EX-99.1
8
a07-23054_1ex99d1.htm
EX-99.1
EXHIBIT
99.1
LINN
ENERGY ANNOUNCES CLOSINGS OF $2.05 BILLION MID-CONTINENT ACQUISITION AND $1.5
BILLION EQUITY PRIVATE PLACEMENT; NEW $1.8 BILLION CREDIT FACILITY
Houston, Texas, August 31, 2007
- Linn Energy, LLC (Nasdaq: LINE) announced today that it has closed its
previously announced acquisition of certain oil and gas properties in the
Mid-Continent from Dominion Resources, Inc. (NYSE: D) for a contract price of
$2.05 billion, subject to customary post closing adjustments.
"We are very pleased and
excited about closing our landmark acquisition of Dominion's Mid-Continent
properties", said Michael C. Linn, Chairman, President and Chief Executive
Officer of Linn Energy. "This transforming event for Linn Energy makes us
one of the top 20 largest independent oil and gas companies in the United
States. On behalf of Linn Energy, I welcome the talented new employees
that join our team today".
In addition, the Company
closed its previously announced private placement of $1.5 billion of equity
securities to third party investors. The
securities include approximately 13 million units and approximately 35 million
class D units, or a total of approximately 48 million units. The class D units represent a new class of
equity in Linn Energy and, if approved by a unitholder vote, will convert into
units on a one-for-one basis. The
Company has agreed to hold a special meeting of unitholders to consider the
conversion as soon as possible but no later than December 29, 2007. If all of the class D units are converted into
units, the Company anticipates that there will be approximately 114 million
total units outstanding on a pro forma basis.
The Company also
announced that it has entered into a new $1.8 billion secured revolving credit
facility. The Company used proceeds from
the equity private placement, together with borrowings under its new credit
facility, to fund the purchase price of the acquisition.
Linn Energy expects that
the acquisition will be accretive to distributable cash flow per unit. As previously announced, management currently
plans to recommend to the Board of Directors an increase in the cash distribution
beginning with the fourth fiscal quarter of 2007 to an annual rate of $2.52 per
unit from the current annual rate of $2.28 per unit. In addition, the Company plans to retain a
certain percentage of the expected accretion to strengthen its distribution
coverage ratios. Linn Energy expects to
issue shortly revised guidance for the third quarter of 2007 and fiscal years
2007 and 2008.
ABOUT LINN ENERGY
Linn Energy is an
independent oil and gas company focused on the development and acquisition of
long-lived properties which complement its asset profile in producing basins
within the United States. More
information about Linn Energy is available on the internet at
www.linnenergy.com.
CONTACTS:
Kolja Rockov
Jeanine Mouret
Executive Vice
President and CFO
Manager, Investor Relations
281-840-4169
281-840-4144
This press release
includes "forward-looking statements" within the meaning of the federal
securities laws. All statements, other
than statements of historical facts, included in this press release that
address activities, events or developments that the Company expects, believes
or anticipates will or may occur in the future are forward-looking
statements. These statements in this
press release include but are not limited to statements about the transaction,
future distributable cash flow levels and future distributions. These statements are based on certain
assumptions made by the Company based on management's experience and perception
of historical trends, current conditions, anticipated future developments and
other factors believed to be appropriate.
Such statements are subject to a number of assumptions, risks and uncertainties,
many of which are beyond the control of the Company, which may cause actual
results
to differ materially from
those implied or expressed by the forward-looking statements. These include risks relating to financial
performance and results, availability of sufficient cash flow to pay
distributions and execute our business plan, prices and demand for oil, natural
gas and natural gas liquids, our ability to replace reserves and efficiently
develop our current reserves and other important factors that could cause
actual results to differ materially from those projected as described in the
Company's reports filed with the Securities and Exchange Commission. See "Risk Factors" in the Company's Quarterly
Report on Form 10-Q for the quarter ended June 30, 2007 and Annual Report on
Form 10-K for the year ended December 21, 2006 and other public filings and
press releases.
Any forward-looking
statement speaks only as of the date on which such statement is made and the
Company undertakes no obligation to publicly correct or update any
forward-looking statement, whether as a result of new information, future
events or otherwise.

