PHX Minerals Soars 20.95% on WhiteHawk Acquisition

PHX Minerals (PHX) surged 20.95% over the past two days, marking its highest level since November 2022, with an intraday gain of 21.23%.

The strategy of buying PHX shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 5-year CAGR of 2.57%. While the strategy captured some upside during strong performance periods, such as the initial rebound in May 2025, it also suffered losses during periods of market weakness, like the decline in late 2024. The overall performance was somewhat volatile, with a maximum drawdown of -22.08% during the five-year period. Therefore, this strategy could be considered for its ability to capture short-term rebounds, but it may not be suitable for investors seeking more stable, long-term gains.

The most significant factor driving the recent surge in PHX Minerals' stock price is the acquisition by WhiteHawk Income Corporation. WhiteHawk has agreed to acquire PHX Minerals in an all-cash transaction valued at $4.35 per share, totaling approximately $187 million. This acquisition represents a 21.8% premium over PHX's closing share price on May 7, 2025, and additional premiums over the 30 and 60-day volume-weighted average share prices. The transaction has received unanimous approval from PHX's Board of Directors and is expected to close early in the third quarter of 2025, subject to customary closing conditions. Consequently, PHX Minerals experienced a 19.3% stock price surge following the acquisition announcement.

This acquisition is a strategic move by WhiteHawk to expand its portfolio and leverage PHX Minerals' strong asset base and operational expertise. The deal is expected to create significant value for PHX Minerals' shareholders, providing them with an attractive exit opportunity. The acquisition also underscores the growing interest in the mineral sector, as companies seek to secure critical resources for future growth.

PHX Minerals' management has expressed optimism about the acquisition, highlighting the potential for enhanced operational efficiencies and synergies. The company's leadership believes that the acquisition will position PHX Minerals for long-term success and provide a stable platform for future growth. The transaction is expected to have a positive impact on PHX Minerals' financial performance, with the company poised to benefit from increased scale and market presence.