WhiteHawk Energy, LLC ("WhiteHawk") announced 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"