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TheStreet Open House

LINN Energy Announces First Quarter 2013 Results And Commencement Of Monthly Distribution Policy

Stocks in this article: LINE

HOUSTON, April 25, 2013 (GLOBE NEWSWIRE) -- LINN Energy, LLC (Nasdaq:LINE) and LinnCo, LLC (Nasdaq:LNCO) announced today financial and operating results for the three months ended March 31, 2013, and the company's outlook for the remainder of 2013.

LINN Energy reported the following first quarter 2013 results:

  • Increased average daily production 69 percent to 796 MMcfe/d, compared to 471 MMcfe/d for the first quarter 2012  
  • Increased adjusted EBITDA 18 percent to $356 million, compared to $302 million for the first quarter 2012  
  • Reduced lease operating expenses 26 percent to $1.24 per Mcfe, compared to $1.67 per Mcfe for the first quarter 2012  
  • Distribution coverage ratio of 0.88x, which was negatively affected by weather, infrastructure related curtailments and lower than expected oil production

LINN Energy also reported the following significant year-to-date 2013 highlights:

  • Announced a $4.3 billion stock-for-stock merger between LinnCo and Berry Petroleum Company ("Berry")
  • Represents the first ever acquisition of a public C-Corp by an upstream LLC or MLP
  • Long-life, low-decline assets are an excellent fit
  • Highly accretive to distributable cash flow per unit (expected to be in excess of $0.40 per unit in the first year)
  • LinnCo announced a quarterly cash dividend of $0.725 per share for the first quarter 2013, or $2.90 per share on an annualized basis, which is approximately two percent higher than the dividend for the fourth quarter of 2012  
  • Plan to recommend an increase to LINN and LinnCo's distribution / dividend of 6.2 percent to $0.77 per unit / share, or $3.08 per unit / share on an annualized basis, in the quarter immediately following the closing of the Berry merger, which is expected to occur on or before July 1, 2013  
  • Announced the initiation of a monthly distribution / dividend policy for both LINN and LinnCo beginning with the second quarter payments
  • First monthly payment scheduled for July 2013
  • Increased revolving credit facility commitment from $3.0 billion to $4.0 billion, resulting in available liquidity of approximately $2.9 billion, pro forma for the pending Panther divestiture

"While the company experienced a challenging operating environment in the first quarter, the high quality and depth of our inventory still gives us the ability to grow organic production nearly 10% in 2013. This production growth will allow the company to steadily increase its distribution coverage ratio throughout the year," said Mark E. Ellis, Chairman, President and Chief Executive Officer.

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