A month after PHX Minerals, Inc. turned down an acquisition offer frm Philadelphia-based WhiteHawk Energy, its directors now say they wll consider a merger or sale of the company.
The board of directors of the Fort Worth, Texas-based firm announced Thursday it agreed to “initiate a process to evaluate certain strategic alternatives to maximize shareholder value” and the process would include “a potential merger of sale” of the company.
The decision comes not only after declining a merger offer with the Pennsylvania-based company but also a third quarter financial report that showed a drop in net income as well as production and converting wells in production. In the most recent financial report, PHX earnings and adjusted EBITDA were down and the company had a 23% decrease in royalty production volumes.
The board stated it had retained RBC Capital Markets, LLC as financial advisor to assist in the review process. It offered no further statement about the decision nor about its financial status.
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The natural gas and oil mineral company owns mineral acreage mostly in Oklahoma as well as Texas, Louisiana, North Dakota and Arkansas. WhiteHawk Energy last month received its answer after 18 months of talks and inquiries about acquiring PHX Minerals in a $4 a share all-cash transaction.
Whether the PHX most-recent decision had something to do with the WhiteHawk offer isn’t clear. But in November, WhiteHawk CEO Daniel C. Herz urged PHX stockholders to reach out to PHX leadership and “encourage discussions with WhiteHawk related to WhiteHawk’s all cash proposal.
Source: press release
