HOUSTON, Texas, Sept. 17, 2008 (GLOBE NEWSWIRE) -- Linn Energy, LLC (Nasdaq:LINE) announced today that it has terminated all of its commodity derivative contracts with Lehman Brothers Commodity Services Inc. ("Commodity Services") as a counterparty and re-hedged the same volumes at identical strike prices with another participant in its credit facility. As a result of these transactions, Lehman Brothers and its subsidiaries are not counterparties to any of Linn Energy's commodity derivative contracts and Linn Energy's overall hedging positions are unchanged. The estimated mark-to-market value that Commodity Services owes Linn Energy under the terminated commodity hedges was approximately $68 million, and Linn Energy's cost was substantially the same to enter into identical commodity hedge positions today.
Linn Energy will take all appropriate steps to recover the $68 million value of the terminated commodity derivative contracts. Consequently, Linn Energy does not anticipate that the Lehman Brothers bankruptcy is likely to have any material adverse effect upon the Company.
ABOUT LINN ENERGY
Linn Energy is an independent oil and gas company focused on the development and acquisition of long life properties that complement its asset profile in producing basins within the United States. More information about Linn Energy is available on the internet at www.linnenergy.com.
This press release includes "forward-looking statements" within the meaning of the federal securities laws. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements in this press release include but are not limited to statements about future distributions. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to financial performance and results, availability of sufficient cash flow to pay distributions and execute our business plan, prices and demand for gas, oil and natural gas liquids, our ability to replace reserves and efficiently develop our current reserves and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the Securities and Exchange Commission. See "Risk Factors" in the Company's 2007 Annual Report on Form 10-K and any other public filings and press releases.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to publicly correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.