San Jacinto Minerals Completes Marcellus Shale Divestiture
1 | Apr 08, 2025 | Lime Rock Partners LLC
San Jacinto Minerals has finalized the sale of 13,700 net royalty acres in the Pennsylvania Marcellus Shale to WhiteHawk Energy for $118 million. This transaction signifies the complete divestment of assets under the San Jacinto Minerals I entity, which began in 2015 with backing from Lime Rock Partners. This sale marks the conclusion of San Jacinto's first entity, with the entirety of its assets now sold. Previously, portions of these assets were sold in 2022 and 2023 to WhiteHawk for a combined $110 million. Operated predominantly by EQT, Range Resources, and CNX Resources, the assets are chiefly producers of dry natural gas. Lime Rock Partners has been a strategic partner and investor in San Jacinto, which is also pursuing mineral acquisitions in the Denver-Julesburg and Appalachian Basins. The exit showcases Lime Rock's and San Jacinto's commitment to investing and realising value from mineral strategies. Legal and financial advisory support was provided by Gibson, Dunn & Crutcher LLP and TenOaks Energy Advisors, LLC, respectively.
Sectors
- Energy
- Private Equity
- Legal Services
Geography
- United States – The transaction involves assets based in the Marcellus Shale in Pennsylvania, and companies operating primarily in the U.S. energy sector.
Industry
- Energy – The article discusses the sale of oil and gas assets in the Marcellus Shale, a significant natural gas extraction site, which is a core part of the energy sector.
- Private Equity – Lime Rock Partners, a private equity firm, is a major investor in San Jacinto Minerals, highlighting the role of private equity in facilitating energy transactions.
- Legal Services – Legal advisors played a key role in the transaction, with Gibson, Dunn & Crutcher LLP and Weil, Gotshal & Manges LLP providing counsel, which is pivotal in M&A deals.
Financials
- $118 million – The sale price for the 13,700 net royalty acres in the Pennsylvania Marcellus Shale.
- $110 million – Price for previous asset sales to WhiteHawk Energy in 2022 and 2023.
- $68 million – Initial capital commitments from Lime Rock Partners and management to start San Jacinto Minerals I.
- $800 million – Total acquisitions closed by San Jacinto Minerals across over 1,300 transactions as of March 31, 2025.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| San Jacinto Minerals | Target Company | Company | A mineral interest acquisition company, involved in the transaction as the seller of assets. |
| WhiteHawk Energy | Buyer | Company | Acquirer of the Marcellus Shale assets focusing on mineral and royalty interests. |
| Lime Rock Partners | Private Equity Firm | Company | Primary investor in San Jacinto Minerals, supporting the acquisition and sale process. |
| Gibson, Dunn & Crutcher LLP | Legal Advisor | Company | Provided legal counsel to San Jacinto Minerals during the transaction. |
| TenOaks Energy Advisors, LLC | Financial Advisor | Company | Served as financial advisors to San Jacinto Minerals in the transaction. |
| Weil, Gotshal & Manges LLP | Legal Advisor | Company | Provided legal counsel to WhiteHawk Energy during the transaction. |
| EQT, Range Resources, and CNX Resources | Operators | Company | Primary operators of the gas producing assets sold by San Jacinto Minerals. |
| Nick Reiland | Leader | Person | Co-founder of San Jacinto Minerals. |
| Jeff Scott | Leader | Person | Co-founder of San Jacinto Minerals. |
| Jeffrey Scofield | Managing Director | Person | Managing Director of Lime Rock Partners, involved in the transaction. |