Linn exits Anadarko basin in deal worth $1.95 billion

Dec. 12, 2014
Linn Energy LLC has agreed to sell all of its oil and gas properties and related midstream assets in the western Anadarko basin for $1.95 billion to FourPoint Energy LLC and EnerVest Ltd.

Linn Energy LLC has agreed to sell all of its oil and gas properties and related midstream assets in the western Anadarko basin for $1.95 billion to FourPoint Energy LLC and EnerVest Ltd.

The FourPoint-EnerVest partnership is set to gain an interest in 1,358 producing wells primarily in the Granite Wash, Tonkawa, Cleveland, and Marmaton formations with net production of 195 MMcfed. The assets cover more than 145,000 net acres in western Oklahoma and the Texas Panhandle, and are 97% held-by-production.

"This transaction uniquely complements the partnership's current acreage position by materially increasing our scale in ownership throughout our liquids-rich core area," said George Solich, President and chief executive offer of FourPoint.

Once the acquisition closes, the partnership will jointly hold more than 325,000 net acres in their area of mutual interest, with net production expected to exceed 315 MMcfed. Linn is now running four rigs on the acreage and had expected to spend $95 million in capital there this year.

The purchase also includes more than 170 miles of gas gathering and compression systems, liquid stabilization, associated water supply and disposal infrastructure, and an oil terminal facility in Wheeler County, Tex.

The partners said the midstream assets will provide them price optionality and uninterrupted takeaway capacity for production in nearby Hemphill County, Tex., and Roger Mills County, Okla., and serve as a platform for third-party volume growth.

The deal is expected to close by Dec. 15, and carry a retroactive effective date of Sep. 1. FourPoint and EnerVest were advised by Jefferies LLC, and Linn was advised by RBC Richardson Barr, Scotia Waterous, and Wells Fargo.