Linn Energy
| Public company | |
| Traded as | NASDAQ: LINE |
| Industry | Petroleum industry |
| Founded | 2003 |
| Founder | Michael Linn |
| Headquarters | Houston, Texas |
Key people |
Mark E. Ellis, CEO Michael C. Linn, founder and director David B. Rottino, Senior Vice President and CAO Kolja Rockov, Executive Vice President and CFO[1] |
| Products |
Petroleum Natural gas |
| Revenue |
 US$2.883 billion (2015)[1] |
|
-US$1.567 billion (2015)[1] | |
|
-US$1.569 billion (2015)[1] | |
| Total assets |
US$9.977 billion (2015)[1] |
| Total equity |
-US$269 million (2015)[1] |
Number of employees | 1,760 (2015)[1] |
| Subsidiaries | LinnCo (NASDAQ: LNCO) |
| Website |
www |
Linn Energy, LLC is a petroleum, natural gas, and natural gas liquids exploration and production company based in Houston, Texas.
Current operations
The company controls oil and gas producing assets in the following areas:
- Mid-Continent, including properties in Texas, Louisiana, and Oklahoma[1]
- Hugoton Natural Gas Area in Kansas[1]
- Green River Basin in Wyoming[1]
- East Texas Oil Field[1]
- Brea-Olinda Oil Field in Los Angeles and Orange Counties[1]
- Williston / Powder River Basin, which includes a position in the Bakken Formation[1]
- Permian Basin in Texas[1]
As of December 31, 2015, the company had 7,304 billion cubic feet equivalent of estimated proved reserves, of which 28% were petroleum, 58% were natural gas and 14% were natural gas liquids.[1]
As of December 31, 2015, the company owned approximately 37% of the total outstanding units of LinnCo, LLC.[1]
Corporate structure
The company is structured as a master limited partnership for tax purposes and is required to pay out most of its cash flow to unitholders each quarter as distributions. However, Linn retains some attributes of a limited liability corporation, including giving voting rights to its unitholders. Linn Energy also operates a subsidiary, LinnCo, a C Corporation which is subject to different tax rules from its parent company.[2]
History
Linn Energy was founded in 2003 by Michael Linn.[3]
In 2006, the company became a public company via an initial public offering that raised over $200 million.[4]
In 2007, Linn doubled its holdings by purchasing many of the oil and gas assets of Dominion Energy, mainly in Oklahoma, for $2.05 billion.[5]
In 2011, the company announced the retirement of founder Michael Linn.[3]
In March 2012, Linn bought the holdings of BP in the Hugoton Natural Gas Area, the large gas-producing region from southwestern Kansas into the Texas Panhandle for $1.2 billion. The purchase included 2,400 active wells on 600,000 acres and a gas processing plant.[6]
On April 30, 2012, Linn Energy created LinnCo, LLC incorporating it in Delaware as a limited liability corporation. The initial public offering of LinnCo took place on October 17, 2012.[7]
Linn expanded its holdings in the Rocky Mountains in June 2012 with the purchase of 12,500 acres in the Jonah Field in southwest Wyoming from BP for approximately $1 billion. The field contains around 750 active natural gas wells which produce, in addition to natural gas, approximately one-quarter natural gas liquids such as butane and propane.[8]
In February 2013, Linn Energy acquired Berry Petroleum in a stock deal valued at $4.3 billion. The merger of the two firms increased Linn's holdings in California, particularly in the Midway-Sunset field, as well as in Texas, Utah, and Colorado. The acquisition increased the oil component of the mix of Linn's assets.[9]
In 2014, the company announced the acquisition of assets from Devon Energy for $2.3 billion and plans to sell assets in the Granite Wash Basin.[10]
The company missed a debt payment due in March 2016 and announced that a bankruptcy filing was likely.[11] On May 11, 2016, Linn Energy filed for Chapter 11 Bankruptcy Protection.[12]
Controversies
On April 3, 2006, Linn Energy announced to delay its filing of Form 10-K to allow restatement of 2003 and 2004 results.The restatement related to adjustments identified by the company relating to the accounting for the price of acquisitions.[13]
On February 8, 2015, the U.S. Securities and Exchange Commission closed its probe into Linn Energy’s $4.6 billion acquisition of Berry Petroleum and decided to take no enforcement actions.[14]
References
- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Linn Energy 2015 Form 10-K Annual Report
- ↑ "Linn Energy Investor FAQ". Retrieved February 26, 2013.
- 1 2 "LINN Energy Founder Michael C. Linn Retiring and Named Director and Founder; LINN Energy President and CEO Mark E. Ellis Named Chairman of the Board". PRNewswire. December 1, 2011.
- ↑ "Linn Energy Prices Initial Public Offering". PRNewswire. January 13, 2006.
- ↑ "Linn Energy to Acquire Mid-Continent Oil and Gas Properties from Dominion Resources, Inc. for $2.05 Billion". PRNewswire. July 2, 2007.
- ↑ "LINN Energy Announces $1.2 Billion Acquisition of BP's Hugoton Basin Properties". PRNewswire. February 27, 2012.
- ↑ "LINN Energy Announces Pricing of LinnCo Initial Public Offering". Globe Newswire. October 11, 2012.
- ↑ Michael J. De La Merced (June 25, 2012). "Linn Energy to Buy BP Property in Wyoming for $1 Billion". New York Times.
- ↑ "LINN Energy and LinnCo to Acquire Berry Petroleum Company for $4.3 Billion". Globe Newswire. February 21, 2013.
- ↑ "LINN Energy Announces $2.3 Billion Acquisition of Assets from Devon Energy". PRNewswire. June 30, 2014.
- ↑ "Distressed Debt: Linn Energy Skips Interest Payment, Warns of Chapter 11". Forbes Magazine. March 15, 2016.
- ↑ "Linn Energy Chapter 11 Voluntary Petition" (PDF). PacerMonitor. PacerMonitor. Retrieved 16 May 2016.
- ↑ "LINN ENERGY TO DELAY FILING OF FORM 10-K TO ALLOW RESTATEMENT OF 2003 AND 2004 RESULTS" (PDF).
- ↑ "SEC closes Linn Energy probe with no enforcement action". Petro Global News. Retrieved 18 February 2015.