LINN Energy To Acquire $2.3 Billion in Assets

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Before the market opened on Monday, LINN Energy, LLC
LINE
and LinnCo, LLC
LNCOannounced
that LINN Energy has signed a definitive agreement to acquire $2.3 billion in assets from Devon Energy Corporation
DVN
. The assets to be acquired currently produce approximately 275 MMcfe/d, approximately 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, 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.
Posted In: NewsM&AEnergyOil & Gas Exploration & Production
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