What the Heck Was ExxonMobil Thinking With the LINN Energy Asset Swap?

Let's pretend you and I are two oilmen and I make you this offer: I'll give you 25,000 net acres for land in West Texas that produces 5,000 barrels of oil a day for your 500,000 net acres in Oklahoma producing 14,000 barrels of oil equivalent. Oh, and I get to keep 2,000 barrels per day of that production, too. You'd probably laugh in my face. But this is the deal that ExxonMobil (NYSE: XOM  ) just agreed to with LINN Energy (NASDAQ: LINE  ) (NASDAQ: LNCO  ) . No, the executives at Exxon weren't drunk at the time; the deal actually makes sense for both companies. 

In the case of Exxon and LINN, it's all about what fits each individual company. Tune into the video below to find out why this asset swap makes sense for Exxon and LINN and what it means for both companies down the road.

Does Exxon's rock solid dividend or LINN Energy's monstrous distribution make our list of top dividend stocks?
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  • Report this Comment On June 01, 2014, at 8:41 PM, CaptGene wrote:

    Doesn't LINE still have sizable property with great potential adjacent?

  • Report this Comment On June 02, 2014, at 1:33 PM, TMFDirtyBird wrote:


    Yes, LINN still has about 30,000 net acres that are considered prime acreage for the Wolfcamp/Spraberry fields. LINN's management has hinted that it may do similar asset swaps with these as well.



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Tyler Crowe

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9/4/2015 2:35 PM
LINE $3.55 Up +0.02 +0.50%
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XOM $72.35 Down -1.44 -1.95%
ExxonMobil Corp CAPS Rating: ****