PHX - WhiteHawk Energy proposes merger with PHX Minerals in stock-for-stock deal

2023-08-09 10:14:45 ET

PHX Minerals ( NYSE: PHX ) -7.6% in early trading Wednesday after WhiteHawk Energy proposed to combine with the company in a stock-for-stock deal to form a new publicly traded corporation, WhiteHawk Minerals.

Under the proposed deal terms, first made privately to PHX Minerals ( PHX ) in a May 31 letter and revised by WhiteHawk in a June 20 letter, PHX shareholders would own ~61% of the pro forma equity of WhiteHawk Minerals and receive a one-time $0.20/share cash dividend.

WhiteHawk said the non-binding offer was reiterated in a new letter sent to PHX Minerals ( PHX ) Chairman Mark Behrman, after several unsuccessful attempts to engage PHX's board and management in discussions.

WhiteHawk owns 850K gross unit acres in the Marcellus and the Haynesville shales.

More on PHX Minerals:

• Financial and valuation comparison to sector peers
• Analysis: PHX Minerals: Play On Royalties, Not Production
• Stock price return: Down 12.5% YTD, down 1.5% in the past 12 months

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