The recent announcement that LINN Energy (NASDAQ:LINE) and LinnCo (NASDAQ:LNCO) were purchasing $2.3 billion worth of oil and gas producing assets from Devon Energy (NYSE:DVN) and selling a significant stake of their assets in the Granite Wash formation of Texas and Oklahoma might have you wondering why they would undertake such a big purchase for such a marginal gain in production. After gaining 275 million cubic feet equivalent per day from Devon, LINN will lose 230 million cubic feet equivalent when it sells its Granite Wash resources. It seems a bit silly to make a $2.3 billion purchase for a measly net gain of 45 million cubic feet of gas, right?
As with most of LINN Energy's purchases, there's a little more going on here than just the production numbers. Find out why its new assets from Devon are a better fit for LINN and how it will impact the company further down the road by tuning into the video below.
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