Linn Energy to repay some bank loans via $581.5 million asset sale

By Susanna Moon

Chicago, May 2 – Linn Energy, LLC plans to pay down debt under its revolving credit facility and term loan using proceeds of divestment.

Linn Energy has agreed to sell its stake in properties in western Wyoming to Jonah Energy LLC for a contract price of $581.5 million, according to a company announcement.

“This sale allows us to significantly reduce leverage and improve financial flexibility,” Mark E. Ellis, the company’s president and chief executive officer, said in the company’s press release.

“We are aggressively pursuing higher return opportunities in the Scoop / Stack / Merge play where we are increasing rig activity and building out our midstream business. In addition, we are pursuing other emerging horizontal plays in the Mid-Continent, Rockies, North Louisiana and East Texas.”

Linn Energy, a Houston-based oil and gas company, filed for bankruptcy on May 11, 2016. The Chapter 11 case number is 16-60040.

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