Petrohawk Energy 8-K/A Financial Statements and Exhibits

EX 99.2

	As of December 31,
										Petrohawk
	Petrohawk			Winwell			Pro Forma			Pro Forma
	Historical			Historical			Adjustments			Combined
	(In thousands)
Current assets:
Cash and cash equivalents	$	12,911		$	18,735		$	—		$	31,646
Accounts receivable		68,087			41,044			—			109,131
Deferred income taxes		18,304			—			—			18,304
Receivables from price risk management activities		1,286			—			—			1,286
Prepaid expenses and other		5,393			34			—			5,427
Total current assets		105,981			59,813			—			165,794
Oil and gas properties(full cost method):
Evaluated properties		1,096,810			69,111			(69,111	)(1)		1,294,582
								197,772	(1)
Unevaluated properties		162,133			—			33,701	(1)		195,834
Total gross oil and gas properties		1,258,943			69,111			162,362			1,490,416
Less — accumulated depletion and depreciation		(121,456	)		(36,521	)		36,521			(121,456	)
Net oil and gas properties		1,137,487			32,590			198,883			1,368,960
Other operating property and equipment, net		3,463			—			—			3,463
Other noncurrent assets
Goodwill		132,029			—			23,452	(1)		155,481
Debt issuance costs, net of amortization		1,969			—			—			1,969
Receivables from price risk management activities		2,252			—			—			2,252
Deferred income taxes		—			592			(592	)(4)		—
Other		26,993			25			—			27,018
Total assets	$	1,410,174		$	93,020		$	221,743		$	1,724,937
Current liabilities:
Accounts payable and accrued liabilities	$	90,017		$	50,541		$	—		$	140,558
Liabilities from price risk management activities		51,081			—			—			51,081
Current portion of long-term debt		2,788			—			—			2,788
Total current liabilities		143,886			50,541			—			194,427
Long-term debt		495,801			—			40,434	(5)		536,235
Liabilities from price risk management activities		35,695			—			—			35,695
Asset retirement obligations		50,133			800			—			50,933
Deferred income taxes		153,155			—			82,665	(4)		235,820
Other noncurrent liabilities		5,046			—			—			5,046
Commitments and contingencies Stockholders’ equity:
Convertible Preferred Stock		1			—			—			1
Common Stock		74			—			10	(5)		84
Additional paid-in capital		558,452			6,188			(6,188	)(5)		698,765
								134,555	(5)
								5,758	(5)
Treasury stock		(36	)		—			—			(36	)
Accumulated deficit (retained earnings)		(32,033	)		35,491			(35,491	)(5)		(32,033	)
Total stockholders’ equity		526,458			41,679			98,644			666,781
Total liabilities and stockholders’ equity	$	1,410,174		$	93,020		$	221,743		$	1,724,937

	Years Ended December 31,
										Petrohawk
	Petrohawk			Winwell			Pro Forma			Pro Forma
	Historical			Historical			Adjustments			Combined
	(In thousands)
Operating revenues:
Oil and gas sales	$	258,039		$	38,204		$	—		$	296,243
Gain on Sale of Oil and Gas Properties					16,381			—			16,381
Operating expenses:
Production expenses		34,049			5,503			—			39,552
Taxes other than income		18,497			1,132			—			19,629
Gathering, transportation and other		2,030			—			—			2,030
General and administrative		25,034			25,609			—			50,643
Depletion, depreciation and amortization		73,382			12,585			(85,967	)(1)		79,887
								79,887	(1)
Accretion expense		1,157			45			—			1,202
Total operating expenses		154,149			44,874			(6,080	)		192,943
Income from operations		103,890			9,711			6,080			119,681
Other (expense) income:
Net (loss) gain on derivative contracts		(100,380	)		—			—			(100,380	)
Interest (expense) income and other		(29,207	)		795			(3,538	)(2)		(31,950	)
Total other income (expense):		(129,587	)		795			(3,538	)		(132,330	)
(Loss) income before income taxes		(25,697	)		10,506			2,542			(12,649	)
Income tax benefit (provision)		9,063			(3,091	)		(5,972	)(3)		4,623
								4,623	(3)
Net (loss) income		(16,634	)		7,415			1,193			(8,026	)
Preferred dividends		(440	)		—			—			(440	)
Net (loss) income applicable to common shareholders	$	(17,074	)	$	7,415		$	1,193		$	(8,466	)
(Loss) Earnings Per Share of Common Stock:
Basic	$	(0.31	)							$	(0.13	)
Diluted	$	(0.31	)							$	(0.13	)
Weighted average shares outstanding:
Basic		54,752						9,678			64,430
Diluted		54,752						9,678			64,430

Notes to Unaudited Pro Forma Condensed Consolidated Financial Data

The unaudited “Petrohawk Pro Forma” financial data has been prepared to give effect to Petrohawk’s acquisition of Winwell Resources in January 2006. Information under the heading “Pro Forma Adjustments” gives effect to the adjustments related to the acquisition of Winwell. The unaudited pro forma consolidated statements are not necessarily indicative of the results of Petrohawk’s future operations.

(1)	To record the preliminary purchase price allocation to evaluated and unevaluated property and goodwill. These adjustments also adjust depreciation, depletion and amortization expense to give effect to the purchase price allocation using the unit of production method under the full cost method of accounting.
(2)	To adjust interest expense to give effect to the financing activities in connection with the acquisition.
(3)	To record income tax expense on the combined company results of operations based on the Petrohawk effective tax rate of 36.54% for the year ended December 31, 2005.
(4)	To record the deferred tax position of the combined company, inclusive of the deferred tax gross-up in connection with the acquisition.
(5)	To record the retirement and issuance of debt and equity instruments in connection with the acquisition.