Friday, March 6, 2009

Petrohawk Pipeline Capacity

I’ve been waiting to hear what Petrohawk has to say about pipeline capacity from the Haynesville Play. They more or less have wagered the future of the company on the success of the Haynesville Shale and they are going to be one of the biggest producers in the play. In the company’s recent fourth quarter earnings call, there was a passing mention of pipeline capacity and plans for the future, but nothing of great significance or specificity was discussed.

CEO Floyd Wilson stated that Petrohawk has ample pipeline capacity in the Haynesville Play through early 2010, but the company is working on a new pipeline project on which Petrohawk will be the largest shipper. There were no other details on that project. He also mentioned that they are waiting on the completion of the expansion of Boardwalk’s Gulf South Pipeline (see separate post). While the first and by far the largest part of the project has been completed, Petrohawk is waiting on the completion of the second leg before it will be able to realize fully its capacity on the pipeline.

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