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Innovative Approach To Growing an MLP – Linn Energy, Llc

Linn Energy, Llc · Mar 29, 2011 · 22 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 1
    Innovative Approach to Growing an MLP March 2011 DISTRIBUTION GROWTH ACQUISITIONS ASSETS PEOPLE
  2. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 2
  3. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 3
    Our Strategy for Growth U.S. oil and natural gas basins provide significant opportunities for future growth and consolidation. Implementing our strategy: We take a two-pronged approach to acquisitions Mature oil and natural gas…
  4. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 4
    Our Company Top 25 largest domestic independent oil & natural Williston Basin Bakken (Pending) gas company and largest public E&P MLP/LLC (1) 8 MMBoe proved reserves Michigan 2% of total reserves Founded in 2003, IPO in 2006…
  5. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 5
    Our Growth LINN is quickly becoming one of the largest MLP and Independent E&P companies Rank Master Limited Partnership Enterprise Value (MM) Rank Independent E&Ps Enterprise Value (MM) 1 Enterprise Products 48,614 1 Occidental…
  6. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 6
    Qualities of a Successful MLP Stable High-quality asset base 50% liquids Distributions Long-life reserves (20 years) Diversified asset base (5 core areas) Reduced commodity risk extensive hedge positions Acquisitions Distribution…
  7. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 7
    Implementing Our Strategy Through Acquisitions
  8. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 8
    Evaluating Acquisitions We look for attractive margins 110.00 NYMEX Five Year Forward Strip ( per Boe) (1) 98.42 100.00 LINN Weighted Average Acquisition Costs ( per Boe) 90.00 86.05 83.54 80.00 70.98 70.00 59.88 60.00 47.53…
  9. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 9
    Our Acquisition Activity Recent acquisition activity has been focused on oil transactions 80% of all acquisitions since 2008 Acquisition Activity ( in millions) 3,000 Total 5.9 billion (1) 2,679 2,500 2,000 1,500 1,331…
  10. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 10
    Growth Through Acquisitions Rapid Growth in Permian Area Acquisition Closing Date Contract Reserves Production Price (MMBoe) (Boe/d) MM Grayburg Unit Forest Aug. 2009 / 118 12 1,350 Sep. 2009 Caprock Unit Skelly Unit Merit(1)…
  11. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 11
    Permian Basin Operated Activity (Wolfberry Trend) Levelland Mescalero Hockley Wolfberry Trend Grayburg Garza Stonewall Shackleford Dawson Howard County Eddy NM Lea Iatan / Snyder Andrews Martin Howard Winkler Ector TX…
  12. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 12
    Implementing Our Strategy Through Organic Growth
  13. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 13
    Granite Wash Operated Horizontal Activity (Greater Stiles Ranch) 200 horizontal locations provides 6 year drilling inventory at current pace. Hemphill Greater Stiles Ranch Status DYCO DYCO County 2010 (11) 2011 Locations Puryear 5-28H…
  14. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 14
    Granite Wash Trend Area Granite Wash trend also extends into Oklahoma LINNs potential from its Oklahoma acreage is not included in the estimated 200 locations Buffalo Wallow - 2 Step GreaterELLIS Stiles Ranch OKLAHOMA 7th Step -…
  15. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 15
    Organic Growth A Game Changer Significant potential for rapid organic growth Horizontal Granite Wash Permian Basin (Wolfberry) Successful Granite Wash program underway 130 wells planned in 2011 4 rigs active in 2011 5 rigs active…
  16. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 16
    How We Reduce Risk
  17. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 17
    We Reduce Risk Through Hedging LINN is hedged 100% on expected oil and natural gas production through 2013(1) and 80% in 2014(1) Natural Gas Positions Oil Positions Puts provide upside on hedged volumes Puts and collars provide…
  18. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 18
    How Our Hedge Book Compares (Equivalent Basis) LINNs cash flow is notably more protected from oil and natural gas price uncertainty than its C-Corp peers 120% % Production Hedged 100% 100% 100% 77% 80% 81% 81% 55%…
  19. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 19
    The End Game
  20. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 20
    Distribution History Consistently paid the distribution for 20 quarters Consistent yield generates long-term returns Distribution History 12.00 11.66 11.00 0.66 11.00 10.34 0.66 10.00 9.71 0.63 9.08 0.63 9.00 8.45 0.63 7.82…
  21. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 21
    LINN Historical Return LINN Total Return and Stock Price Appreciation (LINE IPO Present of 199%) 210% 199% 180% 150% 120% 90% 85% 60% 62% 30% 11% 0% -30% -60% 1/12/06 7/3/06 12/22/06 6/12/07 12/1/07 5/21/08 11/9/08…
  22. Innovative Approach To Growing an MLP – Linn Energy, Llc – slide 22
    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…

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