EX - 99 . 1 8 a07 - 23054 _ 1ex99d1 . htm EX - 99 . 1 EXHIBIT 99 . 1 LINN ENERGY ANNOUNCES CLOSINGS OF $ 2.05 BILLION MID - CONTINENT ACQUISITION AND $ 1.5 BILLION EQUITY PRIVATE PLACEMENT ; NEW $ 1.8 BILLION CREDIT FACILITY Houston , Texas , August 31 , 2007 - Linn Energy , LLC ( Nasdaq : LINE ) announced today that it has closed its previously announced acquisition of certain oil and gas properties in the Mid - Continent from Dominion Resources , Inc . ( NYSE : D ) for a contract price of $ 2.05 billion , subject to customary post closing adjustments . " We are very pleased and excited about closing our landmark acquisition of Dominion 's Mid - Continent properties " , said Michael C . Linn , Chairman , President and Chief Executive Officer of Linn Energy . " This transforming event for Linn Energy makes us one of the top 20 largest independent oil and gas companies in the United States . On behalf of Linn Energy , I welcome the talented new employees that join our team today " . In addition , the Company closed its previously announced private placement of $ 1.5 billion of equity securities to third party investors . The securities include approximately 13 million units and approximately 35 million class D units , or a total of approximately 48 million units . The class D units represent a new class of equity in Linn Energy and , if approved by a unitholder vote , will convert into units on a one - for - one basis . The Company has agreed to hold a special meeting of unitholders to consider the conversion as soon as possible but no later than December 29 , 2007 . If all of the class D units are converted into units , the Company anticipates that there will be approximately 114 million total units outstanding on a pro forma basis . The Company also announced that it has entered into a new $ 1.8 billion secured revolving credit facility . The Company used proceeds from the equity private placement , together with borrowings under its new credit facility , to fund the purchase price of the acquisition . Linn Energy expects that the acquisition will be accretive to distributable cash flow per unit . As previously announced , management currently plans to recommend to the Board of Directors an increase in the cash distribution beginning with the fourth fiscal quarter of 2007 to an annual rate of $ 2.52 per unit from the current annual rate of $ 2.28 per unit . In addition , the Company plans to retain a certain percentage of the expected accretion to strengthen its distribution coverage ratios . Linn Energy expects to issue shortly revised guidance for the third quarter of 2007 and fiscal years 2007 and 2008 . ABOUT LINN ENERGY Linn Energy is an independent oil and gas company focused on the development and acquisition of long - lived properties which complement its asset profile in producing basins within the United States . More information about Linn Energy is available on the internet at www.linnenergy.com . CONTACTS : Kolja Rockov Jeanine Mouret Executive Vice President and CFO Manager , Investor Relations 281 - 840 - 4169 281 - 840 - 4144 This press release includes " forward - looking statements " within the meaning of the federal securities laws . All statements , other than statements of historical facts , included in this press release that address activities , events or developments that the Company expects , believes or anticipates will or may occur in the future are forward - looking statements . These statements in this press release include but are not limited to statements about the transaction , future distributable cash flow levels and future distributions . These statements are based on certain assumptions made by the Company based on management 's experience and perception of historical trends , current conditions , anticipated future developments and other factors believed to be appropriate . Such statements are subject to a number of assumptions , risks and uncertainties , many of which are beyond the control of the Company , which may cause actual results to differ materially from those implied or expressed by the forward - looking statements . These include risks relating to financial performance and results , availability of sufficient cash flow to pay distributions and execute our business plan , prices and demand for oil , natural gas and natural gas liquids , our ability to replace reserves and efficiently develop our current reserves and other important factors that could cause actual results to differ materially from those projected as described in the Company 's reports filed with the Securities and Exchange Commission . See " Risk Factors " in the Company 's Quarterly Report on Form 10 - Q for the quarter ended June 30 , 2007 and Annual Report on Form 10 - K for the year ended December 21 , 2006 and other public filings and press releases . Any forward - looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to publicly correct or update any forward - looking statement , whether as a result of new information , future events or otherwise .
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