Linn Energy to acquire Berry Petroleum for $4.3 billion

Linn Energy LLC and LinnCo LLC plans to acquire Berry Petroleum Co. for $4.3 billion, including the assumption of debt, in a stock-for-stock merger of Berry with LinnCo to be followed by Linn’s acquisition of the Berry assets.

Terms call for Berry to be converted into a limited liability company and then contributed to Linn in exchange for Linn units. This arrangement allows Linn to own Berry’s assets in a pass-through entity without any immediate payment of tax.

Linn is acquiring assets in California, the Permian basin, East Texas, the Rockies, and Uinta basin. Production for the assets being acquired is 240 MMcfd of gas equivalent, increasing Linn’s current production by 30%. Berry’s reserves are 75% oil.

The boards of Linn Energy, LinnCo, and Berry unanimously approved the transaction, which remains subject to the approval of Berry and LinnCo shareholders as well as the unitholders of Linn Energy. The transaction also hinges on customary closing conditions, including antitrust clearance.

Plans call for the combined company to be based in Houston. LinnCo previously was created to enhance Linn Energy’s ability to raise additional equity capital to execute on its acquisition and growth strategy.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...