Raymond James Institutional Investors Conference March 4, 2014
LINN Energy Overview LINN Energy IPO in 2006 with initial enterprise value of 713 million Completed or announced 60 transactions ND for 15 billion(1) Uinta Basin ( in billions) Current MI WY Piceance Basin Equity market cap 10.7…
LINNs 2014 Keys to Success Maximize value for Permian Wolfcamp position All strategic alternatives have potential to: Increase cash available for distribution Lower capital intensity Decrease overall decline rate Continue to make…
2014 Guidance and Capital Budget 2014 Oil & Natural Gas Budget LINN expects 2014 production to average between 1.07 1.14 Bcfe/d(1) Other Diversified* Organic growth of 3-4% 6% Hugoton 3% Total 2014 capital budget 1.6 billion Salt…
Berry Petroleum Merger 4.6 Billion Total Consideration Summary Financial Highlights First acquisition of a public C- Transaction provides additional Corp. by an upstream LLC or MLP financial flexibility and greater access to capital…
Strong, Diversified Reserve Base Oil Proved Reserves Increase 2012 LINN Energy 2013 LINN Energy + Berry 4,796 Bcfe 6,403 Bcfe (46% Liquids) (53% Liquids) Rocky Williston/ Williston/ E. Texas Mountains Powder River Powder E.…
Proven Acquisition Track Record Completed 14.3 billion of acquisitions since 2007 Strong record of evaluating and integrating assets LINN is the 12th largest publicly traded domestic independent oil & natural gas company LINN is…
Permian Basin Significant Improvement in Size and Scale Overview (1)(2) Operations Map Significant operational and field Hockley synergies in the Permian Basin 80% liquids MIDLAND Garza Stonewall BASIN 160 MMBoe proved reserves…
Midland Basin Strategic Alternatives Overview Midland Basin Midland Basin position: 17 MBoe/d of current production 55,000 net acres prospective for horizontal Wolfcamp drilling 630 potential gross operated locations (1) 95% WI…
South Midway-Sunset Shallow Decline from Legacy Berry Asset Asset Highlights South Midway-Sunset Field Map Stable production from legacy assets in the 9th largest U.S. field Produced 12,000 Boed in Q4, 92% NRI S. Midway Produce…
North Midway-Sunset Growing Heavy Oil Asset Highlights North Midway Assets Diatomite has 360 million barrels of oil in place on McKittrick 21Z 540 acres, targeting 1,000 wells on 5/8 acre spacing Focusing on consistently growing…
LinnCo Structure Overview 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…
LinnCo Structure Advantages Reduces Tax Shareholders receive Form 1099 rather than a Schedule K-1 Reporting No state income tax filing requirements Burdens No UBTI(1) implications Efficient Tax Tax at LinnCo(2) estimated to be…
Significant Hedge Position Hedged 100% on expected natural gas production through 2017(1) Hedged 100% on expected oil production in 2014 and approximately 50% 60% during 2015 2016 Natural Gas Positions Oil Positions 600 70,000…
Hedge Position (Equivalent Basis) Significant Cash Flow Protection LINNs cash flow is notably more protected from oil and natural gas price uncertainty than its C-Corp. and Upstream MLP / LLC peers 100% 100% 89% 85% 30% Expected…
LINNs Distribution History 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 (23%) were forced to reduce or suspend…
Current Landscape for E&P MLPs LINN has a significant size advantage in E&P market presents significantly more the E&P MLP / LLC market acquisition opportunities than rest of MLP Greater access to capital markets market Ability to…
Why Invest in LINN Current trend of rationalization in E&P space is accelerating Growth and mature assets are being separated LINN is well positioned to take advantage of this trend LINN is a large liquid entity with great access…
LINN Energys mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets. a kind of oil & natural gas company
Appendix Berry Bonds and Revolver Post-Closing Berry Bonds On January 15, 2014, LINN provided Notice of Change of Control and Offer to Purchase all of Berrys outstanding senior notes at a price of 101% of par, plus accrued and unpaid…
Appendix Capital Structure (12/31/13) ( in millions) Summary Balance Sheet 12/31/13 Cash and cash equivalents 52 Berry credit facility 1,173 LINN credit facility 1,560 Term loan due 2018 500 Senior notes: 10.25% Berry Senior…
Appendix Substantial Institutional Yield Market LinnCo structure allows LINN to access the much larger institutional market MLP sector has grown tremendously but still remains primarily retail Energy MLPs Enterprise Value Growth Top-10…
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