WhiteHawk Minerals (WHK) EnerCom Denver – The Energy Investment Conference summary

Strategic positioning and asset base

• Holds over 3.6 million gross acres and more than 10,000 producing wells, primarily in the Marcellus and Haynesville shales.

• 13% of U.S. natural gas production pays royalties to the company, making it a significant player in the sector.

• Portfolio includes royalty interests in top operators like EQT, Antero, Range Resources, and CNX, with substantial exposure to their production.

• 55% of assets are in Marcellus, 25% in Haynesville, and 10% in MidCon and other regions.

• Recent acquisitions added 700,000 gross unit acres and are expected to generate $17 million in cash flow by 2027.

Business model and financial performance

• Operates a capital-light, high-margin royalty model with minimal operating expenses and no capital expenditures.

• Generated over $20 million in EBITDA and $0.63 of free cash flow in the recent quarter.

• Announced an annualized dividend of $2 per share, representing a 79% payout ratio.

• Achieved 58 out of 60 months of hedge gains by swapping at high levels over a rolling three-year period.

• Focuses on growing cash flow per share and net asset value through disciplined acquisitions.

Acquisition strategy and competitive advantages

• Employs a two-pronged acquisition strategy: strategic deals with private equity and ground game purchases from individual landowners.

• Minimal competition for large-scale acquisitions due to unique market positioning.

• Holds a 0.51% royalty interest across its acreage, with an average royalty of 17%, offering significant expansion potential.

• Utilizes advanced engineering and data analysis to anticipate operator development and secure advantageous deals.

• Largest operators have approached to partner on acquisitions, leveraging the company’s market intelligence.