 3,057,036 shares of Class A Common Stock.
• This beneficial ownership represents 8.2% of the Class A Common Stock outstanding, based on 37,480,790 shares reported by the Issuer in its Form 10-Q for the quarter ended September 30, 2024.
• The reporting persons explicitly state that the securities were not acquired and are not held for the purpose of changing or influencing the control of the issuer, consistent with a passive investment strategy.
• The shares were acquired through two previously disclosed purchase and sale agreements with the Issuer, dated April 14, 2021 (closed April 30, 2021) and September 16, 2021 (closed September 24, 2021).

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While a 13G is a routine disclosure, the continued significant passive stake by a reputable investment group can be viewed as a vote of confidence in the company, without indicating any immediate negative intentions or activist pressure.

Positives

• The continued significant stake held by institutional investors like SRP Capital Advisors and related entities may signal ongoing confidence in PHX Minerals Inc.'s long-term prospects.
• The passive nature of the investment, as certified by the filers, suggests no immediate intent to disrupt company management or strategy, which can provide stability.

Risks

• While the investment is passive, a large block of shares held by a single group could, in the future, be subject to significant sale, potentially impacting stock price volatility.
• The filing does not provide insights into the operational or financial risks of PHX Minerals Inc. itself, as it is solely an ownership disclosure.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding PHX Minerals Inc.'s business operations or financial performance. It solely details the current beneficial ownership stake of the reporting entities and their passive investment intent.

Management Comments

• "The securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under Rule 240.14a-11."

Industry Context

This filing is a routine disclosure of a significant passive ownership stake in a publicly traded minerals company. It does not offer specific insights into broader industry trends or competitive dynamics within the minerals sector, focusing instead on the ownership structure of a particular investor group.

Related Party Transactions

• The filing details the complex internal relationships among the reporting entities (e.g., SRP Capital Advisors LLC as investment adviser, Funds investing through Portfolio Holding Companies, General Partners of Funds, and Ryan A. Turner as Managing Partner/Manager across multiple entities) to clarify the chain of beneficial ownership.

Stakeholder Impact

• Shareholders: The disclosure of a significant, passive institutional stake may provide a degree of stability and confidence, as it indicates a long-term, non-interfering investment.

Next Steps

• The reporting persons will continue to hold their passive investment in PHX Minerals Inc.'s Class A Common Stock.
• Future amendments to this Schedule 13G will be filed if there are material changes to their beneficial ownership or investment intent.

Key Dates

Recommendation

Keywords

PHX Minerals Inc., Schedule 13G, beneficial ownership, Class A Common Stock, SRP Capital Advisors, Ryan A. Turner, passive investment, SEC filing, institutional ownership, equity stake