LINN TO SELL WASHAKIE PROPERTIES FOR $200M,
INCREASES SHARE REPURCHASE AUTHORIZATION
Linn Energy Inc. has signed a definitive agreement to sell its
interest in properties located in Wyoming to an undisclosed
buyer for a contract price of $200 million, subject to closing
adjustments. The board of directors has also authorized an
increase in the previously announced share repurchase program
from $200 million to a total of $400 million of the company’s
outstanding shares of Class A common stock.
The properties to be sold consist of approximately 163,000
net acres in the Washakie Field in Wyoming with second quarter
net production of approximately 66 MMcfe/d, proved reserves
of ~226 Bcfe and proved developed PV- 10 of approximately
$102 million (Proved developed reserves are as of year-end
2016, rolled forward to the effective date of August 1, 2017 and
updated with pricing of $3.00 per MMBtu for natural gas and
$50.00 per bbl for oil. PV- 10 represents the present value,
discounted at 10% per year, of estimated future net cash flows.
The company’s calculation of PV- 10 herein differs from the
standardized measure of discounted future net cash flows
determined in accordance with the rules and regulations of the
SEC in that it is calculated before income taxes with the pricing
and timing assumptions noted). Annualized field level cash
flow on these properties is approximately $35 million (annualized
field level cash flow calculated from actuals over the past eight
months (January 2017 through August 2017), which does not
include estimated annual general and administrative expense
of ~$4-5 million. For the fourth quarter of 2017, the company
had budgeted approximately $3 million of capital for the
The sale is expected to close in the fourth quarter of 2017
with an effective date of August 1, 2017. This transaction is
subject to satisfactory completion of title and environmental
due diligence, as well as the satisfaction of closing conditions.
Jefferies LLC acted as sole financial advisor and Kirkland & Ellis
LLP as legal counsel during the transaction.
AMPELMANN PARTNERS WITH SEAQUALIZE
Ampelmann has partnered with Seaqualize, a Dutch marine
motion technology innovator, to collaborate on the development of its latest S-type gangway. Ampelmann develops and
manufactures motion compensated offshore access systems
and its latest gangway solution, the S-type, is designed specifically to be fully integrated into large, high speed vessels
and dedicated to long-term crew change operations.
The S-type is designed to safely compensate the challenging
motion characteristics of these vessels when in dynamic positioning alongside the platform.
The full-scale prototype is funded by a subsidy of the Dutch
Ministry of Economic Affairs. While targeted predominantly
towards the crew change market, the offshore wind market will
also hold opportunity for this new generation of gangway, due
to the reduction in power requirements and weight.
Production is due to start on the S-type in early 2018. In total,
the cost of operators using the system will be around 30%
cheaper than helicopters. For the global oil and gas market
where volume of crew is high and the sea state can be severe,
the S-type can continuously transfer 50 people and luggage
in five minutes in significant wave heights.
LOVELL MINNICK AND TORTOISE MANAGEMENT
TO ACQUIRE TORTOISE
Tortoise Investments and Lovell Minnick Partners have signed
a definitive agreement for a buyout of Tortoise. Terms of the
private transaction were not disclosed. As part of the transaction,
ongoing management and employees are expected to increase
their ownership of Tortoise. Employees will retain a significant
equity interest, with many investing additional capital alongside
Lovell Minnick, who will purchase the equity stake held by
Mariner Holdings and retiring co-founders of Tortoise. Tortoise
will maintain its independence and autonomy with its brand,
investment processes and day-to-day portfolio management
remaining unchanged. Members of Tortoise’s senior management and its portfolio managers have signed long-term employment agreements to remain with Tortoise. Three co-founders, Zachary Hamel, Kenneth Malvey and Terry Matlack, will sell
their remaining interest in Tortoise and retire from Tortoise
Ampelmann and Seaqualize will collaborate on the development
of the S-type gangway, designed to be integrated into large, high
speed vessels for offshore access.