LINN Energy Announces Third Quarter 2013 Results

HOUSTON, Oct. 28, 2013 (GLOBE NEWSWIRE) -- LINN Energy, LLC (Nasdaq:LINE) ("LINN" or "the Company") and LinnCo, LLC (Nasdaq:LNCO) ("LinnCo") announced today financial and operating results for the three months ended September 30, 2013, and outlook for the remainder of 2013.

LINN reported the following third quarter 2013 results:
  • Average daily production of 823 MMcfe/d compared to 782 MMcfe/d for the third quarter 2012;
  • Oil, natural gas and NGL sales of approximately $538 million compared to $444 million for the third quarter 2012;
  • Distributions paid to unitholders of $171 million compared to $145 million for the third quarter 2012;
  • Excess of net cash provided by operating activities after distributions to unitholders and discretionary adjustments considered by the Board of Directors of $2 million compared to $57 million for the third quarter 2012 (see Schedule 1, footnote 7); and
  • Net loss of approximately $30 million, or $0.13 per unit, compared to a net loss of $430 million, or $2.18 per unit, for the third quarter 2012, which includes non-cash changes in fair value of unsettled commodity derivatives of approximately $99 million, or $0.42 per unit, and $520 million, or $2.63 per unit, respectively, including the reduction of put option premium value over time.

"During the third quarter LINN's capital program delivered positive results exceeding guidance across the board," said Mark E. Ellis, Chairman, President and Chief Executive Officer. "Higher production volumes coupled with lower operating costs resulted in an excess of net cash provided by operating activities after distributions to unitholders and discretionary adjustments considered by the Board of Directors."

Acquisitions

On September 11, 2013, the Company entered into a definitive purchase and sale agreement to acquire certain oil and natural gas properties, located in the Central Basin Platform of the Permian Basin, for a contract price of approximately $525 million. This acquisition further strengthens LINN's position in the Permian Basin adding approximately 124 producing wells and an additional 300 identified future drilling locations primarily in the Clearfork formation. Current proved reserves total approximately 30 MMBoe, of which approximately 70 percent are oil. Furthermore, LINN has identified additional waterflood reserve potential of approximately 24 MMBoe that could provide significant upside in the future. The Company anticipates the acquisition will close on or before October 31, 2013, subject to closing conditions.

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