Type Privately held company Products Petroleum
Natural gas Founder Michael C. Linn Parent organization Linn Co, LLC | Industry Petroleum industry CEO Mark E Ellis (Dec 2011–) Founded 2003 | |
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Key people Mark E. Ellis (CEO)
Michael C. Linn, founder and director
David B. Rottino, Executive Vice President and CFO
Arden L. Walker, Jr., Executive Vice President and COO Revenue US$2.883 billion (2015) Operating income Headquarters Houston, Texas, United States Subsidiaries Berry Petroleum Company, Linn Midstream, LLC Profiles | ||
Linn Energy, Inc. is a petroleum, natural gas, and natural gas liquids exploration and production company based in Houston, Texas.
Contents
A lesson to learn on linn energy
Current operations
As of December 31, 2016, the company had 3.5 trillion cubic feet equivalent of estimated proved reserves, of which 17% were petroleum, 65% were natural gas and 18% were natural gas liquids.
The company controls 2.6 million acres of petroleum and natural producing assets including:
History
Linn Energy was founded in 2003 by Michael Linn.
In 2006, the company became a public company via an initial public offering that raised over $200 million.
In 2007, the company doubled its holdings by purchasing many of the oil and gas assets of Dominion Energy, mainly in Oklahoma, for $2.05 billion.
In 2011, the company announced the retirement of founder Michael Linn.
In March 2012, the company 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.
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.
In February 2013, the company acquired Berry Petroleum Company in a stock deal valued at $4.3 billion.
In September 2013, the company announced the acquisition of assets in the Permian Basin for $525 million.
In June 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.
In August 2014, the company announced the acquisition of assets in the Hugoton Natural Gas Area from Pioneer Natural Resources for $340 million. The company also announced the sale of its interests in non-producing acreage in the Anadarko Basin for $90 million.
In March 2016, the company missed a debt payment and announced that a bankruptcy filing was likely. On May 11, 2016, Linn Energy filed for Chapter 11 Bankruptcy Protection.
In February 2017, the company completed a financial restructuring. The restructuring including the corporate spin-off of Berry Petroleum Company.
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.
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.