
After divesting about $1.7 billion in 2017, Linn is actively marketing its Permian Basin assets and remaining properties in Utah. (Image: Hart Energy)
Linn Energy Inc. (OTC: LNGG) picked up where it left off in December, agreeing to sell its interests in the Altamont Bluebell Field in Utah to an undisclosed buyer for $132 million, the company said Jan. 16.
Linn spent 2017 cleaning house, with the company selling or agreeing to sell $1.72 billion in assets, including a December deal for its Oklahoma waterflood and Texas Panhandle properties.
Once a prodigious acquirer—in a nine-month span from 2013 through September 2014, Linn purchased $7.7 billion in assets—the former MLP-structured company has turned about following its February 2017 emergence from bankruptcy.
Linn’s Bluebell Field includes 36,000 net acres with average third-quarter 2017 production of 1,450 barrels of oil equivalent per day (boe/d), the company said. The position’s proved developed reserves are an estimated 5.8 MMboe.
Linn is actively marketing its Permian Basin assets in Texas and New Mexico and the Drunkards Wash coalbed methane development in Utah.
Linn’s divestitures are part of a plan to further separate into three companies this year, including Roan Resources LLC, which will operate as a pure-play in the Merge, Scoop and Stack. Linn also has a 105,000 net-acre position in the northwest Stack.
As of Jan. 9, Roan’s net production averaged 40,000 boe/d. The company has five active rigs and three frack crews.
Linn said it expects the Bluebell sale to close in first-quarter 2018 with an effective date of Aug. 1, 2017.
CIBC Griffis & Small and Jefferies LLC acted as co-financial advisers and Kirkland & Ellis LLP as legal counsel during the transaction.
Darren Barbee can be reached at dbarbee@hartenergy.com.
Recommended Reading
Blackstone Buys NatGas Plant in ‘Data Center Valley’ for $1B
2025-01-24 - Ares Management’s Potomac Energy Center, sited in Virginia near more than 130 data centers, is expected to see “significant further growth,” Blackstone Energy Transition Partners said.
E&P Highlights: Jan. 21, 2025
2025-01-21 - Here’s a roundup of the latest E&P headlines, with Flowserve getting a contract from ADNOC and a couple of offshore oil and gas discoveries.
EY: Three Themes That Will Drive Transformational M&A in 2025
2024-12-19 - Prices, consolidation and financial firepower will push deals forward, says EY.
E&P Highlights: Jan. 6, 2025
2025-01-06 - Here’s a roundup of the latest E&P headlines, including company resignations and promotions and the acquisition of an oilfield service and supply company.
E&P Highlights: Dec. 16, 2024
2024-12-16 - Here’s a roundup of the latest E&P headlines, including a pair of contracts awarded offshore Brazil, development progress in the Tishomingo Field in Oklahoma and a partnership that will deploy advanced electric simul-frac fleets across the Permian Basin.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.