Preferred Capital Securities, an independent managing broker-dealer, has partnered with WhiteHawk Energy, a buyer of mineral and royalty interests, to fund WhiteHawk’s latest transaction, known as the Marcellus Royalties, a $52.5 million acquisition of natural gas minerals and royalty assets located in southwestern Pennsylvania.
WhiteHawk said that the Marcellus Royalties are primarily focused in Washington and Greene Counties and will cover approximately 475,000 acres in the Marcellus Shale, with “additional upside” from the underlying Utica Shale. The company reported that approximately 95 percent of production, cash flow, and present value is anchored by natural gas operators EQT Corporation, Range Resources and CNX Resources.
According to the U.S. Geological Survey, the Marcellus Shale spans eight states and contains roughly 84 trillion cubic feet of recoverable natural gas and 3.4 billion barrels of natural gas liquids.
“The Marcellus Royalties is the ideal acquisition for WhiteHawk. We have operated for over 15 years in Appalachia and helped to pioneer the Marcellus shale in this very area…,” said Daniel Herz, founder and chief executive officer of WhiteHawk. “Now, more than ever, natural gas is needed to provide clean electricity for vehicle electrification, offer affordable energy for heating homes, and further drive energy security for the United States and our allies.”
Herz is an energy executive who has headed multiple companies over his career, including Falcon Minerals Corporation, Atlas Energy Group, and Titan Energy LLC.
Preferred Capital Securities provides back-office services and the wholesale distribution of alternative investments to independent broker-dealers and registered investment advisors across the United States and Puerto Rico.
“[Preferred Capital Securities] prides itself on offering innovative products that are market relevant to our BD partners and advisors,” said Jeffery Smith, CEO. “We have a long list of products that have performed very well and expect the same from WhiteHawk…”
Preferred Capital Securities serves as the managing broker-dealer for Preferred Apartment Communities’ (NYSE: APTS) preferred stock offering, as well as the preferred stock offering for Prospect Capital Management (NASDAQ: PSEC) and the Priority Income Fund.
Since inception in 2011, the company has reportedly raised more than $3 billion in retail capital across eight offerings which have issued approximately $1 billion in liquidity for its investors.