All,
Linn Energy, LLC is a large Mid-Continent operator. By rough estimation, they operate 1484 wells in Oklahoma alone in both the Anadarko and Arkoma Basins. Today, FuelFix, announced Linn expects to break their mortgage covenants in 2016. A bankruptcy announcement will likely follow unless Linn can renegotiate with its lenders. This announcement coupled with the delayed release of Linn's 10-K is an ominous sign for the operator that once delivered large distributions to its shareholders.
Leverage works both ways and many forget that when times are good and borrowed money is cheap. There will probably be little love lost between Linn and its offset operators and working interest partners. Linn has a reputation for being difficult to work with. This plus the fact they like to JIB their partners for pumpers' Coca Cola and new boots while deducting 50%+ from the gas gross revenues leaves many with a bitter taste in their mouths when they think of Linn.
More to follow,
Berlin
Berlin Royalties buys Oklahoma minerals and royalties, and we show you the work behind every offer. Free, no obligation, and if keeping them is the right answer we will tell you that too.
Get a Free Valuation or call or text 918-984-1645In a hurry? Text a photo of a royalty check stub to 918-984-1645 and our preliminary offer puts a written number in front of you within about two business days. It holds for 7 while you decide.
Riviera Resources sells its Arkoma Basin assets for $68 million. Berlin breaks down the production, 37,000 net acres at $189 an acre, and who the buyer may be.
Linn, Sandridge and Chaparral in bankruptcy, American Energy Partners shutting down, and Newfield leaving Tulsa for Houston despite its top STACK position.
Why protesting Oklahoma Corporation Commission applications as a blanket company policy is a bad idea: frivolous protests waste money and time.
We are the boiling frog. Our liberty is evaporating before us and we are distracted by the promises of entitlements we cannot afford.