Linn Energy sees 76% output boost

by on July 26, 2012 11:05 am BST

Houston-based player Linn Energy has posted net incomes of
$237 million in a period that saw its production shoot up by 76% as a result of
large-scale acquisitions.

The bottom line is, however, level with the same period last year because it includes the impact of wider derivative gains of $304 million and a $146 million impairment on long-lived assets.

Adjusted earnings before interest, taxation, depreciation
and amortisation rose 21% to $319 million in the quarter compared to the second quarter of 2011, with the company
nowforecasting a median adjusted EBITDA for the full year of $1.35 billion.

Average daily production jumped to 630 million cubic feet of
equivalent per day from the year-ago period’s 358 million.

The company bought $1.4 billion worth of new assets during
the last three months, principally in a $1.025 billion all-cash deal for BP’s
interests in the Jonah and Pinedale plays in the Green River basin, Wyoming.

Chief executive Mark Ellis has said he believes
“the current weakness in commodity prices will continue to present Linn with additional accretive acquisition opportunities”, suggesting the spending spree is not over yet.

Linn Energy has also filed for an upcoming initial public offering to
be made under the name LinnCo on the New York Stock Exchange.

In contrast with explorers chasing new plays, the Texas outfit
pursues ready-made assets that offer long-life, high-quality production and
low-risk development opportunities.

You can read the company’s full results statement here