Petrohawk announced last week the close of their Kinder Morgan Haynesville midstream joint venture and the completed sale of their Terryville Field interests and now they are try to off load more assets in the Texas, Oklahoma and Arkansas. The Petrohawk/Kinder Morgan JV, not surprisingly named KinderHawk, equated to $875 million and along with Terryville field sale worth $320 million and other smaller divestitures puts the Company at approximately $1.37 billion in asset sales this year.
The KinderHawk Haynesville midstream deal creates a gathering and treating system that moves roughly 2 billion cubic feet a day of planned mainline throughput capacity making it one of the largest systems in the United States. KinderHawk Field Services LLC was formed as a result of the deal and now holds assets of over 200 miles of pipelines currently in service and 375 miles of pipe planned by the end of 2010.
Terryville field was sold to a private company and as of the end of last year Petrohawk’s interest amounts to reserves of approximately 110 Bcfe and approximately 20 Mmcfe/d at the closing of the deal.
With those 2 deals closed Petrohawk is now selling roughly 15.5 MMcfe/d in the Anadarko, Arkoma and East Texas basins. The assets have a total net cash flow of $1.9 million per month, are 44% operated and 88% gas. This looks like another operator divesting their gas assets for a more balanced production portfolio.
Coming soon: DI Energy Strategy Partners will be releasing the Acquisition and Divestiture Pipeline which will include these types of deals and links to information regarding each deal.
Anne Leonard
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