As a result of the acquisition, WhiteHawk said it will double its net revenue interest in each well across its Marcellus Assets. (Source: Shutterstock)
WhiteHawk Energy LLC said it will acquire additional Marcellus Shale natural gas mineral and royalty assets for a total purchase price of $54 million, increasing by 100% of its ownership in its existing 475,000 gross acre position, according to a Nov. 15 press release.
The seller of the interests was not disclosed.
WhiteHawk said its Marcellus assets are primarily located in Washington and Greene counties, Pennsylvania, and represent “some of the highest quality natural gas reserves” in the U.S.
"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," said WhiteHawk CEO Daniel C. Herz. "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."
WhiteHawk's Marcellus assets capture production from approximately 1,315 horizontal shale wells and the company owns mineral and royalty interests in 72 wells-in-progress, 64 permitted wells and nearly 900 undeveloped Marcellus locations. The assets include additional potential from the underlying Utica Shale.
As a result of the acquisition, WhiteHawk said it 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 assets are operated by EQT Corp., Range Resources and CNX Resources.
In January, WhiteHawk agreed to acquire natural gas mineral and royalty assets in the Haynesville Shale, covering approximately 375,000 gross unit acres, for $105 million. Combined, WhiteHawk owns interests in approximately 850,000 gross unit acres within core operating areas of the Marcellus and Haynesville shales, with interests in more than 2,550 producing horizontal wells.
The company's Haynesville Shale assets are actively being developed by multiple operators as well as its Marcellus assets. The diversified position benefits from sales points in both the Northeast and Gulf Coast regions with combined operator market capitalization of approximately $50 billion, the company said.
Weil, Gotshal & Manges LLP acted as legal counsel to WhiteHawk.
Recommended Reading
NOG Closes Utica Shale, Delaware Basin Acquisitions
2024-02-05 - Northern Oil and Gas’ Utica deal marks the entry of the non-op E&P in the shale play while it’s Delaware Basin acquisition extends its footprint in the Permian.
Vital Energy Again Ups Interest in Acquired Permian Assets
2024-02-06 - Vital Energy added even more working interests in Permian Basin assets acquired from Henry Energy LP last year at a purchase price discounted versus recent deals, an analyst said.
California Resources Corp., Aera Energy to Combine in $2.1B Merger
2024-02-07 - The announced combination between California Resources and Aera Energy comes one year after Exxon and Shell closed the sale of Aera to a German asset manager for $4 billion.
DXP Enterprises Buys Water Service Company Kappe Associates
2024-02-06 - DXP Enterprise’s purchase of Kappe, a water and wastewater company, adds scale to DXP’s national water management profile.
Tellurian Exploring Sale of Upstream Haynesville Shale Assets
2024-02-06 - Tellurian, which in November raised doubts about its ability to continue as a going concern, said cash from a divestiture would be used to pay off debt and finance the company’s Driftwood LNG project.