Richard Zeits • 54 Comments
Richard Zeits • 101 Comments
Oct. 3, 2014, 9:00 AM
- Linn Energy (LINE, LNCO) has struck deals to sell oil production assets in the Texas panhandle and western Oklahoma for $2.3B to repay debt it took on to finance its acquisition of Devon Energy assets in August.
- Linn will sell all its Granite Wash and Cleveland properties to affiliates of investment group EnerVest (OTC:EOSOF) for $1.95B, and is selling related midstream facilities.
- Additionally, the company will sell about 7,200 net acres in the Wolfberry field in Texas's Permian Basin to Fleur de Lis Energy for $350M.
- Linn expects to close the transactions in Q4, after which it would be left with 6,600 net acres producing 8M bpd in the Midland Basin.
- Previously: Linn Energy said to tap banks for $2B oil asset sale
- LINE +1.4%; LNCO +0.5% premarket
Aug. 4, 2014, 5:15 PM
- Pioneer Natural Resources (NYSE:PXD) agrees to sell its Hugoton and Barnett Shale assets for ~$495M, part of its move to focus on its oil-related Spraberry/Wolfcamp assets in the Permian Basin in west Texas.
- Linn Energy (NASDAQ:LINE) is buying PXD's Hugoton Shale assets for $340M, while an unnamed private company is buying the Barnett Shale assets for ~$155M.
- LINE says its acquisition in the Hugoton Shale would make it the largest producer in the field, as it would acquire ~235K net acres, all held by production, with ~1,200 producing wells; meanwhile, LINE is selling its rights to the Woodford and Meramec horizons in the STACK play on ~26K undeveloped acres in the Anadarko Basin for ~$90M.
- Earlier: Pioneer Natural Resources beats by $0.07, misses on revenue.
Jul. 1, 2014, 2:52 PM
- Linn Energy’s (LINE +0.8%) $2.3B asset purchase from Devon Energy (DVN -0.1%) earns the praise of Raymond James analysts, who note that LINE plans to sell its high-decline Granite Wash assets to fund the deal, meaning the company is not likely to need to tap debt or equity markets for related funding.
- The firm estimates LINN may need to reserve only 20% of EBITDA to maintain the cash flow from the new assets vs. ~40% of EBITDA likely need to maintain the Granite Wash; through this transaction and the Permian divestiture program, LINN could reduce its overall capital budget by ~$400M.
- LNCO -0.3%.
Jun. 30, 2014, 9:12 AM
- Linn Energy (LINE, LNCO) agrees to acquire U.S. oil and gas properties from Devon Energy (DVN) for $2.3B.
- The assets currently produce ~275M cfe/day (~80% gas), with total proved reserves of 1.3T-1.5T cfe and total resource potential of ~3T cfe.
- The asset package is comprised of ~900K net acres across the Rockies, Mid-Continent, east Texas, north Louisiana and south Texas regions with ~4,500 total wells; LINN says it has identified 1K-plus future drilling locations and ~600 recompletion opportunities.
- LINN says the acquisition will be financed ultimately through the sale of its Granite Wash assets and other non-producing acreage in its portfolio.
- DVN says the deal covers remaining U.S. assets it had targeted for divestiture, and that the sale of Canadian and U.S. non-core properties over the past few months has generated $5B-plus in proceeds at an accretive multiple of nearly 7x 2013 EBITDA.
- LINE +0.3%, DVN +0.4% premarket.
Dec. 16, 2013, 1:37 PM
Nov. 4, 2013, 7:13 AM
- Berry Petroleum (BRY) stockholders will now receive 1.68 shares of LinnCo (LNCO) for each share of Berry they own, up from 1.25 shares previously and bringing the size of the deal to $4.9B, including the assumption of debt.
- LinnCo's stock was in the mid-high $30s when the deal was announced in February and closed at $33.21 last night.
- Linn Energy (LINE) and Berry Petroleum CEOs: "The boards and management teams of LINN and Berry remain committed to completing this merger."
- The merger termination date is extended to January 31 from October 31; a shareholder vote is tentatively set for mid-December.
- Linn Energy reschedules its quarterly earnings call to tomorrow at 11ET at which it will also discuss the Berry merger.
- Stocks are halted and will resume trading at 7:30 ET.
Sep. 12, 2013, 7:15 AM
- Linn Energy (LINE) has agreed to acquire oil and natural gas properties in the Permian Basin for $525M.
- Linn, which expects the deal to close in Q4, will finance the transaction with a term loan.
- The company believes the purchase will "be immediately accretive to cash available for distribution." (PR)
Jun. 28, 2013, 10:15 AM
Jun. 28, 2013, 9:26 AM
Apr. 4, 2013, 7:37 AM
Midstates Petroleum (MPO) agrees to buy oil and gas acreage in the Anadarko Basin in Texas and Oklahoma from Panther Energy and its partners Red Willow Mid-Continent and LINN Energy (LINE) for $620M. MPO says the deal is immediately accretive in 2013 to cash flow per share, earnings, EBITDA, proved reserves and production per share.| Apr. 4, 2013, 7:37 AM
Feb. 21, 2013, 9:08 AM
A 20% premium, while rich, is doable, Tudor Pickering says of Linn Energy's (LINE) $2.5B purchase of Berry Petroleum (BRY). Linn wants to increase its portfolio of "long lived, shallow decline assets," and can afford to pay up, given its "lower cost of capital and focus on repeatability rather than growth." Premarket, LINE +3.3%, BRY +21.2%, and LinnCo (LNCO), which is facilitating the deal, +4.4%.| Feb. 21, 2013, 9:08 AM | 1 Comment
Feb. 21, 2013, 8:12 AM
Linn Energy (LINE) agrees to acquire Berry Petroleum (BRY) for stock worth ~$2.5B, in a total deal valued at $4.3B including assumed debt. As part of the transaction, LinnCo (LNCO) will issue 1.25 shares for each outstanding BRY share, which values BRY at almost $46.24/share, a 19.8% premium to its closing price yesterday. BRY +18.5%, LINE +1.8%, LNCO +2.7% premarket.| Feb. 21, 2013, 8:12 AM | 3 Comments
Jun. 25, 2012, 9:12 AM
Linn Energy (LINE) agrees to acquire BP's Jonah Field properties in Wyoming's Green River Basin for $1.025B. LINE expects the properties to provide ~145M cubic ft. equivalent per day of liquids-rich natural gas production. "The long-life, low-decline characteristics of the Jonah Field make this asset an excellent fit for us," the company says.| Jun. 25, 2012, 9:12 AM | 5 Comments
Mar. 21, 2012, 3:29 AM
Nov. 4, 2011, 8:12 AM
Linn Energy (LINE) acquires strategic oil and natural gas properties in the Granite Wash basin from independent Plains Exploration & Production for a contract price of $600M. The company says the acquisitions will double its inventory of Granite Wash locations and will provide "highly accretive" benefits.| Nov. 4, 2011, 8:12 AM