NEW YORK (TheStreet) -- Shares of Linn Energy (LINE) are up 0.38% to $31.36 in morning trading Friday after the company agreed to trade 17,800 acres of its Permian Basin properties to Exxon Mobil (XOM) for interest in about 500 net acres from the latter's South Belridge Field in California, The Wall Street Journal reports.
The deal, expected to close in the fourth quarter, is the second asset swap between the two oil and natural gas companies.
Linn Energy received a portion of interests in Exxon Mobil's Hugoton Gas Field in Kansas and Oklahoma in May. In return, Exxon Mobil added nearly 26,000 acres in the Permian Basin.
Separately, TheStreet Ratings team rates LINN ENERGY LLC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate LINN ENERGY LLC (LINE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, increase in stock price during the past year and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."