More Petrohawk-Style Midstream Deals Coming for the HS Play?

Not surprising that Petrohawk has leveraged its position in the HS play by monetizing its midstream assets to Kinder Morgan - I expect other smaller to mid-sized players to follow suit, maybe even a couple of additional big players. 


What better way to raise cash than to sell existing gathering assets, plus dedicate an additional large block of soon-to-be-developed acreage, and establish healthy gathering and processing/treating fees to support a large cash offer from a large midstream player such as KM?  It will be interesting to see what type of discounted  " % of index-type " deals are structured between the producer and the marketing arms of these big midstream companies to effectively reduce infrastructure cost by pass-through of a portion of such cost to the mineral/royalty owner at the wellhead (when not specifically restricted under lease provisions).   

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press release

April 13, 2010, 6:00 a.m. EDT · Recommend (1) · Post:
Kinder Morgan to Purchase 50% of Haynesville Shale Midstream Operations for $875 Million
Joint Venture with Petrohawk Creates Leading Midstream System in the Haynesville Shale
Mattie, not many deals left as most producers do not have the same infrastructure as Petrohawk. EnCana/Shell already has deal with Centerpoint. Chesapeake is still in the hunt.

By the way, the services are more likely to be straight fee & fuel transactions since Haynesville/Bossier Shale does not offer any processing opportunities.
Yes, I forgot about the Centerpoint deal with Shell/Encana - but, the CHK deal could be big - of course, they've been recently touting their growth in the midstream sector, but my take on that promotion is to set it up later for sale or partnership with a 3rd party gatherer and extract value.

i wasn't thinking much on the processing side, mainly treating, which as you know is it's own niche.


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