Pennsylvania-based WhiteHawk Energy, LLC, the company that tried unsuccessfully in 2023 to acquire Fort Worth-based PHX Minerals announced this week a $118 million deal to double its ownership interest in Marcellus Shale royalties.
The deal, according to the announcement involved 475,000 acres focused in Washington and Greene counties, Pennsylvania. The transaction has an effective date of January 1, 2025. The assets are 95% operated by best-in-class natural gas operators EQT, Range Resources, and CNX Resources, and have continued to perform above expectations since WhiteHawk’s initial acquisition of this position in March 2022.
“The 2025 Marcellus Acquisition provides WhiteHawk additional production, line-of-site development, undeveloped inventory and cash flow from our core Appalachia position. Today’s transaction marks our sixth acquisition over the last three years and the third acquisition of royalty interests on these assets, which have continuously outperformed our expectations and fully consolidates these positions into WhiteHawk,” stated Daniel C. Herz, Chief Executive Officer of WhiteHawk.
WhiteHawk’s consolidated Marcellus Shale assets cover approximately 675,000 gross unit acres, with production from approximately 2,068 horizontal shale wells. Additionally, WhiteHawk owns mineral and royalty interests in 141 wells-in-progress, 66 permitted wells, and 1,713 undeveloped Marcellus locations, with additional potential from the underlying Utica Shale. Approximately 95% of production, cash flow, and present value associated with the Marcellus assets are operated by EQT, Range Resources, CNX Resources, and Antero Resources.
WhiteHawk also owns natural gas mineral and royalty assets in the Haynesville Shale, covering approximately 375,000 gross unit acres and approximately 1,371 producing horizontal shale wells. Additionally, WhiteHawk owns mineral and royalty interests in 127 wells-in-progress, 189 permitted wells, and 966 undeveloped Haynesville locations. The Company’s Haynesville Shale assets are actively being developed by Expand Energy, Aethon Energy Management and Comstock Resources.
In May of 2023, WhiteHawk attempted to acquire PHX Minerals. Under the offer, PHX stockholders would hae owned about 61% of the pro forma equity of WhiteHawk Minerals Corporation and received a one-time 20 cent per share cash dividend. But the offer was rejected.