LINN Energy Lowers 2015 Oil And Gas Capital By More Than 50% - Quick Facts

(RTTNews) - LINN Energy, LLC (LINE) and LinnCo, LLC (LNCO) reported that LINN's board has approved a budget for 2015, including a 53% reduction in oil and natural gas capital expenditures to $730 million, from around $1.55 billion in 2014, and a reduction of the LINN distribution and LinnCo dividend to $1.25 per unit or share, from the prior level of $2.90 per unit or share, on an annualized basis. LINN plans to fund its total 2015 oil and natural gas capital program, along with the distribution, from internally generated cash flow.

Chairman, President and Chief Executive, Mark Ellis, noted: "After careful consideration, LINN's senior management proposed and the Board of Directors approved a 2015 budget that contemplates a significantly lower current crude oil price than in 2014. In order to solidify the Company's financial position and regain a useful cost of capital, we have reduced the oil and natural gas capital budget and distribution while balancing cash flow and spending."

Further, LINN announced signing a non-binding letter of intent with private capital investor GSO Capital Partners LP, the credit platform of Blackstone Group L.P. (BX), to fund oil and natural gas development. Funds managed by GSO and its affiliates would commit up to $500 million with 5-year availability to fund drilling programs on locations provided by LINN.

The company is hedged around 100 percent on expected natural gas production in 2015, 2016 and 2017, net of expected natural gas consumption related to its heavy oil operations in California.

In addition, LINN declared a monthly cash distribution of $0.1042 per unit, or $1.25 per unit on an annualized basis, for all of its outstanding units. The distribution would be payable January 15, 2015, to unitholders of record as of the close of business on January 12, 2015. Also, LinnCo declared a monthly cash dividend of $0.1042 per share, or $1.25 per share on an annualized basis, for all of its outstanding common shares, payable January 16, 2015, to shareholders of record as of the close of business on January 12, 2015.