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Shares of
Linn EnergyLINE and
LinnCoLNCO were both trading lower than seven percent during Friday's pre-market trading session after the companies Board of Directors approved a 2015 budget that includes a 53 percent reduction in oil and natural gas capital expenditures.
According to a
press release, the companies will slash its capital expenditures to $730 million from 2014's $1.5 billion. At the same time, Linn Energy's distribution and LinnCo's dividend will be reduced to $1.25 per unit or share from the previous $2.90 per unit or share, on an annualized basis.
"After careful consideration, LINN's senior management proposed and the Board of Directors approved a 2015 budget that contemplates a significantly lower current crude oil price than in 2014," said Mark E. Ellis, Chairman, President and Chief Executive Officer. "In order to solidify the Company's financial position and regain a useful cost of capital, we have reduced the oil and natural gas capital budget and distribution while balancing cash flow and spending,"
Linn Energy also signed a non-binding letter of intent with private capital investor GSO Capital Partners (the credit platform of Blackstone Group to fund oil and natural gas development up to $500 million.
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Posted In: NewsdividendsEnergyLinn EnergyLinnCoMark EllisNatural GasOilOil & Gas Exploration & Production
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