LINN Energy Announces Fourth Quarter And Year-End 2010 Results And 2011 Outlook

HOUSTON, Feb. 24, 2011 (GLOBE NEWSWIRE) -- LINN Energy, LLC (Nasdaq:LINE) announced today financial and operating results for the fourth quarter and year ended Dec. 31, 2010, and its outlook for 2011.

The Company reported the following significant fourth quarter and full year 2010 results:

• Increased average daily production 43 percent for the fourth quarter 2010 to 307 MMcfe/d, compared to 215 MMcfe/d for the fourth quarter 2009; and 22 percent to 265 MMcfe/d for the full year, compared to 218 MMcfe/d in 2009;
• Increased adjusted EBITDA 55 percent to $221 million for the fourth quarter 2010, compared to $142 million for the fourth quarter 2009; and 29 percent to $732 million for the full year, compared to $566 million in 2009;
• Increased distribution coverage ratio to 1.34x for the fourth quarter 2010, compared to fourth quarter 2009 of 1.04x; and 1.23x for the full year, compared to 1.14x in 2009; and
• Delivered adjusted net income of $0.43 per unit for the fourth quarter and $1.54 per unit for the full year.

The Company also reported the following significant 2010 highlights:

• Increased distribution by 5 percent;
• Delivered a total unitholder return of more than 45 percent;
• Increased proved reserves 52 percent to 2.6 Tcfe, compared to 1.7 Tcfe in 2009;
• Replaced 321 percent of production through organic activities in 2010 at a finding and development cost of $0.79 per Mcfe;
• Closed approximately $1.4 billion in acquisitions – adding 671 Bcfe of proved reserves;
• Strengthened balance sheet with undrawn $1.5 billion credit facility and $236 million available cash as of Dec. 31, 2010;
• Accessed the capital markets through two public equity offerings and two bond offerings that provided net proceeds of approximately $3 billion; and
• Strengthened its commodity hedge portfolio, with current expected oil and natural gas production hedged approximately 100 percent on an equivalent basis through 2013, 80 percent in 2014 and 50 percent in 2015.

"LINN delivered exceptional performance and growth in 2010," said Mark E. Ellis, President and Chief Executive Officer. "We increased our distribution by 5 percent and delivered a total return of more than 45 percent to our unitholders. The Company grew to an enterprise value of approximately $9 billion – making it one of the top-10 master limited partnerships and top-25 independent oil and gas development companies in the U.S. This substantial growth was fueled by increased organic production and approximately $1.4 billion in acquisitions. We believe our strong balance sheet will enable us to continue capitalizing on future acquisition opportunities that, when coupled with significant growth from our organic activities, should provide us with the potential for future distribution increases."