Petrohawk Energy said it is selling $1 billion in pipelines and related equipment to raise cash for its exploration efforts this year. Speaking at an energy industry conference in New Orleans, Petrohawk CEO Floyd Wilson said the company will obtain additional funds needed for exploration will come further sales of midstream assets.
Texas-based Petrohawk has already sold shale assets to Exxon Mobil (XOM), the largest U.S. oil company, and Kinder Morgan Energy Partners (KMP), the second-largest U.S. master limited partnership, in the past year.
Wilson said Petrohawk will slow drilling in the Haynesville shale this year amid weak natural-gas prices, instead directing exploratory efforts toward the Eagle Ford Shale, which holds more oil, the Wall Street Journal reported. Petrohawk (HK) will retain its gas properties, Wilson said.
As of December 31, 2009, Petrohawk had estimated proved reserves of 2.75 trillion cubic feet of natural gas equivalent (Tcfe), of which 98% was natural gas, according to the company's Web site.