Goldman, Sachs & Co. Global Energy Conference January 2014
LINN Energy Overview
Berry Petroleum Merger Strategic Rationale Expected to be accretive to cash available for distribution Improves diversification, scale and growth potential Increases LINNs production by 30% Increases LINNs liquids exposure o Berrys…
LINN Energy LINN Energy IPO in 2006 with initial enterprise value of 713 million Completed or announced 60 transactions ND for 15 billion(1) Uinta Basin ( in billions) Current(2) MI WY Piceance Basin Equity market cap 10.4 IL…
MLP and Independent E&P Size Rankings LINN is one of the largest MLP and independent E&P companies 8th largest public MLP / LLC 12th largest domestic independent oil & natural gas company Rank Master Limited Partnership Enterprise…
Strong, Diversified Reserve Base Oil Proved Reserves Increase 185 MMBbls LINN Energy LINN Energy + Berry PF 832 MMBoe 1,107 MMBoe (47% Liquids) (54% Liquids) Williston/ Williston/ Powder River Powder River E. Texas E. Texas 4%…
LINN Has Created an Acquisition Machine 2010 2011 2012 2013 Screened 189 Screened 122 Screened 246 Screened 233 opportunities opportunities opportunities opportunities Bid 41 for Bid 31 for Bid 20 for Bid 10 for 10.1 billion 7.5…
Growth Through Accretive Acquisitions 15 billion in acquisitions across 60 separate transactions(1) Strong record of: Evaluating acquisitions Integrating assets Pursuing multiple acquisitions simultaneously Value of Acquisitions…
Recent Permian Acquisition (Q313) East Goldsmith Field Acquisition Acreage East Goldsmith Field 525 million acquisition of Proved Location Area PROB Location Area properties located in the Central Basin Platform of the Permian Basin…
LINN Energy Efficient Integration and Operations Efficiently integrated 60 separate transactions across multiple basins Currently operate: 70% of wells 15 total operated rigs running o 8 rigs focusing on horizontal drilling 7…
LINN Energy Operational Update Granite Wash 8 rigs drilling in the region o 2 rigs targeting the Hogshooter interval in the Mayfield area of western Oklahoma o 6 rigs focused on developing high-return, liquids-rich opportunities in…
Permian Basin Significant Improvement in Size and Scale Overview (1)(2) Operations Map Significant operational and field Hockley synergies in the Permian Basin 80% liquids MIDLAND Garza 160 MMBoe proved reserves BASIN…
Permian Basin Horizontal Wolfcamp Potential Yoakum Terry Lynn Overview Dawson MIDLAND Borden 675 operated, horizontal locations (gross) (1) Gaines BASIN Further upside potential associated with additional non-operated…
Berry Petroleum Strategic Highlights
Berry Petroleum Overview Overview Key Statistics Berry Petroleum is a Denver-based independent E&P 2011 2012 2013E company focused on developing its oil assets in the: Production (Boe/d) 35,687 36,402 40,500 40,800 San Joaquin…
Berrys Business Plan Commentary Invest in Consistent Oil Growth Invest only in the development of crude oil Increase oil production from five assets in three basins BOE/D Improve margin from oil growth and improved marketing…
Berrys 2013 Performance Highlights from Last 12 Months Production Growth of 5 Oily Assets (Q312 Q313) Oil production has grown 20% since Q312 40,000 with total production growing 14% Uinta: +36% 30,000 Production mix increased to…
South Midway-Sunset Asset Highlights South Midway-Sunset Field Map Stable production from legacy assets in the 9th largest U.S. field 26 30 29 28 27 Produced 12,275 Bo/d in Q3, 92% NRI S. Midway 36 35 31 32 33 34 Produce heavy…
North Midway-Sunset Asset Highlights North Midway Assets Diatomite has 360 million barrels of oil in place on McKittrick 21Z 540 acres, targeting 1,000 wells on 5/8 acre spacing Focusing on consistently growing the completion Berry…
Uinta Assets Asset Highlights Uinta Resource Development Compiled 122,000 net acres with 75 MMBoe of risked resource since entering basin in 2003 Current production on 40-acre spacing; historically 60% crude oil and 40% gas…
Merger Benefits for Berry Observations Combined size and scale can fully maximize the value of Berrys assets Berrys long-lived reserves with shallow decline are an ideal fit for the Upstream MLP model Merger is a tax-free event for…
Financial Highlights
Financial Highlights Berry Petroleum Merger First ever acquisition of a public C-Corp. by an upstream LLC or MLP Transaction value of 4.9 billion(1), including assumed debt of 1.7 billion Expected to be accretive to cash available…
LinnCo Structure Advantages Reduces Tax Shareholders receive Form 1099 rather than a Schedule K-1 Reporting No state income tax filing requirements Burdens No UBTI(1) implications Efficient Tax Estimated tax at LinnCo(2)…
LinnCo Structure Overview LINE LNCO Current distribution of 2.90 / unit (1) Current dividend of 2.90 / share (2) Schedule K-1 (partnership) Form 1099 (C-Corp.) LINE LNCO Unitholders Shareholders 2.90 Common Dividend Shares…
Significant Hedge Position (Graphs include expected Berry production) Hedged 100% on expected natural gas production through 2017(1) Hedged 100% on expected oil production in 2014 and approximately 50% 60% during 2015 2016…
Significant Hedge Position (Equivalent Basis) (Graph includes expected Berry production) LINNs cash flow is notably more protected from oil and natural gas price uncertainty than its C-Corp. and Upstream MLP / LLC peers 100% 100%…
LINNs Distribution Stability and Growth LINN has performed well through all kinds of commodity price cycles Distribution stability maintained throughout the Credit Crisis (i.e. 2008 2009) 16 out of 74 MLPs (23%) were forced to reduce…
Distribution History Consistently paid distribution for 32 quarters 81% increase in quarterly distribution since January 2006 IPO(1) Distribution History 20.20 20.00 19.470.73 18.740.73 18.020.73 18.00 17.290.73 16.570.73…
LINN Historical Return LINN Total Return and Unit Price Appreciation (LINE IPO Present of 206%) 275% 225% 207% 206% 175% 125% 75% 68% 63% 25% (25%) (75%) 2006 2007 2008 2009 2010 2011 2012 2013 LINE Total…
Current Landscape for E&P MLPs LINN has a significant size advantage in E&P market presents significantly more the E&P MLP / LLC market acquisition opportunities than rest of MLP Greater access to capital markets market Ability to…
Updated Q4 2013 Guidance(1) LINN reiterates Q4 estimated production guidance of 840 - 860 MMcfe/d 2013E organic production growth of 8 - 10% remains on-track (in spite of severe winter weather in the Permian and Mid-Continent…
Summary Combined company will be one of the largest independent oil and natural gas companies in North America Pro forma production of 180,000 Boe/d Proved reserves of approximately 1.1 billion Boe (54 percent liquids) Combined…
LINN Energys mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets. a kind of oil & natural gas company
Appendix Berry Bonds and Revolver Post-Closing Berry Bonds Transaction triggers Change of Control and investor option to put bonds at 101% of par; LINN plans to make a Change of Control offer pursuant to the indenture If bonds are…
Appendix Capital Structure (9/30/13) ( in millions) LINN Pro Forma Capital Structure at 9/30/13 (1) (2) Summary Balance Sheet Before Merger Adjustments After Merger Cash and cash equivalents 27 --- 27 (1) Credit facility 1,730…
Appendix Substantial Institutional Yield Market LinnCo structure allows LINN to access the much larger institutional market MLP sector has grown tremendously but still remains primarily retail Energy MLPs Enterprise Value Growth Top-10…
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