Petrohawk Energy 8-K Regulation FD Disclosure

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Exhibit 99.4

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED

STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2003

(in thousands of dollars, except per share data)

			Petrohawk Historical			Wynn-Crosby Historical			Pro Forma Adjustments		Petrohawk Pro Forma Adjusted
REVENUES:
	Oil and gas		$	12,591		$	92,430				$	105,021
	Field services			334			—					334
	Other			—			46					46
		Total revenue		12,925			92,476					105,401
COSTS AND EXPENSES:
	Production:
		Lease operations		2,402			15,407					17,809
		Production, severance and ad valorem taxes		875			5,927					6,802
		Gathering, transportation and other		—			1,430					1,430
	Field services			185			—					185
	General and administrative			2,678			3,697					6,375
	Stock-based compensation			252			—					252
	Full cost ceiling impairment			129			—					129
	Depreciation, depletion and amortization			4,858			11,508		(11,508 34,693	)(1)   (1)		39,551
	Accretion of asset retirement obligations			50			604					654
	Other			—			301					301
		Total costs and expenses		11,429			38,874					73,488
INCOME FROM OPERATIONS				1,496			53,602					31,913
OTHER INCOME (EXPENSE):
	Financial derivatives, realized			—			(4,530	)				(4,530	)
	Financial derivatives, unrealized			—			(2,377	)				(2,377	)
	Equity income of non-affiliates			—			228					228
	Gain on sale of assets			—			63					63
	Investment income			—			58					58
	Interest expense			(476	)		(2,338	)	2,338  (9,403	(2) )(2)		(9,879	)
	Interest income and other			(30	)		—					(30	)
		Total other expense		(506	)		(8,896	)				(16,467	)
INCOME BEFORE INCOME TAX PROVISION				990			44,706					15,446
INCOME TAX (PROVISION)				(24	)		—		24 (5,869	(3) )(3)		(5,869	)
NET INCOME				966			44,706					9,577
PREFERRED DIVIDENDS				(447	)		—					(447	)
NET INCOME APPLICABLE TO COMMON STOCKHOLDERS AND PARTNERS			$	519		$	44,706				$	9,130
BASIC NET INCOME PER COMMON SHARE(5)			$	0.08			N/A				$	0.37
DILUTED NET INCOME PER COMMON SHARE(5)			$	0.08			N/A				$	0.37
WEIGHTED AVERAGE SHARES OUTSTANDING(5):
	Basic			6,216			N/A		18,538	(4)		24,754
	Fully diluted			6,253			N/A		18,538	(4)		24,791

(see accompanying notes)

1

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED

STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2004

(in thousands of dollars, except per share data)

			Petrohawk Historical			Wynn-Crosby Historical			Pro Forma Adjustments		Petrohawk Pro Forma Adjusted
REVENUES:
	Oil and gas		$	8,847		$	50,486				$	59,333
	Field services			193			—					193
	Other			—			81					81
		Total revenue		9,040			50,567					59,607
COSTS AND EXPENSES:
	Production:
		Lease operations		1,577			9,093					10,670
		Production, severance and ad valorem taxes		490			3,246					3,736
		Gathering, transportation and other		—			682					682
	Field services			89			—					89
	General and administrative			2,420			2,439					4,859
	Stock-based compensation			2,027			—					2,027
	Full cost ceiling impairment			—			—					—
	Depreciation, depletion and amortization			2,260			6,048		(6,048 16,299	)(1)   (1)		18,559
	Accretion of asset retirement obligations			46			259					305
	Other			—			266					266
		Total costs and expenses		8,909			22,033					41,193
INCOME (LOSS) FROM OPERATIONS				131			28,534					18,414
OTHER INCOME (EXPENSE):
	Financial derivatives, realized			—			(3,024	)				(3,024	)
	Financial derivatives, unrealized			—			(1,829	)				(1,829	)
	Equity income of non-affiliates			—			166					166
	Investment income			—			16					16
	Interest expense			(494	)		(833	)	833 (4,756	(2) )(2)		(5,250	)
	Interest income and other			19			—					19
		Total other income (expense)		(475	)		(5,504	)				(9,902	)
INCOME (LOSS) BEFORE INCOME TAX PROVISION				(344	)		23,030					8,512
INCOME TAX PROVISION				(37	)		—		37 (3,235	(3) )(3)		(3,235	)
NET INCOME (LOSS)				(381	)		23,030					5,277
PREFERRED DIVIDENDS				(222	)		—					(222	)
NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS AND PARTNERS			$	(603	)	$	23,030				$	5,055
BASIC NET INCOME (LOSS) PER COMMON SHARE(5)			$	(0.08	)		N/A				$	0.19
DILUTED NET INCOME (LOSS) PER COMMON SHARE(5)			$	(0.08	)		N/A				$	0.16
WEIGHTED AVERAGE SHARES OUTSTANDING(5):
	Basic			7,713			N/A		18,538	(4)		26,251
	Fully diluted			7,713			N/A		24,911	(4)		32,624

(see accompanying notes)

