PHX - PHX Minerals rejects WhiteHawk Energy merger proposal as 'inadequate'

2023-08-15 09:49:53 ET

PHX Minerals ( NYSE: PHX ) -3.9% in early trading Tuesday after saying its board rejected WhiteHawk Energy's unsolicited merger proposal, saying the offer was "grossly inadequate" for shareholders.

The proposal overstated the value of WhiteHawk's assets and is highly dilutive to PHX ( PHX ) stockholders, the board said.

PHX ( PHX ) said its methodology for valuing mineral assets showed the majority of assets WhiteHawk has acquired did not meet its criteria in 2021 and 2022, even in a significantly higher commodity price environment.

Under the proposed deal terms released last week , PHX ( PHX ) shareholders would own ~61% of the pro forma equity of WhiteHawk Minerals and receive a one-time $0.20/share cash dividend.

The PHX ( PHX ) board said it is open to and regularly evaluates opportunities to enhance shareholder value.

More on PHX Minerals:

• Financial and valuation comparison to sector peers
• Analysis: PHX Minerals: Play On Royalties, Not Production
• Stock price return: Down 7.5% YTD, up 4% in the past 12 months

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