WhiteHawk Energy LLC closed on the acquisition of Haynesville Shale mineral and royalty interests in northwestern Louisiana and eastern Texas, the company’s second announced acquisition in the Haynesville this year.
WhiteHawk also announced it had entered into an acquisition finance facility with a “top tier institution” for $100 million. WhiteHawk did not name the institution. The company will draw $20 million from the facility to pay for the Haynesville acquisition from Mesa Minerals Partners II LLC, according to an Aug. 7 press release.
Earlier this year, WhiteHawk announced a $105 million acquisition of mineral and royalty interests in the Haynesville. A company official declined to comment on whether the January deal had closed.
“This is an exciting day for WhiteHawk, as we take our next big step towards being the leading natural gas mineral and royalty company in the United States. Our partnership with one of the top institutional investors in the U.S. will help to accelerate WhiteHawk’s consolidation of the highest quality natural gas mineral and royalty positions,” said WhiteHawk CEO Daniel C. Herz in the news release. “This institution is a global leader in investing, innovative energy and commodity risk management solutions. There is a significant opportunity to continue to acquire natural gas mineral and royalty assets delivering consistent and growing cash flow in core basins developed by top-tier operators.”
The company expects to utilize additional borrowings from the facility to fund future acquisitions of mineral and royalty assets upon the agreement of the institution. The company can make repayments on the facility at any time. WhiteHawk said its new acquisition facility matures on Dec. 31, 2025, and contains certain co-investment rights for the financial institution.
Weil, Gotshal & Manges LLP acted as legal counsel to WhiteHawk.
WhiteHawk manages approximately 850,000 gross unit acres within core operating areas of the Haynesville and Marcellus shales, including interests in more than 2,500 producing horizontal wells. The company’s Haynesville royalties cover approximately 375,000 gross unit acres in the play.
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