Linn Energy (LINE) to Acquire Pioneer Natural (PXD) Hugoton Basin Assets in $340M Deal

Linn Energy (Nasdaq: LINE) and LinnCo, LLC (Nasdaq: LNCO) announced that LINN has signed a definitive purchase agreement to acquire assets in the Hugoton Basin from Pioneer Natural Resources Company (NYSE: PXD) for a contract price of $340 million. The assets are currently producing approximately 40 MMcfe/d, approximately 60 percent of which is natural gas, with a shallow base decline of approximately six percent. Total proved reserves are estimated to be approximately 340 Bcfe (approximately 95 percent PDP). The asset package is comprised of approximately 235,000 net acres, all held by production, with approximately 1,200 producing wells. LINN has identified 180 future drilling locations and 150 recompletion opportunities. The Company anticipates the acquisition will close in the third quarter of 2014 with an effective date of July 1, 2014, and will be financed ultimately through the sale of producing and non-producing acreage in LINN's portfolio.

"This acquisition further strengthens LINN's significant position in the Hugoton Basin and reinforces our commitment to the previously announced strategic portfolio improvement plan," said Mark E. Ellis, Chairman, President and Chief Executive Officer. "Following our acquisition from BP in 2012, this year's announced trade with ExxonMobil, and today's announcement with Pioneer, LINN will become the largest producer in the field and will have pro forma production in the basin of approximately 275 MMcfe/d and two natural gas processing plants with capacity of 690 MMcfe/d. We also expect this acquisition to be accretive to excess of net cash provided by operating activities after distributions to unitholders."

Expected significant characteristics of the acquisition:

• Excellent mature assets with a decline rate of approximately six percent;
• Reserve life of approximately 23 years;
• Current production of approximately 40 MMcfe/d and total proved reserves of approximately 340 Bcfe;
• Approximately 51 percent operating interest in the Satanta natural gas processing plant with capacity of 240 MMcfe/d; and
• Expected to be accretive to excess of net cash provided by operating activities after distributions to unitholders.

The transaction with Pioneer is subject to satisfactory completion of title and environmental due diligence, as well as the satisfaction of closing conditions.

Sale of Anadarko Basin Acreage

Additionally, the Company has entered into an agreement to sell its rights to the Woodford and Meramec horizons in the STACK play on approximately 26,000 undeveloped acres in the Anadarko Basin for a purchase price of approximately $90 million, subject to closing conditions and price adjustments. The transaction is expected to close in the fourth quarter of 2014 with an effective date of December 1, 2013.

The Company expects the acquisition of assets from Pioneer to be funded through today's announced sale of acreage in the Anadarko Basin and the planned sale of other producing and non-producing acreage in LINN's portfolio. Supplemental information regarding these transactions is posted at www.linnenergy.com.

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