Linn Energy buying BP Kansas properties for $1.2B

AP News
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Posted: Feb 27, 2012 5:35 PM
Linn Energy buying BP Kansas properties for $1.2B

Linn Energy LLC is buying natural gas properties in southwest Kansas from BP America Production Co. for $1.2 billion.

Linn Energy, based in Houston, is an independent oil and natural gas development company. It announced the deal for the Hugoton Basin properties on Monday and expects the deal will be completed by March 30.

Linn Energy says the deal is an entry for it into the largest conventional natural gas field in the U.S. and should provide a steady stream of cash with little capital investment.

The deal includes ownership of a natural gas processing plant. The property includes more than 800 future drilling locations.

Linn Energy said it is planning a private offering of $1.5 billion in senior unsecured notes, which are due in 2019, to help pay for the deal. The money raised from the notes offering may also be used for general corporate purposes.

Linn shares rose 3 cents to close at $37.52.