HOUSTON, April 28, 2009 (GLOBE NEWSWIRE) -- LINN Energy, LLC (Nasdaq:LINE) announced today that it has entered into a new $1.75 billion secured revolving credit facility with a $1.75 billion initial borrowing base, with BNP Paribas as administrative agent; Royal Bank of Canada as syndication agent; and Barclays, Calyon, Citibank and Royal Bank of Scotland as co-documentation agents. The new facility extends the maturity more than three years, to August 1, 2012. The Company anticipates undrawn capacity of approximately $300 million for the balance of the year, including net cash on its balance sheet. The covenants of the new credit facility are substantially unchanged from the prior facility.
"We are delighted to close on our new credit facility, which we believe offers favorable terms in the current market and should provide an adequate liquidity position for LINN Energy," said Michael C. Linn, Chairman and Chief Executive Officer. "In light of the sustained weakness in commodity prices and the global credit markets, we believe our ability to achieve favorable terms on our new facility speaks to the relative strength of our comprehensive and long-dated hedging program and the predictable, low-risk nature of our business strategy. As of year-end 2008, we have proved reserves of approximately 1.7 trillion cubic feet of natural gas equivalent, and our current production levels are hedged approximately 100 percent for the next three years. With our conservative capital budget for 2009, and approximately $300 million of liquidity, we feel confident in our ability to continue to develop our reserve base and execute on our business plan to maximize value for our unitholders."
ABOUT LINN ENERGY
LINN Energy's mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life natural gas and oil assets. LINN Energy is an independent natural gas and oil development company, with approximately 1.7 Tcfe of proved reserves in producing U.S. basins as of year-end 2008. More information about LINN Energy is available at www.linnenergy.com.
This press release includes "forward-looking statements." 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 include but are not limited to forward-looking statements about acquisitions and the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, hedging activities, capital expenditure levels and other guidance included in this press release. 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 the Company's financial performance and results, availability of sufficient cash flow to pay distributions and execute its business plan, prices and demand for oil, natural gas and natural gas liquids, the ability to replace reserves and efficiently develop 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 Annual Report filed on Form 10-K and 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 correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.