Barclays Capital High Yield Bond and Syndicated Loan Conference March 2012 DISTRIBUTION GROWTH ACQUISITIONS ASSETS PEOPLE
LINN Overview 8th largest public MLP/LLC and 12th largest domestic independent oil & natural gas company(1) Williston Basin Bakken Founded in 2003, IPO in 2006 (NASDAQ: LINE) 14 MMBoe proved reserves Michigan Equity market cap 7.7…
MLP and Independent E&P Rankings LINN is quickly becoming one of the largest MLP and independent E&P companies 8th largest public MLP/LLC; and 12th largest domestic independent oil & natural gas company Rank Master Limited Partnership…
Strategic Rationale - BP Hugoton Acquisition Strategic Rationale Liquids-rich production of 110 MMcfe/d Liquids-Rich 37% NGLs / 63% natural gas Low decline rate of 7% Excellent MLP Reserve life of 18 years Asset Proved reserves…
Pending Hugoton Acquisition Acquisition Overview (1) Purchase price: 1.2 billion (2) Finney (3) 2012 estimates for BP Hugoton assets Hamilton EBITDA of 160 million Kansas Kearny Maintenance capital of 30-40 million (4)…
Granite Wash Operated Horizontal Drilling Activity (Greater Stiles Ranch) Roger Mills Over 600 horizontal locations 7TH STEP MENDOTA TWIN CHANNELS County Hemphill County 29 operated wells drilled in 2011 Hemphill BUFFALO…
Granite Wash / Atoka Wash Stratigraphy Horizontal drilling has significantly changed well results and returns in the Granite Wash PRODUCING VERTICAL LATERAL BOREHOLES ZONES 9,400 VIR- GILIAN Tonkawa Lansing Kansas City…
LINN Is Active In Some Of The Highest Return Plays In The U.S. LINN produces from 5 out of 14 liquids-rich plays in the U.S. Source: Bentek Energy WTI crude oil is trading at a 53:1 ratio compared to natural gas 180% Internal Rate…
LINN Provides Both Organic & Acquisition Growth LINN is unique in that it provides investors with the potential for significant organic and acquisition growth Horizontal Granite Wash Permian Basin (Wolfberry) o 10 year drilling…
Financial Highlights Excellent acquisition track record 1.4 billion (1) in 2010 1.5 billion (1) in 2011 1.4 billion (2) in 2012 Significant 2012 growth Year-over-year organic growth of 20% (2011 vs. 2012E) Pending acquisitions…
Acquisition and Capital Activity Targeted ratio on acquisition financing: 60% equity / 40% debt Acquisitions Equity / Bonds Raised Total 4.3 billion Since 2009 Total Capital Raised 10.5 Billion 2.0 1.6 1.8 1.3 1.8 1.4 1.5 1.6…
Significant Liquidity And Financial Flexibility LINN is well positioned for future acquisitions and organic growth opportunities Credit Profile as of 12/31/11PF (1) (s in millions, unless otherwise noted) Cash and Cash Equivalents…
Significant Hedge Position LINN is hedged 100% on expected natural gas production through 2015; and 100% on expected oil production through 2013 and 80% in 2014 and 2015 Puts provide price upside opportunity Natural Gas Positions…
Significant Hedge Position (Equivalent Basis) LINNs cash flow is notably more protected from oil and natural gas price uncertainty than its C-Corp peers 120% 100% 100% 92% 94% 100% 22% 22% 35% 33% 80% 81% 70% 72% 60% 67%…
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 Greater access to capital markets MLP market Ability…
Why Invest in LINN High quality asset base Multi-year inventory of liquids-rich development opportunities Stable 46% liquids Cash Flows Long-life reserves (21 years) Diversified asset base (5 core areas / 13,600 producing wells)…
Appendix
Granite Wash Trend Area OK OCHILTREE TX WOODWARD UPSCOMB MAJOR ELLIS DEWEY HEMPHILL ROBERTS BLAINE Oklahoma Texas CUSTER RODGER MILLS CANADIAN Greater Stiles Ranch GRAY WHEELER WASHITA BECKHAM LINN Acreage…
PXP / Cleveland Vs. Cordillera Deal Metrics The Apache-Cordillera deal value was justified largely by unproven potential in the Tonkawa and Marmaton formations These opportunities may exist in much of the acreage acquired in the…
Plains Exploration (PXP) Acquisition Acquisition Summary Closed December 15, 2011 Mendota NW Marvin Lake 544 million(1) HEMPHILL Twin Channel 7th Step Highly accretive Buffalo Wallow Adds more than 200 low-risk Granite Wash…
Texas Granite Wash Horizontal Program Aggregate program rate of return over 100% Graph represents cumulative production performance of LINN-operated Granite Wash wells over time compared to production model Relatively narrow band of…
Ensuring Take-Away Capacity In the Granite Wash LINN gathering system in the Granite Wash Constructed 63 miles in 2011 Multiple interconnects Extending 43 miles in 2012 Exposure to more processing capacity TWO Eagle Rock STEP…
Permian Basin Permian Production Growth Strategic entry in 2009 16 14 Thousand Bbls/Day Long-life, low-risk reserves Grayburg Unit 12 10 88 MMBoe proved reserves 8 6 79% liquids (56% proved developed) 4 Production 13,600…
Drilling in the Wolfberry Vertical well development Multi-stage fracture stimulation Emerging horizontal well development Targeting deeper zones Infill potential Eastern A Central Basin Platform WESTERN WELL EASTERN WELL Shelf B…
Williston Basin Bakken Play Strategic entry into premier oil basin in 2011 Non-operated position with high quality operators North Offers high rates of return Dakota Significant growth potential Additional consolidation…
Capturing Margins Is The Name Of The Game Acquisition margins remain strong 110.00 NYMEX Five Year WAVG Forward Strip For Commodity Type Acquired ( per Boe) (1) 100.00 LINN Weighted Average Acquisition Costs ( per Boe) 90.00 86.05…
As used herein, Pro Forma Proved Reserves represents the sum of (i) the Companys estimated proved reserves as of December 31, 2011, and (ii) the estimated proved reserves to be acquired in the Companys currently pending acquisition.…
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 to adjusted EBITDA: Three Months Ended Year Ended December 31, December 31, 2011 2010 2011 2010 (in thousands) Net income…
Historical Financial Statements Adjusted Net Income The following presents a reconciliation of net income to adjusted net income: Three Months Ended Year Ended December 31, December 31, 2011 2010 2011 2010 (in thousands, except per…
Reserve Replacement / F&D Calculations Reconciliation of Non-GAAP Measures Year Ended December 31, 2011 2010 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…
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