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WhiteHawk Income Corporation, a natural gas mineral and royalty company headquartered in Philadelphia, announced it will acquire Fort Worth-based PHX Minerals Inc. (NYSE: PHX) in an all-cash transaction valued at approximately $187 million, including PHX’s net debt.
Under the agreement, PHX shareholders will receive $4.35 per share in cash — representing a 21.8% premium over the company’s closing stock price on May 7. The deal also reflects premiums of 15.7% and 12.2% over PHX’s 30- and 60-day average share prices, respectively.
The acquisition will significantly expand WhiteHawk’s footprint in key U.S. natural gas basins. It adds 1.8 million gross unit acres of mineral and royalty interests, strengthening WhiteHawk’s position in the Haynesville Shale region of East Texas and North Louisiana, while also introducing new assets in Oklahoma’s SCOOP/STACK play.
“We are excited to announce this transaction with WhiteHawk, which will provide compelling and certain value to all PHX stockholders,” said Chad Stephens, president and CEO of PHX, in a statement. “PHX’s Board of Directors conducted a robust strategic alternatives process to maximize value for our stockholders, and we unanimously determined the transaction achieves this objective. This transaction is also a testament to the PHX team’s work to evolve our business and build a best-in-class natural gas minerals portfolio."
PHX Chairman Mark Behrman called the deal a culmination of PHX’s shift to a mineral-only strategy launched in 2020. The value created over the past five years is reflected in this agreement, he said.
WhiteHawk’s Chairman and CEO Daniel Herz said the acquisition will more than double the company’s total gross unit acreage and boost cash flow from a significantly larger portfolio of producing wells. PHX’s assets, underpinned by over 6,500 producing wells and substantial development potential, will diversify revenue streams and strengthen WhiteHawk’s presence in the most productive natural gas basins in the country, said Herz.
Once the transaction closes, WhiteHawk will control approximately 3.1 million gross unit acres with income from more than 10,000 producing wells. The deal also brings relationships with top natural gas producers, including Continental Resources, Devon Energy, Comstock Resources, and EQT.
The transaction is expected to close in the third quarter of 2025, pending customary conditions and shareholder approval. WhiteHawk will finance the deal with new equity and additional debt under its existing senior secured notes. Upon completion, PHX will be delisted from the New York Stock Exchange.