2011-05-31-2011-05-05

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
920MM
Description

To buy remaining 50% in KinderHawk Field Services LLC which provides Haynesville shale gathering and treating services.

Petrohawk Energy Corp., Houston, (NYSE: HK) plans to sell its remaining 50% interest in KinderHawk Field Services LLC, along with a 25% minority interest in its Eagle Ford shale midstream assets, to Kinder Morgan Energy Partners LP (NYSE: KMP) for $920 million.

The latest transaction, in addition to the $75 million of proceeds from the sale of Petrohawk's Fayetteville midstream assets earlier this year to a subsidiary of ExxonMobil Corp., Irving, Texas, (NYSE: XOM), brings total proceeds from 2011 asset sales to approximately $1 billion, thereby meeting the company's 2011 divestiture target.

KinderHawk Field Services, a 50/50 joint operating company held by Petrohawk and Kinder Morgan, was formed after Petrohawk divested a 50% stake in its Haynesville shale gathering and treating business for $875 million in cash asset to Kinder Morgan Energy Partners. The deal closed in May 2010.

KinderHawk was 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.

The latest transaction is expected to close by July 1. Barclays Capital Markets is advisor to Petrohawk.