Petrohawk Energy Corporation Reports Major Transactions Closed
HOUSTON, May 24 /PRNewswire-FirstCall/ — Petrohawk Energy Corporation (“Petrohawk” or the “Company”) (NYSE: HK) today announced that two previously announced transactions, a 50/50 joint venture with Kinder Morgan Energy Partners, L.P. (“Kinder Morgan”) involving the Company’s midstream business in the Haynesville Shale for $875 million and the sale of Terryville Field for $320 million, have closed. Petrohawk has now closed approximately $1.37 billion in asset sales year to date, in excess of the Company’s target of $1 billion in divestitures in 2010.
KinderHawk Field Services LLC, the entity formed upon the closing of Petrohawk’s joint venture in the Haynesville Shale with Kinder Morgan, announced April 13, 2010 creates one of the largest gathering and treating systems in the United States with approximately 2 billion cubic feet per day of planned mainline throughput capacity. KinderHawk’s assets comprise more than 200 miles of pipeline currently in service, with a total of 375 miles of pipeline with projected throughput of over 800 million cubic feet per day planned by year-end 2010. Additionally, the system is expected to reach treating capacity of approximately 2,635 gallons per minute by year end. Proceeds received at closing of $921 million reflected cash flow and capital expenditure adjustments based on an effective date of January 1, 2010.
Petrohawk has also closed the sale of its interests in Terryville Field, located in Lincoln and Claiborne Parishes, Louisiana, to a private company for $320 million. As of December 31, 2009, the Company had estimated proved reserves of approximately 110 billion cubic feet of natural gas equivalent (Bcfe) associated with its interest in Terryville Field, 53% of which was proved developed. Proved reserves were approximately 92% natural gas. At closing, production was approximately 20 million cubic feet of natural gas equivalent per day (Mmcfe/d).
Analyst Meeting Today at 8 a.m. CDT / 9 a.m. EDT
Petrohawk will host an analyst day today beginning at 8:00 AM Central Daylight Time (9:00 AM Eastern Daylight Time) in New York. To access the live webcast and accompanying slide presentation, visit the Company’s website at http://www.petrohawk.com/2010analystmeeting.php. For those unable to listen to the live webcast, a replay will be available following the conference and can also be accessed at www.petrohawk.com. Materials to accompany the management presentation have been posted and can be accessed on Petrohawk’s website by following the link above.
Petrohawk Energy Corporation is an independent energy company engaged in the acquisition, production, exploration and development of natural gas and oil with properties concentrated in the Haynesville Shale of Northwest Louisiana, the Fayetteville Shale of Central Arkansas, and the Eagle Ford Shale of South Texas.
For more information contact Joan Dunlap, Vice President – Investor Relations, at 832-204-2737 or firstname.lastname@example.org. For additional information about Petrohawk, please visit our website at http://www.petrohawk.com .
Additional Information for Investors
This press release contains forward-looking information regarding Petrohawk that is intended to be covered by the safe harbor “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995, based on Petrohawk’s current expectations and forward-looking statements include statements regarding estimates of future production, capital expenditures and results of operations, and other statements reflecting expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as “expects”, “anticipates”, “plans”, “estimates”, “potential”, “possible”, “probable”, or “intends”, or stating that certain actions, events or results “may”, “will”, “should”, or “could” be taken, occur or be achieved). Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in these statements. These risks include, but are not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather such as hurricanes and other natural disasters); uncertainties as to the availability and cost of financing; fluctuations in oil and gas prices; risks associated with derivative positions; inability of our management team to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems, pipelines and processing facilities and the possibility that government policies may change or governmental approvals may be delayed or withheld. Additional information on these and other factors which could affect Petrohawk’s operations or financial results are included in Petrohawk’s reports on file with the SEC. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the expectations in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Petrohawk does not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.
SOURCE Petrohawk Energy Corporation