PetroHawk Energy Corporation

 

Portfolio

Investment: 
2011

Petrohawk Energy Corporation was a publicly traded E&P company based in Houston. The company was formed in May 2003 by Floyd Wilson, the former founder and CEO of 3TEC Energy, a successful EnCap Fund III investment. The company has aggressively pursued its acquire-and-exploit growth strategy and has evolved from a startup to a substantial mid-cap independent.

In May 2004, Petrohawk acquired a controlling interest in Beta Oil & Gas (“Beta”), a small publicly traded oil and gas company based in Tulsa, with the intention of utilizing Beta as a platform to raise public equity for future growth. Subsequent to the transaction, Beta was renamed Petrohawk.

In January 2005, Petrohawk completed a Reg-D offering to supplement bank financing in consummating the acquisition of Wynn Crosby Energy, Inc. Following this offering, EnCap sold enough of its common stock in Petrohawk to recoup its initial investment.

In July 2005, Petrohawk finalized a merger with Mission Resources Corporation, a publicly traded E&P company with assets in the Permian Basin and Gulf Coast. The combined company had over $1 billion of oil and gas assets. Subsequent to this merger, EnCap began to strategically liquidate its remaining ownership in the company until the last of the securities were sold in February 2006.

In July 2006, Petrohawk completed a merger with KCS Energy, creating a combined company with estimated proved reserves of approximately 1 Tcfe.

In August 2011, Petrohawk was sold to BHP Billiton for a cash offer of $38.75 per share, representing a total equity value of ~$12.1 billion and a total enterprise value of ~$15.1 billion. EnCap has again backed PetroHawk CEO Wilson in a new venture, Halcón Reserves.