Davenport & Company LLC Retail Sales Call May 16, 2013
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 7.9 billion Uinta…
LINNs Unique Business Strategy Consolidate LINNs goal is to consolidate mature oil and natural gas assets across the U.S. Mature Assets Since 2003, we have made 58 acquisitions for 14 billion(1) Mitigate Typically look to hedge…
Overview of Berry Petroleum High Quality Oil Portfolio Proved Reserves Berry Asset Map 1.65 Tcfe NGLs 7% Natural Gas Uinta Basin Piceance 26% Basin Oil 67% CA UT Corporate CO Headquarters (Denver) Q4'12 Production…
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…
Pending Berry Transaction Highlights First ever acquisition of a public C-Corp by an upstream LLC or MLP Structure allows for: Tax free transaction to Berry shareholders LINN to acquire Berry (C-Corp) and convert it into an LLC with…
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)…
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)…
History of Strong Performance and Growth Reserves (Bcfe) Production (MMcfe/d) (1) 1,000 (2) 7,000 6,446 938 900 6,000 800 4,796 671 5,000 700 600 4,000 3,370 500 3,000 2,597 369 400 1,712 300 265 2,000 1,660 212 218…
LinnCo Structure 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 2.90 Tax…
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…
Distribution History Consistently paid the distribution for 28 quarters 81% increase in quarterly distribution since IPO Distribution History 18.02 18.00 17.29 0.73 16.57 0.73 15.84 0.73 16.00 15.12 0.73 14.39 0.73 13.70 0.69…
LINN Historical Return LINN Total Return and Stock Price Appreciation (LINE IPO Present of 245%) 250% 245% 200% 199% 150% 100% 84% 50% 45% 23% 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% 8.0% 7.2% 7.0% 6.0% 5.3% 5.0% Yield 4.0% 3.7% 3.1% 3.0% 2.1% 2.0% 1.7% 1.2% 1.0% 0.0% (1) (1)…
Size of Institutional Yield Market is Substantial The top 10 equity income mutual funds have an aggregate of 306 billion of assets 70,000 59,760 60,000 Average Portfolio Yield of 1.7% 50,000 44,910 AUM (MM) 41,100…
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) Distributions o Diversified asset base (7 core areas / 19,000 gross producing wells)…
LINN Energys mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets.
LINN Structure & Benefits LINN Energy Typical LinnCo, LLC Typical Characteristic (LINE) MLP (LNCO) C-Corp. Non-Taxable Entity Payout Distribution Distribution Dividend Dividend Tax Reporting Schedule K-1 Schedule K-1 Form 1099…
Management Biography Clay Jeansonne, Vice President Investor Relations Clay Jeansonne has been vice president, investor relations for Linn Energy, LLC since 2007. He began his career in oil and gas with the Louisiana Land & Exploration…
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 loss to adjusted EBITDA: Three Months Ended March 31, 2013 2012 (in thousands) Net loss (221,885) (6,202) Plus: Net operating cash…
Historical Financial Statements Adjusted EBITDA The following presents a reconciliation of net cash provided by operating activities to adjusted EBITDA: Three Months Ended March 31, 2013 2012 (in thousands) Net cash provided by…
Historical Financial Statements Adjusted Net Income The following presents a reconciliation of net loss to adjusted net income: Three Months Ended March 31, 2013 2012 (in thousands, except per unit amounts) Net loss (221,885)…
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…
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