LINN Energy announces first quarter results, has net loss of $339 million

Courtesy of LINN

Courtesy of LINN

Houston-based LINN Energy, LLC (NYSE: LINE) announced today a net loss of approximately $339 million on its first quarter earnings call.

Although the company reported a net loss, it grew daily production by 2 percent compared to the estimated year-end 2014 exit rate.

The oil and natural gas exploration firm accomplished higher production outputs while decreasing its CAPEX by 65 percent earlier this year.

Related: LINN Energy cuts 2015 budget in half

LINN highlighted accomplishments year-to-date including liquid assets of $1.3 billion following the next semi-annual borrowing base redetermination scheduled for May 2015.

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Additionally the company announced the signing of two non-binding letters of intent for future projects. The first with GSO Capital Partners LP to fund up to $500 million on new developments with 5-year availability (“DrillCo”). The second with private capital investor Quantum Energy Partners committing up to $1 billion of equity capital to fund acquisitions and development (“AcqCo”).

“Our strategic portfolio realignment in 2014 well-positioned LINN for this low commodity price environment,” said Mark E. Ellis, Chairman, President and Chief Executive Officer. “Efficient management of our stable asset base and aggressive cost management allowed us to generate strong results in the first quarter. We are pleased that our 2015 guidance anticipates funding total oil and natural gas capital expenditures, along with the distribution, from internally generated cash flow. Our success in navigating these challenging times is a testament to the high quality of our assets and the hard work and dedication of our employees. In addition, we remain excited about our DrillCo and AcqCo initiatives and look forward to pursuing a variety of growth opportunities in the current market.”

In December, LINN closed a deal selling its Granite Wash and Cleveland plays for $1.95 billion to privately held affiliates of Houston-based EnerVest, Ltd. and FourPoint Energy, LLC.

Related: Houston-based LINN Energy sells Texas & Oklahoma assets for $1.95 billion

Another bright note is that the company hedge book had an estimated net positive mark-to-market value of approximately $2.1 billion.

In 2006, LINN Energy became the first publicly traded independent oil and natural gas limited liability company. According to public records, the company has over 1,800 employees spread across the US.


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