Where LINN Energy Plans to Grow in 2013http://www.fool.com/investing/general/2013/03/02/where-linn-energy-plans-to-grow-in.aspx Matt DiLallo
March 2, 2013
Oil and natural gas income giant LINN Energy (NASDAQ: LINE) is out with its 2013 capital spending plan. With more than 10,000 prospective drilling locations across its more than half dozen core operating areas, LINN has plenty of options with which to invest its capital. Let's drill down and examine where LINN will be looking to boost its organic production growth in the year ahead.
A quick look back
Drilling down into the 2013 capital budget
The money will be split across its portfolio:
The Granite Wash is far and away the most important growth asset for LINN at the moment. The company is planning to spend more than a third of its capital to drill 80 wells into the play. The liquids-rich Hogshooter formation will continue to be the key target area for the company, as it generated excellent returns in 2012. Aside from that, the Permian Basin will see its share of capital in the coming year. While it is getting just 18% of the capital, LINN will use it to drill nearly 100 wells. Finally, the most interesting aspect of the drilling budget, in my opinion, is that LINN will be spending a great deal of capital to further develop its Jonah Field, which it acquired from BP (NYSE: BP) last year, while spending minimally on the Hugoton assets, which it also bought from BP last year.
Jonah is more of a gas asset, as 73% of production is