How was the Petrohawk play book different from Halcon?
Can any of you more knowledgeable individuals explain how Halcon playbook is any different than the recipe
used previously by Mr Wilson in Petrohawk? Clearly timing/luck are all factors of past success but it would seem to me that the basic playbook is more or less the same. Intelligent post only would be appreciated.
It's not. Floyd was able to raise cash through share issuance as he was building Hk Sr, just as he will do with HK Jr. (i.e., this will not be the last dilution of the common). He did have a major pipeline in the Haynesville which had alot of folks interested, like Kinder Morgan, which he does not have. The one difference is that investors are more savvy now than they were in 2007 and 08. You have to show some good well performance on these Oil wells. He also has Petro Hunt looking over his shoulder, who are very conservative, which he is not.
I have owned Petrohawk.....did for years. I watched every move that Floyd made....and knew why he made them. With Petrohawk.....he made one large acquisition of a NG company, but then mostly he sent land-men out after the geologists found good shale areas, and he bought leases...and was way early in 2 plays...........the Haynesville shale....and the EagleFord shale.
Later in the EagleFord.....he found the oil window and expanded again with large chunk of leases...all contiguous. He was very early in both plays, and bought acreage for a mere fraction of what others would pay....following his lead. THAT is the big difference with HK now......he has expanded rapidly by buying out other companies and paying them HUGE prices for what they had collected as acreage. Big difference......and the cost has been brutal with the rising debt.
Petrohawk was built through the drillbit.....and by finding leases in hot areas before most knew what was happening. Make sense?
This is why I haven't followed Floyd into this venture.......don't like what I see...