- WhiteHawk's Marcellus Shale minerals and royalty assets covers 475,000 gross unit acres, with the majority being developed by several of the basin's top producers, including EQT, Range Resources and CNX Resources
- Minerals and royalty assets being acquired currently generating production and cash flow from over 950 horizontal Marcellus Shale wells
- WhiteHawk has entered into a strategic partnership with a leading capital provider, Preferred Capital Securities, LLC, to fund the transaction
NEW YORK, NY / ACCESSWIRE / February 28, 2022 / WhiteHawk Energy, LLC ("WhiteHawk") announced today an affiliate's definitive agreement ("Appalachia Agreement") to acquire $52.5 million of natural gas minerals and royalty assets located in Southwestern Pennsylvania ("Marcellus Royalties"). The Marcellus Royalties are primarily focused in Washington and Greene counties Pennsylvania, representing some of the highest quality natural gas reserves in the United States. WhiteHawk's position will cover approximately 475,000 gross unit acres in the Marcellus Shale, with additional upside from the underlying Utica Shale. Approximately 95% of production, cash flow, and present value is anchored by best-in-class natural gas operators EQT Corporation, Range Resources and CNX Resources. Under the Appalachia Agreement, WhiteHawk will acquire up to $52.5 million of the Marcellus Royalties through October 2022. Pro forma for this transaction, the seller owns approximately 45,000 net royalty acres in Southwest Appalachia and both parties expect to continue dialogue around future potential transactions in the region.
"The Marcellus Royalties is the ideal acquisition for WhiteHawk," says Daniel C. Herz, Chief Executive Officer. "We have operated for over 15 years in Appalachia and helped to pioneer the Marcellus shale in this very area. With these assets, WhiteHawk obtains mineral and royalty interests in the highest quality reservoir, in the premier natural gas basin in the United States, operated by best-in-class companies. Now, more than ever, natural gas is needed to provide clean electricity for vehicle electrification, offer affordable energy for heating homes, and further drive energy security for the United States and our allies."
WhiteHawk Energy has partnered with Preferred Capital Securities, LLC ("PCS"), a leading capital sourcing firm that has raised over $3 billion in capital. PCS creates best-in-class investment offerings by working with high-quality asset managers and structuring investments with features and benefits that attract investor capital across all 50 states and Puerto Rico.
Mr. Herz commented, "We have followed the success of the PCS team for many years and are thrilled to have the opportunity to work with them at WhiteHawk. More specifically, we have known and worked with Jeff Smith, CEO and co-owner, over the last decade, and look forward to teaming back up with him and his firm.
"PCS prides itself on offering innovative products that are market relative to our BD partners and advisors," stated Jeffery A. Smith, Chief Executive Officer. "We have a long list of products that have performed very well and expect the same from Daniel and his team. As an energy executive with a long history of running publicly traded companies we are excited about the future for WhiteHawk, our BD partners, their advisors and certainly most importantly, our investors"
About WhiteHawk Energy
WhiteHawk Energy LLC is focused on acquiring mineral and royalty interests in top tier oil and gas resource plays, including the Permian Basin, Eagle Ford Shale, and Marcellus Shale. The management team at WhiteHawk has successfully grown over $12 billion of minerals, midstream, and exploration and development companies over the last 20 years. Please go to www.whitehawkenergy.com for more information.
About Preferred Capital Securities
Preferred Capital Securities, LLC (Member FINRA/SIPC) is a fully independent, third party Managing Broker Dealer focused on the wholesale distribution of high-quality alternative investments to Independent Broker-Dealers (IBDs) and Registered Investment Advisors (RIAs) across the United States and Puerto Rico. PCS's decades of financial services expertise positions it to adeptly build effective relationships, drive capital for our clients, and ensure the success of our IBD and RIA partners and their investors.
Advisors
Shearman & Sterling LLP acted as legal counsel to WhiteHawk.
For more information, please visit the Company's website at www.whitehawkenergy.com, or contact its investor relations department at jslotterback@whitehawkenergy.com.
Cautionary Note Regarding Forward-Looking Statements
Certain matters discussed within this press release are forward-looking statements. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The Company does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. This document contains forward-looking statements that involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. The Company cautions readers that any forward-looking information is not a guarantee of future performance. Such forward-looking statements include, but are not limited to, statements about future financial and operating results, resource potential, and the Company's plans, objectives, expectations, intentions and other statements that are not historical facts. Risks, assumptions and uncertainties that could cause actual results to materially differ from the forward-looking statements include, but are not limited to, those associated with general economic and business conditions; changes in government environmental policies and other environmental risks; the availability of drilling equipment and the timing of production; tax consequences of potential balance sheet and other transactions; and global health conditions, including the impact of COVID-19. Forward-looking statements speak only as of the date hereof, and the Company assumes no obligation to update such statements, except as may be required by applicable law.
SOURCE: WhiteHawk Energy LLC
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