• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Linn Energy Announces Significant Additional Hedges Through 2011

Posted on: Tuesday, 9 January 2007, 21:00 CST

HOUSTON, Jan. 9 /PRNewswire-FirstCall/ -- Linn Energy, LLC announced today that it has expanded its commodity hedging program to include contracts covering a significant percentage of its anticipated oil and gas production for five years (2007-2011). The contracts include fixed price swaps and puts. In addition, the Company entered into crude oil puts through 2011 to hedge a significant portion of anticipated natural gas liquids ("NGL") revenues associated with its previously announced, pending acquisition of a private oil and gas company in the Texas Panhandle. The Company's current hedging positions are provided under the heading "Revised Hedging Summary" in this press release. Linn Energy utilizes derivative instruments, such as fixed price swaps and puts, to minimize the variability in forecasted cash flows due to price movements in crude oil and natural gas.

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 http://www.linnenergy.com/ .

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 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.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

(Financial Summary Follows) Linn Energy, LLC Revised Hedging Summary FY 2007E FY 2008E FY 2009E FY 2010E FY 2011E Natural Gas Hedges Fixed Price Swaps: Hedged Volume (MMMBtu) 8,968 10,264 10,405 8,520 7,800 Average Price ($/MMBtu) $8.72 $8.37 $7.76 $7.31 $7.31 Puts: Hedged Volume (MMMBtu) 9,126 7,053 6,960 6,960 6,960 Average Price ($/MMBtu) $8.21 $8.07 $7.50 $7.50 $7.50 % puts 50% 41% 40% 45% 47% Total: Hedged Volume (MMMBtu) 18,094 17,317 17,365 15,480 14,760 Average Price ($/MMBtu) $8.46 $8.25 $7.65 $7.40 $7.40 FY 2007E FY 2008E FY 2009E FY 2010E FY 2011E Oil Hedges Fixed Price Swaps: Hedged Volume (MBbls) 500 560 580 550 525 Average Price ($/Bbl) $75.83 $74.31 $73.88 $74.54 $61.65 Puts: Hedged Volume (MBbls) 292 350 350 500 550 Average Price ($/Bbl) $71.86 $70.71 $70.71 $69.00 $65.00 % puts 37% 38% 38% 48% 51% Total: Hedged Volume (MBbls) 792 910 930 1,050 1,075 Average Price ($/Bbl) $74.37 $72.93 $72.69 $71.90 $63.36 FY 2007E FY 2008E FY 2009E FY 2010E FY 2011E Oil Puts - NGL Production (A) Hedged Volume (MBbls) 1,200 1,200 1,200 1,200 1,200 Average Price ($/Bbl) $65.00 $65.00 $65.00 $65.00 $65.00 (A) The Company entered into crude oil puts through 2011 to hedge a significant portion of anticipated natural gas liquids ("NGL") revenues associated with its previously announced, pending acquisition of a private oil and gas company in the Texas Panhandle.

Linn Energy, LLC

CONTACT: Kolja Rockov, Executive Vice President and CFO,+1-281-605-4169, or Jeanine DeLay, Manager, Investor Relations,+1-281-605-4144, both of Linn Energy, LLC

Web site: http://www.linnenergy.com/

Source: PRNewswire-FirstCall

More News in this Category