NEWS

Linn Energy has priced an offering of $450 million of 6.5% senior unsecured notes due 2019 at an offering price equal to 102% of par and $650 million of 6.5% senior unsecured notes due 2021 at an offering price equal to 98.619% of par.

The 6.5% senior notes due 2019 are being offered as additional notes under an indenture pursuant to which Linn issued $750 million aggregate principal amount of 6.5% senior notes due 2019 on 13-May-2011. These additional 6.5% senior notes due 2019 are substantially identical to, and will be treated as a single class of debt securities with, such previously issued 6.5% senior notes due 2019 under the indenture governing such notes. The offering of both series of senior notes is expected to close on 9-Sep-2014.

Barclays Capital, Scotia Capital, RBC Capital Markets, Wells Fargo Securities, Citigroup Global Markets, Crédit Agricole Corporate and Investment Bank, Goldman Sachs, RBS Securities and UBS Securities are acting as joint book-running managers for the offering.

View Linn press release

ExxonMobil, Linn Swap Assets in Hugoton, Permian Basin

ExxonMobil has entered into an agreement with Linn Energy to swap a portion of its operating interests in the Hugoton Basin, for a portion of Linn’s Permian Basin properties. The agreement is expected to close in Q3-2014.

ExxonMobil will receive:

• Approximately 25,000 net acres in the Permian Basin, located primarily in Midland, Martin, Upton and Glasscock counties;
• Approximately 1,000 acres in Lea County, New Mexico;
• Production of approximately 2 MBOE/d.

Linn will receive:

• More than 500,000 net acres and 2,300 operated wells (94% WI);
• Approximately 400 future drilling locations;
• Production of 85 MMcfe/d (20% liquids), with shallow base decline of approximately 6%;
• Total reserves of 700 Bcfe (20% liquids and 78% PDP).

View Linn May-2014 presentation

View Linn press release

View ExxonMobil press release

Linn Energy announced a 53% YoY reduction in its planned 2015 capex budget to $730 million from approximately $1.55 billion in 2014. The company expects to produce 1.1 – 1.2 MMcfe/d (48% liquids). The company added that the reduction in capex is approximately half in response to lower commodity prices and half as a result of divestiture of Granite Wash assets and the majority of its Midland Basin assets, and reduced investment in other areas.

Mark E. Ellis, Chairman, President and CEO, said: “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.”

View Linn Energy press release

Linn Energy signed a non-binding LoI with GSO Capital Partners LP, which is part of the Blackstone Group LP, to raise up to $500 million with 5-year availability to fund drilling programs.

According to the agreement, GSO will fund 100% of the costs associated with new wells drilled and is expected to receive an 85% WI in these wells until it achieves a 15% internal rate of return on annual groupings of wells. Linn is expected to receive a 15% carried working interest during this period. Upon reaching the internal rate of return target, GSO's interest will be reduced to 5%, while LINN's will increase to 95%.

View Linn Energy press release

Linn Energy reported average production of 796 MMcfe/d in Q1-2013, up 69% YoY. The increase in production is primarily attributed to the company's continued success in its acquisition program and organic growth.

Q1-2013

• Net loss of $222 million in Q1-2013 compared to 6 million in Q1-2012
• 1P reserves of 4.8 Bcfe
• Revenue of $369 million up 4% YoY

View Linn Energy press release