News Summary
WhiteHawk Energy has announced its acquisition of PHX Minerals, a significant player in the natural gas and oil market, for $187 million in cash. Shareholders of PHX will benefit from a premium of 21.8% per share, with a cash payout of $4.35 per share. This acquisition will increase WhiteHawk’s footprint to over 3.1 million acres, bolstering their presence in the Haynesville Shale region and diversifying into Oklahoma. The deal highlights a pivotal moment for WhiteHawk as it strategically positions itself within the booming energy sector.
Texas
WhiteHawk Energy, a Philadelphia-based energy company, has announced its plans to acquire PHX Minerals, a natural gas and oil mineral company, for a total cash transaction valued at $187 million. This acquisition is poised to be a significant move in the energy sector, further solidifying WhiteHawk’s position in the market.
Under the terms of the transaction, shareholders of PHX Minerals will receive $4.35 per share in cash, representing a notable 21.8% premium over PHX’s closing stock price as of May 7. Additionally, this offer includes a 23.9% premium in comparison to PHX’s share price on October 14, 2024, the day prior to WhiteHawk’s proposal.
This acquisition is expected to bolster WhiteHawk’s asset portfolio significantly by adding approximately 1.8 million gross unit acres of natural gas mineral and royalty assets. Following the acquisition’s completion, WhiteHawk’s total gross unit acre footprint is projected to exceed 3.1 million acres, encompassing cash flow from around 10,163 producing wells.
The acquisition will enhance WhiteHawk’s operational footprint in the core of the Haynesville Shale region located in East Texas and North Louisiana while strategically diversifying its holdings into the SCOOP/STACK shale region in Oklahoma. PHX Minerals’ assets, which are anchored by over 6,500 producing wells and a substantial inventory of undeveloped resources, are anticipated to significantly enhance WhiteHawk’s cash flows and operational capacity.
This transaction marks a vital milestone for WhiteHawk as it more than doubles its gross unit acre footprint and increases its production capacity in established natural gas basins. The deal is projected to close by early in the third quarter of 2025, contingent on customary closing conditions.
After the transaction is finalized, PHX Minerals will be delisted from the New York Stock Exchange. This change is part of WhiteHawk’s strategic plan to refine its operations and leverage the combined strengths of both companies for future growth.
In summary, the acquisition of PHX Minerals by WhiteHawk Energy is not only a significant financial transaction but also a strategic move that aims to advance WhiteHawk’s position in the competitive energy market. As the deal proceeds toward closure, it sets the stage for potential growth and increased efficiency in natural gas and oil production in Texas and beyond.
Deeper Dive: News & Info About This Topic
- Penn Biz Report: WhiteHawk Energy to Buy Texas Mineral Company
- Wikipedia: WhiteHawk Energy
- OK Energy Today: PHX Minerals May Consider Merger or Sale
- Google Search: PHX Minerals
- Hart Energy: WhiteHawk Inks $118MM Marcellus Royalties Deal
- Google Scholar: WhiteHawk Energy
- Business Wire: WhiteHawk Energy’s Acquisition Proposal
- Encyclopedia Britannica: Natural Gas
Author: STAFF HERE COLLEGE WRITER
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