Linn Energy LLC (NASDAQ:LINE) Transactions Enter Completion Mode


Dallas, Texas 07/08/2015 (Financialstrend) – Linn Energy LLC (NASDAQ:LINE) ended its long-drawn finalization of three of its key transactions, winning investor goodwill, on Tuesday. The finalized projects include – a strategic alliance between DrillCo and GSO Partners as well as the Acqco alliance with Quantum Energy Partners. Another important development was the sale of Midland Basin acreage. The sale together with the other strategic alliance augurs well for Linn Energy LLC (NASDAQ:LINE) investors, because of the upside they bring to the company.

The first was the strategic alliance between GSO Capital Partners and LINN Energy. The agreement, which remains the same as the January letter of intent provides the much needed funds of $500 million. The fund will be provided over five years for drilling programs, across LINN acreage. As per the agreement, GSO will fund entire cost of a new well, and receive 85% of the working interest. The deal allows LINN to increase its drilling plans without having to seek new funding capital.

Linn Energy LLC (NASDAQ:LINE) second transaction finalization is with AcqCo, via alliance with Quantum Energy Partners. Keeping within the first round of terms reported in January, Quantum will provide $1 billion of ‘equity capital’ for the sole purpose of acquisitions, to be both sourced and operated by LINN. In the initial stages of such acquisitions LINN will hold only minority working interest in such assets. Additionally, this agreement is a winner-deal for LINN as it continues to enjoy the right to own AcqCo acquired assets in the long run.

Linn Energy LLC (NASDAQ:LINE) sale of Midland Basin acreage will net $281 million. The sale is to an un-named buyer. The acreage yielded 2,000 barrels of oil per day. However, LINN has retained areas which are most productive. Therefore, the flush of funds that LINN will receive is expected to be used for purposes other than for developing its current assets. Speculation is strife that, the transaction finalized thus far, would eventually yield an acquisition.

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