U.S. oil and gas producer Linn Energy Llc said it would explore strategic alternatives to shore up its balance sheet and ensure it has sufficient funds to navigate the incessant slump in oil prices.

Linn Energy said it recently exhausted its credit facility by drawing down the remaining $919 million, which took its total borrowings to $3.6 billion.

The company's stock fell 8.3 percent to $1.10 in extended trading on Feb. 4.

The Houston, Texas-based company said it had adequate resources to continue operations while it explored strategic alternatives. It did not give details on what alternatives it was looking at.

The company had in November exchanged $2 billion of unsecured senior notes for $1 billion of newly issued senior secured second lien to reduce its financing costs and shore up its balance sheet.

Linn Energy said it retained Lazard as its financial adviser and Kirkland & Ellis LLP as legal adviser. It also retained Baker Botts LLP to provide ongoing corporate and finance representation.

The company's stock has fallen nearly 90 percent in the past year, much steeper than a 36.5 percent drop in oil prices.