WhiteHawk Minerals Corp. — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for Q2 2026 was $29.1 million, a 38% increase year-over-year (YoY) and 40% increase quarter-over-quarter (QoQ), including $6.7 million in unrealized hedge gains and $3.3 million in gathering, processing, transportation, and lease operating expenses.
• Net loss for Q2 2026 was $39.2 million ($2.54 per share), compared to a net loss of $0.2 million in Q2 2025; the loss includes a $21.7 million non-recurring loss on debt extinguishment and $15.8 million in non-recurring management and incentive fees.
• Adjusted EBITDA for Q2 2026 was $20.7 million, representing a 104% YoY increase and a 19% QoQ increase.
• Cash Available for Distribution (CAD) was $17.4 million, or $0.63 per share on a diluted basis and $0.96 per share on a weighted average shares outstanding basis.
• Net production averaged 70.0 MMcfe/d, up 57% YoY and 9% QoQ.
• Average realized natural gas price was $3.43 per Mcf including hedge settlements ($2.42 excluding settlements), compared to a Henry Hub average of $2.90 per MMBtu.
• Average realized crude oil price was $71.58 per barrel including hedge settlements ($93.00 excluding settlements).
• Cash and cash equivalents were $13.2 million as of June 30, 2026; total debt was $68.7 million (net of unamortized costs), with net debt of $55.5 million.
• Leverage ratio was 0.67x as of June 30, 2026, based on net debt divided by trailing 12-month Adjusted EBITDA.
• General and administrative expenses were $4.3 million total, including $1.7 million in non-recurring IPO-related costs; excluding stock-based compensation and non-recurring costs, G&A was $1.8 million.

Guidance and Future Outlook

• Signed acquisitions are expected to generate approximately 16 MMcfe/d and 17 MMcfe/d in 2027 and 2028, respectively.
• The signed acquisitions are projected to add approximately $17.0 million and $18.5 million of incremental cash flow in 2027 and 2028, respectively, at current strip pricing.
• Upon closing, the acquisitions are expected to be immediately accretive to Cash Available for Distribution per Share.
• The Company intends to return a significant portion of CAD to shareholders through quarterly dividends, with remaining cash flow reinvested into accretive mineral and royalty acquisitions.
• The Company expects to fund the $111.8 million purchase price for signed acquisitions via $50.0 million of Series E Preferred Stock, with the remainder funded through cash on hand and borrowings on its revolving credit facility.

Business Segments and Product Lines

• Nine acquisitions totaling $111.8 million in natural gas mineral and royalty interests were signed since the June 10, 2026 IPO, anchored by approximately $105.0 million of assets from San Jacinto Minerals II (SJM II).
• The Company now owns mineral and royalty interests across approximately 3.6 million gross unit acres, including assets from the Marcellus, Utica, and Haynesville Shales.
• The asset base includes more than 11,600 producing wells, 365 wells in process, 205 permitted wells, and 9,200 undeveloped locations.
• The signed acquisitions specifically include more than 1,700 producing wells, 160 wells in process, 85 permitted locations, and 2,500 undeveloped locations.
• In Appalachia, the four largest operators (EQT, Antero, Range, CNX) represented 96% of total Appalachia production over the last 12 months, with WhiteHawk capturing approximately 46% of wells turned in line by these operators.
• In the Haynesville, the four largest operators (Expand, Adamas, Comstock, Tokyo Gas) represented 58% of total Haynesville production over the last 12 months, with WhiteHawk capturing approximately 42% of wells turned in line by these operators.
• The Company has a five-year capture rate of 45% in Appalachia and 47% in the Haynesville.

Market and Competitive Landscape

• WhiteHawk holds approximately 13% exposure to total 2025 U.S. dry gas production.
• The Company targets a pipeline of private equity-backed mineral assets across Appalachia and the Haynesville valued between $3 billion and $5 billion.
• The Company benefits from relationships with management teams and sponsors across these basins to create differentiated, proprietary acquisition opportunities.

Risks and Challenges

• Forward-looking statements regarding acquisitions, production, and cash flow are subject to risks including changes in commodity prices, operator activity levels, well performance, and the ability to close transactions on anticipated terms or timelines.
• Financing risks include the potential inability to obtain Series E Preferred Stock or credit facility borrowings on anticipated terms, amounts, or timelines.
• Dividend payments are discretionary and subject to change based on financial condition, capital requirements, and business conditions.
• Actual results may differ materially due to regulatory changes, general economic conditions, and the pace of AI-related electricity demand and LNG export development.

Management Commentary and Tone

• Daniel Herz, Chairman, President, and CEO, stated the Company has demonstrated its value proposition as a public company by benefiting from best-in-class operators' performance with no associated capital expenditures and minimal operating expenses.
• Management highlighted the successful execution of a dual-prong acquisition strategy (strategic and ground game) to drive free cash flow and net asset value per share.
• Matthew Heinlein, VP & Head of Corporate Development and Strategy, noted the acquisitions were made at valuations well within target return parameters and that the acquisition pipeline is at its strongest.
• The tone reflects confidence in the dual-prong strategy and the expectation that these attributes will drive meaningful shareholder value in the short, medium, and long term.

Analyst Questions and Answers

• No specific analyst questions and answers were included in the press release text provided.

Other Key Points

• The Board initiated a quarterly cash dividend of $0.50 per share of Class A common stock ($2.00 annualized); the initial prorated dividend of $0.11 per share is payable on August 28, 2026.
• The Company completed its IPO on June 10, 2026, issuing 7.7 million Class A shares for $200.2 million, and exercised the greenshoe option on June 16, 2026, for an additional 0.8 million shares and $20.3 million.
• IPO proceeds were used to repay $156.3 million of senior secured notes, fully redeem $37.8 million of Series D preferred equity, and redeem $10.2 million of Series B preferred equity.
• A $150 million reserve-based revolving credit facility with Capital One was entered into on May 10, 2026, and was undrawn at quarter-end.
• The Series E Preferred Stock to be issued for acquisitions will pay a monthly cash dividend at an annual rate of 10% through March 31, 2027, 12% through December 31, 2028, and 14% thereafter, subject to a minimum return of 1.05x of invested capital.
• 96% of natural gas production was hedged for the second quarter of 2026.
• The Company reported 525 gross wells turned in line across its acreage over the last 12 months.