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.
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