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LINN Energy, LLC Delivers Strong Quarterly Results

By Matthew DiLallo – Feb 27, 2014 at 9:41AM

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A quick look at the fourth-quarter highlights that included the close of the merger with LinnCo, LLC and Berry Petroleum.

LINN Energy, LLC (LINEQ) and LinnCo, LLC (NASDAQ: LNCO) announced fourth-quarter and full-year results before the market opened this morning. Results were strong as LINN Energy produced $31.5 million of cash flow in excess of its distributions to investors. LinnCo also closed its deal with Berry Petroleum in the fourth quarter, which contributed to the strong results.

LINN Energy increased its average daily production by 11% to 889 MMcfe/d for the fourth quarter over the same quarter in 2012. While production included 44 MMcfe/d from Berry Petroleum, even after adjusting for that, the company still exceeded the low end of its guidance range. This was despite significant winter weather impacts on production.

LINN Energy was able to produce $202 million in distributable cash flow on the quarter. Of that amount, the company distributed $170.5 million, leaving it with cash flow in excess of its distribution totaling $31.5 million. That was well above the company's guidance range of 5%-10% in cash flow in excess of its distribution.

Looking ahead to 2014 LINN Energy expects its production to be in a range of 1,070-1,140 MMcfe/d. Given that production range as well as its current projections for commodity prices and expenses, LINN Energy expects to produce $12 million in cash flow in excess of its distribution in 2014. That should ensure that the company's distribution to investors remains strong in 2014. 

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Matt DiLallo owns shares of LinnCo, LLC and LINN Energy, LLC. The Motley Fool has no position in any of the stocks mentioned. 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.

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