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 918-984-1645You’ve got a well producing on your minerals, and now there’s a thick envelope in your mailbox. Inside is something called a “Division Order” …
If you’ve received official-looking paperwork from the Oklahoma Corporation Commission with your name listed as a “Respondent,” you’re not bei…
1. Confirm what you own (minerals vs royalty vs ORRI; net acres/decimals; location).