This is Why LINN Energy's $2.3 Billion Buy Makes So Much Sense

By adding Devon Energy's acreage to the mix while selling off its Granite Wash assets, LINN Energy is setting itself up for better times.

Jul 3, 2014 at 1:15PM

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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Tyler Crowe owns shares of Linn Energy, LLC. You can follow him at under the handle TMFDirtyBird, on Google+, or on Twitter @TylerCroweFool.

The Motley Fool owns shares of Devon Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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