X0202 4 2006-07-12 1 0000832820 KCS ENERGY INC KCS 0001236021 LEARY JOSEPH T KCS ENERGY, INC. 5555 SAN FELIPE, STE. 1200 HOUSTON TX 77056 0 1 0 0 Vice President/CFO KCS Energy, Inc. Common Stock 2006-07-12 4 D 0 6000 D 0 D KCS Energy, Inc. Common Stock 2006-07-12 4 D 0 1451 D 0 I By 401(K) Plan KCS Energy, Inc. Common Stock 2006-07-12 4 D 0 22682 D 0 D Stock Option (right to buy) 4.49 2006-07-12 4 D 0 4000 D 2013-07-01 Common Stock 4000 0 D Stock Option (right to buy) 10.43 2006-07-12 4 D 0 4000 D 2014-01-02 Common Stock 4000 0 D Stock Option (right to buy) 13.30 2006-07-12 4 D 0 4000 D 2014-07-01 Common Stock 4000 0 D Stock Option (right to buy) 13.63 2006-07-12 4 D 0 5100 D 2015-01-03 Common Stock 5100 0 D Stock Option (right to buy) 17.99 2006-07-12 4 D 0 5100 D 2015-07-01 Common Stock 5100 0 D Stock Option (right to buy) 24.22 2006-07-12 4 D 0 5580 D 2016-01-03 Common Stock 5580 0 D Performance Shares 2006-07-12 4 D 0 0 D Common Stock 0 D Each share of common stock of the Issuer reported in this line item was disposed of pursuant to the Agreement and Plan of Merger (the "Merger Agreement"), dated April 20, 2006, by and among KCS Energy, Inc. (the "Issuer"), Petrohawk Energy Corporation ("Petrohawk") and Hawk Nest Corporation, as amended, in exchange for 1.65 shares of Petrohawk common stock plus $9 in cash at the effective time of the merger (the "Effective Time"). Petrohawk common stock had a market value of $12.36 per share at the close of the markets on the day of the Effective Time. Each share of common stock of the Issuer reported in this line item was disposed of pursuant to the Merger Agreement in exchange for approximately 2.3706 shares of Petrohawk common stock. Petrohawk common stock had a market value of $12.36 per share at the close of the markets on the day of the Effective Time. These shares represented restricted stock that vested at the Effective Time as a result of the termination of the reporting person. The information in this line item is based on a plan statement dated July 12, 2006. This option vested on 5/27/06. Pursuant to the Merger Agreement and as a result of the termination of the reporting person, this option was assumed by Petrohawk in the merger and replaced with a fully vested option to purchase 9,482 shares of Petrohawk common stock at an exercise price of $1.90 per share. One-half of this option vests on the anniversary date of grant (1/2/04) in 2006 and 2007. Pursuant to the Merger Agreement and as a result of the termination of the reporting person, this option was assumed by Petrohawk in the merger and replaced with a fully vested option to purchase 9,482 shares of Petrohawk common stock at an exercise price of $4.40 per share. One-half of this option vests on the anniversary date of grant (7/1/04) in 2006 and 2007. Pursuant to the Merger Agreement and as a result of the termination of the reporting person, this option was assumed by Petrohawk in the merger and replaced with a fully vested option to purchase 9,482 shares of Petrohawk common stock at an exercise price of $5.62 per share. One-third of this option vests on the anniversary date of grant (1/3/05) in 2006, 2007 and 2008. Pursuant to the Merger Agreement and as a result of the termination of the reporting person, this option was assumed by Petrohawk in the merger and replaced with a fully vested option to purchase 12,089 shares of Petrohawk common stock at an exercise price of $5.75 per share. One-third of this option vests on the anniversary date of grant (7/1/05) in 2006, 2007 and 2008. Pursuant to the Merger Agreement and as a result of the termination of the reporting person, this option was assumed by Petrohawk in the merger and replaced with a fully vested option to purchase 12,089 shares of Petrohawk common stock at an exercise price of $7.59 per share. One-third of this option vests on the anniversary date of grant (1/3/06) in 2007, 2008 and 2009. Pursuant to the Merger Agreement and as a result of the termination of the reporting person, this option was assumed by Petrohawk in the merger and replaced with a fully vested option to purchase 13,227 shares of Petrohawk common stock at an exercise price of $10.22 per share. Each performance share represents a contingent right to receive one share of Issuer common stock. The reporting person would earn between 0% and 200% of 6,441 performance shares upon the achievement of pre-determined objectives over a performance period that begins on January 1, 2006 and ends on December 31, 2008. The number of performance shares earned would then be paid to the reporting person in the form of restricted Issuer common stock that would vest over a one-year period. Pursuant to the Merger Agreement and as a result of the termination of the reporting person, the performance shares were assumed by Petrohawk in the merger and converted into 9,297 fully vested shares of Petrohawk common stock. /s/ Joseph T. Leary 2006-07-25