Linn Energy LLC (NASDAQ: LINE) and LinnCo LLC (NASDAQ: LNCO) announced Dec. 15 that it closed the sale of its entire position in the Granite Wash and Cleveland plays located in the Texas Panhandle and western Oklahoma to EnerVest Ltd. and FourPoint Energy LLC for $1.95 billion.
In addition, on Nov. 14, Linn closed the sale of its Wolfberry positions in Ector and Midland counties, Texas, in the Permian Basin to Fleur de Lis Energy LLC for $350 million.
The sales are expected to be tax efficient upon successful completion of a reverse 1031 like-kind exchange.
The Houston company intends to use combined net proceeds from these sales to repay in full the $1.3 billion term loan, which is the only remaining interim financing from its $2.3 billion acquisition from Devon Energy Corp., which closed on Aug. 29, and reduce borrowings under its revolving credit facility.
Following repayment of the term loan and a portion of the indebtedness under its revolving credit facility with proceeds from these asset sale transactions, Linn has pro forma liquidity of about $2.4 billion as of Sept. 30.
On Nov. 21, Linn closed the trade with ExxonMobil Corp. (NYSE: XOM) whereby Linn received ExxonMobil's interest in California's South Belridge Field and ExxonMobil received production and acreage prospective for horizontal Wolfcamp drilling in the Permian Basin.
Recommended Reading
BP Pursues ‘25-by-‘25’ Target to Amp Up LNG Production
2024-02-15 - BP wants to boost its LNG portfolio to 25 mtpa by 2025 under a plan dubbed “25-by-25,” upping its portfolio by 9% compared to 2023, CEO Murray Auchincloss said during the company’s webcast with analysts.
Keeping it Simple: Antero Stays on Profitable Course in 1Q
2024-04-26 - Bucking trend, Antero Resources posted a slight increase in natural gas production as other companies curtailed production.
Mexico Pacific Appoints New CEO Bairstow
2024-04-15 - Sarah Bairstow joined Mexico Pacific Ltd. in 2019 and is assuming the CEO role following Ivan Van der Walt’s resignation.
1Q24 Dividends Declared in the Week of April 29
2024-05-03 - With earnings season in full swing, upstream and midstream companies are declaring quarterly dividends. Here is a selection of dividends announced in the past week.
BP Restructures, Reduces Executive Team to 10
2024-04-18 - BP said the organizational changes will reduce duplication and reporting line complexity.