WhiteHawk to Acquire Marcellus Assets for $54MM

WhiteHawk Energy, LLC is acquiring additional Marcellus Shale natural gas mineral and royalty assets for a total price of $54.0 million.

The acquisition increases WhiteHawk’s mineral and royalty ownership in its existing 475,000 gross acre position by 100 percent, the company said in a recent news release. WhiteHawk’s Marcellus assets are primarily located in Washington and Greene counties, Pennsylvania, “which represents some of the highest quality natural gas reserves” in the USA, WhiteHawk said. The seller and other transaction details were not disclosed.

“These assets include all the ideal mineral and royalty attributes – diversified acreage positions in the core of well-established basins, operated by best-in-class companies, generating significant cash flow with no additional capital expenditures”, WhiteHawk CEO Daniel Herz said. “Since acquiring our initial mineral and royalty interests in the Marcellus Assets in 2022, the assets have performed very well and we are pleased to increase our ownership under some of the best natural gas operators in the world”.

WhiteHawk’s Marcellus assets have production from approximately 1,315 horizontal shale wells. Additionally, WhiteHawk owns mineral and royalty interests in 72 wells-in-progress, 64 permitted wells, and nearly 900 undeveloped Marcellus locations, with additional potential from the underlying Utica Shale, according to the release.

Upon closing of the acquisition, WhiteHawk said it would double its net revenue interest in each well across its Marcellus assets. Approximately 95 percent of production, cash flow, and present value associated with the Marcellus assets are operated by EQT Corporation, Range Resources Corporation, and CNX Resources Corporation, according to the release.

Earlier in the year, WhiteHawk acquired natural gas mineral and royalty assets in the Haynesville Shale, covering approximately 375,000 gross unit acres. Combined, WhiteHawk noted that it currently owns interests in approximately 850,000 gross unit acres within the core operating areas of the Marcellus Shale and Haynesville Shale, with interests in more than 2,550 producing horizontal wells.

The company’s Haynesville Shale assets are actively being developed by Southwestern Energy, Chesapeake Energy, Aethon Energy Management, and Comstock Resources. The diversified position benefits from sales points in both the Northeast and Gulf Coast regions with combined operator market capitalization of approximately $50 billion, WhiteHawk said.

In August, WhiteHawk announced its entrance into a $100.0 million acquisition finance facility with an undisclosed “top-tier institution”. The company utilized an initial $20.0 million draw on the acquisition facility to fund an additional closing of Haynesville Shale natural gas mineral and royalty assets from Mesa Minerals Partners II, LLC located in northwestern Louisiana and eastern Texas.

The facility will mature on December 31, 2025, and contains certain co-investment rights for the institution, according to an earlier news release. WhiteHawk expects to use additional borrowings from the facility to fund future acquisitions of mineral and royalty assets upon the agreement of the institution, and the company may make repayments on the facility at any time, according to the release.

“This is an exciting day for WhiteHawk, as we take our next big step towards being the leading natural gas mineral and royalty company in the United States”, Herz said. “Our partnership with one of the top institutional investors in the U.S. will help to accelerate WhiteHawk’s consolidation of the highest quality natural gas mineral and royalty positions”.

“This institution is a global leader in investing, innovative energy and commodity risk management solutions. There is a significant opportunity to continue to acquire natural gas mineral and royalty assets delivering consistent and growing cash flow in core basins developed by top-tier operators. WhiteHawk, in partnership with this Institution, is well positioned to continue to be a leader in the consolidation of these assets as natural gas continues to grow in demand and lead America’s energy transition”, Herz concluded.

Philadelphia-based WhiteHawk is focused on acquiring mineral and royalty interests in top-tier natural gas resource plays, including the Haynesville and Marcellus Shales. According to the release, the company has successfully grown over $13 billion of minerals, midstream, and exploration and development companies over the last 20 years.

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