The Company expects to utilize additional borrowings from the Acquisition Facility to fund future acquisitions of mineral and royalty assets upon the agreement of the Institution, and the Company may make repayments on the Acquisition Facility at any time
WhiteHawk Energy announces $100m acquisition finance facility to accelerate acquisition of core natural gas mineral and royalty assets. (Credit: Simon J from Pixabay)
WhiteHawk Energy, LLC (“WhiteHawk” or the “Company”) announced today entrance into a $100.0 million acquisition finance facility (the “Acquisition Facility”) with a top tier institution (“Institution”). The Company utilized an initial $20 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 (“Haynesville Royalties”). The Acquisition Facility will mature on December 31, 2025 and contains certain co-investment rights for the Institution. The Company expects to utilize additional borrowings from the Acquisition Facility to fund future acquisitions of mineral and royalty assets upon the agreement of the Institution, and the Company may make repayments on the Acquisition Facility at any time.
“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. 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,” says Daniel C. Herz, Chief Executive Officer of WhiteHawk. “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.”
WhiteHawk currently manages approximately 850,000 gross unit acres within core operating areas of the Marcellus Shale and Haynesville Shale, with interests in more than 2,500 producing horizontal wells. The Company’s Haynesville Royalties cover approximately 375,000 gross unit acres in the Haynesville Shale. The Haynesville Royalties are being actively developed by Southwestern Energy, Chesapeake Energy, Aethon Energy Management and Comstock Resources. The Company’s Marcellus Shale assets cover 475,000 gross unit acres focused in Greene and Washington Counties, Pennsylvania, predominately operated by EQT, Range Resources, and CNX Resources. The diversified position benefits from sales points in both the Northeast and Gulf Coast regions with combined operator market capitalization of approximately $40 billion.
Source: Company Press Release