Guidance Update

The Company expects production for the first quarter of 2014 to average between 1,070 and 1,100 MMcfe/d and production for the full-year 2014 to average between 1,070 and 1,140 MMcfe/d, which includes the potential impact of ethane rejection for the year of approximately 22 MMcfe/d. Decisions to reject ethane are made monthly based on economics at each processing location in an effort to maximize value. Assuming current commodity price assumptions, any potential ethane rejection will have a negative impact on production volumes but no impact to revenue. 

Updated operational and financial guidance is provided in the supplemental information posted at www.linnenergy.com .

Operational Highlights

During the fourth quarter 2013, LINN's production averaged approximately 845 MMcfe/d, excluding Berry's operations, in-line with previously announced guidance despite significant winter weather impacts. This represents a three percent increase from the third quarter 2013. Berry's total fourth quarter production averaged approximately 45 MBoe/d, which is above Berry's previously estimated fourth quarter guidance of approximately 44 MBoe/d and represents a nine percent increase from the third quarter 2013.

Permian Basin:

During the fourth quarter 2013, LINN's reported Permian production averaged approximately 18 MBoe/d, consisting of 17 MBoe/d from LINN's legacy properties and 1 MBoe/d from Berry's assets. This represents a 35 percent increase from third quarter 2013 levels and a 32 percent increase from the fourth quarter 2012, primarily due to acquisitions and the Company's continued success with its vertical Wolfberry drilling program. Berry's total fourth quarter 2013 production averaged approximately 8 MBoe/d, in-line with third quarter 2013 production and an increase of five percent from the fourth quarter 2012. During 2014, LINN will focus on three key drilling programs in the Permian Basin, which consist of vertical Wolfberry, vertical Clearfork and horizontal Wolfcamp. The Company plans to run an average of six rigs in the Permian Basin in 2014, which consist of three rigs targeting the Wolfberry trend and two rigs targeting the Clearfork formation in the recently acquired East Goldsmith field. Finally, based on positive results from industry activity near LINN's acreage, the Company intends to operate one rig to drill approximately ten horizontal wells targeting the Wolfcamp B interval beginning in early second quarter 2014. 

If you liked this article you might like

The 10 Most Interesting, Troubling and Adorable Things Found in Snapchat's IPO Filing

Alibaba Plans to Win Over Southeast Asia Through More Than Just Acquisitions

Alibaba Targets Thailand With Latest International Expansion Push

Vanguard Natural Resources' Credit Review Breathes New Life Into The MLP

Vanguard Natural Resources' Credit Review Breathes New Life Into The MLP

Oil Companies Can Be Good, Bad or Ugly -- Even as Oil Recovers