News Summary

Former Louisiana Attorney General Charles C. Foti, Jr. and Kahn Swick & Foti, LLC have launched an investigation regarding the proposed sale of PHX Minerals Inc. to WhiteHawk Income Corporation for $4.35 per share. The inquiry evaluates if the offer adequately reflects the company’s value and urges shareholders to discuss their legal rights. This sale, amidst a recovering natural gas market, includes a premium of 21.8% over the previous closing share price. Investors are closely monitoring these developments as two law firms assess the fairness of the transaction.

Investigation Launched Into PHX Minerals Proposed Sale

New Orleans, LA – Former Louisiana Attorney General Charles C. Foti, Jr. and the law firm Kahn Swick & Foti, LLC (KSF) have initiated an investigation into the proposed sale of PHX Minerals Inc. to WhiteHawk Income Corporation for $4.35 per share. The total value of the transaction is estimated at $187 million, which includes net debt.

Evaluation of Sale Price

The investigation focuses on whether the price of $4.35 per share adequately reflects the value of PHX Minerals. KSF is assessing if the offer is fair or if it undervalues the company from the perspective of its shareholders. In light of this investigation, KSF is urging PHX shareholders to reach out to discuss their legal rights regarding the proposed transaction.

Structure of the Transaction

This sale is structured as a tender offer, which requires shareholders to act quickly if they wish to participate. KSF suggests that any shareholders interested in understanding their rights should contact KSF’s Managing Partner, Lewis S. Kahn, via email or toll-free phone number.

Additional Investigations

In addition to KSF’s investigation, Halper Sadeh LLC, another investor rights law firm, is also probing whether the proposed sale is fair to PHX shareholders. This investigation will evaluate if the company’s board of directors met its fiduciary obligations regarding the sale and if they worked to secure the best possible price for shareholders, while adequately disclosing information necessary for informed decision-making.

Background of the Sale

The sale comes after WhiteHawk’s multiple unsolicited bids for PHX Minerals since August 2023, with the latest bid being a public offer of $4 per share, which PHX rejected prior to entering negotiations for the current proposal. The agreement with WhiteHawk includes a premium of 21.8% over PHX’s closing share price before the announcement, which has subsequently influenced share performance positively in after-hours trading—PHX shares surged nearly 20% following the news.

Strategic Evaluation by PHX’s Board

In light of the ongoing acquisition attempts, PHX’s Board of Directors conducted a strategic review process intended to maximize shareholder value, which ultimately led to the agreement with WhiteHawk. The deal is expected to close during the third quarter of 2025, specializing in acquiring PHX’s extensive 1.8 million gross unit acres of natural gas mineral and royalty assets—an asset portfolio that includes holdings in the Haynesville Shale.

Market Context

The proposed acquisition is emerging in a backdrop of an improving natural gas market, following WhiteHawk’s recent success in acquiring Marcellus holdings. As the market for natural gas shows signs of recovery, industry analysts will be closely observing how this deal positions both PHX Minerals and WhiteHawk Income Corporation in the future.

Investors and stakeholders in PHX Minerals continue to monitor these developments closely as the investigations unfold and conversations about the proposed sale progress.

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