WhiteHawk to acquire PHX Minerals for $187 million in cash

PHILADELPHIA & FORT WORTH, Texas - WhiteHawk Income Corporation, a natural gas mineral and royalty company, has agreed to acquire PHX Minerals Inc. (NYSE: PHX) for $4.35 per share, amounting to a total value of approximately $187 million, including PHX’s net debt. The all-cash transaction is set to significantly expand WhiteHawk’s footprint in the Haynesville Shale and diversify its portfolio into the SCOOP/STACK region in Oklahoma.

PHX stockholders are poised to receive a 21.8% premium over the closing share price as of Wednesday, reflecting a 15.7% and 12.2% premium over the 30- and 60-day volume-weighted average share price, respectively. The offer also stands at a 23.9% premium to PHX’s unaffected share price before WhiteHawk’s acquisition proposal became public on October 14, 2024. InvestingPro analysis shows the company maintains an overall "Fair" financial health rating, with particularly strong price momentum scores. InvestingPro Tips indicate strong returns over both the last month and the past five years, with 8 additional insights available to subscribers.

The transaction will more than double WhiteHawk’s gross unit acre footprint, adding approximately 1.8 million gross unit acres and enhancing its presence in established natural gas basins. The acquisition will bring WhiteHawk’s total to roughly 3.1 million gross unit acres, with cash flow from about 10,163 producing wells and significant undeveloped inventory.

WhiteHawk’s CEO Daniel C. Herz expressed enthusiasm for the expansion and the potential to increase and diversify cash flows. The integration of PHX’s assets, which include over 6,500 producing wells, is expected to provide WhiteHawk with a stronger market presence and access to additional top operators in the energy sector.

The transaction is anticipated to close early in the third quarter of 2025, subject to customary closing conditions and the tender of a minimum amount of PHX’s common stock. Upon completion, PHX will be delisted from the New York Stock Exchange.

WhiteHawk will finance the acquisition through a combination of new equity and additional debt under its existing senior secured notes. With PHX’s current debt-to-equity ratio at 0.53 and total debt of $3.8 billion, the transaction’s financing structure appears aligned with the company’s existing capital framework. PHX’s Board of Directors has unanimously approved the deal, and certain directors and officers of PHX have entered into agreements to tender their shares. For detailed analysis of PHX’s financial position and future prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert insights and actionable intelligence.

This strategic move comes alongside PHX’s first-quarter financial results for 2025, which were released in a separate press release.

The information in this article is based on a press release statement.

In other recent news, Antero Resources reported its first-quarter 2025 earnings, which showed a shortfall in both earnings per share (EPS) and revenue compared to analysts’ forecasts. The company posted an EPS of $0.66, missing the expected $0.77, and revenue of $1.35 billion, which fell short of the $1.38 billion forecast. Despite these misses, Antero Resources generated $337 million in free cash flow and reduced its debt by over $200 million. The company also repurchased $92 million in stock, reflecting its confidence in long-term value.

JPMorgan analysts recently revised their outlook on Antero Resources, reducing the stock price target from $48.00 to $44.00, while maintaining an Overweight rating. This adjustment followed the company’s first-quarter results, which included a slight miss in cash flow and EBITDAX. Antero Resources has secured firm sales agreements for about 90% of its 2025 LPG export volumes, which are expected to sell at a premium to Mont Belvieu prices. The company is strategically positioned at Marcus Hook, allowing for advantageous LPG sales, with limited exposure to the Chinese market.

JPMorgan analysts highlighted potential risks, noting that a decline in demand from China could indirectly affect the global LPG market. However, Antero Resources has minimal exposure to China, with no shipments planned for the remainder of the year. The company’s management remains optimistic about future growth, maintaining a balanced approach between debt reduction and share buybacks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.