Published: August 18, 2023 |

[Click image to enlarge]

PHX Minerals confirmed that its board of directors previously received, thoroughly reviewed, and rejected an unsolicited, non-binding proposal from WhiteHawk Income Corporation to combine with PHX in a stock-for-stock transaction.

“Our Board is committed to driving value for all stockholders and evaluates all opportunities that can help achieve that goal,” said Mark Behrman, chairman of the board.

“We recognize the time and effort WhiteHawk dedicated to presenting its proposal, but after a very thorough evaluation we do not believe it would be in the best interests of our stockholders to explore this opportunity further,” added Behrman.

The board reiterates that it is open to and regularly evaluates opportunities to enhance stockholder value. Using a consistent process and valuation methodology that PHX has utilized to evaluate over 150 potential acquisitions since 2020, the board carefully considered WhiteHawk’s offer.

Following this comprehensive review, the board unanimously determined that the proposal:
• Is grossly inadequate in terms of the value offered to PHX and its stockholders
• Overstates the value of WhiteHawk’s assets
• Is highly dilutive to PHX stockholders

As such, the board determined that the WhiteHawk proposal is not an appropriate basis for engagement and is not in the best interest of stockholders.

Read the letter HERE.

Fort Worth-based, PHX Minerals Inc. is a natural gas and oil mineral company with a strategy to proactively grow its mineral position in its core focus areas. PHX owns mineral acreage principally located in Oklahoma, Texas, Louisiana, North Dakota, and Arkansas.

Be in-the-know when you’re on-the-go!

CLICK HERE to register your email address.

Copyright © 2023 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

For licensing permission, .(JavaScript must be enabled to view this email address)