J.P. Morgan Global High Yield & Leveraged Finance Conference February 25 27, 2013
LINN Energys mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets.
LINN Overview 7th largest public MLP/LLC and 11th largest domestic independent oil & natural gas company(1) LINE IPO in 2006 with enterprise value of 713 million Equity market cap 11.8 billion ND Total net debt 7.7 billion Uinta…
Overview of Berry Petroleum High Quality Oil Portfolio Proved Reserves (MMBoe) Berry Asset Map 75% Liquids NGLs 7% Natural Gas Uinta Basin Piceance 26% Basin Oil 67% CA UT Corporate CO Headquarters (Denver) Q4'12…
Pending Berry Transaction Highlights First ever acquisition of a public C-Corp by an upstream LLC or MLP Structure allows for: o Tax free transaction to Berry shareholders o LINN to acquire Berry (C-Corp) and convert it into an LLC…
Pending Berry Transaction Highlights Operational Highlights (1) Berrys long-life, low-decline, mature assets are an excellent fit o 15% decline rate Increased geographic presence in California, the Permian Basin, East Texas, and…
Hugoton Field Acquisition From BP On March 30, 2012, LINN closed a 1.2 billion (1) acquisition in the liquids-rich Kansas Hugoton Field from BP. Finney Liquids-Rich Hamilton Liquids-rich production of 110 MMcfe/d 37% NGLs / 63%…
Jonah Field Acquisition From BP On July 31, 2012, LINN closed a 1.0 billion (1) Sheridan acquisition in Wyomings Jonah Field from BP. Park Big Horn Campbell Crook Strategic Rationale Wyoming Washakie Weston Teton Significant…
Anadarko Salt Creek Joint-Venture On April 3, 2012, LINN acquired 23% of Anadarkos (APC) interest in the Salt Creek Field, one of the Sheridan largest CO2 EOR projects in North America. Park Campbell Big Horn Crook Strategic…
Growth Through Accretive Acquisitions 14 billion in acquisitions since the Companys inception Includes 58 separate transactions(1) Value of Acquisitions Per Year (1) 14,069 14,000 12,000 4,339 9,730 ('s in millions)…
LINN Has Created an Acquisition Machine 2010 2011 2012 Screened 189 opportunities Screened 122 opportunities Screened 246 opportunities Bid 41 for 10.1 billion Bid 31 for 7.5 billion Bid 20 for 9.2 billion Closed 13 for 1.4 billion…
MLP and Independent E&P Rankings LINN is one of the largest MLP and independent E&P companies 7th largest public MLP/LLC 11th largest domestic independent oil & natural gas company Rank Master Limited Partnership Enterprise Value (MM)…
LinnCo Structure LINE LNCO Current distribution of 2.90 / unit(1) Estimated dividend of 2.90 / share(2) Schedule K-1 (partnership) Form 1099 (C-Corp.) LINE LNCO Unitholders Shareholders 2.90 Common Dividend Shares 2.90 Tax…
LinnCo Structure Advantages Shareholders receive Form 1099 rather than a Reduces Tax Schedule K-1 Reporting No state income tax filing requirements Burdens No UBTI(1) implications Estimated tax at LinnCo(2) Efficient Tax o…
LinnCo IPO Recap LinnCos 1.3 billion IPO represents a landmark transaction for the energy sector Largest E&P IPO 3rd largest energy IPO 3rd largest 2012 IPO Strong institutional demand of 2.0 billion 83% institutional…
Structure Immediately Post Merger Public LNCO Shareholders Public LINE Unitholders and Former BRY Shareholders 65.5% 100% 34.5% LINN Bonds & Revolver 100% 100% Existing Assets Berry Berry Bonds & Revolver…
Future Refinancing Opportunities All stock deal for Berry coupled with increased size of LINN provides for meaningful improvement in credit metrics Debt / EBITDA expected to be 3.6x for the second half of 2013 ('s in millions) LINN…
Significant Hedge Position (Does Not Include Announced Berry Transaction) LINN is hedged 100% on expected natural gas production through 2017; and 100% on expected oil production through 2016 Puts provide price upside opportunity…
Significant Hedge Position (Equivalent Basis) (Does Not Include Announced Berry Transaction) LINNs cash flow is notably more protected from oil and natural gas price uncertainty than its C-Corp. and Upstream MLP peers Prolonged periods…
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 (or 23%) were forced to reduce or…
LINN Historical Return LINN Total Return and Stock Price Appreciation (LINE IPO Present of 244%) 250% 244% 200% 179% 150% 100% 83% 50% 37% 24% 0% (50%) 2006 2007 2008 2009 2010 2011 2012 2013 Line Total Return…
Attractive Valuation LINN represents an attractive value relative to other yield segments Current Yields 9.0% 8.0% 7.8% 8.0% 7.0% 6.0% 5.6% 5.0% Yield 4.1% 4.0% 3.3% 3.0% 2.0% 2.2% 2.0% 1.2% 1.0% 0.0% (1)…
Size of Institutional Yield Market is Substantial The top 10 equity income mutual funds have an aggregate of 263 billion of assets 60,000 54,870 50,000 Average Portfolio Yield of 1.8% 39,840 AUM (MM) 40,000 37,430…
Size Advantage in E&P MLP/LLC Market LINN has a significant size advantage in the E&P market presents significantly more E&P MLP/LLC market acquisition opportunities than rest of MLP market Greater access to capital markets Ability…
Why Invest in LINN High quality asset base o Multi-year inventory of high-return development opportunities Stable o Long-life reserves (16 years) Cash Flows o Diversified asset base (7 core areas / 19,000 gross producing wells)…
Financial Appendix
Proved Reserves The following table sets forth certain information with respect to LINNs proved reserves for the year ended December 31, 2012, calculated on the basis required by SEC rules: Proved Reserves % Natural % Proved…
Historical Financial Statements Reconciliation of Non-GAAP Measures The Company defines adjusted EBITDA as net income (loss) plus the following adjustments: Net operating cash flow from acquisitions and divestitures, effective date…
Historical Financial Statements Adjusted EBITDA The following presents a reconciliation of net income (loss) to adjusted EBITDA: Three Months Ended Year Ended December 31, December 31, 2012 2011 2012 2011 (in thousands) Net…
Historical Financial Statements Adjusted Net Income The following presents a reconciliation of net income (loss) to adjusted net income: Three Months Ended Year Ended December 31, December 31, 2012 2011 2012 2011 (in thousands,…
Reserve Replacement / F&D Calculations Reconciliation of Non-GAAP Measures Year Ended December 31, 2012 2011 Costs incurred (in thousands): Costs incurred in oil and natural gas property acquisition, exploration and development…
The U.S. Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only resources that qualify as reserves as defined by SEC rules. We use terms describing hydrocarbon quantities in…
Loading...
