WhiteHawk Energy entered a merger agreement on May 8, 2025, to acquire PHX Minerals Inc. (PHX) in an all-cash deal valued at $187 million.
Under the terms of the agreement, WhiteHawk will acquire PHX in an all-cash transaction that values PHX at $4.35 per share, representing a 21.51% premium from the stock’s last close.
WhiteHawk will commence a cash tender offer to acquire all outstanding shares of common stock of PHX.
PHX Minerals is a natural gas and oil mineral company that owns and leases mineral acreage across Oklahoma, Texas, Louisiana, North Dakota, and Arkansas, generating revenue through royalty and working interests in producing wells and the sale of natural gas, crude oil, and natural gas liquids.
WhiteHawk Energy is a natural gas mineral and royalty company that acquires and manages premier assets in the Marcellus and Haynesville Shales, currently holding about 1.35 million gross unit acres and interests in over 3,400 producing wells.
Through the PHX deal, WhiteHawk will acquire about 1.8 million gross unit acres of high-quality natural gas mineral and royalty assets, expanding its presence in the core of the Haynesville Shale in East Texas and North Louisiana, while also broadening its portfolio into central Oklahoma’s resource-rich Anadarko Basin.
In October of last year, WhiteHawk offered to acquire PHX Minerals for $4 per share, a premium to PHX’s trading price of $3.51 at the time. However, the natural gas mineral company rejected that proposal.
Following the close of the transaction, expected early in the third quarter of 2025, WhiteHawk will hold royalty interests across about 3.1 million gross unit acres, generating cash flow from around 10,163 producing wells. Through the deal, its portfolio will include 368 wells in progress, 330 permitted wells, and over 7,250 undeveloped locations.
WhiteHawk will finance the transaction through a combination of newly issued equity and additional borrowings under its existing senior secured notes.
RBC Capital Markets and Intrepid Partners served as financial advisors to PHX, with legal counsel provided by Blank Rome. Meanwhile, WhiteHawk Energy engaged Stephens for financial advisory services and Weil, Gotshal & Manges for legal counsel.
WhiteHawk Energy is making a purchase at 10.53 times the EBITDA of PHX Minerals.
For a more comprehensive understanding of this merger and acquisition transaction, please visit the Deal Metrics page:
Deal Metrics for the acquisition of PHX Minerals Inc. (PHX) by WhiteHawk Energy, LLC
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Editor’s Note: Baranjot Kaur contributed to this article