Petrohawk Posts 1Q Loss On Big Impairment Charge

HOUSTON (AP) — Petrohawk Energy Corp. on Wednesday reported a nearly $1 billion loss for its first quarter due to a hefty impairment charge.

The oil and gas company reported a $999.8 million loss, or $3.87 per share, for the quarter ended March 31. That's down from a $55.6 million loss, or 30 cents per share, in the same quarter of the prior year.

The company reported several one-time items in the most recent quarter. Those included a $101 million non-cash gain on the company's long-term derivative position and a $1.7 billion impairment charge; both items are due to the accounting effect of lower commodity prices.

Excluding those items, the company reported a profit of 2 cents per share.

Petrohawk's total revenue reached $263 million.

Analysts polled by Thomson Reuters, on average, expected the company to earn 2 cents per share for the quarter on revenue of $247 million. Analyst estimates typically exclude one-time items.

The company's production for the quarter increased 14 percent over the fourth quarter and jumped 58 percent compared with the same period last year.

Petrohawk also raised its production guidance and capital budget for 2009. The company increased its capital budget, excluding acquisitions, by $300 million to $1.3 billion, which it will use to increase its rig count, drilling activities and infrastructure. It increased its 2009 production view by 44 percent from prior year.

Shares of Petrohawk were up 17 cents, at $25.33 in afternoon trading Wednesday.