WhiteHawk Energy to acquire Marcellus gas assets in $54 million deal

World Oil Staff November 16, 2023

(WO) — WhiteHawk Energy LLC has announced the acquisition of additional Marcellus Shale natural gas mineral and royalty assets for a total purchase price of $54 million.

The acquisition increases WhiteHawk’s mineral and royalty ownership in its existing 475,000 gross acre position by 100%. WhiteHawk’s Marcellus Assets are primarily located in Washington and Greene counties, Pennsylvania, which represents some of the highest quality natural gas reserves in the United States.

WhiteHawk’s Marcellus assets cover approximately 475,000 gross unit acres, with production from approximately 1,315 horizontal shale wells. Additionally, WhiteHawk owns mineral and royalty interests in 72 wells-in-progress, 64 permitted wells, and nearly 900 undeveloped Marcellus locations, with additional potential from the underlying Utica Shale.

“These assets include all the ideal mineral and royalty attributes – diversified acreage positions in the core of well-established basins, operated by best-in-class companies, generating significant cash flow with no additional capital expenditures,” Daniel C. Herz, CEO of WhiteHawk, said. “Since acquiring our initial mineral and royalty interests in the Marcellus Assets in 2022, the assets have performed very well and we are pleased to increase our ownership under some of the best natural gas operators in the world.”

As a result of the acquisition, WhiteHawk will double its net revenue interest in each well across its Marcellus Assets. Approximately 95% of production, cash flow, and present value associated with the Marcellus Assets are operated by EQT Corp., Range Resources Corp. and CNX Resources Corp.

Earlier in 2023, WhiteHawk acquired natural gas mineral and royalty assets in the Haynesville Shale, covering approximately 375,000 gross unit acres. Combined, WhiteHawk currently owns interests in approximately 850,000 gross unit acres within core operating areas of the Marcellus Shale and Haynesville Shale, with interests in more than 2,550 producing horizontal wells.

The company’s Haynesville Shale assets are actively being 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, and are 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 $50 billion.

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