WhiteHawk Power and WhiteHawk Revenue Company have entered right into a definitive settlement to accumulate PHX Minerals Inc. in an all-cash transaction of $4.35 per PHX share, for a complete of roughly $187 million, together with its debt.
By the acquisition, WhiteHawk will add roughly 1.8 million gross unit acres of premier pure fuel mineral and royalty property, considerably increasing its footprint within the core of the Haynesville Shale in East Texas / North Louisiana and diversifying its portfolio into the SCOOP / STACK area in Oklahoma, the corporate mentioned in a information launch.
After the shut of the transaction, WhiteHawk will personal royalty pursuits throughout roughly 3.1 million gross unit acres, with money circulate from roughly 10,163 producing wells, 368 wells-in-progress, 330 permitted wells and greater than 7,250 undeveloped places throughout its portfolio, on a professional forma foundation, in keeping with the discharge.
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The transaction is anticipated to shut early within the third quarter and is topic to customary closing situations, together with the tender into the provide of a minimal quantity of PHX’s frequent inventory and different situations as set forth within the merger settlement. Following the completion of the transaction, PHX will not commerce on the New York Inventory Alternate, WhiteHawk mentioned.
WhiteHawk mentioned it plans to finance this transaction with a mix of latest fairness and extra debt underneath its current senior secured notes.
“We’re excited to announce this transaction with WhiteHawk, which is able to present compelling and sure worth to all PHX stockholders,” PHX President and CEO Chad Stephens mentioned. “PHX’s Board of Administrators performed a sturdy strategic options course of to maximise worth for our stockholders, and we unanimously decided the transaction with WhiteHawk achieves this goal. This transaction can also be a testomony to the PHX staff’s work to evolve our enterprise and construct a best-in-class pure fuel minerals portfolio, and I thank them for his or her dedication”.
“The WhiteHawk transaction represents the end result of our mineral solely technique which we launched into in early 2020,” PHX Chairman Mark Behrman mentioned. “The Board of Administrators commends the administration staff for the profitable transition of PHX’s enterprise technique over the past 5 years and the worth created over that time frame”.
“The acquisition of PHX is a major milestone that greater than doubles our gross unit acre footprint and producing pure fuel wells in extremely established basins with a number of the nation’s largest pure fuel producers,” WhiteHawk Chairman and CEO Daniel Herz mentioned.
“PHX will permit us to increase our presence within the core Haynesville Shale and enter the SCOOP / STACK as properly. Mixed with our present 1.35 million gross unit acres within the core of the Marcellus Shale and Haynesville Shale, we can have significant publicity to the highest pure fuel basins in the US. PHX’s property are underpinned by over 6,500 producing wells and important undeveloped stock that may improve and diversify our money flows whereas offering potential upside. This transaction displays our technique to develop with property that present money circulate technology with no capital expenditures,” Herz added.
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