FourPoint Energy LLC and privately held institutional affiliates of EnerVest Ltd. report the signing of a purchase and sale agreement to acquire all of LINN Energy's (Nasdaq: LINE; Nasdaq: LNCO) oil and gas properties and related midstream assets in the Western Anadarko Basin for a purchase price of $1.95 billion ($975 million net to FourPoint Energy).
The assets include an interest in 1,358 producing wells primarily in the Granite Wash, Tonkawa, Cleveland, and Marmaton formations with daily net production of 195 MMcfed. The assets cover more than 145,000 net acres throughout western Oklahoma and the Texas Panhandle, of which 97% are held by production.
In addition to the upstream assets to be acquired, the purchase price includes a wholly owned midstream asset consisting of more than 170 miles of gas gathering and compression systems, liquid stabilization, associated water supply and disposal infrastructure, and an oil terminal facility in Wheeler County, Texas.
These integrated midstream assets combined with the partnership's proximal midstream assets in Hemphill and Roger Mills counties will provide price optionality and uninterrupted takeaway for the venture's oil and gas volumes as well as serve as a platform for third-party volume growth.
The acquisition is expected to close on or before Dec. 15.
Jefferies LLC acted as financial advisor to FourPoint Energy and EnerVest in connection with this transaction.