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Linn Energy to buy Berry Petroleum in a $4.3 billion deal

HOUSTON -- Linn Energy, along with its former unit LinnCo, has agreed to buy Berry Petroleum for about $2.5 billion in stock as the oil and natural-gas developer aims to expand its geographic presence and bolster production. Including the assumption of debt, the deal is valued at $4.3 billion.

Linn Energy noted Berry' s long-life, low-decline, mature assets are "an excellent fit" and the acquisition will increase Linn Energy' s presence in California, the Permian Basin, East Texas, and the Rockies, as well as adding an attractive new core area in the Uinta Basin.

Linn Energy also said the deal will increase its current production by 30%. Given that Berry' s reserves are about 75% oil, Linn Energy said the deal results in an increase in liquids exposure to 54% from 46% of proved reserves as of the end of 2012.

Separately Thursday, Linn Energy reported that its fourth-quarter loss narrowed as it increased average daily production 88% as compared with the year earlier.

Last year, Linn Energy agreed to pay roughly $1.03 billion to acquire properties in the Jonah Field from BP in a bid to increase its position in the Green River basin of southwest Wyoming.

 Dow Jones Newswires

02/21/2013

 

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