Hugoton Field production averaged approximately 143 MMcfe/d for the fourth quarter 2013, which represents a two percent decrease from third quarter 2013 levels, due to weather impacts, and a three percent increase from the fourth quarter 2012, as a result of the Company's drilling and optimization programs. LINN drilled and completed 60 wells in 2013 and plans to drill an additional 80 wells during 2014 with an oil and natural gas capital budget of approximately $42 million.
Other Operating Areas:
LINN continues to focus on enhancing its properties by utilizing base optimization efforts across all operating regions. In 2014, the Company expects to invest approximately $60 million for recompletions and capital workovers particularly in the Mid-Continent, Permian Basin, California, Green River Basin, Hugoton Basin, Michigan and East Texas.
Fourth Quarter 2013 Results
LINN increased production 11 percent to an average of 889 MMcfe/d for the fourth quarter 2013, compared to 800 MMcfe/d for the fourth quarter 2012. This increase in production is attributable to acquisitions completed in 2013 as well as the Company's capital program
Total revenues and other increased approximately $58 million to approximately $629 million for the fourth quarter 2013, from approximately $571 million for the fourth quarter 2012, which includes non-cash changes in fair value of unsettled commodity derivatives of approximately $44 million and $8 million, respectively, including the reduction of put option premium value over time.
Lease operating expenses for the fourth quarter 2013 were approximately $113 million, or $1.38 per Mcfe, compared to $84 million, or $1.14 per Mcfe, for the fourth quarter 2012. The increase in lease operating expenses during the fourth quarter 2013 were primarily related to an increase in expenses associated with higher margin oil properties acquired through the Berry transaction. Transportation expenses for the fourth quarter 2013 were approximately $36 million, or $0.44 per Mcfe, compared to $27 million, or $0.36 per Mcfe, for the fourth quarter 2012. Taxes, other than income taxes for the fourth quarter 2013, were approximately $30 million, or $0.37 per Mcfe, compared to $38 million, or $0.52 per Mcfe, for the fourth quarter 2012. General and administrative expenses for the fourth quarter 2013 were approximately $86 million (including merger related costs of $35 million), or $1.05 per Mcfe, compared to $44 million, or $0.59 per Mcfe, for the fourth quarter 2012, which includes approximately $12 million and $7 million, respectively, of noncash unit-based compensation expenses. Depreciation, depletion and amortization expenses for the fourth quarter 2013 were approximately $224 million, or $2.74 per Mcfe, compared to $178 million, or $2.42 per Mcfe, for the fourth quarter 2012.