Petrohawk Energy 1Q loss widens on derivative loss

HOUSTON—Natural gas and oil producer Petrohawk Energy Corp. said Tuesday its first-quarter loss deepened because of a large accounting adjustment tied to higher commodity prices.

The company's loss during the first three months of the year widened to $55.6 million, or 30 cents per share, from a loss of $19.4 million, or 12 cents per share, during the same period a year earlier.

The most recent quarter included a $137.5 million non-cash derivative loss because of higher commodity prices. After adjustments for special items, Petrohawk earned 15 cents per share.

Analysts predicted income of 16 cents per share, according to a survey by Thomson Financial. Analyst forecasts typically exclude special items.

Revenue increased to $214.9 million from $209.2 million. Analysts predicted revenue of $202 million.

Petrohawk also boosted its capital budget for the year to $1.3 billion from $800 million to account for expanding holdings and drilling in the Haynesville Shale in Louisiana, new construction in Arkansas' Fayetteville Shale, and to provide added liquidity for future projects.

The company said it expects to produce the equivalent of about 280 million to 290 million cubic feet of gas during the second quarter.

Petrohawk shares fell $2.36, or 9 percent, to $24 in after-hours trading. Earlier, the stock rose $1.85, or 7.6 percent, to close at $26.36.

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