LINN Energy continues divestment programme with $200m Wyoming asset sale

LINN Energy has signed an agreement to offload its interest in properties located in Wyoming, US, to an undisclosed buyer for $200m, continuing its divestment programme in the region.

The company is also set to buy back shares from investors, with its board of directors approving an increased share repurchase programme worth $400m.

The assets under sale consideration comprise around 163,000 net acres in the Washakie Field.

In the second quarter of this year, the assets contributed net production of about 66mmcfed, with proved reserves of around 226bcfe and proved developed PV-10 of nearly $102m.

LINN Energy board chairman Evan Lederman said: “This latest sale of non-core assets is another step forward in the ongoing transformation of LINN from a highly levered production-based master limited partnership (MLP) to a low cost, streamlined growth-oriented enterprise.

“In addition, the board believes that the incremental liquidity provided by this sale and others is best utilised to continue to repurchase shares at what we believe is still a significant discount to fair market value.”

The latest sale is in line with the company’s strategy to divest non-core assets.

So far this year, the company signed sale agreements worth more than $1.3bn.

Subject to completion of title and environmental due diligence, as well as the fulfilment of closing conditions, the transaction is expected to close in the fourth quarter of this year.