2

UNAUDITED PRO FORMA CONDENSED BALANCE SHEET

AT JUNE 30, 2004

(in thousands of dollars)

			Petrohawk Historical			Wynn-Crosby Historical			Pro Forma Adjustments(4)			Petrohawk Pro Forma Adjusted
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents		$	45,789		$	9,218		$	(35,000	)	$	20,007
	Accounts receivable
		Oil and gas sales		3,356			21,791						25,147
		Other		313			—						313
	Prepaid expenses and other			938			2,084						3,022
		Total current assets		50,396			33,093						48,489
PROPERTY AND EQUIPMENT, AT COST:
	Oil and gas properties, full cost method
		Subject to amortization		82,235			236,463			(236,463 407,263	)		489,498
		Not subject to amortization		1,213			1,603			(1,603 30,000	)		31,213
	Other property and equipment			2,050			231						2,281
				85,498			238,297						522,992
Allowance for depreciation, depletion and amortization				(42,734	)		(94,261	)		94,261			(42,734	)
				42,764			144,036						480,258
Other assets				1,282			881			2,500			4,663
TOTAL ASSETS			$	94,442		$	178,010					$	533,410
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable and other		$	3,143		$	26,218					$	29,361
	Commodity hedging contracts			—			5,450						5,450
	Current maturities on long-term debt			—			310		$	(310	)		—
	Asset retirement obligation—current portion			172			—						172
		Total current liabilities		3,315			31,978						34,983
REVOLVING CREDIT FACILITY				—			40,670			(40,670 185,000	)		185,000
SECOND LIEN FACILITY				—			—			50,000			50,000
SUBORDINATED CONVERTIBLE NOTE PAYABLE				35,000			—						35,000
ASSET RETIREMENT OBLIGATION				1,106			9,175						10,281
STOCKHOLDERS' EQUITY:
	Preferred stockholders' equity			1									1
	Common stockholders' equity			14			—			19			33
	Additional paid-in capital			78,276			—			163,106			241,382
	Treasury stock			(36	)		—						(36	)
	Partners' capital						96,187			(96,187	)		—
	Accumulated deficit			(23,234	)		—						(23,234	)
TOTAL STOCKHOLDERS' EQUITY				55,021			96,187						218,146
TOTAL LIABILITIES, STOCKHOLDERS' EQUITY AND PARTNERS' CAPITAL			$	94,442		$	178,010					$	533,410

(see accompanying notes)

3

Notes to Unaudited Pro Forma Condensed Consolidated Financial Data

        The unaudited pro forma financial data has been prepared to give effect to the Acquisition of Wynn-Crosby Energy, Inc. and its affiliated partnerships (the "Acquisition"). Information under the column heading "Pro Forma Adjustments" gives effect to the adjustments related to the Acquisition for related financing activities based on assumed debt financing of $250 million and equity financing of $175 million (at an assumed price equal to the closing price of shares of common stock on October 26, 2004 of $9.44 per share). The unaudited pro forma condensed consolidated statements are not necessarily indicative of the results of our future operations.

        Petrohawk has 170,000 Mmbtu per month hedged for calendar year 2005 in the form of a collar with an average floor price of $5.68 per Mmbtu and an average ceiling price of $7.89 per Mmbtu and 150,000 Mmbtu per month hedged for calendar year 2006 in the form of a collar with an average floor price of $6.00 per Mmbtu and an average ceiling price of $8.26 per Mmbtu. Additionally, Petrohawk has 9,000 Bbl per month hedged for calendar year 2005 in the form of a collar with an average floor price of $43.00 per barrel and an average ceiling price of $52.30 per barrel and 7,000 Bbl per month hedged for calendar year 2006 in the form of a collar with an average floor price of $40.00 per barrel and an average ceiling price of $47.30 per barrel.

        Taking into account the assumed equity financing, PHAWK, LLC will own approximately 23% of our outstanding common stock, and would own approximately 43% of our then outstanding common stock if the convertible subordinated note and related warrants owned by it were converted and exercised. We believe that PHAWK, LLC is considering divesting some or all of its investment in our common stock. Our board of directors has indicated that they intend to make available to our management and employees stock options and/or restricted stock in an amount that is approximately 10% of our total shares outstanding.

(1)

To adjust depreciation, depletion and amortization expense to give effect to the purchase price allocated to the Acquisition using the unit of production method under the full cost method of accounting.



(2)

To adjust interest expense to give effect to the anticipated financing activities related to the Acquisition.



(3)

To record income tax expense on the combined company results of operations, giving effect to the Acquisition, based on a 38% combined federal and state tax rate.



(4)

To record the Acquisition, assumed debt financing of $250 million, assumed equity financing of $175 million and estimated expenses.



(5)

Adjusted retroactively for the one-for-two reverse split of our common stock which occurred May 26, 2004.

4

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Exhibit 99.4

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (in thousands of dollars, except per share data)
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2004 (in thousands of dollars, except per share data)
UNAUDITED PRO FORMA CONDENSED BALANCE SHEET AT JUNE 30, 2004 (in thousands of dollars)
Notes to Unaudited Pro Forma Condensed Consolidated Financial Data