In 2003, oil industry entrepreneur Michael Linn set out to build an oil and gas empire of his own. That led to the formation of Linn Energy. From the very beginning, the company was focused on the exploration, drilling and production of oil and natural gas. Most of its operations were and are maintained in the states of Texas, Oklahoma, Louisiana and Kansas. This is a privately held entity with Mike Linn as its primary investor.
After three years as a private entity, Linn Energy went public in 2006, offering its shares through an IOP. The funds raised allowed the company to begin a series of acquisitions that would drastically increase the company’s net worth and capitalixation. The company’s largest acquisitions were the $1.2 billion purchase of the holdings of BP in the Houston Natural Gas Area. The purchase included 600,000 acres, upon which sat 2,400 operating wells and a gas processing plant.
The next acquisition occurred in 2013 with the $4.2 billion purchase of Berry Petroleum. Six months after the Berry acquisition, Linn Energy would acquire a $525 million stake in the robust Permian Basin. The final material acquisition took place in 2014 with the purchase of the assets from Devon Energy for $2.3 billion. The company suffered great financial issues with the drop in oil prices in late 2015. It forced the company into bankruptcy where the company was reorganized and taken private.
Today, Linn Energy operates out of its home base in Houston, Texas. The company’s 1,760 employees (2015) are led by Mark E. Ellis, CEO, David B. Rottino, EVP and CFO and Arden L. Walker, Jr., EVP and COO. For the fiscal year ended in 2015, the company reported operating revenues of US$2.883 billion, an Operating loss of -US$1.567 billion and a Net loss of -US$1.569 billion.