Linn Energy is buying oil, natural gas propertiesadmin
Linn Energy, a Houston-based independent oil and gas company, announced this week it will acquire oil and natural gas properties in Texas and West Virginia in three separate transactions for $454 million.
Linn Energy, which recently relocated from Pittsburgh, did not identify the Texas company or Appalachian Basin properties it is acquiring. Chief Financial Officer Kolja Rockov didn’t return a call for comment, nor did the company’s investor relations department respond to an e-mail inquiry.
The company said in a prepared statement it will acquire a privately owned Texas company with operations in the Texas Panhandle for $415 million.
The other deals involve acquiring natural gas properties in the Appalachian Basin for the remaining $39 million.
To help fund the deals, Linn Energy has issued a private placement of $360 million in equity to third-party investors. The acquisitions also will increase Linn Energy’s borrowing capacity to $675 million to $700 million from $480 million.
The deals are expected to close Feb. 1.
The Texas acquisition will give Linn Energy 55 million barrels of oil equivalent proved reserves and a production mix of 55 percent natural gas liquids, 35 percent natural gas and 10 percent crude oil.
The West Virginia properties have more than 55 producing wells, 24 billion to 26 billion cubic feet per day of proved reserves and “significant additional drilling opportunities,” Linn Energy said.
In August, Linn Energy acquired oil and gas fields in north-central Oklahoma and Southern California for $416 million.