PHILADELPHIA, PA — WhiteHawk Minerals Corp. (NYSE: WHK) recently closed about $111.8 million of natural gas mineral and royalty acquisitions across the Marcellus, Utica and Haynesville shales, expanding its exposure to major producing basins while increasing its revolving credit capacity to $175 million.
The acquisitions include WhiteHawk’s previously announced roughly $105 million purchase of Appalachia and Haynesville assets from San Jacinto Minerals II.
WhiteHawk funded the transactions with proceeds from a $50 million issuance of newly created Series E preferred stock, which closed Sept. 23, and a previously announced $75 million private placement of Class A common stock that closed Sept. 21.
The company also completed the fall redetermination of its reserve-based revolving credit facility, raising its borrowing base to $175 million. WhiteHawk said the facility remains fully undrawn.
The acquired interests cover about 700,000 gross unit acres and 11,810 net royalty acres, normalized to a one-eighth royalty interest, at an average net revenue interest of 0.21%.
The portfolio includes interests tied to more than 1,700 producing wells, 245 wells in process or permitted and about 2,500 undeveloped locations.
About 600,000 gross unit acres are in Appalachia, where operators include EQT Corp. (NYSE: EQT), Range Resources Corp. (NYSE: RRC), CNX Resources Corp. (NYSE: CNX) and Antero Resources Corp. (NYSE: AR).
Another roughly 100,000 gross unit acres are in the Haynesville, with operations tied to Expand Energy Corp. (NASDAQ: EXE), Apex Energy LLC and Adamas Energy LLC.
The transaction increases WhiteHawk’s royalty exposure without requiring the company to operate the underlying wells, while the larger credit facility gives it additional capacity for further acquisitions.
“The closing of the Acquisitions and related equity financings reflects our continued execution of WhiteHawk’s business strategy, and deepens our exposure to the core of Appalachia and the Haynesville under the basins’ leading operators,” Chairman, President and Chief Executive Officer Daniel Herz said.
Herz said the expanded borrowing base gives WhiteHawk additional liquidity while allowing it to maintain what the company describes as a low-leverage position.
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