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Petrohawk enhances liquidity with Kinder Morgan Energy joint venture
By Lisa Kerner
Charlotte, N.C., April 13 - Petrohawk Energy Corp. entered into a definitive agreement to sell a 50% interest in its Haynesville Shale natural gas-gathering and -treating business for $875 million in cash to Kinder Morgan Energy Partners, LP.
The company has either entered into definitive agreements for or closed approximately $1.4 billion in divestitures to date in 2010, including the Kinder Morgan transaction, a Petrohawk news release said.
Petrohawk said proceeds from the asset sales will be used to further enhance its liquidity position. Year-end 2010 liquidity is expected to be approximately $1.3 billion.
The transaction with Kinder Morgan is expected to close by the end of May.
Petrohawk will continue to operate the Haynesville business during a transition period, after which a new company, KinderHawk Field Services LLC, a 50/50 joint venture with Kinder Morgan, will assume operations.
The venture is expected to have an enterprise value of up to $1.75 billion at inception.
Barclays Capital advised Petrohawk in connection with the transaction.
Petrohawk is a Houston-based independent energy company. Kinder Morgan is a petroleum pipeline company based in Houston.
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