RBC Capital Markets Global Energy and Power Executive Conference June 2015
Recent Developments Grew average daily production 2% over year-end 2014 exit rate Significantly improved cost structure (decreased lease operating Positive expenses by 8% compared to guidance) Q1 2015 Results / Targeting cost…
LINN Energy Overview Williston Basin LINN Energy IPO in 2006 with initial ND Michigan enterprise value of 713 million WY Powder River Basin Acquire, develop and maximize cash flow Green River Basin MI from long-lived oil and…
2014 Overview Executed on Plan Production averaged 1,210 MMcfe/d in 2014 2014 Operations Fully covered distribution with excess of net cash of 24 million(1) Lower LOE and G&A as compared to guidance Trades ExxonMobil Assets…
Oil and Natural Gas Capital Allocation By Project Type Focused on low risk development and optimization projects, along with workover and recompletion opportunities on existing wells 2014 2015 1.5 billion 520 million 1,210…
Rockies Operations Map Proved reserves of 2.1 Tcfe (29% of total proved reserves) Williston Basin 65% proved developed Estimated 2015 production of Salt Creek CO2 ND ND 383 MMcfe/d Green River Basin 40% of LINNs 2015 oil…
Hugoton Basin Building Scale in Ideal MLP Asset Legacy LINN Acreage Hugoton Overview ExxonMobil Acreage Pioneer Acreage ExxonMobil Assets Trade I on August 2014; Devon Acreage Kearny acquisition from Pioneer on September 2014…
California Ideal MLP Assets and Heavy Oil Growth Operations Map Proved reserves of 1.1 Tcfe Hill 21Z (15% of total proved reserves) Diatomite California 74% proved developed Poso Creek Kern Estimated 2015 production of…
Future Opportunities Currently evaluating and maturing areas with significant future value potential through: AcqCo / DrillCo / Trades ND WY MI CA IL CO UT KS OK NM TX STACK / SCOOP Houston ALTAMONT /…
AcqCo Details & Strategic Rationale Partnership between LINN and Quantum Transaction Structure to acquire and develop assets Quantum commits up to 1 billion of equity capital New Acquisition LINN may acquire 15% - 50% direct…
DrillCo Details & Strategic Rationale Transaction Structure Asset-level joint venture to fund drilling 500 million with 5-year commitment Could be utilized on either existing or new assets LINN GSO expected to fund 100% of…
Significant Hedge Position Natural gas hedged 100% through 2017 Oil hedged 90% in 2015 and 65% in 2016 Gas-weighted transactions provided natural hedge for California steam operations(1) Natural Gas Positions Oil Positions 600…
Hedge Position (Equivalent Basis) Peer Group Comparison LINNs significant hedge position provides greater commodity price protection as compared to peers 99% 100% 88% Expected Production Hedged 29% 80% 29% 66% 71% 60% 69%…
Upstream MLP Acquisition History Rationalization of E&P space between growth and mature assets Since 2008, Upstream MLPs have made over 32 billion in acquisitions LINN represents 44% of total Upstream MLP / LLC acquisitions over this…
Strategy For Success Significant size and scale of operations across the onshore United States Stable Asset Diversified, low decline, low risk asset base Base 2014 portfolio initiatives reduced capital intensity and base decline rate…
LINN Energys mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets.
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