LINN Energy To Acquire $2.3 Billion In Devon Assets
Before the market opened on Monday, LINN Energy, LLC (NASDAQ: LINE) and LinnCo, LLC (NASDAQ: LNCO) announced that LINN Energy has signed a definitive agreement to acquire $2.3 billion in assets from Devon Energy (NYSE: DVN).
The assets to be acquired currently produce approximately 275 MMcfe/d, about 80 percent of which is from natural gas.
The total resource potential is said to be approximately 3 Tcfe with total proved reserves estimated in the range of 1.3 - 1.5 Tcfe.
LINN Energy ultimately plans to finance the deal through the sale of its Granite Wash assets, as well as other non-producing acreage in its portfolio.
"Early in 2014, we outlined four keys to success at LINN: realize value for the Midland Basin position; continue to make accretive acquisitions; reduce capital intensity while increasing efficiency; and improve credit metrics," said Mark E. Ellis, LINN Chairman, President and Chief Executive Officer. He continued by stating that the acquisition is a "positive development" in achieving these goals.
The deal is expected to close in the third quarter of 2014 and have an effective date of April 1, 2014.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.