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UPDATE: LINN Energy Reports Sale of $2.3B in Assets to Enervest, Fleur de Lis Energy

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LINN Energy, LLC (Nasdaq: LINE)
("LINN" or the "Company") and LinnCo, LLC (Nasdaq: LNCO) ("LinnCo") announced
today that LINN has signed a definitive agreement to sell its entire position
in the Granite Wash and Cleveland plays located in the Texas Panhandle and
western Oklahoma to privately held institutional affiliates of EnerVest, Ltd.,
for a contract price of $1.95 billion. LINN also announced today that it has
signed a definitive agreement with Fleur de Lis Energy, LLC to sell its
Wolfberry positions in Ector and Midland counties in the Permian Basin for a
contract price of $350 million.

Proceeds from these sales are expected to finance the Company's $2.3 billion
acquisition of assets from Devon Energy Corporation, which closed in August
2014. Both of today's announced sales are expected to be tax efficient upon
successful completion of a reverse 1031 like-kind exchange.

The Granite Wash and Cleveland properties sold include approximately 145,000
net acres, 195 MMcfe/d of current production, 755 Bcfe of year-end 2013 proved
reserves and related midstream facilities. LINN is running a 4-rig drilling
program and has planned to spend approximately $210 million of capital on
these assets in 2014.

The Permian Basin properties sold include approximately 7,200 net acres, 4.6
MBoe/d of current production and 19 MMBoe of year-end 2013 proved reserves.
LINN is running a 2-rig vertical drilling program and has planned to spend
approximately $95 million of capital on these assets in 2014.

Following the closing of this transaction, LINN will have remaining production
of approximately 8.0 MBoe/d and approximately 6,600 net acres in the Midland
Basin that is prospective for horizontal Wolfcamp drilling. The Company
continues to see strong interest in the market for a trade or sale of these
assets.

"One of our goals for 2014 was to maximize value for our Midland Basin and
Granite Wash assets in order to reduce the capital intensity and decline rate
within our portfolio. We believe today's announcements largely accomplish this
goal. When considered in light of the accretive acquisitions and trades we've
announced this year, we are very excited about our business as we move into
2015," said Mark E. Ellis, Chairman, President and Chief Executive Officer.

The sale of Granite Wash and Cleveland properties is expected to close in the
fourth quarter of 2014 with an effective date of September 1, 2014. The sale
of Permian Basin properties is expected to close in the fourth quarter of 2014
with an effective date of August 1, 2014. These transactions are subject to
satisfactory completion of title and environmental due diligence, as well as
the satisfaction of closing conditions.

ADVISORS

RBC Richardson Barr, Scotia Waterous and Wells Fargo acted as financial
advisors to LINN during the Granite Wash and Cleveland play transaction.

RBC Richardson Barr acted as the sole financial advisor to LINN during the
Permian Basin transaction.

Posted-In: M&A News Press Releases

 

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