Skip to main content 2013 NAPTP MLP Investor Conference – Linn Energy, Llc Investor Presentation | Shale Experts
Loading...
Pm

2013 NAPTP MLP Investor Conference – Linn Energy, Llc

Linn Energy, Llc · May 1, 2013 · 34 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. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 1
    2013 NAPTP MLP Investor Conference May 2013
  2. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 2
    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…
  3. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 3
    Overview of Berry Petroleum Company 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) Q1'13…
  4. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 4
    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…
  5. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 5
    Berrys California Assets 1 Billion Barrels of Oil in Place Under Development Poso Creek McKittrick 21Z One of 5 early stage Steam Floods N. Midway Diatomite Berrys largest development project S. Midway- Sunset…
  6. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 6
    S. Midway-Sunset Free Cash Flow Funds Berrys Development Asset Highlights S. Midway-Sunset Field Map Stable production from legacy assets in the 9th largest field in the U.S. 13,070 Bbls/d in Q4 from 3,475 acres, 92% NRI S. Midway…
  7. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 7
    Diatomite Resource 360 Million Barrels in Place on 540 Acres Asset Highlights Diatomite Field Map 540 acres, 100% working interest, 90% NRI Berry acreage 360 MMBoe in place, targeting 23% 40% recovery, McKittrick Chevron acreage…
  8. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 8
    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%…
  9. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 9
    Jonah Field Acquisition From BP On July 31, 2012, LINN closed a 1.0 billion (1) Sheridan Park acquisition in Wyomings Jonah Field from BP. Big Horn Campbell Crook Strategic Rationale Wyoming Washakie Weston Teton Significant…
  10. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 10
    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…
  11. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 11
    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)…
  12. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 12
    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)…
  13. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 13
    LinnCo Structure and Financial Highlights
  14. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 14
    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…
  15. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 15
    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…
  16. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 16
    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…
  17. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 17
    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…
  18. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 18
    Future Refinancing Opportunities All stock deal for Berry coupled with increased size of LINN provides for meaningful improvement in credit metrics Net debt / adjusted EBITDA expected to be 3.5x for the second half of 2013 ('s in…
  19. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 19
    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…
  20. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 20
    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…
  21. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 21
    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…
  22. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 22
    Distribution History Consistently paid the distribution for 29 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…
  23. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 23
    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…
  24. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 24
    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)…
  25. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 25
    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…
  26. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 26
    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…
  27. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 27
    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)…
  28. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 28
    LINN Energys mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets.
  29. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 29
    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…
  30. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 30
    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…
  31. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 31
    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…
  32. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 32
    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…
  33. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 33
    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)…
  34. 2013 NAPTP MLP Investor Conference – Linn Energy, Llc – slide 34
    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…

From the store

Browse maps, data & reports in the Shale Experts store