Linn Energy continues to scrape away unwanted, noncore acreage—this time in Wyoming—and should please investors with a plan to purchase $400 million of stock.
Linn said Oct. 4 it agreed to sell its Washakie Field asset to an undisclosed buyer for $200 million, before closing adjustments.
Baird Equity Research noted in an Oct. 4 report that Linn’s year-to-date asset sales from its wide-ranging portfolio have generated $1.3 billion in gross proceeds. Linn has already purchased 4.6 million shares for $175 million.
“This latest sale of non-core assets is another step forward in the ongoing transformation of Linn from a highly levered production-based MLP to a low-cost, streamlined growth-oriented enterprise,” Linn Energy Chairman Evan Lederman said in a news release.
Linn’s agreement takes sells of about 163,000 net acres in the Washakie Field. The field’s second-quarter production average about 66 million cubic feet equivalent per day (MMcfe/d) and annualized cash flow of about $35 million before certain expenses.