The Motley Fool Previous Page

LINN Energy Makes a Return

Matt DiLallo
April 4, 2013

After spending billions to build up its oil and gas reserves, LINN Energy (NASDAQ: LINE) and its partners are now on the selling end of a transaction. LINN, along with Panther Energy and Red Willow Mid-Continent, announced the sale of properties in the Anadarko Basin to Midstates Petroleum (NYSE: MPO) for $620 million in cash. LINN originally acquired its 40% stake in the properties for $220 million back in 2011.

The producing properties encompass 140,000 net acres and proved reserves of 34.4 million barrels of oil equivalent that are 45% oil and 21% natural gas liquids. It adds 8,000 barrels of oil equivalent production per day to Midstate's production base. Further, it adds over 700 low-risk, repeatable horizontal drilling opportunities. I