Petrohawk Energy Corporation Announces Sale of 50% of Haynesville Shale Midstream Operations for $875 Million

HOUSTON, April 13 /PRNewswire-FirstCall/ -- Petrohawk Energy Corporation ("Petrohawk" or the "Company") (NYSE: HK) today announced it has entered into a definitive agreement to sell a 50% interest in it's Haynesville Shale gathering and treating business for $875 million in cash to Kinder Morgan Energy Partners, L.P. ("Kinder Morgan") (NYSE: KMP).

The transaction, expected to close by the end of May, 2010, will create the largest gathering and midstream business in the Haynesville Shale of Northwest Louisiana, with over 173 miles of pipeline currently in service and projected throughput of over 800 million cubic feet per day ("Mmcf/d") of natural gas by year-end 2010. Closing of the transaction is subject to customary closing conditions and has an economic effective date of January 1, 2010.

"With today's announcement, Petrohawk is entering into a strategic partnership with one of the most experienced and successful pipeline operators in the U.S.," said Floyd C. Wilson, Chairman and CEO. "Our E&P operating expertise coupled with Kinder Morgan's pipeline operating expertise provides an exciting partnership at exactly the right time in our development of the Haynesville Shale."

Petrohawk will continue to operate the business during a transition period, after which a new company, KinderHawk Field Services LLC, owned 50/50 by Petrohawk and Kinder Morgan, will assume operations. This new company will be staffed with experienced personnel from both companies with a focus on serving third-party shippers. The venture is expected to have an enterprise value of up to $1.75 billion at inception, making it one of the largest gathering and treating systems in the U.S. By year-end 2010, throughput of over 800 Mmcf/d is projected from approximately 375 miles of expected pipeline in service. Additionally, the company's amine treating plants are projected to have capacity of approximately 2,635 gallons per minute by year-end 2010. Total future throughput capacity is planned at approximately 2 Bcfe/d.

Barclay's Capital acted as marketing and financial advisor to Petrohawk in connection with the transaction.

With this transaction, Petrohawk has now either entered into definitive agreements for or closed approximately $1.4 billion in divestitures to date in 2010. The proceeds from these asset sales will be used to further enhance the Company's liquidity position. After closing these transactions, Petrohawk is expected to have available year-end 2010 liquidity of approximately $1.3 billion.

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 North Louisiana, Arkansas, South Texas and East Texas.

For more information contact Joan Dunlap, Vice President - Investor Relations, at 832-204-2737 or [email protected]. For additional information about Petrohawk, please visit our website at 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